Tuesday, November 16, 2010

Petronas to announce specific incentives for O&G sector, says Idris Jala

PETALING JAYA:'' The government is working closely with Petroliam Nasional Bhd to draw up incentives for industry players to optimise the nation's oil output, and in the process boost the industry and set the stage for Malaysia to emerge as a pivotal regional hub for oilfield services.

"Petronas will be announcing specific incentives for the oil and gas sector'' in due course. We will wait for them," Minister in the Prime Minister's Department Datuk Seri Idris Jala said on Tuesday, Nov 16.

"They will announce it on the right time," he told reporters after opening Schlumberger's financial hub and Asian headquarters here.

Schlumberger is a leading supplier of TECHNOLOGY [], integrated project management and information solutions to customers working in the oil and gas industry worldwide.

Idris said Petronas, as one of the top oil companies in the world, would champion and lead the development of the oil, gas and energy industry in Malaysia by sharing its experiences and technical expertise.

The presence of multinational companies like Schlumberger would certainly play an important role to boost the industry moving forward, he added.

When asked what kind of incentive companies can expect, he said it would'' very much depend on Petronas.

"Petronas work with production sharing contractors. There are specific production sharing contracts that they have given out to specific operators such as Shell and Exxonmobil and some of the contracts are expiring and some will continue.

"When a contract nears expiration, after negotiation, they will obviously announce particular incentives for particular operators when they renew the contract," he added.

Idris, who is also the Performance Management & Delivery Unit chief executive officer, said the government had agreed in principle to proceed with whatever is needed to enhance oil recovery investment and at the same time bolster more exploration activities in marginal fields.

The development of oil, gas and energy was important for the country and had been identified as one of the 12 National Key Economic Areas in the country's bid to become a high-income nation by 2020, he said. ' Bernama


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