Malaysia Oilfield Chemicals Market is anticipated
to grow at a significant rate in the projected period due to increasing demand for oil and gas. In 2021, Malaysia
produced approximately 573 thousand barrels of oil per day.
Malaysia Oilfield Chemicals
Market is expected to expand during the projected period due to increasing demand
for oil and gas from the energy industry, increasing deep drilling activities for oil
and gas, and increasing extraction from existing as well as new and
unconventional reserves. Oilfield chemicals are used in well drilling, production
facilities, and workover fluids to achieve peak performance and increase oil
recovery efficiency. These chemicals are necessary to facilitate the handling,
transportation, and production of crude oil. The growing crude oil production
leads to an increase in petroleum operations, which is expected to propel the Malaysia
oilfield chemicals market.
Malaysia Oilfield Chemicals
Market is a dynamic and competitive sector that offers opportunities for growth
and innovation. The market players are focusing on expanding their product portfolio,
enhancing their quality standards, improving their distribution network, and
increasing their market share. Along with this, mergers and acquisitions in in the
oilfield chemicals market enhances
companies' presence in the country as these acquisitions help companies to
better serve their customers and meet the growing demand for oilfield chemicals
in Malaysia in the forecast period.
Rising Demand for Oilfield
Chemicals for Oil Extraction Process
Malaysia is a significant
producer of oil and gas, and the industry plays a crucial role in the country's
economy. Oilfield chemicals are an essential component in the oil and
gas industry as they are used in various stages of the oil extraction process,
including drilling, production, and transportation. The chemicals are used to
enhance the performance of oil wells and improve their overall productivity.
They are used to minimize the formation of corrosion, prevent scaling, and
improve the flow of oil through the wellbore. In addition, these chemicals
contribute to the efficient operation of oil fields and save expenditures
associated with excessive stops and delays during the drilling process. Corrosion
and scale inhibitors, biocides, demulsifiers, surfactants, rheology modifiers, gellants,
and friction reducers are some of the oilfield chemical types. Oilfield
chemicals are also used in a variety of sectors related to oilfield operations
because of their different qualities, including drilling fluids, enhanced oil
recovery (EOR), cementing, production chemicals, well stimulation, and workover
and completion, out of which the demand for oilfield chemicals rises by the
need for enhanced oil recovery (EOR) techniques. EOR techniques are used to
extract more oil from existing wells, and this requires the use of chemicals such
as surfactants, polymers, and alkalis. The use of EOR techniques is becoming
increasingly important in Malaysia as the country's oil reserves become
depleted. This has led to an increase in the demand for oilfield chemicals,
especially those used in EOR processes.
For instance, Dow Chemical produces ELEVATE
foam additives which are used with gas injection methods that control gas
mobility, pressure build-up, gas conformance enhancement, higher oil production,
and increased gas utilization ratio.
Moreover, the increasing
demand for oilfield chemicals is the need for environmental protection. The oil
and gas industries are known for their environmental impact, oilfield chemicals
are used to reduce the environmental impact of oil and gas production by minimizing
waste and emissions as well as the Malaysian government imposing stricter
regulations to minimize this impact by ensuring that the oil and gas industry
operates in an environmentally friendly manner. This has led to an increase in
the demand for oilfield chemicals that are more environmentally friendly.
For instance, BASF SE produces Basocorr
E types of innovative products which are characterized by their high
biodegradation and low toxicity and serve in markets with strict environmental
regulations.
Therefore, the rising demand for
oil extraction led to the growth of Malaysia Oilfield Chemicals Market in the projected
year.
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Growth of Drilling and
Cementing Applications
Drilling is a fundamental
process in the oil and gas industry, and it involves drilling a hole into the
earth's surface to extract hydrocarbons. Oilfield chemicals are used
extensively in the drilling process to ensure the safety and efficiency of the
operation. Drilling fluids, also known as drilling mud, are a type of oilfield
chemical used to lubricate the drill bit and carry the drill cuttings to the
surface. The drilling fluid also helps to stabilize the wellbore and prevent
the collapse of the walls. Furthermore, cementing is another critical process
in the oil and gas industry, and it involves sealing the wellbore with cement
to ensure that the hydrocarbons do not escape into the surrounding rock
formations. Oilfield chemicals are used in cementing operations to improve the
quality and performance of the cement. The chemicals are used to increase the
density of the cement, improve its strength, and reduce the time required for
the cement to be set. Furthermore, many oil extraction projects have begun,
with drilling and cementing in the early stages, which is expected to increase the
demand for oilfield chemicals.
For instance, PETRONAS
Carigali Sdn Bhd (PCSB), a wholly owned subsidiary of PETRONAS, announced an
oil and gas discovery at the Nahara-1 well in Block SK306, located in the
shallow waters of Balingian Province about 150 kilometers from Bintulu, off the
coast of Sarawak, offshore Malaysia in December 2022.
Furthermore, Shell Plc introduced
the first deep-water project in Malaysia using advanced Shell technology to
safely produce oil from the Gumusut-Kakap field in seas 1,200 meters (3,900
feet) deep with an annual peak oil production of around 148,000 barrels a day,
the platform contributes significantly to Malaysia’s oil production.
All these factors dominate
the growth of the Malaysia Oilfield Chemicals market in the upcoming years.
Increasing Demand for Eco-friendly
Oilfield Chemicals
Chemicals with reduced flammability or flashpoint,
lower exposure toxicity, lower bioaccumulation, greater biodegradability, and
sustainability in both application and production are examples of green
solutions in the oil fields. Amid rising environmental concerns, manufacturers
are adopting and developing new products that are cleaner and less damaging to
the environment resulting in increasing demand for eco-friendly oilfield chemicals
in the forecast period.
