MIDF Research maintains positive on oil & gas sector

Business & Markets 2014
Written by theedgemalaysia.com
Thursday, 09 January 2014 08:59
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KUALA LUMPUR (Jan 9): MIDF Research has maintained its Positive
rating on the oil & gas sector and said that locally, 2013 was a record
high year for jobs awarded to listed oil and gas service providers.
It said that in December alone, more than RM6 billion worth of jobs
were awarded to Bursa-listed oil and gas companies.
It said these contracts were from the same Petronas Integrated
Transportation & Installation Offshore Facilities campaign, split into
roughly five packages, worth approx. RM15 billion-RM20 billion in
totality.
“Key winners were SapuraKencana, Barakah Offshore Petroleum and
Puncak Niaga Holdings (via GOM Resources),” it said.
MIDF Research said oil price surged towards the end of 2013.
It said the spot price of West Texas Intermediate (WTI) surged in December, rising from US$92.7 per barrel (pb) on 1 Dec to
more than US$100pb.
“It ended 2013 at US$98.42pb. Three drivers:
- Worry over continuous oil supply from Libya (15th largest oil producer);
- Decision by the U.S. Federal Reserve to start tapering its asset purchases; and
- Unrest in South Sudan,” it said.