O&G players should remain vigilant, says Wan Zulkiflee

KUALA LUMPUR: Oil and gas (O&G) players should keep their operating costs in check and continue to remain vigilant.

“As the outlook remains uncertain, it is imperative for us to continue to be vigilant in maintaining cost discipline and drive for efficiency. This must remain a priority to future-proof the industry from market shocks and volatility in oil prices,” said Petroliam Nasional Bhd president and chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin at the Offshore Technology Conference 2018, here, yesterday.

“There is a concern here that with the oil price recovery, costs are showing signs of increasing at a worrying rate. This is likely being driven by a premature exuberance among industry players.

“If we do not keep these escalating costs in check, the industry runs the risk of negating the value we have gained from intensive cost-efficiency efforts over the last three years.”

He said earlier there was a concern of continued under-investment in the O&G industry as it might lead to insufficient supply in meeting the future demand.

“While oil prices are showing signs of recovery, the sustainability of the prices remains to be seen. Improved oil prices have led to a steady rise in activities as evident in the number of active drilling rigs. This should trigger more business opportunities in the industry,” he said.