Kota Kinabalu: Malaysia’s oil and gas production currently stands at about 500 thousand barrels per day (kb/d) of liquids and 7,000 million standard cubic feet per day (MMscf/d) of gas.
If crude oil price stay at US$80 a barrel as in 2025, Petronas, its contractors and OGSE service providers are beneficiaries with aggregate industry earnings expected to grow by 15 per cent year-on-year in 2025.
States with royalty entitlement would also earn more with steady global oil and gas (O&G) demand.
This projection could be expected unless new United States President Donald Trump embarks on a massive oil and gas extraction including from fracking.
It is reported that fracking has given energy security to the US and Canada and has helped to generate electricity at half the CO2 emissions of coal.
Reportedly, Trump is keen to lower the US inflation rate by lowering fuel prices at pumps for consumers as Organisation of the Petroleum Exporting Countries (Opec) and its allies are to cut supply to maintain crude oil price at around US$80 a barrel.
Petronas has shelved plans to build its US$27 billion gas facility in British Columbia (B.C.), Canada due to “purely commercial reasons” by Petronas Energy Canada Ltd in the past with one of the largest natural gas resources in North Montney, northeast B.C., which is well-placed for future business growth strategies.
Petronas Canada contributed $1 million to support the Wilder Institute/Calgary Zoo’s conservation efforts in the zoo’s Exploration Asia destination.
In recognition of the partnership, a building within Exploration Asia has been renamed “Petronas Gateway to Asia”.
This building houses unique species, such as the white-handed gibbons, Komodo dragons and the Malayan tapirs, all of which are listed as endangered on the International Union for Conservation of Nature (IUCN) Red List of Threatened Species.
As Malaysia’s only Fortune 500 company, Petronas is expected to award more O&G exploration contracts around Malaysian waters. “That is where I expect funds to go into,” said Peter Lee, Asia oil and gas analyst at BMI Research.
“The focus is domestic first. They would always like to invest in and maintain production at home before going overseas,” Lee said at the OGSE seminar, here, recently.
More than 25 wells are forecasted to be drilled each year with a focus on shallow water wells in Peninsular Malaysia and Sarawak, and deepwater wells in Sabah to sustain and spur exploration growth in the country.
The national petroleum company has driven the country’s modernization push over the last two decades. Petronas is one of Malaysia’s biggest employers, and accounts for nearly a third of the government’s oil and gas-related revenue.
Petronas in its 2024 – 2026 Activity Outlook report indicates that Petronas’ future is anchored on a long-term target to sustain and grow Malaysia’s oil and gas production of two million barrels of oil equivalent per day (MMboe/d) by 2025 and beyond.
This will be supported by various oil and gas projects in the pipeline such as Gumusut-Kakap Redevelopment and Belud Clusters in Sabah; Kasawari, Jerun, Rosmari-Marjoram and Lang Lebah in Sarawak; and Bekok Oil Redevelopment, Tabu Redevelopment and Seligi Redevelopment in Peninsular Malaysia, amongst others.
Petronas’ advice for its OGSE providers are that OGSE players continue to operate and align to industry benchmarks to ensure eciency, safety and reliability in its operations.
“This is significant as it will cultivate a capable and competitive pool of service providers who not only meet but exceed these benchmarks, contributing to the continued success of Malaysia’s upstream industry.
“In addition, service providers must prioritise and invest in health, safety and environmental protocols to not only safeguard the workforce but also minimise adverse environmental impact.
“In tandem, they must demonstrate the ability to adapt to the ever-changing oil and gas landscape. Staying abreast with technological advancements and consistently enhancing processes are imperative to sustaining production at a competitive price.”
With numerous ongoing and upcoming projects in the pipeline, a large amount of job opportunities is expected for OGSE providers.
These opportunities span across various upstream activities, within the different phases of Life of Field (LoF), including exploration, development, production and decommissioning.
