No way out but to consolidate

April 16, 2017

Less than 4,000 SWEC licensed companies? There must be more SWEC registered companies.

Dateline 2017-04-06, The Edge:

Consolidation in the Malaysian oil and gas (O&G) industry — which had 3,956 Petronas-licensed companies as at 2015 — is deemed necessary to brave the current industry downturn.

“Malaysia is an O&G country and it is fundamental for us to develop the industry so that it can remain strong even post-downturn,” Malaysian Offshore Vessels Owners’ Association president Amir Hamzah Azizan told The Edge Financial Daily during an exclusive briefing organised by Malaysia Petroleum Resources Corp.

“Not all companies will survive because there is just not enough [work] to help them sustain. We should encourage the right partnerships to support and build capable local O&G players to compete and survive in this sphere,” he said.

To elaborate, Amir said when a big cake has shrunk to be a cupcake, the share would have to go to the efficient players so that they would be stronger to shape up the industry.