Petronas to scale down exploration

Caroline PELAEZ-HUE - 19/05/15

PETRONAS is scaling down its exploration activities by June in view of the soft crude oil prices, while maintaining its current production level. Petronas will be scaling down its exploration activities. Many companies who are involved in drilling have been notified that it (Petronas) will stop drilling activities come June this year. Petronas will not retract current jobs that are contracted with the national oil firm, but it will not start any new drilling jobs for the time being.

In February, The Edge Financial Daily reported that Petronas was likely to postpone the second phase of the Balai Cluster marginal field risk service contract until crude oil prices recover to above US$80 (RM287.20) per barrel. 

As at last Friday, Brent crude was trading at US$65 per barrel while Tapis was at US$71 per barrel.

If the exploration halt drags on for long, it will be a major concern for drilling companies with assets nearing contract expiration, as well as those who have new assets under construction that are almost completed but yet to be contracted. Drllers like drillers like UMW Oil & Gas Corp Bhd (UMW-OG), Perisai Petroleum Teknologi Bhd or other oilfield service providers such as Scomi Energy Services Bhd, Deleum Bhd and Uzma Bhd may see a spillover effect from a scale-down in exploration activities.

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Welcome to the French Trade Commission – Business France office in Malaysia! “Business France is the national agency supporting the international development of the French economy, responsible for fostering export growth by French businesses, as well as promoting and facilitating international investment in France. It promotes France’s companies, business image and nationwide attractiveness as an investment location, and also runs the VIE international internship program. Founded on January 1, 2015 through a merger between UBIFRANCE and the Invest in France Agency, Business France has 1,500 personnel, both in France and in 70 countries throughout the world, who work with a network of public- and private-sector partners.” As a member of the French diplomatic network in Malaysia, Business France’s three missions are: - Fostering export growth by French businesses. - Promoting and facilitating international investment in France.

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