KUALA LUMPUR (Jan 25): Malaysia Petroleum Resources Corp (MPRC), an agency under the Prime Minister’s Department, said the oil and gas sector might consolidate further in anticipation of more mergers and acqusitions (M&A) amid cheaper crude oil.

In a statement today, MPRC president and chief executive officer Datuk Shahrol Halmi said such backdrop indicated demand for financial services in corporate restructuring.

“For many in the (oil and gas) industry, 2014 was a pivotal year marked by a turnaround in market conditions. Our analysis have shown that not all players are equally equipped to weather the storm.

"With oil prices remaining in the doldrums in 2015, firms that have invested aggressively during the growth cycle will be impacted. As such we foresee further consolidation activities in the industry,”  Shahrol said.

Bloomberg data today showed that US crude oil for March 2016 rose to US$32.25 a barrel. Over the last five years, prices had reached an intraday high at US$114.83 a barrel on May 6, 2011.

Today, MPRC's statement was in conjunction with the announcement on the agency's latest rankings of the top 100  oil & gas services and equipment (OGSE) companies in Malaysia in 2014.
 
MPRC said SapuraKencana Petroleum Bhd retained the top spot followed by Malaysia Marine and Heavy Engineering Holdings Bhd and Dialog Group Bhd.

"This ranking is based on Petronas' licensed-companies and reflects the financial performances of both publicly-traded and unlisted OGSE companies," MPRC said.

In 2013, Malaysia Marine and Dialog had also clinched the second and third spots respectively, according to MPRC.

MPRC, which was set up in 2011, has been tasked to spur the growth of Malaysian OGSE companies.

According to MPRC's statement today, the agency helps to promote and globalise Malaysian OGSE capabilities in the upstream, midstream and downstream segments of the oil and gas sector.