Malaysia's state oil giant, Petronas to intensify oil field exploration

Malaysia's state oil and gas giant, Petroliam Nasional Bhd or Petronas is "aggressively intensifying" its efforts in unleashing potential resources to boost oil production as the world struggles with the tightening of energy supply-demand balance.


Petronas' Chairman, Shamsul Azhar Abbas said, when addressing the 16th Asia Oil and Gas Conference here on Monday, that Petronas is geared up to explore small and medium-sized oil fields that are yet to be discovered in the region, with the target of raising oil production by 1.7 billion barrels and the average recovery factor the ratio of recoverable oil reserves to the existing oil in a reservoir to above 30 percent.


"Geology-based assessments suggested that Asia's mean undiscovered oil resources is in the order of about 50 billion barrels," he said.


"These undiscovered resources would translate into a resource base one-and-a-half times the combined proved reserves in Indonesia, Vietnam and Malaysia today," he added.


Shamsul said industry players must adopt a more "holistic view" of how to fill the supply gap, with the priority placed on exploration and resource availability.


The oil firm has recently bought a 50 percent share in Progress Energy Resources Corp's shale gas assets in Canada for 3.32 billion ringgit (1.1 billion U.S. dollars,) making its maiden entry in Canada that marks further expansion of Petronas' international operations.


The global oil demand last year surged by 2.7 million barrels per day the second largest annual increase in more than 30 years, and the OPEC spare capacity falling below four million barrels per day.


The imbalance in energy supply and demand may have heated up oil prices that hit triple digits, but analysts blame the high oil prices on speculators.


"It is rather disconcerting to think that, today, these decisions are just as readily influenced by the actions of central bankers and financial speculators, as they are by the realities of supply and demand on the ground," he said.


"Given the current state of market fundamentals and cost environment, I believe prices should remain within the range of 75 to 80 U.S. dollars per barrel," he added.


Christophe de Margerie, Chairman and Chief Executive Officer of French oil company, Total, meanwhile, suggested at the conference that oil and gas industry work with renewable energy producers to counter the growing shortfall in energy supply and the dire need for a greener planet.


"When you talk of demand, they are more complex, when you talk about climate change, it's even more complex. So if we really want to unfold the new era, just let's go back to trust and think as one entity, which is not fights and politics or left and right," he said.


The conference continues till Wednesday.
(Source:http://news.xinhuanet.com)