The oil and gas sector has taken a beating for the past 2 years and its still reeling from the suffered from low crude oil prices. Even though its been stable during recent times, the damage has been severe and many smaller players have either consolidated or closed their operations. Oil producing Malaysia has a robust Oil & Gas Services and Equipment industry with companies involved in supplying jobs for local firms and abroad, however the global weak demand has paralysed their operations and would need support to regain their footing amidst this challenging environment.
Keeping a close tab in the sector, the Government has been continuous in its effort to develop the capabilities of the & Gas Services and Equipment industry and subsequently introduced the National OGSE Industry Blueprint 2021-2030 that is designed to spur the industry and adapt to the rapidly evolving needs and requirements of the global market such as the energy transition.
With the support of the Malaysia Petroleum Resources Corporation and guided by the Economic Planning Unit, including working closely with different ministries, government agencies, PETRONAS and industry associations fir the last 10 months, the National OGSE Industry Blueprint comes amidst one of the most disruptive periods for the sector with industry players navigating the impacts from COVID-19 pandemic-related movement restrictions, the collapse in oil demand, as well as mounting consumer and investor pressures to address the sector’s carbon emissions.
YB Dato’ Sri Mustapa Mohamed, Minister in Prime Minister’s Department (Economy) said, “As we launch this Blueprint today, my hope is for the OGSE sector to strive towards doing their part in making sure Malaysia’s oil and gas is produced as cleanly as possible. I believe that Malaysia’s OGSE sector is in a position to do so by tapping into their technological prowess and creating low-carbon tech solutions.”
Aim of the Blueprint is for the OGSE industry to be better equipped to secure opportunities not only in adjacent industries but also opportunities in the global market. As a significant contributor to the country’s economy, the health of industry will be key to achieving current and future national development agenda. The Blueprint will also look into some of the structural challenges inhibiting the growth of the sector, including industry fragmentation and concentration in low complexity work scopes.
“The blueprint is envisioned to develop a robust, resilient, and globally competitive Malaysian OGSE sector by 2030. The blueprint will include 4 strategic pillars in Competitiveness, Resilience, Development and Sustainability, as well as 31 initiatives that will be implemented in three phases starting from 2021. These initiatives encompass sector-wide recommendations on the structural challenges confronting industry players, as well as recommendations to address challenges that are unique to Malaysian OGSE segments,” Mohd Yazid Ja’afar, MPRC President and CEO
