Upstream players seek closer Petronas ties amid uncertainties

The upstream oil and gas sector in Malaysia is actively pursuing closer ties with state-owned Petronas to bolster the industry's operating environment, amid rising geopolitical and supply-chain uncertainties. The Petroleum Production Sharing Contractors (PPSC) Committee, part of the Malaysian International Chamber of Commerce & Industry (Micci), recently held its annual meeting with Petronas through Malaysia Petroleum Management (MPM).

This gathering brought together upstream production sharing contractors and industry representatives to discuss critical issues impacting the sector.

Ben Kwa, convenor of the Micci PPSC Committee, emphasized the importance of ongoing engagement between industry players and regulators. The PPSC offers a platform for members to address sector-related concerns, share industry viewpoints, and collaborate with stakeholders towards continuous improvement and mutual benefit. Key discussion points included operational readiness, supply-chain resilience amidst geopolitical risks, and the necessity for ongoing investment, capability building, safety measures, and industry collaboration to enhance Malaysia's upstream competitiveness.

The PPSC, established in 1988, consists of 24 upstream production sharing contractors, including both operators and non-operators. It serves as a unified voice for members, fostering dialogue with industry regulators and the government on matters affecting the upstream oil and gas sector. Over the years, the PPSC's regular engagements and constructive dialogue have helped advance shared priorities, improve industry practices, and bolster local capabilities.

These collaborative efforts are instrumental in shaping a competitive, resilient, and sustainable upstream industry, while cultivating the necessary talent pipeline to support Malaysia's long-term energy goals.