A question that was asked of me was, why are there no independent oil and gas operators in Malaysia? It’s an intriguing one, for those of us who used to watch Dallas on TV (remember when there were on 2 channels on air, and they didn’t run 24/7?).
Let’s get some definitions out of the way. I refer to the ever reliable Wikipedia:
Supermajors are “the six largest, non state-owned energy companies, as seen in popular financial mediums around the world.” Chances are, if you are asked to name four oil companies, one of them is your national oil company (PETRONAS to me), and the other three are either supermajors, or components of supermajors prior to consolidation. Exxon and Mobil, Conoco Inc. and Phillips Petroleum Company, Abbot and Costello.
‘Seven Sisters‘ is a term coined by an Italian entrepreneur, Enrico Mattei, that refers to seven oil companies that dominated mid 20th century oil production, refining, and distribution. These were companies that were formed by the breakup Standard Oil of the US. Still huge companies.
Now things become a bit more interesting. Independent oil companies aren’t something you hear of often.
I think is that people confuse independent companies with family or privately owned companies. One definition which I have found is ‘a non-integrated company which receives nearly all of its revenues from production at the wellhead. They are exclusively in the exploration and production segment of the industry, with no downstream marketing or refining within their operations.’
This is taken straight from the Independent Petroleum Association of America’s (IPAA) 2007 Oil and Natural Gas Issues Briefing Book.
Using that definition, we do have independent producers in Malaysia. Examples are Talisman Energy, Lundin Oil and Newfield.
Not every non-supermajor is an independent. Murphy Oil has retail outlets, Nippon Oil Explorationis a wholly own subsidiary of Nippon Oil Corporation.
Enough definition for ya?
Wata - Malaysian Oil and Gas Engineer 
Abbott and Costello? How come all the supermajors have combined names…. on another note, just for you to test your skills in identifying these names;
Ren and Stimpy
Pinky and the Brain
Itchy and Scratchy
Anyway, its probably licensing in M’sia preventing independent operators. Moreover, country with limited onshore blocks will also see sharp decline in operators as offshore drilling cost so much more.
by the way, Jabba reckons Jabba looks like JR Ewing, with the cowboy hat…
Makes me look macho.
I don’t think it’s licensing, I think it’s the prohibitive cost of individuals or families getting together enough funds to even think of getting a loan to start making holes in the seabed. Costing will be a topic of a future entry.
boba picked up some signals from twin tower antenna sometimes during routine bounty stake out… the signal said that they do not want to open a flood gate to any tom/dick/harry business man or politicians to have access to these oil resources just like balak… otherwise, just like balak, there is a tendency for multiple abuses…
most local business man who approached the council were advised to find credible partner from foreign countries with sufficient technically qualified oil & gas operating experience if they want to do oil mining in malaysia…
now jabba salt mine is a different story…
good one bobba, you mean, i can get my slave to find technically qualified and financial sound foreign firm to invest?
the last time i did it, the UN put me on some list call “criminal to humanity” or something….. i didn’t even treat my slave like humans!