Industry association says O&G services and equipment players should not be forgotten in the energy transition agenda

KUALA LUMPUR (April 23): The Malaysian Oil, Gas and Energy Services Council (MOGSC) has issued a message to oil and gas (O&G) stakeholders, especially financial institutions, regarding O&G services and equipment (OGSE) in the energy transition. He called for people not to be written off. Because they still have a role to play.

MOGSC Chairman Syed Sagaf Syed Ahmad said the OGSE segment remains relevant and important in driving Malaysia’s economy for the time being and should not be unfairly discriminated against.

“As the energy transition accelerates, we have seen mixed reactions from OGSE stakeholders around the world and here in Malaysia. Some companies are betting on it.

“I think we need to get our facts straight and set the record straight,” he said at the association’s 21st annual general meeting (AGM) on Tuesday. It’s going to be something.”

“Some stakeholders, especially financial institutions, have already gotten it into their heads that we are not relevant,” he said, adding that the government’s national energy goal, which has set a net-zero carbon target by 2050, “has already gotten into their heads that we are not relevant.” He said that the National Transition Roadmap (NETR) also states that 77% can achieve this goal. Of the projected energy mix in Malaysia, he will still come from O&G, especially gas.

“Previously we classified gas as transition energy, but it appears gas is the destination energy. The challenge is to decarbonize hydrocarbon exploration and production and manage emissions. ” he said.

Malaysian OGSE players keen to explore jobs abroad

Saeed Saghaf also said that some MOGSC members are keen to explore jobs abroad, especially with the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Ta.

“We at OGSE players are positive about the outlook for Petronas activities from 2024 to 2026. [by Petroliam Nasional Bhd (Petronas)] Spending RM60 billion a year over the next three years comes as we know our ambition is to increase production to 2 million barrels of oil equivalent per day by 2025 and beyond. , is very important to us,” he said. ladder After the general meeting of shareholders.

“We see a lot of potential activity and OGSE players should be busy over the next few years,” added Saeed Saghaf.

Having said that, MOGSC also hopes that through its collaboration with Petronas, local OGSE officials will be able to help CPTPP member countries, as the national oil company, Petronas, already has a footprint in some countries. I also want to explore ways and develop opportunities that allow me to be an active participant in O&G work. .

“We want to strengthen our local OGSE players so that they have the opportunity to expand abroad.Therefore, we would like to provide guidance to these companies, especially to countries that have the CPTPP agreement. I have high hopes for Petronas.”

“That will be an area where MOGSC will focus and engage with Petronas and we will be calling for international spending sharing to enable committed local businesses to expand overseas in our future Petronas activities outlook.” Said Sagaf added.

Going forward, MOGSC will develop a plan focused on four key areas to ensure it meets the needs of the industry, said Saeed Saghaf.

The four areas are: addressing market liquidity, ensuring fair and sustainable contracting mechanisms, championing local industry participation and international expansion, and advocating for energy transition and transformation.

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