Malaysia's oil and gas (O&G) upcycle will start in 2012 with Petronas going full throttle to sustain oil production, according to a research house.
HwangDBS Vickers Research said the national oil company's record RM300 billion capital spending over five years would be a strong re-rating catalyst for domestic O&G players.
"Critical gas shortage in the country has also prompted Petronas to fast-track upstream activities, which will benefit local players," it said in a note today.
The deepwater development at Gumusut-Kakap is on track for first production by 2013, while the investment decision for Malikai may be finalised in 2012, it said.
It added downstream activities are picking up, led by the RM5 billion Pengerang deepwater petroleum terminal, while Petronas' RM60 billion Refinery & Petrochemical Industrial Development (RAPID) project in southern Johor will conclude its feasibility study by end-2012.
"Bumi Armada is poised to secure large contracts from Petronas, especially floating production, storage and offloading jobs and marginal field projects, which could re-rate the stock," the research house said.
Its other top picks include Dialog, which is in the midst of a major transformation to propel future earnings growth, and Dayang for its niche expertise in topside maintenance and hook-up commissioning services. -- Bernama
HwangDBS Vickers Research said the national oil company's record RM300 billion capital spending over five years would be a strong re-rating catalyst for domestic O&G players.
"Critical gas shortage in the country has also prompted Petronas to fast-track upstream activities, which will benefit local players," it said in a note today.
The deepwater development at Gumusut-Kakap is on track for first production by 2013, while the investment decision for Malikai may be finalised in 2012, it said.
It added downstream activities are picking up, led by the RM5 billion Pengerang deepwater petroleum terminal, while Petronas' RM60 billion Refinery & Petrochemical Industrial Development (RAPID) project in southern Johor will conclude its feasibility study by end-2012.
"Bumi Armada is poised to secure large contracts from Petronas, especially floating production, storage and offloading jobs and marginal field projects, which could re-rate the stock," the research house said.
Its other top picks include Dialog, which is in the midst of a major transformation to propel future earnings growth, and Dayang for its niche expertise in topside maintenance and hook-up commissioning services. -- Bernama
