The Oil, Gas and Energy (OGE) NKEA seeks to nurture the development of Malaysia’s downstream sector while ensuring constant production levels and exploration of alternative energy. This is in support of an industry that represents among the country’s key engines of economic growth.
One of the highlights of 2012 for the OGE industry was when under EPP 3, which is aimed at intensifying exploration activities, Petroliam Nasional Bhd (PETRONAS) in November recorded first oil production from the Gumusut-Kakap field, located offshore Sabah.
Representing Malaysia’s second deepwater development, this is a major achievement within the Malaysian oil and gas industry following a 14-month planning and execution process. Production is expected to reach a maximum of 25,000 barrels per day (bpd) upon ramping up of the two wells in Gumusut-Kakap.
Another development of great significance within this NKEA was SapuraCrest Petroleum Bhd and Kencana Petroleum Bhd’s merger in May to create the world’s fifth-largest integrated oil and gas services firm and to compete more effectively with regional companies for projects.
In a deal worth more than RM10 billion of market capitalisation, the merged firm, SapuraKencana Petroleum Bhd, brings together SapuraCrest’s experience in transportation and installation contracts and Kencana Petroleum’s expertise as fabricators.