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Friday, 23 July 2010

Malaysia was well on track to become the fourth deepwater oil and gas hub in the world.

DPM: Malaysia can be come global deepwater oil, gas hub

By Roy Goh
Published: 2010/07/23

MALAYSIA can become a key deep-water oil and gas (O&G) hub in the world, but this window of opportunity is not perpetual, says Deputy Prime Minister Tan Sri Muhyiddin Yassin.

The answer lies in its capacity and capability, he said, stressing that it is paramount for the country to leverage and build on existing O&G assets.

"If done right, Malaysia can become one of the world's key deep-water O&G hubs after Houston, Rio de Janeiro and Aberdeen," he said.

Muhyiddin was speaking to reporters after witnessing a memorandum of understanding signing ceremony between Asian Supply Base Sdn Bhd and Labuan Shipyard and Engineering Sdn Bhd in Labuan yesterday.


Technip Group president and chief executive officer Bernard Di Tullio at the 15th Asia Oil and Gas Conference last month said Malaysia was well on track to become the fourth deepwater oil and gas hub in the world.

Apart from Technip, Di Tullio said other key players in deepwater Malaysia include Malaysian Marine Heavy Engineering, Sapura and Aker Kvaerner.

"Sabah has shown a strong potential in the O&G business," Muhyiddin said, adding that recent deep-water field discoveries there are now being developed and expected to begin production between 2011 and 2015.

"These sizeable ultra deepwater blocks offshore, coupled with the Kebabangan cluster gas fields, the completion of the Sabah Oil and Gas Terminal and the Sabah-Sarawak (Kimanis-Bintulu) gas pipeline project would position Labuan and Sabah as one of the leading O&G hubs in the region.

"Clearly the era of 'easy oil' is over and the exploration and production of O&G will move increasingly into deeper waters, presenting us new challenges as well as opportunities," Muhyiddin said.

However, besides location, a regional hub demands one-stop centres with fully integratedport facilities, warehouses, workshops, ship maintainance and fabrication yards, Muhyiddin said, adding that this is where the partnership between Asian Supply Base and Labuan Shipyard is timely.


Read more: DPM: Malaysia can be come global deepwater oil, gas hub http://www.btimes.com.my/Current_News/BTIMES/articles/dpm22/Article/index_html#ixzz0uSS6JOqU




This news is positive for this company below.  Its CEO expressed optimism and has hinted on these developments in his annual report.


Stock Performance Chart for Coastal Contracts Bhd
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2 comments:

  1. K CSaturday, July 24, 2010 7:36:00 am

    bb,
    I bought into Coastal some time ago after making some thorough analysis and I must say i am truly surprised that this stock has not moved while many others less fundamental sound ones have flied sky high. Imagine the past 5-year compounded growth rates:
    Revenue 46%; Operating profit 71%;
    Equity 41%; Net Profit 78%.
    And also:
    Profit margin, ROE, ROIC all about 35%. Healthy balance sheet except poor quick ratio. Free cash flow erratic and inventory too high though. Z-score 8.
    PER 5 only. Why, why, why?

    ReplyDelete
  2. Stalemate777Monday, July 26, 2010 10:34:00 pm

    C'mon Coastal up up up!!! Please make us the fundamentalists proud of you!!!

    ReplyDelete