TECHNOLOGY TO BE KEY DRIVER OF DEEPWATER PROJECTS, SAYS EXPERT

KUALA LUMPUR, April 15 (Bernama) -- The use of cutting-edge technologies
will be a key driver in facilitating exploration and production (E&P) activities
in offshore areas.

In stating this, Maritime Institute of Malaysia (MIMA) senior fellow Nazery
Khalid companies would have to deploy cutting-edge technologies and creative
solutions to ensure that E&P activities are carried out efficiently, safely
and profitably.

"This will require considerable amount of investments and resources, given
the capital-hungry nature of the offshore industry," he said in a statement
Thursday.

Nazery said that prospecting potential areas required state-of-the-art
seismic and surveying technologies and skills to ensure a reasonably high degree
of success in offshore E&P.

"The stakes in the offshore industry are high as the costs involved are huge
and the time spent considerable, hence companies and investors expect a decent
return on their investments," he said.

Nazery also said that the role of governments in ensuring success of
offshore oil and gas projects could not be overemphasised.

"Pro-business and pro-investment policies are crucial in attracting capital
and the participation of foreign players into offshore projects," he said.

Citing the example of Petronas as a "Malaysian success story in the oil and
gas industry", Nazery said offering attractive production sharing contract terms
had been one of the cornerstones of its ascent up the ladder of global offshore
energy players.

He said the shortage of skilled workers in the offshore oil and gas industry
must also be overcome to ensure that increasingly sophisticated activities could
be carried out successfully.

Nazery also reminded on the need to manage hydrocarbon resources in a
responsible manner and to protect Mother Nature.

"Pressure is growing for the offshore oil and gas industry to reduce their
carbon footprint and lower their carbon emissions in carrying out their
activities. They must make the mantra of extract and protect must be made a
guiding principle in their operations," he added.

-- BERNAMA