The prospects for oil & gas are positive and very encouraging in 2005 and beyond. This is attributed to a number of factors, originating with the significant oil finds off the East Malaysia coast since 2002. The spin-offs from the major discoveries will have a significant impact on the overall growth of the upstream sector, benefiting not only oil majors but also the service providers. The first oil from recent discoveries is expected to flow in 2007/08.

Given these finds more oil majors are expected to focus on upstream exploratory and development works. We are confident that National Petroleum Company, PETRONAS, will set the development pace by increasing its role in the domestic market. The tendering of more new deep and ultra-deep water blocks by PETRONAS will further reinforce growth potentials of the upstream sector.

Furthermore, the aim of the National Oil Company to enhance production output of aging oil fields (Brown Fields) will not only result in increased revenue but also spur re-development activities of these fields. This is expected to provide more new opportunities for service providers resulting in prolific growth of the industry over the next couple of years.


Group Activities – Redefined
Since streamlining its business activities in 2004, PETRA has embarked on an expansion programme that is tuned-in to the market’s growth development opportunities.

Given its organic growth since 1988, the Group has established a strong foundation for its service capabilities. Today, the Group main growth sectors are in Brown Field (existing oil & gas fields) Re-development, Marine and Exploration & Production services. I am confident that these ‘new’ growth sectors will contribute positively to the Group’s bottom-line as well as enhance shareholder value.


Expansion on the Cards
Expansion in the upstream oil & gas industry was never an option with PETRA. The streamlining and expansion of our business activities in 2004 was part of our strategy to leverage on more new growth potentials of the oil & gas industry. This is a an on-going evolvement process to provide highly sophisticated services to meet the growing demands by the oil majors or production sharing contractors.

For 2005, our expansion would be primarily focused on the main growth sectors. However, our scope of services would not be limited given the continued expansion and business development opportunities in country’s dynamic oil & gas industry. We are confident of achieving much higher earnings and improved profitability in 2005 and beyond. This would be attributed to the continued expansion of our services and primarily the business activities in which we are engaged in. We foresee more new growth development opportunities in the years ahead.

Given the growth opportunities, potentials and upswing experienced at the upstream level, we are confident of achieving and maintaining our growth targets within the medium to long term.


Challenges Met
Challenges are ‘part & parcel’ of growth and development. However, given our organic growth, I am confident that we are in a strong position to address challenges in the wake of new business development opportunities within the industry.

Meeting challenges:
 

	Currently, we are managing our in-house marine assets (fleet) efficiently, thus maximizing utilization. This also includes addressing all our clients’ offshore marine requirements based on given schedules.
	Closely working with our clients in optimizing maintenance work schedules during project planning. This is part of our practice, which would ultimately help achieve our client’s cost and scheduled objectives.
	Maintaining high quality standards of our products and services. Despite the Group’s stringent quality assurance and quality control standards, we maintain regular surveillance protocols to ensure that clients’ interests are protected.
	Providing ‘round-the-clock’ and effective service is our motto. To achieve this most, if not all, of our service facilities are located in close proximity to oil & gas installations, and manned by a competent work force to address any inconveniences/breakdowns faced by oil majors.

Overall, the Group will continue with its expansion programme, whilst maintaining a coherent growth policy that will enable it to leverage on and maximize the utilization of its resource capabilities and assets in the oil & gas industry. This in the long term would enable us to realize our aspiration to be a leading 'one-stop' integrated service provider in the oil & gas industry.


TENGKU DATO’ IBRAHIM PETRA