Malaysia: Deepwater oil one-third of total output by 2011

Deepwater oil production is expected to contribute about one-third of total oil production in Malaysia by 2011.

Aseambanker senior analyst (equity markets) Liaw Thong Jung said the oil from the existing continental fields in shallow waters of the country could only last for 15 years.
“This is why Malaysia has to turn to the deepwater to explore for oil,” he said.

Liaw added that Petronas spent about RM14.7bil for oil deepwater exploration activities last year.

He said over the next five years, there would also be numerous new onshore oil projects being carried out to complement the deepwater oil exploration and production projects.

Liaw said service providers to the oil industry could expect important spill over economic benefits from the new development in the oil industry.

He added that the service providers to the oil industry should enjoy sustained growth, as the demand increased for offshore equipment such as rigs, vessels, platforms and services such as drilling fluids, drilling waste management, catalyst handling services, and maintenance.

The Star