CIMB Research reviewing premimum valuation for oil and gas sector

The key points are Petronas will cut its capex by 15%-20% next year. Petronas’s contribution to the government’s coffers will drop 37% in 2015, assuming that the Brent crude oil price settles at US$75 a barrel in 2015. 

Petronas will not proceed with new marginal field contract awards unless the oil price is above US$80 a barrel. The breakeven point for a marginal field is US$65 a barrel.