Malaysia led the upstream sector in Southeast Asia in 2012, by registering the highest number of oil discoveries during the year. A research study conducted by the Wood Mackenzie Group highlighted that Malaysia’s oil sector discovered an estimated 1.4 billion barrels of oil equivalent (boe) in 2012, constituting 72 per cent of total discoveries in the region.
Malaysia surpassed Indonesia, the only member of the Organization of the Petroleum Exporting Countries in the region, to be recognised as the stand-out performer in Southeast Asia’s upstream sector. In 2012, Indonesia accounted for only 14 per cent (13 million boe) of the discoveries of new oil and gas reserves in the region. Vietnam and Thailand also registered a decline in the average number of wells opened.
Malaysia’s six new gas fields, with combined estimated reserves of 7.3 trillion cubic feet, were included in the top 10 largest discoveries in Southeast Asia. The state-owned Petronas Carigali, Sweden-based Lundin Petroleum, and US-based Murphy Oil are among the most successful players in the country. The country’s success in this sector has been attributed to the several fiscal initiatives introduced by the government to encourage exploration and development in the country. It awarded a total of 13 production sharing contracts in 2012 – a record number for any given year.
