Oil & Gas stocks target price
Capex Plan Announced
RM10bn from ExxonMobil and RM5bn from Shell
The Prime Minister yesterday announced that ExxonMobil Exploration and Production Malaysia Inc, together with Petronas Carigali, planned to invest over RM10bn in new oil & gas assets to ensure reliable and sustainable energy supplies for Malaysia. This capital expenditure commitment will be utilised to rejuvenate mature facilities and undertake enhanced oil recovery activities in the Tapis field and the Telok gas development project. Besides that, it was also announced that Shell would be spending RM1.5bn to upgrade, expand or build facilities in upstream, midstream and downstream activities across Malaysia. The news comes as no surprise as ExxonMobil has already pledged this spending amount back in 2008.
The Prime Minister yesterday announced that ExxonMobil Exploration and Production Malaysia Inc, together with Petronas Carigali, planned to invest over RM10bn in new oil & gas assets to ensure reliable and sustainable energy supplies for Malaysia. This capital expenditure commitment will be utilised to rejuvenate mature facilities and undertake enhanced oil recovery activities in the Tapis field and the Telok gas development project. Besides that, it was also announced that Shell would be spending RM1.5bn to upgrade, expand or build facilities in upstream, midstream and downstream activities across Malaysia. The news comes as no surprise as ExxonMobil has already pledged this spending amount back in 2008.
EOR projects chugging into motion
The news is a definite positive for the industry and hints that we could see jobs starting to roll out for the Tapis Redevelopment project (PM309) this year.
The news is a definite positive for the industry and hints that we could see jobs starting to roll out for the Tapis Redevelopment project (PM309) this year.
No mention on new deepwater yet
What has not explicitly been mentioned in the ETP roll out are plans to expand our deepwater developments.
What has not explicitly been mentioned in the ETP roll out are plans to expand our deepwater developments.
Maintain Overweight
We continue to be Overweight on the sector and are reviewing our stock calls as many have seen capital appreciation in recent weeks. We continue to favour SapuraCrest and KNM as our top picks. Also, we are mindful that Wah Seong has been a laggard so far in this rally and may surge back to life. Also MMHE may see itself more attention as the industry talks about consolidation of fabricators.
by: ECMLibra
