ConocoPhilips Invests US$1.5 Billion In Oil Production In M'sia

From Khairdzir Md Yunus NEW YORK, May 18 (Bernama) -- ConocoPhilips, among the world's biggest oil producer from the United States, has invested US$1.5 billion (RM4.6 bilion) in Malaysia so far for oil production in offshore Sabah, the easternmost state. Malaysia Prime Minister Najib Razak said the company's investment was to realise the 300,000 barrels per day production target in 2016. "Conoco has invested in three areas off Sabah, but that takes end of 2013 for the first production, but the peak will be in 2016, where they expect the production to touch 300,000 barrels a day, about half of our current production," said Najib to Malaysian journalists after his meeting representatives of America's leading corporate companies at Havard Club of New York here. At the Business Roundtable Meeting with Leaders of Fortune 500 Companies, ConocoPhilips was represented by Don Wallette, Executive Vice-President (Commercial, Business Development & Corporate Planning). Najib said the company is expected to invest another US$5 billion (RM15 billion) in Malaysia. "This is a development that will help us increase the oil production capacity of our country to a higher level," he said. Najib said America's lobster breeding compay, Darden, will also start a huge investment to breed lobsters in Sabah waters for export to the United States. Darden is the operator of America's renowned seafood restaurant chain, Red Lobster and The Capital Grille. "They have identified Sabah as a very suitable area for commercial scale lobster breeding on contract farming method. "So, the local people can participate and they (Darden) will buy all the lobsters produced by the farmers in the area," he said. Asked on the project site, Najib said it would be in Semporna and Lahad Datu, both located in Sabah. In that meeting, Darden was represented by the President of Darden Aqua Farm and Senior Vice President Supply Chain, Bill Herzig. Najib said the meeting was also attended by companies which have long invested in Malaysia like Motorola which started their investments about 40 years ago. The prime minister said he was informed by Motorola that they still have confidence to continue tneir investments in Malaysia due to the cooperation and incentives offered by the Malaysian Government all these while. "The latest, they have confirmed an additional 250 job opportunities will be created (in Malaysia) and not 100 (as they promised last year). Last year, they promised to me 100 but today it's not 100 but 250 (job opportunities)," he said. Besides creating job opportunities for Malaysians, Motorola will also build a seven-storey building in Malaysia. Najib said there were also other American companies which showed interest to increase their investments in Malaysia but have not confirmed their decision. They include Eastman Chemical which has invested in Kuantan, Pahang, to produce polymer, a chemical product. "They are expected to increase their investment by US$350 million...this has not been confirmed but they have indicated the possibility that they will make the decision," he said. Another company keen to invest in Malaysia is Global Consumer Insurance AIG-Chartis. Asked on the feedback received from the American corporate figures, Najib said that overall they were satisfied and expressed confidence in Malaysia, particularly in the investor-friendly policies and incentives provided by the government. "And also protection of intellectual property and the decisions that we have made to create a positive environment for investors," he said. Among other leading American companies which attended the meeting are Guardian Industries, Symmetry Medical, Boeing, Citi Group, Ace Group and Crest Group. Besides the group meeting, Najib was also met by captains of industries and American politicians separately. Among them are Jeremy P. Feakins, Chairman of the Board and Chief Executive Officer, Thermal Energy Corporation and the other is Motorola Solutions Executive Vice President Gene Delaney. On his meeting with Feakins, Najib said he approved the application of Ocean Thermal Energy Corporation to conduct a study to generate electricity from the deepsea in Sabah. The prime minister said studies have shown some areas in Sabah waters have the potential to generate electricity on a large scale. Najib also received courtesy calls from former Missouri Senator Christopher Samuel "Kit" Bond, who was also former Missouri Governor for two terms from 1973 to 1977 and from 1981 till 1985. On that meeting, Najib said Senator Kit Bond was a long time friend of Malaysia and he offered to bring more American investors to Malaysia. Najib arrived here Wednesday to chair the second Global Science and Innovation Advisory Council (GSIAC) meeting at the New York Academy of Sciences. Najib and his wife, Rosmah Mansor, will leave for Washington D.C. on Friday. -- BERNAMA