PETRONAS forecasts drilling approximately 15 exploration wells annually over the next two years.
PETALING JAYA: Petroliam Nasional Bhd (PETRONAS) aims to ramp up Malaysia’s oil and gas production to two million barrels of oil equivalent per day, as outlined in its 2025 to 2027 activity outlook report.
As of 2024, Malaysia’s hydrocarbon production stands at 1.7 million barrels of oil equivalent per day.
To achieve its target, PETRONAS said it will focus on key projects such as Kasawari, Gumusut-Kakap Redevelopment, Bekok Oil Redevelopment, Tabu Redevelopment, and Seligi Redevelopment.
“The future of the industry depends on the ability to adapt and innovate in response to evolving demands,” it noted in the report.
PETRONAS emphasised the importance of collaboration between industry stakeholders and oil and gas services and equipment (OGSE) vendors.
This collaboration, it said, would allow for the development of solutions that enhance competitiveness and efficiency, promoting long-term business sustainability.
“It has been observed that project costs have continued to escalate while the industry’s future hinges on its ability to adapt and innovate, in response to evolving demands for cost competitiveness,” it said.
“If OGSE players are unable to remain competitive, projects will not be viable, resulting in fewer sanctioned projects and reduced work opportunities.
“Therefore, fostering a closer collaboration between industry stakeholders and OGSE vendors is imperative.”
In its bid to meet future production targets, PETRONAS forecasts drilling approximately 15 exploration wells annually over the next two years, focusing on shallow water and deepwater wells.
“Apart from wells, exploration activities also include non-seismic, seismic and geological studies which are crucial for de-risking and maturing of prospects,” it noted.
“Generally, 50% of the wells will be executed by jack-up drilling rig and 20% of the wells will be executed by tender-assisted drilling rig.”
Over the next three years, PETRONAS expects to drill more than 400 wells and execute 39 upstream projects.
This includes the construction of three offshore central processing platforms, three onshore facilities and the fabrication and installation of approximately 900km of pipelines.
Meanwhile, as part of its commitment to operational efficiency, PETRONAS plans to carry out about 367 facilities improvement plans (FIPs) annually for the next three years.
These include replacing key components such as pipelines, compressors, and gas turbine generators.
It said FIPs will also contribute to the company’s decarbonisation initiatives, helping to curb flaring at new onshore facilities.
Finally, decommissioning of mature assets is also a priority for PETRONAS.
Over the next three years, the company plans to plug and abandon 153 wells, along with abandonment of 37 offshore facilities and one onshore facility, the Sabah-Sarawak Gas Pipeline.
“The decommissioning activities of matured assets in Malaysian upstream operations are essential to restore the area to a safe and environmentally stable condition.
“Additionally, these activities include assessing unused assets for potential repurposing,” PETRONAS noted.
“Plug and abandonment activity is expected to increase, with aspirations to abandon 80 wells per year from 2028 onwards.”
PETRONAS also highlighted a surge in investments within Malaysia’s upstream oil and gas industry, with more than 80% of the country’s offshore acreage awarded to Petroleum Arrangement Contractors.
“The significant investment through these contracts indicates a promising long-term growth in hydrocarbon production, positioning Malaysia as a key player in the global oil and gas sector,” it noted.
