Malaysia’s Sapura Energy says interest in upstream projects picking up


Dateline 2017-05-08, Reuters:

Sapura Energy Berhad , Malaysia’s largest oil and gas service provider, said it was beginning to see interest building in upstream projects following sharp rollbacks in recent years from lower oil prices.

“Projects that were on hold before are starting to be looked at again (globally),” Sapura Chief Executive Shahril Shamsuddin told Reuters on the sidelines of the Asia Oil & Gas Conference in Kuala Lumpur.

“It’s going to take time for the decisions to come through. It would take about 10-15 months before we could see projects come online again,” he said.

Shahril attributed the increase in interest to the recovery in oil prices and the need to replenish a natural drop in reserves.

Brent crude prices have recovered about 80 percent from 12-year lows hit early in 2016, although they are still at less than half the levels of mid-2014 due to a supply glut, and retreated back below $50 at the end of last week.

 

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