The Asian Oil, Gas and Petrochemical Engineering Exhibition (OGA 2019) boasted a total of 27,837 visitors who attended the show from this year’s June 18-20. Some 1,992 participating companies from 53 countries across the 9 exhibition halls in the Oil & Gas sector, gathered at the Kuala Lumpur Convention Centre to showcase their products and services.
The three-day event served as a resourceful sourcing ground for the Oil and Gas fraternity with numerous successful business deals being sealed.
Touted as the region’s No.1 Oil & Gas event, OGA 2019 covers 20,000 sq metres of space and has attracted 12 international group pavilions from Australia, Canada, China, France, Germany, Norway, Scotland, Singapore, South Korea, The Netherlands, UK and USA.
OGA 2019 opened its doors on 18th June 2019 with the Honourable Mr. Lim Guan Eng, Finance Minister of Malaysia officiating the event. The opening ceremony had over 500 attendees, who were Exhibitors, VIPs from the industry, Ambassadors and Medias. The Minister Mr. Lim Guan Eng later went on a tour of the exhibition.
“The forecast rebound in global crude oil prices is positive for Malaysia’s upstream sector as it is reviving industry appetite for exploration and development works, especially for projects located in deepwater and technologically challenging areas where costs of investment and operation are high.” Mr. Lim remarks.
He noted that Brent crude rose to US$86 per barrel in early October 2018 from US$67 at the start of last year, but less than two months afterwards, prices dropped by 30% to US$57 per barrel due to a glut in the global market. He said prices are expected to hover between US$60 and US$70 per barrel this year.
From the government’s perspective, Mr. Lim pointed out that each US$1 per barrel increase in oil prices brings the Treasury approximately RM300 million in revenue per year. However, the government no longer heavily relies on oil revenue as before.
Mr. Lim Guan Eng said, Malaysia will restore its status as a net exporter of refined fuels upon the commencement of full commercial operations in the Refinery and Petrochemical Integrated Development (RAPID) slated for the fourth quarter of this year (4Q19). “
He continued, “In the fourth quarter of 2019, we will witness the full commercial operations of Petronas and Saudi Aramco’s US$16 billion (RM66.88 billion), 300,000-barrels-per-day Rapid project. RAPID will turn Malaysia into a net exporter of refined fuels for the first time since 2008.
“This venture marks a historic partnership between two of the most successful national oil companies in the world – Petronas and Saudi Aramco. The collaboration brings together vast resources, technologies, experience, expertise and commercial presence much to the benefit of both companies and both countries.”
He said the oil and gas sector in Malaysia was moving up the value chain to protect the country from the excessive volatility seen in the upstream business. He urged industry players to constantly innovate and invest in new technology in order to remain competitive globally. “Continuous application of new technology to improve efficiency and quantity is the new norm.”
Mr. Lim also highlighted the diversified economy of Malaysia. “In 2018, mining accounted for about 8% of the country’s gross domestic product, while manufacturing contributed 22% and services 57%.
Malaysia is also benefiting from the ongoing trade war between China and the US through business relocations as well as trade and investment diversions.
The reorientation of the global supply chain and Malaysia’s competitiveness saw the country’s approved foreign direct investment (FDI) in the manufacturing sector surging 127% to RM20.2 billion in Q1 2019 from RM8.9 billion a year ago.“
OGA 2019 is endorsed by the Malaysia External Trade Development Corporation (MATRADE). It is supported by the Prime Minister’s Department, the Ministry of International Trade & Industry (MITI), Ministry of Tourism, Arts & Culture Malaysia (MOTAC), Malaysian Convention & Exhibition Bureau (MYCEB), Malaysian Investment Development Authority (MIDA), Malaysian Oil & Gas Services Council (MOGSC), Institution of Engineers Malaysia (IEM), Malaysian Petroleum Resources Corporation (MPRC), Malaysian Offshore Contractors Association (MOCA) and the Malaysia OSV Owners’ Association (MOSVA).
This edition also saw tremendous engagements through the Business Matching Platforms which the organizer provided to the exhibitors through the OGA 2019 Mobile App as well as the Jublia Business Matching System. The results were outstanding with 8,498 business matchings recorded.
Another highlight of the event, The International Sourcing Programme by Matrade brought in a total of 13 international buyers from Myanmar, Nigeria, Pakistan, Qatar, USA and Vietnam. The total potential sales generated through this hosted buyer programme is estimated at RM50 million.
At OGA 2019, a lucky draw for trade visitors was held with amazing prizes up for grabs ranging from the latest gadgets including Sony GTX-XB60 Bluetooth Speaker, Samsung Galaxy Watch, GoPro Hero 7 Silver Edition, Huawei Nova 4e and Hotel vouchers.
OGA 2019 offers such a platform, encouraging local and regional service providers to explore new opportunities and enhance their capabilities in order to stay ahead of the curve. The next edition, OGA 2021 will be back from 8-10 June 2021 at the Kuala Lumpur Convention Centre.