Malaysia to leverage on infrastructure to be energy hub

Najib visiting the exhibition at the Offshore Technology Conference Asia. - Bernama

KUALA LUMPUR: Malaysia has hard and soft infrastructure that can be utilised to its full potential to position the country as a regional energy hub, say Prime Minister Datuk Seri Najib Tun Razak.

“We have an active and robust domestic oil and gas industry which is supported by significant resources.

“We also have progressive and supportive policies that are set by the Government including proven technical capability,” he said in his opening speech at the Offshore Technology Conference Asia.

He noted that the country had a strong regulatory and legislative framework to safeguard the interests of commercial investors.

“We are also requisitioned to be the regional hub for the oil and gas energy, equipment fabrication and services. We believe that this country is the ideal base for businesses to expand their Asian oil and gas operations,” he said.

Najib noted that Malaysia was projected to spend about US$60bil (RM198bil) over the next five years on upstream oil and gas capital expenditure.

Highlighting the role and importance of innovation in the oil and gas industry, he said that this had enabled continued growth in the industry in recent years.

“Petronas has forged ahead, thanks to the innovation of engineers in developing new extraction methods and identifying new fields. Malaysia’s domestic production grew by 1.8% in 2012, a further 2.1% last year and I do expect it will grow again this year,” Najib said.

He said technology and human capital development were the keys that unlocked new sources of energy – Malaysia’s energy future.

He also noted that the region’s production of natural resources was declining, with certain traditional oil exporters soon becoming importing nations.

“The era of easy oil is over and this has prompted the oil producing nations of Asia to embrace the new era of innovation to find new ways of ensuring our existing reserves are fully developed.

“Unconventional extraction is fast becoming the norm: this used to be deemed to expensive or too challenging,” he said.