SapuraKencana eyes O&G prospects in Americas, Africa, Asia — CEO

by **Cals** Wed 04 Jun 2014, 02:56

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Tuesday, 03 June 2014 11:37

KUALA LUMPUR (June 3): Emerging markets in the Americas, Africa and Asia are seen underpining SapuraKencana Petroleum Bhd's future growth, President and Group CEO Tan Sri Shahril Shamsuddin said.

Shahril said in SapuraKencana's latest annual report that a large portion of world oil and gas (O&G) demand would come from developing countries like Brazil and Southeast Asian nations. This is due to population and wealth growth in these regions.

"Key regions like the emerging markets of Latin America, in particular Brazil’s offshore pre-salt fields, West Africa’s shallow and deepwater fields, Asia and East Africa’s deepwater fields, and activities such as enhanced oil recovery from mature fields in Asia and the North Sea will be the focal point of O&G investments.

"SapuraKencana has already established its presence in most of these locations and is well-positioned to deploy its strategic assets and technical capabilities to pursue the many opportunities expected in these markets," Shahril said.

According to him, increasing demand and investment are seen in new capabilities and technologies to overcome challenges in O&G exploration, extraction and commercialisation.

Shahril said over the next 10 years, world O&G upstream spending was expected to surpass RM1.5 trillion.

"The Asian market in particular, Southeast Asia, will receive one-fifth of this global spending which accounts for a 50% increase in capital expenditure over the next 5 years, with Malaysia having a forecast expenditure close to USD60.0 billion (RM198.0 billion)," he said.