Petronas sets aside RM26b for upstream capex
Amount is only about half of RM55b set aside for this year
PETROLIAM Nasional Bhd (Petronas) is allocating RM26 billion for upstream capital expenditure (capex) this year, said the national oil company’s upstream chief executive officer Datuk Mohd Anuar Taib.
The budget, however, is still only about half of the RM48.7 billion Petronas spent on these activities in 2015. It is also about half of its capex of RM55 billion this year.
“We want the capital discipline. The challenge we have seen in the past is that when everybody starts going for activities at the same time, the whole supply chain is stretched. That adds to the costs,” said Anuar after a presentation at the Offshore Technology Conference 2018 yesterday.
Anuar said out of the total upstream capex, Petronas would earmark RM3 billion for exploration, drilling and oilfield operations.
He said Petronas would focus on Southeast Asia, including oil field exploration and asset upgrades, as well as exploration opportunities at the Atlantic, West Asia, Canada and Argentina basins.
“We want to balance the current production portfolio of 70 per cent gas and 30 per cent oil by expanding our core business.
“Petronas will continue to explore the opportunities,” he said.
Earlier this month, Petronas through its subsidiary, Gabon PC Upstream S.A, discovered a new oil and gas source from the Boudji-1 well at Block F14 (Likuale) in South Gabon.
The discovery marks another milestone for Petronas in its efforts to develop upstream growth in West Africa.
Anuar said Petronas had also submitted application to build a liquefied natural gas pipeline that would connect the TransCanada grid.