Development wells to increase to 69

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) says the outlook for the upstream development projects in the oil and gas industry remains steady over the next three years.

In the near term, the number of development wells is expected to increase to 69 this year from 56 at the end odf 2024, Petronas said in its 2025-2027 Activity Outlook report.

The national oil company also affirmed its commitment to achieving its target of growing and sustaining Malaysia's oil and gas production to two million barrels of oil equivalent per day.

"To ensure optimal production from producing fields and facilities, 367 facilities improvement plans are planned annually for the next three years," it said.

Petronas said decommissioning plans include the plugging and abandonment of about 200 wells, and abandonment of 37 offshore facilities and one onshore facility.

Among others, it will decommission its 500km natural gas pipeline connecting Kimanis in Sabah to Bintulu in Sarawak, which has been operational since early 2014.

In November last year, Petronas lifted the force majeure on gas supply to the Dua Malaysia LNG terminal after it was shut in 2022 following a leak in the Sabah-Sarawak pipeline.

In the upstream sub-sector, Petronas said it is also positioning carbon capture and storage as a pivotal business, particularly the Kasawari project.

Its downstream business is actively pursuing growth in specialty chemicals.

Through a partnership, Petronas will be producing biofuels at a biorefinery, set to become operational by the second half of 2028.

Petronas vice president of group procurement Rashidah Alias, said the national oil company aspires to see industry players thrive in supporting the broader Malaysian oil and gas industry and the nation's journey of energy transition and energy security.

"By co-creating solutions and maintaining open communication, we can drive meaningful change and innovation," she said in a statement.

The report highlights innovation, sustainability, human capital development, and financial resilience to sustain a robust ecosystem while supporting Malaysia's net-zero journey.

It also shared insights and forecasted activities covering upstream, downstream, gas and maritime as well as the introduction of its clean energy solutions.

The report outlined Petronas' commitment to supporting national economic growth within the next three years by adapting swiftly to changing market demands, leveraging digital transformation to improve performance, safety, and sustainability, and fostering collaborations within the industry to develop vendor capabilities to advance new technologies.

The report also said that Petronas' ongoing capital expenditure investment is vital to ensure supply security by boosting exploration in new and mature areas, accelerating appraisal programmes and replenishing resources to sustain production targets with lower costs and emissions.

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