The Oil and Gas Sector

Like most oil and gas producing countries, Malaysia’s investments in the upstream sector have been softened by the low oil prices. Malaysia’s effort in boosting oil production through enhanced oil recovery, deepwater developments and marginal field development have suffered setbacks due to the current low oil prices. Several projects have been delayed due to the high project costs and projects that are technologically demanding. Despite the above, several projects that will come on stream in the coming years include:

• Hess’s North Malay Gas project, covering blocks PM302, PM325 and PM326B
• Sapura Energy’s SK310. The development will comprise a central processing platform with a 35 km gas evacuation pipeline to be tied into existing infrastructure
• Shell’s E6 Field in Block SK308. It is expected to commence production by 2019
• Rotan Field, which will involve Petronas’ second FLNG facility. The vessel is expected to be delivered by 2020
• Petronas’ Kumang cluster development in Block SK306. Phas 1 is developing F9, Kumang and Kanowit fileds and Phase 2 will develop A3, F11, F12, F22, Selar Marine and Bunga Pelaga
• Petronas’ K5 sour gas project. Several foreign contractors have submitted the engineering, procurement and contruction of MOPU that it aims to use at K5
• Mubadala’s Pegaga gas field project, which is in Block SK320. The project will be developed with a CPP that will serve as a hub for future tie-backs with potential fields like M5, Sirih and Sintok. Start-up expected in 2022
• Petronas’ Bokor Phase 3. This EOR project involves one CPP and 3 wellhead platforms. Start-up expected in 2021