Dateline 2016-02-10, The Star:
Now that leading local oil and gas (O&G) player Dialog Group Bhd has called off its marginal oil field exploration project, the question is: will the other local companies, which had been awarded risk sharing contracts (RSC) by Petroliam Nasional Bhd (Petronas), be doing the same?
Since 2011, Petronas had begun a process of awarding RSCs to local companies which are partnered with international players to extract hydrocarbon assets in fields which have reserves of less than 30 million barrels of oil.
But this was when oil prices were over US$90 per barrel. At current prices of around US$30 per barrel, the extraction of oil in marginal oil fields, at least in Dialog’s case, has become no longer viable.