Malaysia is expected to become the only net exporter of oil in AsiaPacific by 2014 although its proven oil reserves is declining, Malaysian Exhibition and Services Sdn Bhd (MES) general manager Alun Jones said.
Quoting Business Monitor International’s (BMI) latest Malaysia oil and gas outlook, he said this London-based independent information provider had projected Malaysia will account for 1.81 per cent of Asia Pacific’s oil demand by 2014, while providing 8.36 per cent of supply.
“Regional oil imports are growing rapidly because demand growth is outstripping the pace of supply expansion. The principal importers will be China, Japan, India and South Korea. By 2014, the only net exporter will be Malaysia,” he said in an interview with Business Times and Berita Harian in Kuala Lumpur to announce the Subsea Asia 2010 conference and exhibition scheduled for June 10-11. The event is jointly organised by MES and Subsea UK.
Jones also said according to 2008 BP statistical energy survey, Malaysia has proven oil reserves of 5.357 billion barrels as at the end of 2007.
He said despite its active exploring in offshore areas and several new projects due to come onstream in the next several years, it is expected that Malaysia’s oil production will fall in years to come as its proven oil reserves decline.
Jones said Malaysia is currently driving the region’s subsea industry and has been at the forefront of this development through Petroliam Nasional Bhd (Petronas), which is committed to exploring offshore areas especially deepwater zones that require substantial technical expertise.
With a number of major projects currently under way, he said Malaysia continues to strengthen its position as the region’s hub for subsea knowledge and excellence, with many of the world leading oil companies having set up their regional bases within the country.
As such, the Subsea Asia 2010 conference and exhibition will serve as a platform to disseminate information pertaining to the subsea industry in Malaysia as well as its outlook and also to showcase the latest and sophisticated technology used in the industry.
A total of 15 companies are participating in the Subsea Asia 2010 exhibition from 18 countries, including Austria, Australia, India, Indonesia, France, Italy, Norway, the UK, the US, Scotland and Singapore.
Major international and local companies participating in the exhibition include Framo Engineering, Subsea 7, Technip, Roxar, IEV Group, Haliburton, Expro Group, Matrix, Magnum Subsea and BJ Services.
Apart from individual companies’ booth, Jones said there will be two national pavilions – the UK and Norway, of which the latter is participating for the first time as a country pavilion.
Norway ambassador to Malaysia, Arild Braastad, said the Norwegian companies are participating at the Subsea Asia 2010 exhibition to showcase their latest products and services in the industry.
“We have been in the oil and gas industry for about 40 years and our companies have grown to become internationally recognised. This is one of the reasons why we are participating in this Subsea Asia conference and exhibition,” he said.
A total of 10 Norwegian companies are participating in the Subsea Asia 2010 exhibition. They are DNV, Jotun, Roxar, SPT Group, Vector International, XAIT, AGR Group, Framo Engineering AS, IKM Subsea and TCO.
Meanwhile, Technip GeoProduction (M) Sdn Bhd sales manager for subsea division Christophe Dieumegard said Technip’s participation in the conference and exhibition provides a good opportunity for the French company to promote its technologies and the company in Malaysia.
“Our participation will mainly focus on subsea because Technip is a large engineering project management and construction company that specialises in oil and gas, with more than 23,000 people employed worldwide,” he said.
In Malaysia, Technip has about 1,600 staff, with Kuala Lumpur serving as the company’s head office for Asia Pacific.
“Only two years ago we moved our subsea office from Australia to Malaysia because we want to be part of the deepwater hub that Malaysia aspires. We want to be part of this dynamic effort,” he said.
Having made its foothold in Malaysia some 28 years ago, Dieumegard said the company will continue to invest in Malaysia to tap on the booming oil and gas market.
“Our latest and major investment in the country recently was the construction of the E120 million flexible-making plant in Pasir Gudang, Johor.
“Construction work which began in 2008 has been completed and the plant is currently ready for operation. These pipes are not solely produced for the Malaysian market but also abroad,” he said. The company is expected to deliver its first pipe supply contract to a Chinese company by February next year.