Oil & Gas Sector (Overweight)

• Higher activity in the oil and gas industry in Malaysia, in particular the offshore segment where most marginal oil can be found.
• In 2009, Petronas discovered one new offshore shallow water oil field PAUS in Sarawak and one new gas field Sepat Barat off Peninsular Malaysia. Total number of producing fields in Malaysia has reached 104 (out of which 68 are oil fields and the rest gas fields), up from 88 in 2008. 
• According to industry sources, Petronas is expected to increase E&P spending from last year 2009 RM28bill to RM43bill by 2012, mainly driven by higher deep water exploration (off Sabah blocks) and drilling activities. This represents a 4-year CAGR of 8%.

1. Sabah Oil and Gas Terminal
2. Dialog and its partner have been awarded in Oct 2010 the exclusivity to develop an independent deep water petroleum terminal at Pengerang for a period of 60 years.
3. Tanjung Agas Pekan
4. M&A: MHB, Kencana, etc.
5. Batu Pahat - Pontian - Iskandar --> PetroChemical Traingle. Funding - Malayan.....

• Beneficiary counters: MHB, KENCANA, PETRA, DAYANG, DIALOG, SAPCRES, KNM.