Fixing of floor price for oil bodes well for Malaysia


UOB Kay Hian Research analyst Kong Ho Meng said while there have not been any large tenders awarded by Petroliam Nasional Bhd (Petronas), it expected contracts to be rolled out from next year. In Malaysia, he said, about 11% or about 35 of the over 300 platforms have been operating for over 40 years, and more than 200 wells have already been identified to be plugged and abandoned.

PETALING JAYA: Amid an uncertain oil and gas (O&G) environment, it would seem that a floor price for crude oil has been fixed at US$60 per barrel since the collective agreement by global oil producers to cut supply.

This development bodes well for Malaysia, both the government and local O&G industry players, as it signifies some clarity ahead.

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Oil , gas , Malaysia , Government , Vienna , floor price , Petronas , Budget ,

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