By NST Business
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) and its Petroleum Arrangement Contractor (PAC) oeprators will continue to develop new oil and gas exploration projects in 2018 to 2020 despite the low price environment.
In the next five years, Petronas projected that the average daily oil output would be 1.7 million barrels.
It said the potential projects to be developed will be concentrated in new growth areas or new projects and maximize exploration of existing projects.
"The expected development portfolio between 2018-2020 for the new project is 20 projects, of which 30 percent are oil projects.
"The expected development portfolio of existing projects involves 30 projects with 75 percent of them involving oil projects," Petronas said in its Activity Outlook 2018-2020 report disclosed recently.
The national oil and gas company explained that new projects to be developed in 2018 to 2020, all involve the development of new facilities.
For existing projects, it said 10 per cent of the projects to be implemented in 2018 to 2020 would involve the development of new facilities.
On the crude oil price review in 2018 to 2020, Petronas projected crude oil prices would hover between US $ 50 and US $ 60 per barrel during the period.
It said there were three important factors that enabled oil prices to strengthen, namely the compliance of the Petroleum Exporting Countries (OPEC) and non-OPEC allies against the oil output cuts.
Two more factors are actions from US shale oil players and the growth of global oil demand, he said.