The Malaysian oil & gas industry has demonstrated an impressive recovery following the COVID-19 pandemic. However, challenges remain as the ongoing Russia-Ukraine conflict has created a global energy crisis, while the world is also undergoing an energy transition towards cleaner sources of fuel.

PETRONAS has announced plans to achieve net zero carbon emissions by 2050. This will see PETRONAS not only reducing its carbon footprint operationally, but also investing more in renewable energy. Other oil & gas operators have also stepped up their presence in renewable energy. This may translate into an increase in larger-scale projects.

Amid this environment, it is important for Malaysian OGSE players to transform and adapt to the changing needs and expectations of the market to compete for projects and continue to win business. Therefore, there is urgency for the OGSE industry to pivot towards more sustainable business models in line with the inevitable transition of energy, while also taking into account environment, social and governance (ESG) requirements. A failure to embrace change will pose significant risks to the long-term sustainability of the Malaysian OGSE industry.