KUALA LUMPUR – Petronas plans to sustain domestic production at around two million barrels of oil equivalent per day, the national oil and gas company said in its latest Activity Outlook 2026–2028, outlining opportunities for Malaysia’s oil and gas services and equipment (OGSE) industry.
The outlook provides insights into expected activities across Petronas’ Upstream, Downstream, Gas and Maritime businesses, aimed at helping OGSE companies plan and prepare for the next three years.
“The Activity Outlook provides strategic visibility to support long-term industry capability planning and readiness,” said Rashidah Alias, vice-president of Group Procurement at Petronas, in a statement today.
She added that the company remains committed to delivering progressive, lower-carbon energy solutions while strengthening the domestic OGSE ecosystem.
Meanwhile, in upstream operations, Petronas aims to maintain production levels through continued investment in exploration, deepwater development and enhanced oil recovery.
Resource optimisation projects at producing assets such as Belud, Sepat and Kurma Manis are expected to sustain Malaysia’s energy security and create steady demand for technical services and innovative solutions from OGSE partners.
The company is also advancing decarbonisation initiatives under the BIGST (Bujang, Inas, Guling, Sepat and Tujoh) cluster as part of its Net Zero Carbon Emissions by 2050 pathway, enabling lower-carbon operations in Peninsular Malaysia.
In the downstream segment, Rashidah said that Petronas will focus on operational excellence, supply chain resilience and product diversification amid anticipated margin pressures and market volatility.
Expansion into specialty chemicals and biofuels is planned, with a biorefinery expected to begin operations in the second half of 2028.
The outlook also highlighted product innovations such as thermal intelligent fluids, Petronas Iona for electric vehicles and Iona Tera for data centre cooling, developed to meet evolving customer needs amid global sustainability trends.
For Gas and Maritime, Rashida said Petronas will ensure a reliable supply of natural gas and LNG while improving efficiency and reducing emissions.
Key priorities include fleet rejuvenation, investment in lower-emission shipping solutions, and continued development of LNG and regasification capacity to support Malaysia’s evolving energy needs.
Rashidah also noted that cleaner energy initiatives have already resulted in more than 8.5 gigawatts of global renewable energy capacity through Gentari, alongside mature clean hydrogen opportunities totalling 175 kilotonnes per annum.
The company said these efforts are designed to build Malaysian OGSE capabilities in emerging sectors, from carbon capture to renewable energy infrastructure, preparing the industry for high-growth markets beyond traditional oil and gas.
Rashidah added that the Activity Outlook provides pathways for OGSE companies to move from executing established projects to co-developing solutions for emerging technical challenges, supported through technology access, capability-building partnerships, and expansion into regional and international markets. – January 29, 2026