KUALA LUMPUR (April 23): The Malaysian Oil, Gas & Energy Services Council (MOGSC) has called on oil and gas (O&G) stakeholders, especially financial institutions, not to write off O&G services and equipment (OGSE) players in the energy transition agenda, as they still have a role to play.

The OGSE segment is still relevant and important in driving Malaysia's economy for the foreseeable future and should not be unduly discriminated against, said MOGSC president Syed Saggaf Syed Ahmad.

"As the energy transition accelerates, we have seen various responses from OGSE players around the world, and also here in Malaysia. Some have totally pivoted into new energy; some are making a bet on O&G to remain relevant.

"I think we need to get the facts right and put the record straight: OGSE in Malaysia will be important and relevant for years to come," he said at the association's 21st Annual General Meeting (AGM) on Tuesday. 

Noting that "some stakeholders have already put it in their head that we are not relevant, especially financial institutions", he said the government's National Energy Transition Roadmap (NETR) —  stipulating the net zero carbon target by 2050 — has also stated that 77% of the projected energy mix in Malaysia will still come from O&G, especially gas.

"Previously we labelled gas as transition energy, but it seems that gas is the destination energy. The challenge is to decarbonise our hydrocarbons exploration and production and manage emissions," he said.

Malaysian OGSE players keen to explore jobs overseas

Syed Saggaf also said some MOGSC members are keen to explore jobs overseas, especially with the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

"We, the OGSE players, view the Petronas Activity Outlook 2024-2026 positively. The commitment [by Petroliam Nasional Bhd (Petronas)] to spend RM60 billion annually for the next three years is very important to us because we know it has this aspiration to increase its production to two million barrels of oil equivalent per day by 2025 and beyond," he told The Edge following the AGM.

"We see a lot of potential activities and OGSE players should be busy in the upcoming years," Syed Saggaf added.

Having said that, MOGSC also wants to explore how it can facilitate and open up opportunities for local OGSE players to actively participate in O&G jobs in CPTPP member countries through collaborative efforts with Petronas, as the national oil company already has footprints in some of those countries.

"We want to strengthen our local OGSE players so that they have the opportunity to go abroad. That's why we look to Petronas to guide these companies, especially for those countries that have the CPTPP agreement.

"That will become an area MOGSC will focus on and engage with Petronas and we will request that in the upcoming Petronas Activity Outlook — that international expenditures can be shared so that keen local companies can venture overseas," Syed Saggaf added.

Moving forward, Syed Saggaf said MOGSC will be coming up with a plan that focuses on four key areas to ensure industry needs can be addressed.

The four areas are: addressing liquidity in the market, ensuring fair and sustainable contracting mechanisms, championing local industry participation and international expansion, and advocating for energy transition and transformation.