Tuesday, November 30, 2010

PM to announce projects under ETP to boost oil and gas sector

PETALING JAYA: Prime Minister Datuk Seri Najib Tun Razak is set to announce several new developments and entry point projects (EPPs) under the Economic Transformation Programme (ETP) today which will boost the oil, gas and energy sector.

Oil and gas analysts said the announcements could either include the awarding of big contracts, discovery of new oil finds or a new oil and gas policy.

Petroliam Nasional Bhd (Petronas), the government-owned oil and gas company, did say during its first quarter results briefing last month that it was drawing up a masterplan on its potential growth areas, in line with the ETP's emphasis on the oil and gas sector.

Last week, Minister in the Prime Minister's Department Datuk Seri Idris Jala was reported to have said that Najib would announce some of the confirmed projects and provide an update on previous projects announced.

Under the overall ETP, Najib has announced eight early wins last month. Oil, gas and energy under the National Key Economic Areas (NKEAs) targets a 5% annual growth for the sector from this year to 2020. This target translates into an increase of RM131.4bil within a decade.

Under the ETP, there are some 12 EPPs as well as two business opportunities within the oil, gas and energy sector.

The first three EPPs would look at sustaining oil and gas production, which include rejuvenating existing fields through enhanced oil recovery, developing small fields through innovative solution and intensifying exploration activities.

Meanwhile, another two EPPs would look to enhance downstream growth by building a regional oil storage and trading hub and unlocking premium gas demand in Peninsular Malaysia.

Three EPPs are focused on making Malaysia the No. 1 Asian hub for oil and field services, by attracting multinational corporations to bring a sizeable share of their global operations to Malaysia, consolidating domestic fabricators and developing engineering, procurement and installation capabilities and capacity through strategic partnerships and joint ventures.

The final four EPPs look at building a sustainable energy platform for growth by improving energy efficiency, building up solar power capacity, deploying nuclear energy for power generation and tapping Malaysia's hydroelectricity potential.

The EPPs would contribute about RM47.1bil to gross national income to meet 2020 targets. An additional RM61.2bil would come from business opportunities and baseline growth.

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