News

Outlook for oil and gas industry challenging - Petronas



KUALA LUMPUR, Dec 14 -- The outlook for the oil and gas industry remains challenging amid geopolitical upheavals, prolonged trade tensions, and a global economic slowdown resulting in demand disruptions, Petronas vice president for group procurement Liza Mustapha said.

“The challenging landscape would require Petronas and all its partners to continue to be conscious in managing costs, implement activity levelling to sustain offshore activities and pursue innovative solutions to unlock value in our supply chain,” she said in the Petronas Activity Outlook (PAO) 2020-2022 report Friday.

She said while managing costs may have its limits, Petronas must focus its efforts on, among others, technological advancements and digitalisation of processes which will bring bigger benefits over a longer horizon in enhancing competitiveness and ultimately resiliency to weather any storm that comes its way.

Petronas foresees a steady outlook for drilling, production support, marine vessels and decommissioning activities. “Steady outlook can be expected for decommissioning projects as 44 per cent of facilities in Malaysian waters are operating beyond design life,” PAO said.

The abundance of investment opportunities in Malaysian waters with a portfolio of projects coming onstream in the future depicts a healthy outlook, it said.

For downstream, there is a positive outlook for turnaround and maintenance activities.

This year, it said, Petronas is sharing contracts covering a broader spectrum of jobs with sizeable values for large players as well as the small and medium enterprises.

As many of these contracts are due for re-tendering in the period of 2020-2022, this would be an opportune time for players to strategise on resources, new technology offerings, and strategic partnerships.

On other developments, PAO noted that the oil price in 2019 has fluctuated from a daily low of US$53 per barrel (US$1 = RM4.15) to a high of US$75 per barrel (as at November 2019) yielding an average of US$64 per barrel compared with the average of US$71 per barrel in 2018.

It said robust supply coming from non-Opec (Organisation of the Petroleum Exporting Countries) producers, predominantly from the United States (US), has caused a build-up in oil inventory.

The US, currently the largest producer of crude oil, is targeting to be a net energy exporter by 2020.

In addition, there are other projects being ramped up in Canada, Brazil, Guyana, and Norway.

The International Energy Agency, in its November 2019 report, indicated that non-Opec production is expected to continue to grow, adding 2.3 million barrels per day of oil supply in 2020.

-- BERNAMA

 





    Other News

Bank Pembangunan Malaysia will support its customers to weather the COVID-19 storm

KUALA LUMPUR, March 28 -- Bank Pembangunan Malaysia Bhd (BPMB) will provide all relevant support to its customers facing difficulties including granting a moratorium on repayments/payments of loans/financings for a period of six months.


TNB pledges RM150 mln to support tiered electricity rebate

KUALA LUMPUR, March 27 – Tenaga Nasional Berhad (TNB) has pledged RM150 million to support the government’s announcement of a tiered electricity rebate to assist affected Malaysians following the extension of the Movement Control Order (MCO) period until April 14.


Minister expresses confidence in TNB’s preparedness during MCO

KUALA LUMPUR, March 26 -- Energy and Natural Resources Minister Datuk Dr Shamsul Anuar Nasarah has expressed confidence on the preparedness of Tenaga Nasional Bhd (TNB) in revving up its capacity to meet electricity supply demand in the Peninsula during the Movement Control Order (MCO).


    Main Sponsor


    Quotes



© 2020 BERNAMA. All Rights Reserved. Disclaimer | Privacy Policy | Security Policy This material may not be published, broadcast,
rewritten or redistributed in any form except with the prior written permission of BERNAMA.

Best viewed in Firefox 58.0.1 (64-bit) & Chrome Version 63.0.3239.132 (Official Build) (64-bit) with 1920 x 1080 resolution

Contact us :
General [ +603-2693 9933, helpdesk@bernama.com ]
Product/Service Enquiries [ +603-2050 4466, portal@bernama.com ]