Kuala Lumpur: Malaysia has a relatively sufficient crude oil supply compared with other Asean countries, said national oil and gas company Petroliam Nasional Bhd (Petronas).
Its president and group chief executive officer, Tan Sri Tengku Muhammad Taufik Tengku Aziz, said that almost 40 per cent of Malaysia’s crude oil imports pass through the Strait of Hormuz, compared with nearly 90 per cent for other Asean nations that rely on the route.
“Malaysia, as a consumer market, cannot be fully insulated from rising oil prices. Since 2014-2015, there has been recognition that Malaysia has become a net importer, and this has been announced by the government.
“Because of our energy production and our position as a net exporter of energy, there may be some confidence that our supply is relatively secure compared with other Asean countries, where dependence on imports exceeds 90 per cent, while Malaysia’s rate is about 40 per cent.
“However, there is no possibility that we, as a consumer market, can be fully insulated,” he said on Radio Televisyen Malaysia’s programme called Addressing Challenges due to the Global Energy Crisis, yesterday.
Tengku Muhammad Taufik said that Malaysia’s domestic crude oil production has been gradually declining as its mature fields undergo natural depletion.
Malaysia produced more than 700,000 barrels per day in the 1990s and early 2000s, but current domestic crude output is estimated at around 350,000 barrels per day.
At the same time, Petronas’ refining system requires about 700,000 barrels per day to meet domestic fuel demand, creating a structural gap that must be filled through imports.
Nearly half of this requirement is imported, with a significant portion of the supply passing through the Strait of Hormuz.
“It is not that Petronas is unaware (of the decline in crude oil production). Exploration efforts continue to be led together with contractors and investors, but what we are finding is largely natural gas.
“Most of it is natural gas, and Malaysia is a gas-prone region,” he said.
