Latest news with #OGSE
Focus Malaysia
12-08-2025
- Business
- Focus Malaysia
Local energy sector stays cautious as transition policies dampen investor appetite
AVERAGE Brent crude oil for Jul calendar year 2025 (CY25) slipped -17% year-on-year (yoy) and -0.4% month-on-month (mom) to an average of USD69.55pb. The decline was due to: (i) Increased global supply by non-OPEC+ countries. (ii) OPEC+ unwinding voluntary cuts. (iii) Slow demand growth from economic slowdown, shift towards clean energy and lacklustre consumption in US and China. (iv) Higher oil inventory builds. This was offset by the ongoing geopolitical tensions, with the Iran-Israel conflict temporarily spiking oil prices. However, these are quickly reversed as underlying supply-demand fundamentals were reasserted. The KL Energy Index index's Jul CY25 close was lower by -21.5% yoy but gained +1.8% mom. The Department of Statistics Malaysia reported that PPI for the mining sector fell significantly due to lower prices for crude petroleum and natural gas. This sustained downturn in producer prices likely had a cumulative negative effect on the profitability and market valuation of Malaysian energy companies. The shift towards renewable energy and energy transition policies in Malaysia created a cautious investment environment for traditional fossil fuel companies. 'However, we noted that after dipping to a two-month low in early July CY25, the index experienced a technical rebound, giving its higher monthly close than June CY25,' said MBSB Research. The first half of CY25 is challenging for most of the major players. Most had indicated lower revenue and net income, most notably for the integrated oil and gas companies. ExxonMobil, Chevron and Shell saw substantial declines due to the lower oil prices and the slowdown in global economy that hampered demand for their services and products. Meanwhile, OGSE companies which are tied closely to the upstream division, like Schlumberger, Baker Hughes and Weatherford, faced headwinds. The drop in earnings was a direct consequence of lower upstream investment and capital discipline practiced within these OGSE companies. All in all, we maintain our enutral stance on the sector. The Malaysian oil and gas sector is currently in a state of equilibrium. The negative factors—lower commodity prices, reduced capex, and a challenging services market—are largely counterbalanced by the positive factors—the resilience of the natural gas and LNG sector, stable midstream demand, and a strategic long-term outlook. The sector is not expected to see a significant surge in earnings or valuations in the near term and is highly likely to be selective by divisions. However, the sector also has strong foundational elements that prevent a major collapse, further ensuring that it will perform broadly in line with the wider market, with limited short-term catalysts, barring any events that would warrant a spike in oil and gas prices and further sustain the surge. —Aug 12, 2025 Main image: Future Bridge
The Sun
31-07-2025
- Business
- The Sun
RMK-13: MPRC Welcomes Recognition of OGSE Companies in Catalysing CCUS Industry
KUALA LUMPUR: Malaysia Petroleum Resources Corporation (MPRC) welcomes the Government's continued emphasis on strengthening the green economy, one of the 10 key economic diversification areas in the 13th Malaysia Plan (RMK-13) announced by Prime Minister Datuk Seri Anwar Ibrahim today. This focus reaffirms new opportunities for Malaysia's Oil & Gas Services and Equipment (OGSE) companies to drive sustainable growth and contribute to the national economy. Catalysing the Carbon Capture, Utilisation and Storage (CCUS) industry was highlighted under RMK-13's green economy initiatives, with a focus on encouraging participation from small and medium-sized enterprises (SMEs) and OGSE companies. The president and CEO Mohd Yazid Ja'afar said in a press statement today that the RMK-13 reiterates OGSE industry's role in Malaysia's low-carbon future as it pivots from traditional oil & gas to energy transition opportunities 'This supports MPRC's commitment to advancing sustainable and low-carbon solutions, a mission we have championed since the launch of the National OGSE Industry Blueprint 2021-2030 (OGSE Blueprint) in April 2021 and further guided by the National Energy Transition Roadmap (NETR) in targeting net-zero for Malaysia by 2050.' The NETR targets net-zero emissions by 2050, with renewable energy comprising 70% of the generation mix and a complete phase-out of coal by 2044. This reinforces the need for OGSE players to diversify into energy transition-related businesses by leveraging their transferable skills and capabilities. The roadmap also identifies CCUS as one of six key energy transition levers, with PETRONAS's Kasawari and Lang Lebah CCS among the 10 NETR flagship projects. Following the passing of the CCUS Act in March 2025 and its Royal Assent in July, RMK-13's policy direction on CCUS underscores the Government's resolve to position CCUS as a major economic growth driver. In RMK-13, the Government also committed to strengthening regulatory frameworks, expanding research and development and commercialisation and innovation (R&D&C&I), and enhancing international collaboration to accelerate CCUS deployment. Since 2024, MPRC has worked closely with the Environmental and Natural Resources Division of the Economy Ministry on CCUS implementation, including public awareness initiatives and the development of the CCUS Roadmap. MPRC's Flagship Initiative 2: Growth Beyond OGSE, introduced in the OGSE Blueprint Mid- Term Review (MTR) in March 2025, also supports CCUS development by encouraging OGSE companies to diversify into adjacent sectors such as carbon management, hydrogen and renewables. The OGSE Blueprint MTR aims to develop a robust, resilient, globally-competitive OGSE industry in Malaysia, contributing to national energy security, sustainability and energy transition agenda by 2030. Meanwhile, MPRC also welcomes the nuclear energy development programme in RMK-13, which will further strengthen the country's low-carbon energy mix and open new participation opportunities for OGSE companies in adjacent industries. 'MPRC remains committed to enabling OGSE companies to thrive in the evolving energy landscape. Through strategic partnerships, policy advocacy, and capability-building, we will continue to champion sustainable opportunities that support Malaysia's net-zero ambition,' added Mohd Yazid.
