Malaysian Investment Development Authority (MIDA) has already RM 1.8 billion worth of investments in Oil and Gas (O&G) related projects in the pipeline for just the first three months of 2018.
Its chief executive officer, Datuk Azman Mahmud, said this shows that Malaysia continues to be a strategic location for the O&G industry players.
“The development of Pengerang Integrated Petroleum Complex (PIPC) will attract future investments in the industry, particularly to meet the demand for inspection, maintenance, repair and overhaul as well as plant turnover services for a large number of plants, machinery and equipment at PIPC.
“We are encouraged that Malaysia continues to host many prominent international and local O&G companies that have made substantial investments here. Among the global players include TechnipFMC, Aker Solutions, Halliburton, Cameron International and Schlumberger.
“These companies have brought with them suppliers and subcontractors to invest in Malaysia and have contributed towards building up the local supply chain of Malaysian small and medium enterprises,” said Azman.
He added many domestic players are engaged in outsourcing projects such as fabrication, machining & welding, logistics, insurance and manpower supply.
Malaysia has also benefited in terms of technological progress and skills development,
He said last year, MIDA approved another project for the Pengerang Integrated Complex (PIC), a highly integrated refining and petrochemical complex that is set to highlight Malaysia's status as a global leader in the petrochemical products industry.
It is part of the 22,000 acres PIPC with current approved investment of USD27.2 billion.
“Once completed, PIC will provide 4,000 job opportunities for the country. MIDA continues to work with its stakeholders to develop the infrastructure and support facilities in the O&G services sector.
“This includes the Tok Bali Supply Base that is expected to complement other supply bases in the country and offer a cost advantage for exploration activities in the East Coast offshore. Langsat OSC is another example and will be offering an integrated industrial hub for O&G players to undertake manufacturing and services activities such as fabrication yard, factories, warehouses and open storage yard.”
The Government is also encouraging local industry players to invest more in technology and innovation to bolster their competitiveness and sustainability to reduce operating cost, improve efficiency and increase performance and this includes remote monitoring, centralization of certain job functions, and predictive analytics for their operation.
“Digital transformation is a catalyst for the future of the O&G industry and it has an important role in improving business performances in the field.
“This transformation is all about making things better, as companies gain in efficiency, value, security, and reduces its impact on the environment.
“It will create new opportunities, and companies that do not shift will miss out on these new opportunities,” added Azman.
Malaysian Investment Development Authority (MIDA) held their Country Session at OTC Asia 2018, themed ‘Energy Industry: The New Direction’ which was held at the Kuala Lumpur Convention Centre.
During this session, it was highlighted that Malaysia has the potential to be at the forefront of Oil and Gas (O&G) industry’s digital development by attracting the best global talent.
The Country Session was moderated by Cory D’Abreo Abdullah, chief executive officer of International Investor and featured panellists from PETRONAS, ExxonMobil Exploration and Production Malaysia and DNeX Oilfield Services who are leading experts in the industry.
MIDA’s engagement in OTC Asia 2018 is part of its promotional efforts to provide first-hand information and insight on Malaysia’s plans to be the Asia Pacific hub for the O&G industry.