PETRONAS has released its 2024-2026 Activity Outlook, outlining forecast activities that call for greater collaboration with the oil and gas service and equipment (OGSE) providers to ensure energy demand is met while ramping up its clean energy initiatives.
Within the next three years, PETRONAS is committed to its long-term target of sustaining and growing Malaysia's oil and gas production. This is anticipated to open opportunities for the OGSE providers across exploration, development, production and decommissioning activities.
The continued growth of Malaysia's upstream sector will hinge on the combined efforts of various industry stakeholders; PACs, OGSE, and business partners.
In meeting the energy demand to sustain economic growth, PETRONAS is cognisant of the fact that energy needs to be delivered in an affordable and sustainable manner. The challenge lies in producing more barrels of oils at the lowest cost and emission possible. Outlining the forecast activities for the years ahead and, with it, the challenges and opportunities can foster a stronger OGSE ecosystem to ride this energy trilemma together.
To maximise production efficiency and sustainability of oil and gas supply, an average of 300 facilities improvement plans (FIPs) are to be carried out annually for the next three years. These include rejuvenation projects, gas turbine and gas generator change-out activities as well as other major maintenance works that are crucial in eliminating bottlenecks, maximising hub capacity and curbing flaring activities at new onshore facilities.
Decommissioning activities will also be carried out for about 150 mature assets to restore the area to a safe and environmentally stable condition, and disused assets will be assessed for potential reuse or repurpose.
The downstream business is increasingly expanding into cleaner energy initiatives, venturing into biofuels with the ongoing development of a greenfield biorefinery and co-processing plant set to begin in 2026, alongside the expansion of liquefied natural gas bunkering and the PETRONAS Iona range - a dedicated range of automotive fluid solutions for electric vehicles and other thermal management application across diverse sectors.
Its petrochemical arm is also making inroads into the speciality chemicals market segment and actively driving the circular economy through the construction of Asia's largest advanced chemical recycling plant, which converts end-of-life plastics into pyrolysis oil to be used as chemical feedstock for sustainable plastic production.
PETRONAS expanding the Downstream business into cleaner energy initiatives by venturing into biofuels, circular economy, liquefied natural gas bunkering and next-gen fluids with PETRONAS Iona range and the installation of electric vehicle (EV) charging facilities at PETRONAS stations.
PETRONAS Vice-President of Group Procurement, Freida Amat says, "The industry should be gearing towards adapting to the energy transition, such as shifting towards lower-carbon endeavours, pursuing net-zero emissions and exploring renewable energy sources. Through cross-industry experiences, insights and knowledge, we believe co-creation can upskill our capabilities and skills, which will chart new frontiers for the OGSE industry."
The National Energy Transition Roadmap (NETR) has laid the groundwork for Malaysia to forge ahead in this transformative journey, and PETRONAS will continue to play a key role in supporting the government's efforts to bolster economic growth.
Access the full report at PETRONAS Activity Outlook | PETRONAS Global