Petronas: Tech use, certain categories will stand out in O&G
KUCHING: The introduction of new technology as well as certain subsectors within the oil and gas sectors are set to thrive, according to Petroliam Nasional Bhd’s ( Petronas) Activity Outlook (PAO) report for 2018-2020 released yesterday.
The report shares its perspective on industry trends, demand outlook and activities planned for the next three years. Published to improve market information flow, it 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 slowdown 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 US$ 50s to US$ 60s 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,” he said in a statement.
“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 has carried out several efforts internally to reduce cost and improve efficiency through transformation initiatives such as CACTUS and investing in technology and digitalisation.
Industry-wide, CORAL 2.0 initiative to promote collaboration among upstream players has also achieved 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
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.
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 welcomes technology proposals submission from across the globe.
It is imperative for industry players to understand key trends as a barometer for the industry. Samsudin Miskon, PETRONAS Vice President of Group Procurement