Risky outlook for smaller O&G firms

Cost-cutting: A Petronas oil rig. Coupled with the prospect of weak demand due to the expected slowdown in global economic growth, oil majors such as Petronas have been aggressively cutting down their capital expenditure in anticipation of a prolonged weak oil price environment.

Cancellation of RSCs by Petronas poses challenging time for them

WITH two out of six risk service contracts (RSCs) cancelled so far this year, the spotlight now is on the other operators who face a loss of cash flow and income should Petroliam Nasional Bhd (Petronas) continue to make cuts that are in line with its cost rationalisation plans.