KUALA LUMPUR: Malaysia's oil and gas sector will be supported by continued upstream investment, offshore activity and recurring contact income amid rising concerns on the renewed Middle East tensions that pushed Brent crude price back above the US$100 per barrel (bbl) level.
RHB Research noted that Petroliam Nasional Bhd's (Petronas) capital expenditure (capex) of RM41.4 billion in the first half of 2026 (1H26) looked substantial, but focus should be on the upstream segment.
It said Petronas' capital investments in 1H26 were skewed by downstream business, which accounted for RM26 billion or 63 per cent of the total, driven by additional capital injection into the Pengerang Refining Company and Pengerang Petrochemical joint venture.
