Sri Lanka and Malaysia will sign a strategic memorandum of understanding on Thursday in the oil and gas sector which will strengthen relationships between the two countries and fuel new investment opportunities.
This will be the first oil-and-gas related memorandum of understanding signed between key government agencies of Sri Lanka and Malaysia which is expected to pave the way for more investment and business opportunities in the oil and gas sector.
The Petroleum Resources Development Secretariat (PRDS) of Sri Lanka will sign this MoU with Malaysia Petroleum Resources Corporation (MPRC), a government agency under the prime minister’s Department of Malaysia to formalise business and investment opportunities for Malaysian companies to collaborate with their Sri Lankan counterparts in the oil and gas sector.
Malaysia’s High Commissioner to Sri Lanka Azmi Zainuddin said.”We recognise the potential that Malaysian oil and gas companies could offer Sri Lankan companies in this sector. Malaysian oil and gas companies have built their capabilities, resources, knowledge and relationships with business partners and vendors over several decades, and may help their Sri Lankan counterparts to significantly shorten their own learning cycle.
MPRC, the government gateway to these opportunities, will help Sri Lankan companies meet the requirements of this industry through partnerships and possible joint ventures in time to come,” said Saliya Wickramasuriya, director general of the PRDS.
Wickramasuriya added, “Malaysia has demonstrated that their home grown companies have the capabilities to move out from their domestic markets and to venture into the international arena, where they are now credible and reputable in the oil and gas sector. We expect Sri Lankan companies to one day do the same.”
Dr Emir Mavani, President/ Chief Executive Officer, MPRC said the MoU will create vast opportunities for current and future generations of Sri Lankans in the oil and gas industry. “The outlook of the oil and gas industry for Sri Lanka is very good; it is growing rapidly, as industrialisation and economic growth kicks in.
There will be a strong demand for skilled and talented workforce. Sri Lanka can act as a base for investors to enter the South Asian region. The demand for local infrastructure will be in Sri Lanka’s favour as new industries are created, new roads, buildings and facilities connect various parts of the island. These factors all point towards a bright future for the country’s oil and gas sector,” said Dr Emir. The MoU signed by PRDS and MPRC has also paved the way for Malaysian companies to seek possible business opportunities in Sri Lanka.
Pursuant to the MoU signing ceremony, Malco Engineering (Private) Limited of Sri Lanka has signed MoUs with two Malaysian companies, namely Energy Quest Sdn.. Bhd. and Daya Materials Bhd. to explore investments in infrastructure facilities in Sri Lanka, such as oil refinery operations, construction of power plants as well as upstream oil and gas projects and supply of services and products to the sector.
These positive developments indicate the potential areas where new investments are required and where capable Malaysian companies could offer their services and know-how in other regional markets. The Petroleum Resources Development Secretariat (PRDS) is tasked with the promotion, regulation and management of the upstream petroleum industry in Sri Lanka, and functions under the office of the President.
MPRC is an agency under the prime minister’s Department of Malaysia. It was formed in 2011, and is tasked to catalyse, transform and promote Malaysian oil and gas services sector to become stronger entities. In doing so, MPRC wants to position Malaysia to be the number one oil and gas hub in the Asia Pacific by 2017.