The Star
04-07-2025
- Business
- The Star
Sabah aims for 100% local oil and gas roles
KOTA KINABALU: A 100% increase in oil and gas services and equipment (OGSE) contracts has been set aside for Sabahan companies this year, says Datuk Seri Hajiji Noor. The Sabah Chief Minister said the target set by the state government in collaboration with PETRONAS and industry partners has one clear objective, which is to have 100% of non-technical roles and at least 80% of technical roles in the OGSE sector to be filled by Sabahans. 'These targets reflect our firm commitment to strengthening local participation and building a resilient, homegrown energy ecosystem,' he said at the 12th Sabah Oil, Gas and Energy Conference and Exhibition at the Sabah International Convention Centre here yesterday. State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe delivered Hajiji's speech. He said in 2021, the total contracts awarded to Sabahan companies for local oil and gas services jobs stood at RM341mil, but by the end of last year, the figure soared to over RM2bil for jobs awarded both in and outside Sabah. He said Sabah's oil and gas industry is an essential pillar of the state's economic growth, and continues to play a pivotal role for Malaysia, contributing nearly 40% of the country's oil production and about 20% of its gas output. Hajiji, however, believes that Sabah's role must extend beyond mere production. 'We aspire for Sabah to become a centre of excellence for OGSE innovation and sustainable energy practices and a hub where investment, talent and technology converge to create long-term value,' he said. Hajiji also said the state government, through SMJ Energy, has taken decisive steps in securing equity in key upstream and downstream assets, including the Samarang PSC and the Samur petrochemical plant, as well as interests in exploration blocks SB403, SB409, SB306A and SB306B. He said Sabah Energy Corporation has also strengthened its position as Malaysia's largest domestic supplier and transporter of natural gas, following its successful takeover of PETRONAS' onshore gas contracts here. 'I wish to take this opportunity to thank PETRONAS and all our operating partners in Sabah for your continuous efforts, commitment and investment in local content development,' he said.
Daily Express
03-07-2025
- Business
- Daily Express
100pc jump in Sabah OGSE participation target: Chief Minister
Published on: Friday, July 04, 2025 Published on: Fri, Jul 04, 2025 By: Larry Ralon Text Size: Phoong (standing, second left) representing the Chief Minister in witnessing one of the signings documents, while Petronas' Malaysia Petroleum Management (MPM) Senior Vice President Datuk Ir Bacho Pilong (standing, second right), Industrial Development and Entrepreneurship Ministry's Permanent Secretary Datuk Thomas Logijin (standing, right) look on. Kota Kinabalu: The State Government jointly with Petronas and industry partners has set a target of 100 per cent increase in Oil and Gas Services and Equipment (OGSE) contracts for Sabah companies this year, said Chief Minister Datuk Seri Hajiji Noor. 'In terms of employment, the target is clear: 100 per cent of non-technical roles and at least 80 per cent of technical roles in the OGSE sector must be filled by Sabahans. Advertisement 'These targets reflect our firm commitment to strengthening local participation and building a resilient, home-grown energy ecosystem,' he said at the 12th Sabah Oil, Gas and Energy Conference and Exhibition (SOGCE), Thursday. His speech was read by State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe. In 2021, Hajiji said the total contracts awarded to Sabah companies for local oil and gas services jobs stood at RM341 million, while by the end of last year, it soared to over RM2 billion for jobs awarded both in and outside Sabah. He said Sabah's oil and gas industry is an essential pillar of the state's economic growth, and continues to play a pivotal role to that of Malaysia's, contributing nearly 40 per cent of the country's oil production and approximately 20 per cent of its gas output. 'However, we believe our role must extend beyond mere production. We aspire for Sabah to become a centre of excellence for OGSE innovation and sustainable energy practices and a hub where investment, talent and technology converge to create long-term value,' he said. Hajiji said the State Government through SMJ Energy has taken decisive steps in securing equity in key upstream and downstream assets, including the Samarang PSC and the Samur petrochemical plant, as well as interests in exploration blocks SB403, SB409, SB306A and SB306B. He said Sabah Energy Corporation (SEC) has also strengthened its position as Malaysia's largest domestic supplier and transporter of natural gas, following its successful takeover of Petronas' onshore gas contracts in Sabah. 'I wish to take this opportunity to thank Petronas and all our operating partners in Sabah for your continuous efforts, commitment and investment in local content development. The Commercial Collaboration Agreement (CCA) signed in December 2021 with Petronas was significant and its implementation through initiatives such as the subcommittee for OGSE industry, co-chaired by the Sabah Industrial Development and Entrepreneurship Ministry and Petronas, has yielded tangible results. 