Petronas project boost to Malaysia players

Kuala Lumpur: The new gas exploration project by Petroliam Nasional Bhd (Petronas) is due to benefit a slew of local service providers, analysts said.

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OSK Research analyst Jason Goh said the first beneficiary of the RM15 billion North Malay Basin project would be upstream players like Kencana Petroleum Bhd in new oil and gas structure fabrication, SapuraCrest Petroleum Bhd for laying pipes and Dialog Group Bhd in constructing and managing centralised tanks. "Then, it would flow to hook-up and commissioning as well as other brown-field service providers like Kencana, Dayang and Petra Energy Bhd. Also, vessel players like Perdana Petroleum, Alam Maritim and Tanjung Offshore should not be forgotten as they are needed to carry the fabricated oil and gas structures to the respective oil and gas offshore field," he said. MIDF Amanah Investment Bank Bhd added names like Petronas Gas Bhd, Wah Seong Bhd and Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) to the list. Its analyst Belford Chang Kee Zheng said Petronas Gas will benefit from services like gas processing and transportation, while Wah Seong in the area of pipe coating. "While Kencana and MHB are in the areas of engineering, procurement, construction and commissioning works for offshore structure. Kencana can also play its role in the subsea engineering and services, as well as drilling services." An analyst from TA Securities Holdings named Pantech, SapuraCrest and Wah Seong as the three prime beneficiaries. He expects Pantech, which has expertise in subsea piping, to benefit from pipe fabrication, including pipe bending. The analyst said other beneficiaries would include Scomi Group for the initial stages of drilling for the nine oil fields. "We expect the KNM group to do process equipment for the structures, and Perdana Petroleum and SapuraCrest to get contracts for hook-up commissioning. We believe Kencana and Ranhill Bhd will also stand to benefit from the project," he said.