According to CIMB Research, the current political situation in the region and record investment have resulted in Kuala Lumpur’s oil and gas stocks outperforming the FTSE Bursa Malaysia Klci Index Kuala Lumpur Composite Index by 28 per cent, gaining 34 per cent year to date on average.
Investors have been advised to ‘stay invested’ and keep alert for new developments, specifically in small field developments; downstream companies; and offshore support vessel (OSV) companies. Following the award of three risk service contracts, marginal field developments were named as a game changer in the industry.
The indications are positive for downstream too, with the Malaysian government’s Economic Transformation Programme delivering a significant enhancement to Malaysia’s oil, gas and energy sector, which accounted for 44% of the RM212bil investments committed so far.
Ken Crawford, General Manager of Aquaterra Energy Asia-Pacific, said: “It is clear that the Asia-Pacific market is continuing to flourish. Aquaterra Energy has a growing reputation as a highly respected offshore engineering partner, with particular experience and emphasis on the developing area of marginal field development. As the industry gains further momentum in the region, we will continue to draw on our knowledge and expertise in marginal field development technology acquired over many years.”