For instance, Hextar KCS Sdn Bhd, a subsidiary company of JVK Resources Pte Ltd produced nano emulsion surfactant technology
products JVK Clean 130 which are used in various oil fields in Malaysia.
However, the oil and gas
industries are highly volatile and cyclical, with prices subject to sudden and
significant fluctuations which make it difficult for companies to plan their
operations and investments effectively and the prices of oil and gas products have
a significant impact on the demand for oilfield chemicals. In
addition to this, the oil field chemicals have a high disposable cost because they have to go through various
procedures such as radiological analysis, composition analysis, administrative
costs, transportation cost, and authorizing & manifesting fees, along with this,
the usage of oilfield chemicals have an adverse effect on the soil and aquatic
life during the deepwater drilling and production process which causes an increase
in environmental concerns. This ch results in implementation of stringent
regulatory law for oilfield chemicals producers, thereby restraining the growth of the
market. Moreover,
governments are expected to take more aggressive measures
to accelerate the transition to renewable energy. Many consumers have started to focus on the
potential of long-term recovery as a means of accelerating progress toward a
low-carbon future. Furthermore, improvements in fuel efficiency, considerably
higher electric vehicle penetration, and new rules to limit oil consumption in
the power sector are anticipated to reduce overall oil demand resulting in slowing
down the market growth.
Recent Development
- In 2023, Clariant IGL
Specialty Chemicals (CISC) showcased renewable-based ethylene oxide derivatives
at ChemExpo India.
- In 2022, PETRONAS Chemicals
Group Berhad signed an agreement with
its joint venture (JV) company, BASF PETRONAS Chemicals Sdn Bhd (BPC), to
acquire the 113,000-metric-ton/year maleic anhydride plant located in Gebeng, Kuantan.
- In 2021, Uzma received a
contract from Medco to provide chemical supply and services for the Bualuang
oilfield in Thailand.
- In 2020, PCC and PETRONAS Chemicals
Group jointly started the production of
specialty chemicals in Malaysia.
Market Segmentation
Malaysia Oilfield Chemicals Market is segmented based on type, oil field type, application, region and competitive landscape. Based on the type, the
market is divided into commodity oilfield chemicals and special oilfield
chemicals. Based on the oil field type, the market is fragmented into
onshore, and offshore. Based on the application, the market is categorized into
drilling, completion method, cementing, stimulation, enhanced oil recovery, and
others. Based
on region, the market is segregated into East Malaysia, and West Malaysia.
Company Profiles
OneSubsea Malaysia Systems
Sdn. Bhd., Halliburton Asia Energy Services (M) Sdn Bhd, Baker Hughes (M) Sdn.
Bhd., BASF (Malaysia) Sdn. Bhd., Dow Chemical Pacific Ltd, Petroliam Nasional
Berhad (PETRONAS), UZMA Berhad, Hextar KCS Sdn Bhd., ACME Chemicals (Malaysia)
Sdn. Bhd., Clariant (Malaysia) Sdn Bhd are some of the key players
in Malaysia Oilfield Chemicals Market.
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Attribute
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Details
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Base Year
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2022
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Historic Data
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2018 – 2021
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Estimated Year
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2023
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Forecast Period
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2024 – 2028
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Quantitative Units
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Revenue in USD Million, Volume in Units, and CAGR for 2018-2022 and 2023-2028
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Report coverage
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Revenue forecast,
volume forecast, Company shares, competitive landscape, growth factors, and trends
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Segments covered
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Type
Oil Field Type
Application
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Region scope
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East
Malaysia, West Malaysia
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Key companies profiled
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OneSubsea
Malaysia Systems Sdn. Bhd., Halliburton Asia Energy Services (M) Sdn Bhd, Baker
Hughes (M) Sdn. Bhd., BASF (Malaysia) Sdn. Bhd., Dow Chemical Pacific Ltd, Petroliam
Nasional Berhad (PETRONAS), UZMA Berhad, Hextar KCS Sdn Bhd., ACME Chemicals
(Malaysia) Sdn. Bhd., Clariant (Malaysia) Sdn Bhd
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Customization scope
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10% free report customization with purchase. Addition
or alteration to country, regional & segment scope.
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Pricing and purchase
options
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Avail customized
purchase options to meet your exact research needs. Explore purchase options
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Delivery Format
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PDF
and Excel through Email (We can also provide the editable version of the report
in PPT/Word format on special request)
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Report Scope:
In this report, Malaysia Oilfield Chemicals Market has been
segmented into the following categories, in addition to the industry trends, which
have also been detailed below:
- Malaysia Oilfield
Chemicals Market, By Type:
- Commodity Oilfield Chemicals
- Special Oilfield Chemicals
- Malaysia Oilfield
Chemicals Market, By Oil Field Type:
- Malaysia Oilfield Chemicals Market, By Application:
- Drilling
- Completion Method
- Cementing
- Stimulation
- Enhanced Oil Recovery
- Others
- Malaysia Oilfield Chemicals Market, By Region:
- East Malaysia
- West Malaysia
Competitive landscape
Company Profiles: Detailed analysis of the major companies in Malaysia
Oilfield Chemicals Market.
Available Customizations:
With the given market data, TechSci Research offers customizations
according to a company’s specific needs. The following customization options
are available for the report:
Company
Information
- Detailed analysis and profiling of additional market players
(up to five).
Malaysia Oilfield Chemicals Market is
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or want to confirm the date of release, please contact us at [email protected]