O&G STOCKS’

suggests that Petronas would only need to dish out RM16 billion a year in the next two years for Rapid if the deal is finalised. This would open up more room for domestic upstream capex.”

HLIB’s top pick for the O&G sector was Reach Energy Bhd, due to the company’s pure-play exposure to the E&P segment while being a direct beneficiary of the gradual improvement in oil prices.

The research house has a “buy” call on Reach Energy shares with a target price of 83 sen each.