Finance & Investing
News Services
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy


Malaysian Oil, Gas Service Firms Focus Overseas

change text size
Malaysian Oil, Gas Service Firms Focus Overseas

While Malaysia’s oil and gas services firms venturing overseas in search of business opportunities is nothing new, these operations are finally making significant contributions to the revenue than before – especially for the larger firms. The success of the larger companies in the foreign ventures has encouraged Malaysia’s small and medium sized oil and gas firms to adopt a similar approach in boosting revenue.

Strong Government Support

Oil and gas has historically played a significant role in Malaysia’s economy. The sector has been dominated by national oil and gas company Petroliam Nasional Berhad (Petronas), which was established as a result of the 1974 Petroleum Development Act. It gave Petronas responsibility for all petroleum resources in the country, including exclusive ownership rights to all domestic oil and gas exploration and production projects.

Petronas’ contribution to the government coffers underlies its importance to Malaysia. It provides about 40 percent of the state revenue via taxes and dividend, said a local credit research and advisory services provider RAM Holdings Bhd’s Group Chief Economist Yeah Kim Leng, as quoted by local news agency Bernama July 11.

The company’s dominance in Malaysia extends to both the upstream and downstream segments and led to the rise of the petroleum services industry, a development noted by the World Bank in its June 2013 edition of the Malaysia Economic Monitor.

“The vertical diversification of the oil and gas sector was driven almost single-handedly by Petronas. Diversification included building refineries, liquefied natural gas [LNG] liquefaction, petrochemical plants, fertilizer plants, shipping and retail trading,” the World Bank commented. “The oil and gas sector resulted in the creation of local oil and gas services companies, such as SapuraKencana [Petroleum Bhd], Dialog [Group Bhd] and Bumi Armada [Bhd].”

The government has been supportive of Petronas’ stewardship of Malaysia’s oil and gas sector, which has fostered a strong ecosystem of services and manufacturing companies supporting the needs of the oil and gas value chain both domestically and regionally.

In 2011, Malaysia Petroleum Resources Corporation (MPRC) was established under the Prime Minister’s Department to further strengthen the petroleum services sector. MPRC is tasked to “promote, catalyze and transform the oil and gas services sector to become stronger entities to support industry needs domestically as well as in international markets. MPRC wants to position Malaysia to be the number one oil and gas hub in the Asia Pacific region by 2017,” according to its website.


View Full Article

Cheang has covered the upstream and downstream sectors of the oil and gas industry for over a decade. Email Cheang at


Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

More from this Author
Cheang Chee Yew
APAC Editor | Rigzone
 -  Indonesia to Fill Top Posts in Ministr... (Mar 31)
 -  New Zealand Offers More Offshore Areas... (Mar 30)
 -  SapuraKencana's FY2015 Net Profit Up 3... (Mar 24)
 -  Sinopec's Operating Revenue Falls to $... (Mar 23)
 -  Shell, Statoil, Petronas Gain Explorat... (Mar 18)
Most Popular Articles
From the Career Center
Jobs that may interest you
Maintenance Supervisor
Expertise: Engineering Manager
Location: Louisiana, 
Technology Manager
Expertise: Project Management
Location: Houston, 
Pipeline Project Manager
Expertise: Project Management
Location: Anchorage, 
search for more jobs