Another unnamed industry source has also confirmed that it would be engineering and construction firm Ranhill that would be given the job to lead the consortium along with Crest Petroleum.

Understandably, the Malaysian Ministry of Finance has announced that no final decision has been made. Officials at both companies issued the almost obligatory 'no comments'.

Speculation has been rife in the Malaysian stock market about which companies would make up the consortium ever since Prime Minister Mahathir Mohammad mooted the concept of a second consortium when he tabled the 2004 Budget.

In a related report, The Star newspaper has published reports that there will be three companies that will be asked to form the consortium. Aside from Ranhill and Crest, the third company is Jawala Corp Sdn Bhd.

Ranhill and Crest have long been players in the oil and gas sector in Malaysia with the latter known for offshore drilling and marine installation, construction & services. However, Jawala's inclusion is seen as a surprise.

The company was originally set up in 1984 by prominent businessman Majid Khan to export sawn timber but has since diversified into wood, palm oil and petroleum products. It has had no experience in the exploration and development of oil and gas fields.