Sri Lanka, Malaysia to sign MoU in oil-and-gas sector
Ramani KANGARAARACHCHI
Dr Emir Mavani |
Saliya Wickramasuriya |
Sri Lanka and Malaysia will sign a strategic memorandum of
understanding on Thursday in the oil and gas sector which will
strengthen relationships between the two countries and fuel new
investment opportunities.
This will be the first oil-and-gas related memorandum of
understanding signed between key government agencies of Sri Lanka and
Malaysia which is expected to pave the way for more investment and
business opportunities in the oil and gas sector.
The Petroleum Resources Development Secretariat (PRDS) of Sri Lanka
will sign this MoU with Malaysia Petroleum Resources Corporation (MPRC),
a government agency under the Prime Minister’s Department of Malaysia to
formalise business and investment opportunities for Malaysian companies
to collaborate with their Sri Lankan counterparts in the oil and gas
sector.
Malaysia’s High Commissioner to Sri Lanka Azmi Zainuddin said .“We
recognise the potential that Malaysian oil and gas companies could offer
Sri Lankan companies in this sector. Malaysian oil and gas companies
have built their capabilities, resources, knowledge and relationships
with business partners and vendors over several decades, and may help
their Sri Lankan counterparts to significantly shorten their own
learning cycle.
MPRC, the government gateway to these opportunities, will help Sri
Lankan companies meet the requirements of this industry through
partnerships and possible joint ventures in time to come,” said Saliya
Wickramasuriya, Director General of the PRDS.
Wickramasuriya added, “Malaysia has demonstrated that their home
grown companies have the capabilities to move out from their domestic
markets and to venture into the international arena, where they are now
credible and reputable in the oil and gas sector. We expect Sri Lankan
companies to one day do the same.”
Dr. Emir Mavani, President/ Chief Executive Officer, MPRC said the
MoU will create vast opportunities for current and future generations of
Sri Lankans in the oil and gas industry. “The outlook of the oil and gas
industry for Sri Lanka is very good; it is growing rapidly, as
industrialization and economic growth kicks in.
There will be a strong demand for skilled and talented workforce. Sri
Lanka can act as a base for investors to enter the South Asian region.
The demand for local infrastructure will be in Sri Lanka’s favour as new
industries are created, new roads, buildings and facilities connect
various parts of the island. These factors all point towards a bright
future for the country’s oil and gas sector,” said Dr. Emir. The MoU
signed by PRDS and MPRC has also paved the way for Malaysian companies
to seek possible business opportunities in Sri Lanka.
Pursuant to the the MoU signing ceremony, Malco Engineering (Private)
Limited of Sri Lanka has signed MoUs with two Malaysian companies,
namely Energy Quest Sdn.. Bhd. and Daya Materials Bhd. to explore
investments in infrastructure facilities in Sri Lanka, such as oil
refinery operations, construction of power plants as well as upstream
oil and gas projects and supply of services and products to the sector.
These positive developments indicate the potential areas where new
investments are required and where capable Malaysian companies could
offer their services and know-how in other regional markets. The
Petroleum Resources Development Secretariat (PRDS) is tasked with the
promotion, regulation and management of the upstream petroleum industry
in Sri Lanka, and functions under the office of the President.
MPRC is an agency under the Prime Minister’s Department of Malaysia.
It was formed in 2011, and is tasked to catalyse, transform and promote
Malaysian oil and gas services sector to become stronger entities. In
doing so, MPRC wants to position Malaysia to be the number one oil and
gas hub in the Asia Pacific by 2017. |