Exxon, Shell to Invest $5B in Malaysia
KUALA LUMPUR (Dow Jones Newswires), Jan. 11, 2011
ExxonMobil E&P Malaysia with Petronas Carigali, plans to invest over MYR10 billion ($3.2B) in new oil and gas assets in the country, the Malaysian government said in a statement Tuesday.
Shell Malaysia will invest MYR5.1 billion ($1.6B) in various projects to upgrade, expand or build facilities in upstream and downstream activities in the country while Malaysia's oil and gas services provider, Dialog Group Bhd., will lead a consortium including the Johor state government and Vopak to develop a MYR5 billion deepwater petrol terminal in the state.
These planned developments are part of the Malaysian government's initiatives to attract $444 billion in investment by 2020 to transform the country into an industrialized nation.
Malaysia, which produced 657,700 barrels of oil and condensates per day as of Jan. 1, 2010, is expected become a net oil importer by 2013.
In November, Prime Minister Najib Razak unveiled a package of tax incentives to boost oil production from mature fields, including cutting tax rates for the development of new oil and gas resources and enhancing recovery from depleted fields.
The tax incentives will cost the country MYR8 billion in foregone revenues for state oil corporation Petronas, which accounts for almost half of all government revenues, Najib said then.
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