Sector News

South-east Asia is growing in importance for global oil and gas industry

June 3, 2015
A record number of firms are flying the flag for Scotland at the Oil and Gas Asia show in Malaysia this week. South-east Asia is fast becoming a strategically important market says Neil McInnes, who looks after the region for Scottish Development International (SDI)
The size and scale of south-east Asia suggests it has the potential to one day rival some of the other leading markets in Asia Pacific.
Together, the 10 countries in the Association of South East Asian Nations (ASEAN) represent Asia’s third largest economy – and the world’s seventh largest – with a combined GDP (gross domestic product) of £1.6trillion.
Their total population of more than 600million is bigger than both the US and the EU.
Later this year, the region it will become the world’s largest single market as the countries seek to work more collectively to stimulate economic growth and prosperity.
Energy is going to play an important part in achieving those ambitions, with demand increasing substantially as a result of increased manufacturing and urbanisation.
Scotland has the potential to capitalise on these trends, especially given the region’s rich history of oil and gas production.
Malaysia’s first oil was drilled off the coast of Sarawak in 1910 but Indonesia is now the largest producer in the region, producing 800,000 barrels of oil equivalent per day – on a par with the North Sea.
Singapore has established itself as the regional logistics and services hub, with many of the industry’s leading players using it as a regional HQ for their operations given its strategic location and ease of doing business.
Together, the three markets of Singapore, Malaysia and Indonesia represent the golden-triangle of the oil and gas industry within south-east Asia but there is increasing activity in other markets from deepwater drilling in Brunei to new licenses being issued in the highly undeveloped market of Myanmar as well as the Gulf of Thailand.
There are real opportunities for Scottish companies with experience of operating in the North Sea to provide the technology and experience required to unlock the potential within these markets.
While ASEAN may offer some specific challenge for Scottish firms, it could also some of the biggest rewards.
Traditional markets like Singapore and Malaysia can offer companies a stepping stone into other Asia markets.
We are expanding our team at SDI in Singapore to help companies identify the best opportunities…and help them navigate through some of the barriers or challenges they may face.
By Neil McInnes
Source: Energy Voice

comments closed

Related News

August 23, 2019

The higher purpose of being a CEO

Borderless Leadership

LinkedIn Twitter Xing EmailWhen I left my second large company experience to become President of a small manufacturing company I did so driven by ego; I fancied the title. Soon […]

August 23, 2019

As Brexit nears, Britain’s drugs, devices and pricing regulators seek the exit

Life sciences

LinkedIn Twitter Xing EmailFirm details on exactly how the U.K. will regulate new medicines is still to be decided after it leaves the EU later this year (caveats on timing […]

August 23, 2019

The Simply Good Foods Company acquires Quest Nutrition for $1bn

Consumer Packaged Goods

LinkedIn Twitter Xing EmailThe Simply Good Foods Company, the owner of Atkins-branded food products, has secured a deal to acquire protein snack maker Quest Nutrition for $1 billion. Quest, which […]

How can we help you?

We're easy to reach