Malaysia is about to set up a central coordination and promotion center called the Malaysian Petroleum Resource Corporation, designed to make it easier for foreign companies in the oil field services & equipment (OFSE) industry to invest in Malaysia.

It’s hoped that by attracting more foreign OFSE producers to Malaysia with its cost competitive and more business-friendly environment, the country can build its expertise in the area. Sights are set on some 10-20 prominent companies, with the hope they could base 10% of their global operations in Malaysia. Malaysian companies in deepwater exploration would also benefit from foreign technology and skills.

Malaysian Deputy Prime Minister Muhyiddin Yassin announced the new one-stop center at the 13th Asian Oil, Gas and Petrochemical Engineering Exhibition (OGA 2011) in Kuala Lumpur this week.

OFSE companies would benefit from Malaysia’s proximity to growing markets in the region, which is projected to consume about 420,000 barrels of oil a day by 2015 and should grow opportunities in the midstream logistics market for oil and oil product storage. The OFSE industry on the whole has grown 25% in the past few years, and is reportedly worth RM800 billion (US$264.7 billion) globally.

source & article: MIDA