RAPID SET TO BOOST REFINED FUEL EXPORTS
Malaysia to be net exporter when commercial ops start in Q4
MALAYSIA will become a net exporter of refined fuels for the first time since 2008 when the US$16 billion (RM66.8 billion) Refinery and Petrochemical Integrated Development (RAPID) facility in Pengerang, Johor starts commercial operation in the fourth quarter, said Finance Minister Lim Guan Eng.
The RAPID project is being built by Petroliam Nasional Bhd and Saudi Arabian Oil Co.
Lim said RAPID marks a historic partnership between two of the most successful national oil companies in the world.
“The collaboration brings together vast resources, technologies, experience, expertise and commercial presence much to benefit of both companies and countries,” he said at the 17th Asian Oil, Gas and Petrochemical Engineering Exhibition, here, yesterday.
He said while the government is no longer reliant on petroleum revenue, the forecast of a rebound in global crude oil price is positive for the upstream sector as it is reviving the industry’s appetite for exploration and development.
Industry experts expect Brent crude oil prices at between US$60 and US$70 per barrel this year.
Lim said for the government, every US$1 per barrel increase in crude oil price will bring RM300 million in revenue. He said 19.5 per cent of government revenue will likely come from petroleum resources this year, compared with 41.3 per cent in 2009.
“For Malaysia, our oil and gas sector is moving up the value chain to protect the country from the excessive volatility seen in the upstream business.”