Ministry of Economy Secretary-General Datuk Nor Azmie Diron urged the oil and gas services and equipment (OGSE) sector to consider the government’s robust energy transition policies as opportunities to expand, enter new markets and team up with international partners.
He said that policies such as the National Climate Change Policy 2.0 and the Hydrogen Economy and Technology Roadmap (HETR) set the tome for developing a conducive ecosystem to manage Malaysia’s transition to a low-carbon economy while also addressing companies’ needs in planning their resources and identifying opportunities for growth.
The secretary-general said that to achieve visible results, these policies must be accompanies by tangible initiatives that spur spillover impacts that can be scaled up and create transformative and sustainable outcomes for the economy.
In line with this, Petroliam Nasional Bhd (Petronas) recently announced 2 new initiatives – through Malaysia Petroleum Management (MPM) – that aims to bolster the robustness of the local oil and gas sector.
The new initiatives include the Integrated Well Continuity Services (IWCS) contract and plans for the establishment of the MPM Hydraulic Workover Unit (HWU) Academy.
According to the national oil firm, the IWCS contract is designed to address the challenges posed by rising costs and dynamic market conditions by introducing a more balanced approach to cost and margin management compared to the earlier Integrated Well Services (IWS) model.
It was explained that the implementation of IWCS adopts a comprehensive contracting strategy, segmenting the work into 4 primary packages and 13 sub-packages that cover critical areas such as well interventions, well abandonment and workover as well as subsea intervention services.
Following a thorough and rigorous technical evaluation process, 34 qualified panel contractors were selected to deliver the work and this new approach is expected to foster equitable and effective collaboration in engineering projects for wells.
MPM senior vice-president Datuk Bacho Pilong said the IWCS contract was a major leap in Petronas’ wells management strategy, focusing on resource optimisation and job continuity.
He also said that the MPM HWU Academy will be essential in strengthening local expertise to future-proof the sector.
“These efforts will contribute to strategically positioning Malaysia more competitively in the global energy market,” Bacho said.
The MPM HWU Academy is expected to be launched next year and will play a pivotal role in developing specialised skills in well abandonment and workover.
Petronas stated that the academy was established through a memorandum of understanding between Petronas and both local and international HWU service providers, aiming to empower a capable workforce for the sustainable growth of the local oil and gas industry.
