Malaysia's Petronas gears up for new investment cycle

[Tom Kirkman + 8,860]

I'm starting to feel like a kid just before Christmas.  Petronas is generally fiscally conservative.  Last I checked, they budgeted for oil at $66 next year.

With increasing free cash flow, they are getting ready exercise some financial flexibility.

Analysis: Malaysia's Petronas gears up for new investment cycle

Malaysia's national oil company Petronas is poised for its next wave of investments, in line with the recent final investment decision on the LNG Canada project, as the completion of its RAPID refinery frees capex and higher oil prices boost cash flows.

... Petronas now needs to divert attention to boosting its upstream profile as global E&P spending gradually limps back to normal. It remains to be seen whether this will extend to the high profile Malaysian deepwater projects that had stalled at low oil.

Barclays said in its global 2018 E&P spending outlook that overall spending from Asia and Australia is expected to increase 6%, led by PetroChina and Petronas.

[jaycee + 348]

2 hours ago, Tom Kirkman said:

I'm starting to feel like a kid just before Christmas.  Petronas is generally fiscally conservative.  Last I checked, they budgeted for oil at $66 next year.

With increasing free cash flow, they are getting ready exercise some financial flexibility.

Tom you do realise when the last Bear becomes a Bull that is the top of the market.

[Tom Kirkman + 8,860]

36 minutes ago, jaycee said:

Tom you do realise when the last Bear becomes a Bull that is the top of the market.

Pretty much.  I'm hoping oil doesn't go to crazy levels again.  Triple digit oil prices are simply not sustainable in the long term.  And I'm still hoping for an average of $70 oil in 2019.

Heck in the Oil Price Prediction challenge here on Oil Price Forum I'm still hoping for $70 Brent and $65 WTI on Dec 31st.  Hoping is the key word here, as I'm not much of an oil price forecaster.