Malaysia Petroleum Management
The Executive Annual Dialogue (AuDi) 2025, held on 21 April 2025 at the Four Seasons Hotel Kuala Lumpur, marked yet another milestone for Malaysia’s upstream oil and gas sector with 11 Memoranda of Understanding (MoUs) signed to strengthen Malaysia’s Oil and Gas Services and Equipment (OGSE) sector through two key initiatives, namely Yard Transformation and Productivity Enhancement, and Skilled Trade Champion.
Launching of Malaysia HUC & MCM Efficiency Target and Signing Strategic MOU to Build Strong Malaysia OGSE Ecosystem
As part of PETRONAS’ initiative via MPM under CAPE (Making Malaysia as an attractive CApital Project Investment DEstination), PETRONAS signed Memoranda of Understanding (MoUs) with five leading fabrication yard contractors, i.e. Brooke Holding, Ocean Might, Muhibbah Engineering, MMHE and Sapura Fabrication, aiming to modernise the local yards, boost productivity and ensuring cost competitiveness for project excellence towards making Malaysia as the preferred fabrication hub. MoUs were also signed with Hook-up and Commissioning (HUC) & Maintenance, Construction and Modification (MCM) Contractors, i.e. EPIC OG, HHA Associates, Petra Resources, Turcomp Engineering and Sapura Fabrication as well as with Malaysia Offshore Supply Vessel Owners' Association (MOSVA) to strengthen the offshore talent in supporting the competitiveness and sustainable growth of the upstream industry.
Another major highlight was the launch of HUC & MCM efficiency target, setting productivity benchmarks for key trades until 2030. This long-term effort aims to raise performance standards across the board, reinforcing resilience and global competitiveness for Malaysia’s service providers.
Introducing the NUF-RAO Guideline for Smarter, Safer Operations
Under the Technology and Digital Strategic Initiative, PETRONAS also introduced the Normally Unattended Facilities with Remote & Autonomous Operations (NUF-RAO) Guideline. This initiative is poised to unlock marginal field potential, extend asset life, enhance safety, CAPEX & OPEX cost cutting by up to 25%, lowering the sector’s carbon footprint and supports MPM’s aspiration of sustaining 2,000kboepd of production. MPM anticipates that by 2033, 30% of field operations will feature NUF-RAO capabilities as the new standard.
Strong Message of Commitment
YBhg. Datuk Ir. Bacho Pilong, Senior Vice President of Malaysia Petroleum Management (MPM), reaffirmed PETRONAS’ vision:
“The MOUs reflect PETRONAS’ steadfast commitment to building a robust and sustainable oil and gas sector in Malaysia. The structured implementation, undertaken in close collaboration with homegrown OGSE players, will focus on delivering measurable outcomes to create an environment that is conducive for investment and accelerated growth, aligned with national aspirations.”
A Forward-Looking Industry
From workforce development to technological innovation, AuDi 2025 reinforced a shared industry vision: to future-proof Malaysia’s upstream sector through collaboration, capability-building, and sustainable practices- ensuring the nation remains a top investment destination for decades to come.
Let us fully embrace technology to reimagine the way we work, drive innovation and future-proof our industry. This is our opportunity to shape not just where we are going, but how we get there. Each step we take to transform today is key to our ongoing journey in building a more competitive and resilient upstream industry for tomorrow.
