22 April 2014, News Wires – Malaysia’s state-run oil company Petronas is looking to expand in Brazil, Russia, India, China and South Africa, according to reports.
Malaysian daily Business Times cited unnamed sources as saying Petronas was targeting the five countries which have a combined nominal gross domestic product of more than $16 billion.
“Brazil, Russia, South Africa and China have huge land base and there are a lot of opportunities for exploration and production works in these markets,” the source was quoted as saying.
“ But the first hurdle Petronas has to go through is the political and country risk. That is what Petronas is concerned about.
“Once that is done, the next step is to move in. It sounds easy, but there will be a lot of work involved. The last is, of course, the cost.”
In India, the source said Petronas was targeting the energy sector but noted that there were a number of barriers to do doing business in the country.
The source also told the paper that Petronas was looking to balance is portfolio from about 30% oil and 70% gas, currently, to a more balanced 50:50 mix.
Business Times also quoted its source as saying the company was confident on on prospects in Myanmar and Iraq.
“Petronas is already a big investor in Myanmar and has started to produce oil there,” the source was quoted as saying.
“It also has service contracts in Iraq, which are contributing very well to its bottom line. Petronas is upbeat it will continue to do well in Iraq, as well as in other parts of the world.”