'To sustain this momentum, we have established the Sabah Local Content Council under the purview of SMJ Energy and implemented a Joint Task Force for Mandatory Partnerships. 'These initiatives, coupled with the transparent insights provided by the Kinabalu Activity Outlook (KAO), are designed to ensure our local companies are well-informed, well-prepared and well-partnered for success,' he said. Hajiji commended the Sabah Oil and Gas Services Council (SOGSC) and the Persatuan Kontraktor Petroleum Bumiputera Sabah (PKPBS) for their role in championing Sabahan participation in the OGSE sector. He also called on everyone to support the effort of the SOGSC and PKPBS to organise this OGSE conference next year. 'Our vision is to build a pipeline of OGSE opportunities that extends far beyond short-term contracts. We want to promote knowledge transfer, technology exchange and joint ventures that scale our local players into regional champions. 'We are laying the foundations now not just for current prosperity but for a resilient, innovative and sustainable OGSE ecosystem for generations to come. 'Hence, let us work together to ensure Sabah not only remains a key energy player but becomes a model for sustainable, inclusive growth in the oil, gas and energy industry,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Borneo Post
03-07-2025
- Business
- Borneo Post
More jobs for Sabah OGSE companies this year
Phoong delivering Hajiji's speech at the 12th Sabah Oil, Gas and Energy Conference and Exhibition at the Sabah International Convention Centre, Kota Kinabalu on Thursday. KOTA KINABALU (July 3): The State Government in collaboration with Petronas and industry partners has set a target of a 100 per cent increase in oil and gas services and equipment (OGSE) local job contracts for Sabahan companies this year, said Chief Minister Datuk Seri Panglima Hajiji Noor. 'In terms of employment, the target is clear: 100 per cent of non-technical roles and at least 80 per cent of technical roles in the OGSE sector must be filled by Sabahans. 'These targets reflect our firm commitment to strengthening local participation and building a resilient, homegrown energy ecosystem.' he said at the 12th Sabah Oil, Gas and Energy Conference and Exhibition at the Sabah International Convention Centre here on Thursday. His speech was delivered by Minister of Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe. In 2021, Hajiji said the total contracts awarded to Sabahan companies for local oil and gas services jobs stood at RM341 million, while by the end of last year, the figure soared to over RM2 billion for jobs awarded both in and outside Sabah. He said Sabah's oil and gas industry is an essential pillar of the state's economic growth and continues to play a pivotal role to that of Malaysia's, contributing nearly 40 per cent of the country's oil production and approximately 20 per cent of its gas output. 'However, we believe that our role must extend beyond mere production. We aspire for Sabah to become a center of excellence for OGSE innovation and sustainable energy practices and a hub where investment, talent and technology converge to create long-term value,' he said. In this respect, the Chief Minister said the State Government through SMJ Energy has taken decisive steps in securing equity in key upstream and downstream assets, including the Samarang PSC and the SAMUR petrochemical plant, as well as interests in exploration blocks SB403, SB409, SB306A and SB306B. He said Sabah Energy Corporation had also strengthened its position as Malaysia's largest domestic supplier and transporter of natural gas, following its successful takeover of Petronas' onshore gas contracts in Sabah. 'I wish to take this opportunity to thank Petronas and all our operating partners in Sabah for your continuous efforts, commitment and investment in local content development. The Commercial Collaboration Agreement (CCA) signed in December 2021 with Petronas was significant and its implementation through initiatives such as the Sub-Committee for OGSE industry, co-chaired by the Sabah Ministry of Industrial Development and Entrepreneurship and Petronas, has yielded tangible results. 'To sustain this momentum, we have established the Sabah Local Content Council under the purview of SMJ Energy and implemented a Joint Task Force for Mandatory Partnerships. 'These initiatives, coupled with the transparent insights provided by the Kinabalu Activity Outlook (KAO), are designed to ensure our local companies are well-informed, well-prepared, and well-partnered for success,' he said. Hajiji commended the Sabah Oil and Gas Services Council (SOGSC) and the Persatuan Kontraktor Petroleum Bumiputera Sabah (PKPBS) for their role in championing Sabahan participation in the OGSE sector. He also called on everyone to support the effort of the SOGSC and PKPBS to organise this OGSE conference next year. 'Our vision is to build a pipeline of OGSE opportunities that extends far beyond short-term contracts. We want to promote knowledge transfer, technology exchange and joint ventures that scale our local players into regional champions. 'We are laying the foundations now not just for current prosperity but for a resilient, innovative and sustainable OGSE ecosystem for generations to come. 'Hence, let us work together to ensure Sabah not only remains a key energy player but becomes a model for sustainable, inclusive growth in the oil, gas and energy industry,' he said.
