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Malaysia's Oil and Gas Industry

Oil and gas industry has been started in Malaysia since 1910 with the discovery of oil at Sarawak.
Starting from that time oil and gas industry in Malaysia keep growing and created opportunities for many
oil majors companies to invest in the upstream and downstream sectors of the industry and ultimately
provides ample employment opportunities and skills transfer to thousands of Malaysians.
In Malaysia, our oil and gas industry is divided into 3 standard sectors. First is upstream oil and gas
which mostly covered the exploration and production phase. Second is midstream and infrastructure
including transportation and storage manage the movement of crude oil from oil fields to refineries
and/or to storage area. Usually we use tanker and pipelines as the primary modes to transport crude oil.
The last sector in oil and gas industry is downstream oil and gas and it mostly involves in refining,
distribution trading and marketing.
There are few agencies developed by the government of Malaysia to control the policy as well as increase
the production of oil and gas industry. For example like Economic Transformation Programme (ETP) to
elevate the country to developed-nation status by 2020, Performance Management and Delivery Unit
(PEMANDU) to oversee the implementation and assess the progress of the ETP and Malaysia Petroleum
Resources Corporation (MPRC) to provide direction and advice to domestic and global oil and gas
companies to maximize their investment and growth opportunity.
In oil and gas industry, there are major players such as Petroliam Nasional Berhad. (PETRONAS) that is
responsible to develop according to commercial requirements while taking into consideration the socioeconomic needs of the country. The upstream exploration and production activities are usually run by oil
and gas operator like PETRONAS Carigali Sdn Bhd, Exxon and Shell. Meanwhile for
services/contractors of oil and gas, company like Halliburton, Baker Hughes, and Petrofac are responsible
to supply of services in the upstream operations. There are also few associations developed to provide a
forum for discussion on issues of common interests among the oil and gas players such as Malaysian Oil
& Gas Service Counsel (MOGSC) and Malaysia Gas Association (MGA).
In conclusion, oil and gas have been the major contributors to Malaysias development and become one
of the main industries that support Malaysias income.

Prepared by: NUR ATIQAH BINTI AB SALAM (2013822728)

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