'Malaysia O&G to ramp up in 2012'

Malaysia's oil and gas (O&G) upcycle will start in 2012 with
Petronas going full throttle to sustain oil production, according to a
research house.

HwangDBS Vickers Research said the national oil
company's record RM300 billion capital spending over five years would
be a strong re-rating catalyst for domestic O&G players.

"Critical
gas shortage in the country has also prompted Petronas to fast-track
upstream activities, which will benefit local players," it said in a
note today.

The deepwater development at Gumusut-Kakap is on
track for first production by 2013, while the investment decision for
Malikai may be finalised in 2012, it said.






It added downstream activities are picking up, led by the RM5 billion
Pengerang deepwater petroleum terminal, while Petronas' RM60 billion
Refinery & Petrochemical Industrial Development (RAPID) project in
southern Johor will conclude its feasibility study by end-2012.

"Bumi
Armada is poised to secure large contracts from Petronas, especially
floating production, storage and offloading jobs and marginal field
projects, which could re-rate the stock," the research house said.

Its
other top picks include Dialog, which is in the midst of a major
transformation to propel future earnings growth, and Dayang for its
niche expertise in topside maintenance and hook-up commissioning
services. -- Bernama