Upstream profitability in Malaysia

摘要

This report outlines the main characteristics of the Petroleum Industry in Malaysia. Attention is given to the exploration history, the structure of the industry, the fiscal regime and concession system for international companies searching for new exploration ventures in the country. An economic analysis of exploration and field development decisions is presented. The analysis is based on a standard cash flow tax model reflecting the current economic framework. Calculations of upstream profitability is done using typical offshore oil end gas project assumptions. The effect of different level of exploration risks, tax position and tax agreements is included in the analysis. The report does also evaluate the impact of changing fiscal terms for the period 1976 to 1993. 13 refs., 8 figs., 21 tabs.