Maritime Jobs Online

Maritime Jobs Online

The following is an extract from Bernama.com

KUALA LUMPUR, Oct 2 (Bernama) -- More jobs in the oil and gas industry will resurface in the second half of this year as oil price has started to stabilise, coupled with improving demand for exploration and production activities recover, says MIDF Research.

"For the year todate, about RM4 billion worth of contracts have been awarded to local oil and gas players. We believe the amount will continue to rise in the fourth quarter of this year," it said in a research note Friday.

Some of the expected key projects that may be awarded to local players are Sabah Oil and Gas Terminal, proposed refineries in Yan, Kedah, Manjong, Perak, Asian Petroleum Hub at the Port of Tanjung Pelepas in Johor and Petronas' shallow water offshore installation umbrella expected to be announced in the fourth quarter of this year.

Moving forward, MIDF expects fourth quarter earnings to improve on the back of rising exploration and production activities as oil price had started to stabilise at US$60-US$70 per barrel.

Despite reports of national oil companies and oil majors reducing their capex budgets, MIDF said most oil players are committed to their budgets.

"Nevertheless, those who have reduced their budgets, spending are still at the least, about 50 per cent from their original budget. Therefore, jobs are still available but not as aplenty as before," MIDF said.

It said hard hit leading segments in the oil and gas industry are shipbuilders, refineries, fabricators, engineering, procurement, construction and commissioning players.

MIDF also estimated Malaysian consumption demand was growing at four per cent whilst production growth was about 2.7 per cent.

"It is therefore vital for Petronas to continue developing the domestic oil and gas segment to maintain the nation's strategic reserve replenishment ratio," it said.

Malaysia's current reserve replenishment ratio stands at 1.80 times for 2009, with current reserves of 20.18 billion barrels of oil equivalent.

MIDF said most key players in the oil and gas sector such as Dialog, Sapura Crest and Kencana are shifting their reliance to foreign revenue.

"They're driven by more job opportunities, lucrative margins, opportunity for technology tie-ups and expansion of regional presence," it added.

-- BERNAMA