PETRONAS today issued a PETRONAS Activity Outlook (PAO) report for 2018-2020 to share its perspective on industry trends, demand outlook and activities planned for the next three years.
The report, published to improve market information flow, is part of its efforts to promote and encourage a more robust, resilient and competitive Oil and Gas Services and Equipment (OGSE) sector.
For the past few years, the industry has experienced a slow-down in activities following the drop in oil prices. Through efforts by OPEC and non-OPEC members to cut production of 1.8 million barrels per day, prices are projected to remain within the range of USD50s - USD60s per barrel.
PETRONAS Vice President of Group Procurement, Samsudin Miskon said: “As we approach 2018, the uncertainty in the oil and gas industry remains a topic of constant discussion. It is imperative for industry players to understand key trends as a barometer for the industry.
“PETRONAS’ efforts to counter this uncertainty is to push for transparency of information, which would help rebalance market activities. This will positively impact supporting ecosystem like investment and financing, which are crucial in promoting a thriving OGSE sector.”
PETRONAS’ efforts to reduce cost and improve efficiency through internal transformation initiatives namely CACTUS, CORAL 2.0, digitalization and industry collaboration have started to show positive results towards ensuring the industry’s long-term sustainability. Despite the challenging business environment, there are sustainable operation and maintenance activities within Upstream production and Downstream business segments.
In the Spotlight
The report highlights future opportunities in Pengerang Integrated Complex (PIC), one of the largest oil and gas industrial developments in this region and PETRONAS’ largest downstream investment to date.
PIC which is on track for a start-up in 2019 is set to become a catalyst for growth. Due to the size of the complex, activities are expected to double once operation commences. It is estimated that in the next five to 10 years, the complex itself will spur new urban development with spin-off activities benefitting especially the local communities.
The report also provides general industry demand outlook in core categories for Upstream and Downstream sectors. It illustrates leading indicators for a broad range of activities and its supporting segments. The information allows for better planning of resources and strategic business decisions among the OGSE players.
Technology Imperatives and Innovation Gateway@PETRONAS (IG@P)
Moving forward, as oil and gas activities become increasingly complex and expensive, the use of technology as a game-changer for the industry is inevitable. Technology such as robotics, drones and mobile connectivity are being used in frontline operations.
In addition, PETRONAS has embarked on a global crowdsourcing for innovative technology solutions to solve business challenges. The online crowdsourcing platform, Innovation Gateway@PETRONAS (IG@P) welcomes technology proposals submission from across the globe.
Click here to be directed to PETRONAS Activity Outlook 2018-2020 on PETRONAS Corporate Website.
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