KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) projects oil prices to remain within the range of US$50s to US$60s per barrel level as Opec and non-Opec members cut production of 1.8 million barrels per day.
Its projection was included in its Petronas Activity Outlook report for 2018-2020 released on Monday where it shared its perspective on industry trends, demand outlook and activities planned for the next three years.
“The report, published to improve market information flow, is part of its efforts to promote and encourage a more robust, resilient and competitive oil and gas services and equipment (OGSE) sector,” it said.
Petronas issued the report which highlighted the slowdown in activities following the drop in oil prices and its strategy for the local oil and gas (O&G) players in the wake of the uncertainty.
Among the highlights of the report is that Petronas' jack-up rigs requirement, used in exploration activities, will be reduced by half for the 2018-2020 period from the 2013-2014 period.
The requirements for tender assisted drilling rigs (TADRs) are expected to be less by about 60% in the next two years compared to the peak period of oil between 2012 and 2013.
Among those with the jack up rigs and TADRs in the domestic market are UMW Oil and Gas Bhd and Sapura Energy Bhd
The lower requirements are in tandem with the marginally lower output by Petronas.
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.”
“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.”
The national oil company said its efforts to reduce cost and improve efficiency had shown positive results and helped ensure the industry’s long-term sustainability.
Other measures taken were nternal transformation initiatives and industry collaboration.
It took cognizance of the challenging business environment, but was confident of sustainable operation and maintenance activities within Upstream production and Downstream business segments.
Petronas also said Pengerang Integrated Complex (PIC) would be a catalyst of growth as it was on track for a start-up in 2019.
It said there were opportunities in the PIC, which one of the largest oil and gas industrial developments in this region. It is also Petronas' largest downstream investment to date.
It said PIC was on track for a start-up in 2019 and due to the sheer size, hence the activities weree expected to double once it started operations.
“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,” it said
The report also provided an outlook for upstream and downstream sectors and also the leading indicators for a broad range of activities and its supporting segments.
Most importantly, it said the information would allow for better planning of resources and strategic business decisions among the OGSE players.
Techology would be a game-changer for the industry as oil and gas activities become increasingly complex and expensive. Technology such as robotics, drones and mobile connectivity are being used in frontline operations.
Petronas had also embarked on a global crowdsourcing for innovative technology solutions to solve business challenges.
Source: TheStar/ http://bit.ly/2AsMte2