Bleak 2020 for oil and gas sector

RHB Investment Bank O&G analyst Sean Lim: “We believe Petroliam Nasional Bhd (Petronas) and other petroleum arrangement contractors (PACs) will ask for rate cuts and discounts from their suppliers and eventually cascade the margin pressure to the services players."

PETALING JAYA: Players in the oil and gas (O&G) industry have yet to fully recover from the previous oil price rout, let alone from the effects of trade war and the coronavirus (Covid-19) pandemic.

And yet they continue to be bludgeoned, by the oil price war between Saudi Arabia and Russia and most recently, Brent oil price touching lows that have not been seen in the past 20 years.