Then, it was said again that this would happen in 2010, but as months went by, it did not happen either. The hydrocarbon continued to become the largest contributor to the Malaysian economy.
But, we should remind ourselves that hydrocarbon is not a commodity that we can manufacture or grow to sustain output. It has been produced and developed through a long period of natural process, and, of course, with God's will.
So, whatever the predictions, efforts to make new discoveries, particularly in complex and challenging oil and gas reserves, must continue. Enhancing oil recovery in existing depleting fields and exploring opportunites in deeper water must not be overlooked either.
To put it into a better perspective, being a net crude importer does not mean that the country's reserves are drained and dried out or that Malaysia no longer produces oil for export. It just means that the value of the oil imported is much higher than what is exported.
In fact, the International Energy Agency (IEA) had mentioned in a report recently that Malaysia's oil supply is projected to rise to 740,000 barrels per day (bpd) in the short term, compared with 670,00bpd recorded last year.
The agency also said that the enhanced oil recovery (EOR) projects and the ramp-up in oil output from deepwater projects in offshore Sabah are expected to reverse Malaysia's falling output, although it will not be enough to stem the declining output in the longer term.
Furthermore, the IEA said with a proven record oil reserves of four billion barrels as of last year, Malaysia is the second largest oil producer in Asean and a net exporter of oil, although rising demand has narrowed the gap, with exports falling to 70,000bpd in 2012.
And the good news is that Petroliam Nasional Bhd (Petronas) continues to make new oil and gas discoveries, including from its overseas ventures.
For instance, Petronas had announced that the Kapal, Banang and Meranti (KBM) cluster fields offshore Peninsular Malaysia had commenced its first oil production on December 16 last year. The KBM cluster, operated by Coastal Energy KBM Sdn Bhd, has been developed with joint venture partner Petra Energy under a risk-service contract (RSC) since June 2012.
This is the third RSC that has successfully achieved oil production, after the Balai cluster and Berantai fields, according to the national oil company.
Petronas has initiated the RSCs for marginal oilfields over the last few years to help develop resources from smaller oilfields, and at the same time, explore EOR technology to improve production from other fields that are maturing.
To date, Petronas has awarded 10 fields in four clusters under the RSC arrangement. Four fields have started production with over 30,000 barrels of oil equivalent per day.
In terms of EOR projects, Petronas executive vice-president for exploration and production business Datuk Wee Yiaw Hin was quoted recently as saying 50 per cent of Malaysia's producing oilfields have EOR potential.
Other than the EOR projects, Petronas has also awarded contracts worth about RM20 billion to several Malaysian companies late last year, indicating that local hydrocarbon exploration and production activities are pretty much alive.
In November, Petronas had awarded contracts for 13 work packages worth a combined RM10 billion to six local companies, namely Kencana HL Sdn Bhd, Dayang Enterprise, Petra Resources Sdn Bhd, Carimin Engineering Sdn Bhd and Sigur Ros Sdn Bhd.
A month later, on December 13, the national oil company awarded a RM10 billion integrated hook-up and commisioning and topside major maintenance contract to TL Offshore Sdn Bhd, PBJV Sdn Bhd and GOM Resources Sdn Bhd.
Another breakthrough last year was the discovery of an oil and gas field onshore, 20km off Miri, the first onshore field discovered in 24 years.
Petronas has also awarded Salamander Energy Malaysia Ltd and Petronas Carigali Sdn Bhd a production-sharing contract (PSC) for block PM322, which marked the 100th active PSCs in Malaysia since the system was introduced 37 years ago.
All these point to suggestions that Malaysia's hydrocarbon industry is still very much alive and kicking, and the country will be able to sustain its status as exporter of oil for another period of time. - BTimes
