MIDF Research has maintained its 'overweight' recommendation on the oil and gas sector as it awaits further details on the entry point project (EPP) initiatives.

In a research note today, MIDF said the eight EPPs identified by thePerformance Management and Delivery Unit were positive as they were meant toprovide the impetus for a more robust development on the domestic oil and gas sector.

'Most of the companies under our oil and gas sector coverage are oil field services contractors that will most likely benefit from the increased activities particularly in the upstream oil and gas sector.

'The oil and gas initiatives which pertain to the upstream and downstream growth of the domestic oil and gas sector are mostly ongoing but nonetheless are now given more prominence with their inclusions in the EPP,' it said.

The research house, however, said the proposed strategic partnership and consolidation of the domestic fabricators and the efforts to attract global oilfield services companies to Malaysia were novel EPP ideas.

'They will help elevate the level of competencies and competitiveness of the local oil field service and equipment sector and turn Malaysia into the regional hub for oil field services,' it said. - Bernama