PETALING JAYA: Norway sees vast potential in the local oil and gas (O&G) industry with Norwegian companies looking to set up operations in the country, said Norway's ambassador to Malaysia Arild Braastad.

"There are signs that Norwegian companies want to establish themselves, especially in the O&G support services industry in the country.

"In fact, there are four Norwegian companies - in the O&G and software business - looking for local partners to set up operations in the country," he told StarBiz in a recent interview.

Braastad said Norwegian O&G companies have the competence, products and services that would fit into the local O&G industry's development into deepwater exploration and production activities because most of the O&G activities in Norway took place offshore.

Nine Norwegian companies will take part in the 12th Asian Oil, Gas & Petrochemical Exhibition 2009 from June 10 to 12 as an opportunity to network and promote their products and services.

Today, there are about 60 companies in Malaysia that are linked to Norway either through direct investments or joint ventures including DiGi.Com Bhd, Jotun (M) Sdn Bhd and Framo Engineering Asia & Pacific Sdn Bhd.

About half of the companies are involved in the O&G support services business while the balance are in maritime, telecommunications and information and communications technology, chemicals and pharmaceuticals and fertilisers, among others. Another 60 Norwegian companies are tapping the local market through local agents.

"Malaysia will be the top country in South East Asia in terms of business opportunities and investments for Norway," Braastad said.

According to Braastad, more than RM7bil in foreign direct investments from Norway has been poured into the country to-date, especially in the telecommunications industry.

"We also see business opportunities for Norwegian companies in the defence, aquaculture, maritime and energy intensive industries, among others.

"These are some of the areas where Norwegian companies can invest in. We are very strong in hydro power development and seafood production," he said.

Despite the economic crisis, Braastad said there have not been any serious complaints from Norwegian companies operating in the country.

He expects to see some increase in Norwegian exports to the country this year especially in the services sector, such as the O&G industry. Exports (including products and services) from Norway to Malaysia totalled about RM1bil in 2008.

By ELAINE ANG
Source:thestar online