Malaysia sweetens upstream deals

The country is taking measures to encourage IOC interest in its latest licensing round

Malaysia’s upstream sector remains relatively busy but is dominated by NOC Petronas. The promise of strong domestic and regional demand for oil and gas has not been enough on its own to continue to attract IOCs. The country “has been relatively successful in comparison to its Southeast Asian peers in attracting international interest,” argues Readul Islam, research analyst at consultancy Rystad Energy. But the challenge will only grow as IOCs operate with trimmed E&P budgets and focus on assets that offer the greatest potential returns combined with low carbon intensity and low initial investment requirements. Lenders are also increasingly keener to back transition projects instead of tr