MPRC: O&G activities to increase despite volatile oil prices
KUALA LUMPUR: While the oil price volatility is expected to persist this year, global oil and gas (O&G) activities will see an increase in the next few years with focus on deepwater activities, says Malaysia Petroleum Resources Corp (MPRC).
MPRC deputy chief executive officer Mohd Yazid Ja’afar said in a report entitled “MPRC 100: Top 100 OGSE Companies in Malaysia” that the industry is seeing grad- ual recovery in activities and oil price is still subject to market volatility.
He said uncertainties over oil prices in the past few years were a clear reminder to O&G services and equipment (OGSE) players’ need to stay focused and push ahead with reforms to improve operational efficiencies.
“Regionally, Malaysian OGSE players fared better than their counterparts owing to contributions from domestic activities in both upstream and downstream segments.
“Compared with the top 20 OGSE companies in Asean, Malaysian OGSE firms registered an average revenue growth of 12 per cent. Other regional players showed an average revenue decline of 14 per cent,” said Yazid.
While oil price volatility is expected to persist this year, global O&G development activities are expected to increase in the coming years, with operators aiming to develop new offshore fields, particularly in deep water areas, he said.
“This development brings significant opportunities for OGSE companies, particularly the subsea, drilling, and maintenance, repair and overhaul players,” he said.
The Petronas Activity Outlook Report for 2019-2021 said that activities are expected to pick up this year on the domestic front.
The report projects a rise in some upstream O&G segments, such as drilling rigs and supporting services, as well as base activities in maintenance for both onshore and offshore facilities.