Friday, May 18, 2012

ConocoPhillips plans to make additional US$5b investment in Malaysia


ConocoPhillips plans to make additional US$5b investment in Malaysia


NEW YORK: At least two major American companies have expressed their interest to Prime Minister Datuk Seri Najib Razak to make additional investments in Malaysia, thus attesting their continued confidence in the government's efforts to create a positive environment for investors.
  PM addressing leaders of Fortune 500 companies during a meeting at Harvard Club New York. -- Bernama

ConocoPhillips, the US' third largest integrated energy company and fifth largest refiner in the world, may make an additional US$5 billion investment for their operations offshore Sabah which will see a production of 300,000 barrels of oil a day by 2016.

It has already pumped in US$1.5 billion in terms of investments for its interests in three deepwater blocks off the eastern Malaysian state of Sabah: Block G, Block J and the Kebabangan (KBB) Cluster. It is expected to start production next year.



Meanwhile, Eastman Chemical Company is looking at making an additional investment of US350 million for its co- polyester plastics plant in Pahang.


Officials from these two companies met Najib at the roundtable meeting with US business leaders at the Harvard Business School Club of New York here.


"These companies expressed confidence of the investment opportunities in Malaysia and of their satisfaction on our policies.


"This also reflects our capability to compete with other countries in the region and is in the forefront to attract the foreign investments to our shores," he said.


Meanwhile , Najib said he has agreed for a study to be undertaken on the potential of generating power from the ocean offshore Sabah.


The request came from Ocean Thermal Energy Corporation chairman and chief executive officer Jeremy P Feakins, who he met separately after the roundtable.


AIG Chartis, an international insurance and financial services organisation, is also keen to set up back room operations in Malaysia.


Najib said he is happy with the outcome of his two-day working trip to the US, as he would be able to get first hand feedback from the investing community here.


"One constraint raised was of our skill sets especially among degree and PhD holders to undertake high value jobs. It is crucial for us to produce the right skill sets," he said.


He also said it is the government's task to narrow the divide between the perception and reality of what is happening in the country.


"We have to encourage those are already in Malaysia to be third party validators to convince the others who don't know about us," he added.

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