Malaysia's Oil and Gas Upstream Spending Seen Higher on Better Project Economics
Dow Jones
5 hours ago
0404 GMT - Upstream development spending in Malaysia's oil and gas sector could accelerate** as higher oil prices improve project economics, says CIMB Securities analyst Muhammad Afif Bin Zulkaplly in a note. Maintenance activity could also pick up as operators gain greater cash-flow visibility to resume deferred work, he says. Industry discussions at a recent Malaysia oil & gas services exhibition and conference highlighted opportunities to improve project efficiency through collaboration, performance-based contracts and overseas expansion, he notes. Companies with strong execution records and financial positions are expected to be better placed to benefit, he says. CIMB maintains an overweight rating on the oil and gas sector, and rates Dayang Enterprise, Dialog, MISC and Velesto Energy at buy.
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