GOVT TO ESTABLISH MALAYSIA PETROLEUM RESOURCE CORP

KUALA LUMPUR, April 13 -- The government is establishing soon the Malaysia
Petroleum Resource Corporation (MPRC) to spur the development of the oil
and gas industry in the country.

The interim Chief Executive Officer of the MPRC, Dr Shahreen Madros said
Prime Minister Najib Razak, will announce details of the new agency soon.

"We are looking at human capital requirements, marketing and how we
can promote the industry further," he told reporters on the sidelines of the
Invest Malaysia 2011 Conference, here Wednesday.

The proposal to establish the MPRC comes from the Performance Management and
Delivery Unit (Pemandu) and it will be placed under the Malaysian Industrial
Development Authority, Shahreen said.

Meanwhile, Petronas Executive Vice President Exploration and Production
Business, Wee Yiaw Hin said the era of an easy oil and gas business in
Malaysia is over, while leading towards a more challenging environment.

In order to sustain the oil production level, he said, Petronas has to get
more out of the existing fields and unlock stranded resources.

"We need to bring in global technology and capability to assist, as we are
embarking into the deep water sector exploration," he said at a plenary session
on, "Making Malaysia a Regional Oil and Gas Hub".

Wee said Petronas will continue to undertake aggressive initiatives and
develop innovative solutions to drive reserve growth and monetisation.

He also said the industry players should look into increasing their
capabilities and expertise in marginal oil fields and subsurface technology.

Sapura Group, President/Chief Executive Officer, Datuk Shahril said local
players need to be competent in bidding for and securing oil and gas projects.

He said Sapura itself had established a high standard of expertise and
capabilities before embarking on project tenders.

"We need to have the capabilities first, before opportunities come," he
added.