SINGAPORE (Sept 17): Upstream activities are increasing in tandem with crude oil prices, which are climbing steadily. While things are looking up for the oil and gas industry, many Malaysian O&G companies are still bogged down by high borrowings and finance costs.
Given the growing optimism in the industry, some quarters believe more debt-laden companies are likely to tap existing shareholders for fresh capital by making cash calls.
“With [the] oil price at this level, they [O&G companies] have the opportunity to turn around. But first, they need to have cash to pare down their debts.