3. O&G players unfazed by drop in oil price

Players say fall in crude prices won’t dampen growth of industry PETALING JAYA: The current downtrend in crude oil prices is not expected to dampen the growth momentum experienced by the oil and gas (O&G) industry, at least not in the short term. Wah Seong Corp Bhd group chief executive officer and managing director Chan Cheu Leong said the price of oil was currently at a “comfortable” level for oil majors to continue with exploration and production activities. “We are still very bullish even if the price of oil, in the unlikely event, were to drop further to US$80 to US$100 per barrel, as this still provides a high rate of return for oil majors. “Our order book consolidated as at June 30, 2008, stands at RM2.09bil and stretches to 2009. This shows positive earnings visibility for the group in the next two to three years,” he... [read full story]