Budget 2014: Oil and gas sector likely to continue vital role


  • Business
  • Saturday, 26 Oct 2013

THE oil and gas sector will continue to play an important role in the economy next year.

Private investment in sectors which include oil and gas is expected to increase further to RM189bil, or 17.9% of GDP.

Public investment is estimated to reach RM106bil.

In the oil and gas sector, among projects to be undertaken by Petronas include the Sabah Ammonia Urea Project (Samur) in Sipitang; the integrated oil and gas production development project in Kebabangan; the regasification plant project in Lahad Datu, Sabah; and Petronas’ Refinery and Petrochemicals Integrated Development or RAPID in Pengerang, Johor, which is the largest investment in Malaysia.

Petronas has a five-year RM300bil capital expenditure plan to reverse declining production.

The national oil company said in June that it would have to play catch-up after having spent only RM72bil, or 24%, of that amount between 2011 and January this year.

“Petronas’ five-year RM300bil capex should keep the excitement level high in a sector that is a major revenue earner,” CIMB Research said earlier this year.

An analyst concurs saying: “With the amount of ongoing oil and gas activity, there will be a continuous flow of jobs which will contribute to a robust sector.”

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
   

Next In Business News

Wall St week ahead: Fed meeting looms for stocks
After the pandemic, a wave of spending by older consumers
Out-of-control shipping costs fire up prices from coffee to toys
G7 leaders commit to raise climate finance contributions
G7 rivals China with grand infrastructure plan
FMM: RM200b stimulus plan needed for SME manufacturers
No trading for KLTM next week
CPO futures likely to experience technical correction next week
Essential economic contributors must be protected
Oil price hits multi-year highs in third weekly gain on demand recovery

Stories You'll Enjoy


Vouchers