KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) says the outlook of the oil and gas (O&G) industry will still be challenging next year, bogged down by the unprecedented demand destruction from the Covid-19 pandemic.
The national oil company today released the annual Petronas Activity Outlook for 2021-2023, sharing insights into O&G industry trends, demand outlook and the upcoming activities of its upstream, gas and new energy and downstream businesses.
Petronas expects a steady outlook for production support, drilling, fabrication and installation of wellhead platforms and subsea facilities as well as decommissioning activities.
However, the group said a modest outlook was expected for fabrication and installation of central processing platforms as well as project support vessels.
Petronas has maintained a prudent view despite the collapse in oil prices and will continue to accelerate the transition towards a low-carbon economy, spurring policy intervention and global collaborations across industries.
Although gas remains a crucial and cleaner source of fuel, diversification into renewable energy was imperative, Petronas president and group chief executive officer Tengku Muhammad Taufik said.
Tengku Taufik said the group had measured steps that demonstrate its stronger commitment to sustainability as it was taking cognisance of the acceleration of the global energy transition, heightened by stakeholder expectations and its vast opportunities.
"Built on Petronas desire to drive a fundamental shift in the way energy is produced, we announced our aspiration to achieve net zero carbon emissions by 2050 as part of our holistic approach to sustainability that balances Environment, Social and Governance (ESG) considerations across our value chain," he added.
Petronas vice president of group procurement Freida Amat said the current crisis had presented the group with the need to remain resilient and agile, taking decisive measures in weathering the market volatility and energy transition.
Freida added that it was imperative for industry players to adapt and embrace the new normal.
"Working with tighter margins require industry players to shift the norms, embrace digitalisation, technology advancement and creative partnership to unlock opportunities," she said.
