PETRONAS Releases Its 2020-2022 Industry Activity Outlook

KUALA LUMPUR, 13 December 2019 – The PETRONAS Activity Outlook (PAO) for 2020-2022 was released today to share the Company’s insights on industry trends, demand outlook and activities in the Upstream, Downstream and Gas & New Energy businesses.

For 2020, PETRONAS anticipates the outlook for the industry to remain challenging amidst a backdrop of global economic slowdown, geopolitical upheaval and prolonged trade tensions.

PETRONAS maintains a prudent view and will continue to respond cautiously to the unpredictable landscape while encouraging partners to be conscious in managing costs, implement activity levelling to sustain offshore activities and pursue innovative

The PAO, however, foresees a steady outlook for drilling, production support, marine vessels and decommissioning activities. The abundance of investment opportunities in Malaysian waters with a portfolio of projects coming onstream in the future depicts a healthy outlook. For Downstream, there is a positive outlook for turnaround and maintenance activities.

PETRONAS Vice President of Group Procurement, Liza Mustapha said: “We were pleased with the positive response for PAO 2019-2021, and we will continue with sharing of information in the hope that the industry and relevant stakeholders can respond, especially with strategic collaborations, seizing opportunities and finding long-term solutions.”

Liza added that industry players need to look beyond cost savings, as managing costs has its limit. “Industry players need to embrace innovation, technology and digitalisation, which can bring bigger benefits over a longer horizon to enhance competitiveness, speed, accuracy, agility and ultimately resiliency. The industry also needs to forge stronger partnerships that would ultimately enrich lives for a sustainable future.”

In the report, PETRONAS also shares insights into transformations that will have a positive impact on the industry and for players to embrace.

Among the highlights:

• Digital Transformation of the end-to-end procurement supply chain.
• PETRONAS Technology Challenge and Technology Marketplace for innovators to share their solutions to develop good ideas for applications to unlock value.
• The release of the Malaysia Bid Round 2020 (MBR) for new entrants and existing players to invest in marginal fields and extending the value of matured fields.
• Transitioning of the PETRONAS Technical Standards to International Standards by end 2020, and collaboration with International Oil & Gas Producers (IOGP), manufacturers and principals to harmonise standards.
• Enforcement of the the Corporate Liability provision under the new Section 17A of the Malaysian Anti-Corruption Commission (Amendment) Act 2018 effective June 1 2020. PETRONAS continues to advocate its Malaysian as well as foreign vendors and partners to understand, proactively adopt and implement the Adequate Procedures.

For more details, click here to view the PETRONAS Activity Outlook 2020-2022.

Issued by
Media Engagement
Group Strategic Communications
PETRONAS