Sign up | Log in



Home  >>  Daily News  >>  Malaysia News  >>  Energy  >>  Ageing fields blamed for decline in Malaysia oil output

NEWS UPDATES 9 June 2009

Ageing fields blamed for decline in Malaysia oil output

Related Stories
May 11, 2009
Brunei signs power supply deal with Malaysia

April 20, 2009
Malaysia's state refiner inks Oman gas deal  

March 18, 2009
Acergy-SapuraCrest J-V in $825m offshore job in Malaysia

February 8, 2009
Malaysia to cut power tariffs starting March 1 

January 5, 2008
Malaysia’s power firm seeks nod for new plant 

December 28, 2008
Malaysia: Bids called for Petronas Gas’ new plant 

Malaysia's crude oil output has fallen to 550,000 barrels per day (bpd) this year from 600,000 bpd in 2008, as ageing fields took their toll after years of steady production levels, Reuters quoted Petronas' chief as saying Monday.

Overall output for both crude oil and condensates fell to 650,000 bpd versus 700,000 bpd last year, Mohd Hassan Marican, Petronas Chief Executive, told Reuters in an interview.

"One needs to accept that (the domestic oilfields) had reached maturity, especially the continental shelf," Hassan said.

Malaysia was forced to reduce term sales of its flagship Tapis crude for this year, due to the falling output and growing domestic demand, trading sources have said.

"Typically this problem of aging oilfield falling is very widespread. It impacts on non-OPEC regions in general, and it makes it very difficult to raise crude production," said John Vautrain, vice-president in Singapore of Houston-based Purvin and Gertz.

Output of the flagship Tapis, used as a benchmark for Asia-Pacific light sweet crudes, has fallen to around 200,000 bpd now from its production of around 300,000 bpd for the past few years, sources close to the development have said.

"For 2009, the reserves replacement ratio for the domestic environment as a country will be less than one... but it doesn't make sense just to look at it year on year," Marican added.

New fields are due on stream in coming years, most notably Shell-operated Gumusut oilfield, expected to come on line in late 2010 and to ramp up output to 150,000 bpd.
"For oil, it is difficult (to maintain a reserves replacement ratio of around one). Our discoveries are more gas than oil, especially in offshore Sarawak, " Marican added.

Oil and gas finds will help Malaysia remain a net exporter for the time being, Vautrain said.

"Even 650,000 bpd is a lot of crude for a country that size. I don't expect Malaysia to be a net importer any time soon," he said.


Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below 





1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand