Wednesday January 2, 2013
PETALING JAYA: Petroliam Nasional Bhd’s US$60bil (RM186bil) capital expenditure over the next five years will underpin the oil and gas sector in the country with more offshore activities and contracts expected to be awarded in the second quarter.
The exploration and production (E&P) activities would continue and be viable, based on the current oil prices, according to RHB Research Institute.
It also expected the three-pronged strategy by Petronas would pinch the decline in production.
The strategies include enhancing oil recovery (EOR) at existing oilfields, development of marginal oilfields and adding its resource base.
Bloomberg data showed that the US light crude oil 8 sen lower at US$90.72 per barrel and Brent down by 48 sen at US$110.14 per barrel at 5pm yesterday.
OSK Research Institute said despite year-to-date crude production dropping 58% due to stop-order in Sudan, by enhancing its E&P activities, Petronas was targeting for long-term sustainable growth.
It also expected the supply for oil to surpass the demand level but oil price would remain steady about US$80 per barrel for next year due to the stimulus programme in western countries and tension in the Middle East. Petronas recorded seven discoveries of oil and gas in Malaysia for third quarter of 2012 – the Bidara, Gambir RDR, Kurma Manis-1, Berangan-1, Tembakau-1, Kluang North-2 and Tukau Timur Deep-1. Total discoveries so far in the year-to-date period stands at 21 new discoveries.
In December, Petronas awarded a production sharing contract for Block SB311 offshore Sabah (PSC) to ConocoPhillips Sabah Gas Ltd (40%),Shell Energy Asia Limited (30%) and Petronas Carigali Sdn Bhd (30%).
Furthermore, the company has completed a US$5.3bil takeover of Progress Energy Resource Corp.
Petronas year-on-year’s net profit for its third quarter ended Sept 30 2012 declined by 21.95% to RM12.44bil while revenue dropped to RM68.3bil from RM71.8bil.
According to the company, the revenue for the third quarter declined primarily due to lower sales volume and the lower prices of crude oil, adding that crude oil sales volume decreased.