The annual PETRONAS Activity Outlook (PAO) for 2021-2023 was released today to share the Company’s insights into industry trends, demand outlook and the upcoming activities of PETRONAS’ Upstream, Gas & New Energy and Downstream businesses.
For 2021, PETRONAS anticipates the outlook for the industry to still remain challenging, impacted by the unprecedented demand destruction from the COVID-19 pandemic which had resulted in a profound impact both domestically and globally.
PETRONAS maintains 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 is imperative.
PETRONAS President & Group Chief Executive Officer, Tengku Muhammad Taufik said: “PETRONAS has taken measured steps that demonstrate our stronger commitment to Sustainability as we take cognizance 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.”
PETRONAS Vice President of Group Procurement, Freida Amat said: “The current crisis presents us with the need to remain resilient and agile, taking decisive measures in weathering the market volatility and energy transition.”
Freida added it is 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.
PETRONAS foresees a steady outlook for production support, drilling, fabrication and installation of wellhead platforms and subsea facilities as well as decommissioning activities. However, a modest outlook is expected for fabrication and installation of central processing platforms as well as project support vessels.
In the report, PETRONAS also shares insights that will have a positive impact on the industry and among the highlights are:
• PETRONAS is pushing further for the increase in use of natural gas as a cleaner source of fuel in the energy transition while building capabilities in renewable energy which presents opportunities for Oil and Gas Services and Equipment (OGSE) industry players.
• Digital journey enhanced by collaboration with technology partners to mature digitally-enabled technologies for remote applications in PETRONAS’ onshore and offshore operations, strengthening the fundamentals and focusing on ensuring safe and secure operations to thrive in the new normal.
• PETRONAS is maturing technologies to support its sustainability aspirations of achieving net zero carbon emissions by 2050.