This report profiles Malaysia oil and gas industry, discussing market trends through 2014 and outlook for 2015 and beyond. The report also highlights leading players in the sector including PETRONAS Dagangan Berhad (PDB), PETRONAS Gas Berhad (PGB) and Gas Malaysia Berhad (GMB).

The oil and gas industry has played a significant role in the social and economic development of Malaysia. The country remained as the world’s second largest LNG exporter in the world. Gas exports acts as a major foreign exchange generator for the country. However, reduced production of oil and increasing domestic consumption of gas has suppressed the export growth of gas in the last few years.

The annual average price of crude oil grew steadily during 2006-08. In FY10, it recorded an unprecedented decline of 17% due to the global economic recession. Since then, it underwent a rapid growth rising by 60% to USD 105/bbl in FY12. In the first half of FY15, it saw a steep decline of 20% y/y, which led to lower growth in production value across segments.

Key Points:

• Domestic oil and gas industry (mining and production) accounted for around 13% of the country’s total GDP as of 2014.

• As of December 2013, Malaysia had total proven reserves of 5.9 billion barrels (Bbbl.) of crude oil.

• After August 2014, crude prices saw a steep depreciation. The lowest price of USD 47.4/bbl was recorded in January 2015. During 1HFY15, the average price of crude oil reached USD 56.1/bbl.