KUALA LUMPUR (Nov 16): Over the past two weeks, oil and gas (O&G) players publicly traded on Bursa Malaysia have been announcing awards from Petronas and its production sharing contract partners, for maintenance, construction and modification (MCM) as well as hook-up commissioning (HUC) services.

While the value of the contracts for 18 packages which are up for grabs has not been disclosed, industry players peg a total contract value of anywhere between RM8 billion and RM10 billion, or put another way about RM500 million per contract.

While the sentiment around the MCM and HUC players has picked up, the Malaysian Oil, Gas and Energy Services Council (MOGSC) estimates the total value of jobs, including those for subsea and offshore support vessels, to be in the region of RM30 billion, which means that many other players, not just MCM and HUC, stand to benefit from these awards.

Among the key segments slated to benefit is the offshore support vessel, or OSV, segment.

In this week’s cover story, The Edge analyses the impact of the recently awarded jobs on the key players involved in the sector and looks at the OSV players likely to benefit from these awards.

The Edge also looks at the key underlying factor behind all O&G contracts and the profitability of the sector — oil prices, and what sort of impact recent developments could have on the price of Brent crude.

Get your copy of The Edge Malaysia weekly’s Nov 18 edition. 

https://www.theedgemarkets.com/node/734204