Malaysia Petroleum Management
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The strength and openness of Malaysia’s economy provides a solid foundation for foreign investments to grow and flourish. Malaysia’s economic growth to remain resilient amidst global economic challenges. The World Bank forecasts GDP growth to remain robust at around 4.6% in the coming years, while ranking Malaysia 12th overall in the 2020 Doing Business report. The World Economic Forum in 2019 ranked Malaysia 27th globally in competitiveness.
An open economy, Malaysia continues to be regarded as an investment destination of choice. Despite global uncertainties, Malaysia is expected to continue benefitting from a robust pipeline of activities and investments in the years to come. Supportive government policies, stable pro-business environment, an educated workforce, well-developed infrastructures, and good quality of life continue to make Malaysia a competitive and attractive investment destination of choice, as attested time and again by global institutions.
The established presence in Malaysia of many of the world’s leading oil and gas multinationals serves as a testament to the enduring potentials of Malaysia’s oil and gas resources. Returns from Malaysian investments has supported the growth of various global players, while providing development opportunities for smaller companies.
Over the years Malaysia has observed sustained growth of investment in the E&P industry, with an astounding cumulative investment of more than RM550 billion since 1975. In 2018 alone, the industry players have invested more than RM29 billion in exploration, development and production activities in Malaysia.
GDP Growth (%)
FDI Flows into Malaysia (USD Billion)
The long term macro outlook is positive with continued rise in demand for petroleum and petroleum products in line with global economic and population growth, and relentless urbanization and industrialization. Asia is leading the world in this respect, and Malaysia’s economic vitality, central location and strategic networks gives it an edge to capitalize on these trends.
The availability of midstream infrastructures and processing facilities, as well as proximity to demand centers and growth markets in Asia will continue to enable success in monetization of discoveries. A network of more than 10,000km of pipelines links more than 350 offshore platforms with 17 floaters and 13 onshore terminals, within range of supply bases and helicopter bases to support offshore operations.
Over the decades PETRONAS has taken the lead in ensuring demand for hydrocarbons produced in Malaysia, including establishing refining and/or petrochemical complexes spanning 7 Malaysian states, and building interstate gas pipelines to link with industrial and power sectors across Malaysia and into Singapore. Pipeline linkages with Indonesia, Thailand and Vietnam further enhance the robustness of the market for hydrocarbon produced. The PETRONAS LNG Complex in Bintulu with a production capacity of 29.3 million tonnes per annum is among the world’s biggest LNG production facilities, and further complemented by PETRONAS Floating LNG Satu, the first floating LNG facility in the world.
Malaysia’s Oil & Gas Infrastructure
(map not to scale)
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