The second consortium was proposed to handle marginal fields that were below the scope of state-run Petronas, but the reality of an active exploration and production body is a long way off.

However, since the proposal by then-Prime Minister Tun Mahathir Mohammad, last year, there has been no news on the consortium. Although many of the interested parties have acknowledged the government has put their application "under consideration," local speculators have suggested that the whole proposal may be shelved.

One theory being put forward for the possible mothballing concerns current Prime Minister Abdullah Ahmad Badawi's new policies of carrying out the country's development plans "with prudence, towards achieving economic objectives, including sustained economic development and balanced budget."

Others suggest the lack of a direct Mahathir involvement may be a reason behind its lack of impetus.

One thing is for sure, Malaysian research houses have generally written off the chances of the consortium becoming a reality anytime soon. Mayban Securities lamented that the development of marginal fields as they "will expand the scope of participation in Malaysia's oil and gas industry and diversify the sources of investment and the inflow of funds".

Despite this doom and gloom, however, many analysts are still predicting the oil and gas industry will bring a lot of good cheer to the Malaysian economy in 2004.