Petronas executive vice-president and chief executive officer of gas and maritime business, Datuk Adif Zulkifli.
KUALA LUMPUR: Petroliam Nasional Bhd (PETRONAS) will continue to support the oil and gas services and equipment (OGSE) ecosystem, having channelled more than RM2.2bil through its vendor financing programme since 2018, including over RM300mil in 2024 alone.
Speaking at the 21st edition of Oil & Gas Asia (OGA 2025), PETRONAS executive vice-president and chief executive officer (CEO) of gas and maritime business Datuk Adif Zulkifli said the OGSE sector remains central to Malaysia’s energy landscape.
“PETRONAS recognises the importance of a strong OGSE industry and we always find ways to increase partnership in strengthening the ecosystem,” Adif said on behalf of group CEO Tan Sri Tengku Muhammad Taufik.
On this front, Adif noted that the national oil company has nurtured more than 170 small and medium enterprises through its vendor development programme, with 20 successfully expanding internationally, while its supplier support programme, launched last year, has already enrolled over 400 vendors to build sustainability capabilities.
In addition, he said for smaller vendors, the special OGSE financing programme has channelled RM73.4mil to 47 applicants since 2022, including RM31.9mil to 20 companies last year.
Adif added that PETRONAS is also focused on talent development, leading an industry framework to map talent needs in the OGSE sector while working with government agencies to train local graduates for careers in the oil and gas (O&G) industry.
“These efforts are guided by a single objective – to ensure that our whole supply chain remains strong, competitive and ready to thrive in the face of growing energy demand and a lower carbon future,” he said.
Adif noted that the O&G industry faces “a moment of both promise and uncertainty” as global energy demand continues to climb.
Citing data from the International Energy Agency (IEA), he said global energy demand grew 2.2% in 2024 – above the usual annual average of 1.3% between 2013 and 2023 – led by rising electricity use from cooling needs, industrial activity and data centres.
“Despite the growing energy demand, volatility remains constant in our business. Markets are shaped by shifting geopolitics, fragile supply chains, and the accelerating impact of climate change,” he said.
In Asia, he said the challenge is more pronounced, with 350 million people lacking reliable electricity access, while 150 million have no electricity access at all.
He stressed that while demand in the region is rising rapidly, renewables are “not yet” able to fully meet this growth.
“To sustain our momentum, we need energy that is cleaner, yet also secure and affordable,” he said.
Adif stressed that the OGSE sector has a critical role in this transition, from enhancing O&G infrastructure to developing solutions that cut emissions.
“The sector’s innovation will enable O&G to be deployed as a reliable partner to renewables,” he said.
Meanwhile, Malaysia Petroleum Resources Corp president and CEO Mohd Yazid Ja’afar said the O&G sector “must deliver reliable energy today, while also preparing for a more sustainable and diversified future.”
“This dual responsibility is where Malaysia’s OGSE companies play an outsized role – they are the service backbone, the problem-solvers, and the bridge between ambition and delivery.”
He pointed out that Malaysian OGSE firms have already built offshore platforms in Brazil, supported liquefied natural gas terminals in the Middle East, and expanded across Asean, giving the industry a credible track record on the global stage.
“The task now is to turn those assets into future advantage,” Yazid said, urging OGSE companies to diversify into low-carbon technologies, digital solutions and sustainable services.
He also called on investors to leverage Malaysia’s position as a gateway to Asean and for policymakers to align procurement, financing and incentives to reward innovation and local capability.
“If we succeed, the OGSE industry will not just support Malaysia’s energy future – it will shape it,” he said.
Informa Markets Malaysia chairman Tan Sri Abdul Rahman Mamat said OGA remains a vital platform where “relationships deepen, ideas move, and business gets done.”
He noted that even as the world accelerates towards green transitions, oil, gas and energy will continue to play a critical role.
Citing IEA, he said South-East Asia is expected to drive a quarter of global energy demand growth through 2035 and surpass the European Union by mid-century.
“This is where growth is happening; this is where solutions must scale; and OGA is where those conversations and decisions accelerate,” he said.
“OGA is not only a marketplace for business growth and innovation, but also a catalyst for knowledge sharing and partnerships across borders.”
OGA 2025, themed “Powering Progress, Shaping Tomorrow”, brings together more than 2,000 brands and companies from 72 countries, including pavilions from the United Kingdom, China, Singapore, South Korea, India, Italy, Germany and the United States.
Established in 1987, the exhibition attracts around 25,000 visitors per edition and serves as a regional hub for technology showcases, partnerships and industry collaboration.
On the market outlook, Hong Leong Investment Bank (HLIB) Research flagged oversupply risks as the Organisation of the Petroleum Exporting Countries and its allies (Opec+) unwind production cuts.
It noted that global supply stood at 105.6 million barrels per day (mbpd) as of July, against the IEA’s demand forecast of 104.4 mbpd for 2025.
“This imbalance suggests oil prices are likely to stay capped in the near term in our view,” it said, adding that Opec+ will meet on Sept 7 to review conditions.
HLIB Research maintained its “overweight” call on the sector, keeping Brent oil price forecasts at US$67 per barrel for 2025 and US$70 for 2026.
