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SapuraCrest Petroleum Berhad
Annual Report 2010
Chairman’s Statement (cont’d)
industry peers and customers alike at home
and in the global market place.
Although we are proud of what we have
achieved so far, there is still more to do.
With the Group’s collective values firmly
entrenched in the mindset of our people,
we will continue to strive harder to be
recognised as the preferred one-stop centre
in providing complete integrated services
and solutions to the oil and gas industry.
IN THE PIPELINE
Although the Group has achieved great
success over the last few years, I believe
that SapuraCrest is only at the beginning
of even greater things to come. FY 2011
is already shaping up to be a promising
one. According to Bank Negara Malaysia,
the global economy entered 2010 on a
recovery mode. Global economic growth
picked up greater momentum in the final
quarter of 2009, underpinned by stronger
activity in the emerging economies. The
Malaysian economy is expected to expand
by 4.5-5.5% in 2010, with improved
performance across most sectors.
Supported by expectations of economic
recovery and higher oil demand, analysts
have projected oil prices to stabilise
around US$70.0 – US$80.0 per barrel in
the coming year. At these prices, there
is strong motivation for oil producers
to continue upstream programmes.
PETRONAS for one, is expected to increase
spending by 12.0 % in the near future in
order to maintain the average national
oil production rate of 650,000 to 750,000
barrels per day. Malaysia’s oil reserves are
estimated at 5.52 billion barrels, which
will have a lifespan of 22 years at current
production rates. As such, PETRONAS and
the other oil majors would need to re-start
greenfield upstream projects in a more
substantial way by the second half of FY
2010 to sustain longer-term production
targets. Furthermore, PETRONAS’ widening
international exposure also opens doors
for home-grown service providers like
SapuraCrest to extend their operations
overseas.