O&G set to see increase in upstream activities on oil price rise

Dateline 2019-10-08, Malaysian Reserve:

THE gradual increase in oil prices is expected to drive a recovery in investment in upstream activities said Kenanga Investment Bank Bhd.

The research house said national oil and gas (O&G) company, Petroliam Nasional Bhd (Petronas), has maintained its capital expenditure (capex) by focusing on the upstream segment despite its commitment to deliver a higher dividend payout to the government.

The investment bank noted there has been an increased flow of engineering/construction jobs in the Middle East, while floater demand has jumped rapidly from South America.

Kenanga added that the benchmark Brent contract price has been showing signs of stability, trading within the US$55 (RM230.62) to US$70 per barrel range throughout the year.

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