Petronas expects volatile oil prices to continue

Petroliam Nasional Bhd (Petronas) and a consortium led by Japan's JXTG Holdings Inc are among the companies interested in buying a stake in India's Bina oil refinery, a source close to the matter said.

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) expects the volatile oil prices to persist in 2019 and it is cautiously optimistic particularly on new capital projects.

In its annual activity outlook (PAO) report, for the period 2019-2021 issued on Tuesday, the national oil corporation said “2018 has seen greater volatility in oil prices, which is expected to persist in 2019”.

Petronas said it would maintains its prudent view on the industry outlook and will respond with cautious optimism particularly on new capital projects.

The report was to share the company’s perspective on industry trends, demand outlook and activities in the upstream and downstream sectors, and to assist the industry to strategise and better manage its resources and investment decisions.

Petronas vice president of group procurement, Samsudin Miskon said: “We were pleased with the positive response from the oil and gas industry towards PAO 2018-2020 – considering that Petronas has taken a bold move in pushing for transparency in information in the hope that the industry is able to respond, especially with strategic collaborations, to seize opportunities and find long-term solutions.”

On the decommissioning activities, it said this segment provided key opportunity areas for industry players to participate in decommissioning activities. 

This was a rapidly developing market segment, it said, adding that most of the required services are readily available.

The report also emphasised that local players need to reconsider a more cost effective and efficient business model to support upcoming requirements.