KUALA LUMPUR, Dec 28 — Petroliam Nasional Bhd (Petronas) expects the path towards sustained demand recovery to remain fragile and uncertain next year as the oil market adjusts to both short and long-term landscapes, driven by the resumption of economic activities amid the Covid-19 pandemic.

Vice-president of group procurement Freida Amat said while the accelerated energy transition will create further challenges to the traditional oil and gas business, industry players must be innovative and remain cost-competitive to ensure projects and production remain feasible in the uncertain economic climate for the sustainability of the industry.

"Petronas foresees a positive outlook for drilling rigs activity and a steady outlook for fabrication of fixed structures and subsea facilities, supply of linepipes, underwater services, as well as decommissioning activities.

"However, a modest outlook is expected for installation of floatover barges," she in a statement issued by the national oil and gas company in conjunction with the release of the Petronas Activity Outlook (PAO) report for 2022-2024 today.

The annual PAO report provides insights into industry trends, demand outlook and the upcoming activities of the company’s upstream, gas + new energy and downstream businesses.

In the report, Petronas shares insights expected to have a positive impact on the industry.

Among the highlights, Petronas is pushing further for the usage of cleaner energy and pursuit for a lower carbon profile as the company ventures into hydrogen business, presenting opportunities for oil and gas services and equipment (OGSE) industry players.

"Petronas Ventures, as the company’s venture capital arm, will continue to drive technology innovation and maintain a competitive edge to support its core oil and business for further growth.

"Efficiency as an enabler in pursuit of maximising assets is key to continuous improvement to operations. Highest degree of efficiency in project delivery practices enables better project outlook, creates value for the industry and maintains its competitive advantage and sustainability,” the company said. — Bernama