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Oil and Gas Field Machinery Industries Malaysia Trade Opportunities

Malaysia Energy Doing Business with PETRONAS

As Malaysia’s national energy company, PETRONAS is the custodian of Malaysia’s oil and gas resources and the country’s upstream oil and gas industry regulator.  PETRONAS derives its authority from Malaysia’s Petroleum Development Act of 1974, which vests the company with ownership of and exclusive rights to the country’s petroleum resources.  Since its incorporation, PETRONAS has established itself as an international energy company with a presence in over 100 countries and a persistent presence on the Fortune Global 500 rankings.

  • A company wishing to supply goods or services to Malaysia’s oil and gas industry must have a valid PETRONAS License or Registration.  Upstream sector activities, such as exploration, development, and production of resources, require vendors to have a PETRONAS License. Supply to the downstream sector requires vendors to have a PETRONAS Registration.
     
  • General License or Registration (L/R) requirements for PETRONAS are that the vendor must be locally incorporated, meet the minimum paid-up capital requirement (i.e., MYR100,000 for a licensed vendor and MYR10,000 for a registered vendor), have a positive net worth, and be licensed or registered in at least one Standardized Work & Equipment Category (SWEC).
     
  • SWEC codes categorize the products and services related to the oil and gas industry. For a vendor to be licensed or registered in a particular SWEC, it must meet the minimum commercial requirements (e.g., equity, board of directors, management, and employee composition) and minimum technical requirements (e.g., relevant certifications, experience, facilities, and equipment) for that SWEC.
     
  • Foreign companies pursuing opportunities in this sector have three options: (i) incorporate a local business entity that meets all L/R requirements; (ii) form a joint venture (JV) with a local partner where the JV entity meets all L/R requirements, or (iii) appoint a local company that meets all L/R requirements as the local representative for the foreign company.
     

Every year, PETRONAS publishes the PETRONAS Activity Outlook, a three-year forward-looking forecast outlining the company’s procurement priorities.  This publicly available document is a guide to help align and prepare vendors across the value chain. 

U.S. technologies and expertise are well-regarded, and U.S. companies continue to play a key role in Malaysia’s oil and gas industry.  If you represent a U.S. company and want to learn more, please contact Commercial Specialist Mohan Gurusamy at office.kualalumpur@trade.gov.
 

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