Petronas Eyes Being a Global Player

Petroliam Nasional Bhd's (Petronas) will be increasing capital expenditures and plans to invest RM300billion ($100 billion) over the next five years in growing production and reserves.

Money spent to purchase oil and gas reserves internationally to improve the quality of such assets abroad will be in addition to its planned capex schedule. Capital investments last year amounted to RM34.9bil ($11.6 billion)

In announcing year end results, President and CEO Datuk Shamsul Azhar Abbas said profits would be reinvested to produce more natural gas offshore Malaysia, with the company expected to announce soon the development of fresh gas fields offshore Peninsular Malaysia.

Shamsul said the company was keen on growing its unconventional oil and gas reserves and was prepared to consider oil sands deposits.

“We need to look at unconventional energy and that's being explored.”

Petronas recently paid RM3.32billion ($1.1 billion) for a 50% share of Progress Energy's shale gas reserves in Canada.

In terms of securing new unconventional gas deposits, Shamsul said a study on coal bed methane (CBM) was being done in Kalimantan. Petronas is proceeding to sign an agreement to explore CBM in China and is studying prospects for new energy reserves in Myanmar.

“We remain open to further acquisition,” he said on the likelihood of acquiring new shale gas reserves.

“It's catching up time for us to be a global player,” he said.