12 January 2011 03:54 [Source: ICIS news]
SINGAPORE (ICIS)--ExxonMobil Exploration and Production Malaysia (EMEPMI) and Petronas Carigali plan to invest ringgit (M$) 10bn ($3bn) in new oil and gas assets following new tax incentives announced in November last year, government website Pemandu said late on Tuesday.
“This capital expenditure commitment will be utilised to rejuvenate mature facilities and undertake enhanced oil recovery activities in the Tapis field and the Telok gas development project,” Prime Minister Najib Tun Razak said in a statement on the website.
“Located offshore Peninsular Malaysia, the Telok project is being developed under a gas production sharing contract to provide additional supplies for Malaysia's power and industrial needs and will promote organic growth of the natural gas sector,” said Najib.
Exxon’s M$10bn spending would include ventures that were announced earlier as well as the new Telok gas development project, according to a Reuters report, citing comments from an analyst.
Shell Malaysia would invest M$5.1bn on upgrading and expanding existing facilities, and building upstream, midstream and downstream facilities across the country, the report on Pemandu said.
These include a new diesel processing unit at the Shell Refinery in Port Dickson, the expansion of the Shell Middle Distillate Synthesis wax plant in Bintulu and the Gumusut deepwater development offshore Sabah, it said.
“They will be concentrating on both the production and distribution side in the hopes of making us [Malaysia] one of the main centres in Asia,” the report said, referring to the planned projects by Shell.
In addition, Dialog Group, along with the state government of Johor and Dutch logistics firm Vopak, would be developing a M$5bn independent deepwater petroleum terminal project at Pengerang, Johor, the statement on Pemandu said.
“This project will catapult Malaysia into the ranks of a regional oil storage hub. I expect significant multiplier effects from the Pengerang project to cascade to the entire economy,” Najib added.
The planned projects are part of a government initiative, dubbed the Economic Transformation Programme, to attract $444bn in investments to transform Malaysia into a high-income nation by 2020.
More details on these projects and companies' comments were not immediately available.
($1 = M$3)
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