Investment summary................................................................................................... 3
Background................................................................................................................. 4
What has changed since our last report? .............................................................. 4
Return of investors’ interest................................................................................... 7
Outlook........................................................................................................................ 9
Reservoirs ........................................................................................................... 11
Wells.................................................................................................................... 14
Marine & subsea.................................................................................................. 19
Facilities .............................................................................................................. 27
Issues .................................................................................................................. 36
Stockpiling of materials and equipment ............................................................... 36
Equipment’s limited productive life ...................................................................... 37
Exclusive reservation........................................................................................... 38
Expediting materials and equipment to rigs and platforms .................................. 39
Other developments ............................................................................................ 39
New oil & gas projects ......................................................................................... 39
Introduction of RON95 petrol on 1 Sep 09........................................................... 42
M&A..................................................................................................................... 44
SWOT analysis ......................................................................................................... 45
Risks.................................................................................................................... 45
Financials.................................................................................................................. 47
Valuation and recommendation................................................................................. 49
Get on the supply chain....................................................................................... 49
Positive prospects amidst challenges.................................................................. 51
What is a reasonable oil price? ........................................................................... 51
Overweight reiterated .......................................................................................... 52
Company Briefs…..................................................................................................... 54
Appendix 1: Petronas’s Fortune 500 rankings........................................................... 67
Appendix 2: Calculation of reserve replacement ratio............................................... 68
Appendix 3: Q&A on Dialog’s Pengerang project...................................................... 69
Appendix 4: Refineries in Malaysia ........................................................................... 70
Appendix 5: How much is Petronas’s average production cost?............................... 71