Petronas remains committed to work hand-in-hand with the Sabah State Government and the local players to nurture a robust, innovative and competitive oil and gas services equipment (OGSE) ecosystem to strengthen its capabilities, build resilience for a sustainable future, and contribute to the state’s economic growth.

Petronas President and Group CEO, Tan Sri Tengku Muhammad Taufik Tengku Aziz, said this at the commemoration of Sabahan vendors’ participation in the OGSE industry here on Thursday.

“As an integrated energy and solutions partner, Petronas has undertaken extensive efforts and investments to drive innovation and create opportunities for local OGSE companies, so that as a collective, we may strengthen Malaysia’s energy sector, enhance our competitiveness on a global scale, and ultimately contribute to the country’s economic growth.

“Over the years, Petronas has also forged close collaborations with the Sabah State Government, the Petroleum Arrangement Contractors, and the Sabah OGSE players to enhance the robustness of the State’s oil and gas ecosystem.

“Today, we will be celebrating not one, not two, but the achievements of 25 of these players, who have not only actively participated in the sector and the various trainings we have provided, but also demonstrated exemplary performance in fulfilling the terms of their contract,” he said in his welcoming speech.

According to Taufik, since 1993, Petronas has also put in place programmes and efforts to elevate the robustness of the OGSE sector. Among efforts are the Vendor Development Programme (VDP) aimed at creating resilient and competitive Bumiputera entrepreneurs in oil and gas-related manufacturing and technical services, which helped 281 vendors secure RM1.7 billion in financing since 2018, among others.

“Unique to Sabah is our collaboration with the Sabah State Government to establish the Kimanis Training Centre (KTC), aimed at developing technical capabilities among local youths in fields related to the oil and gas industry.

“Petronas has invested RM34.6 million since KTC’s inception in 2011, producing 194 graduates,” he added.

Meanwhile, as the world contends with an accelerated energy transition, Taufik said this sector is also faced with increased scrutiny and intensified clamour to put an immediate end to all fossil fuel-related activities.

“Many among these overly idealistic parties have labelled oil and gas as a sunset industry.

“I would like to posit that reality is far from these claims. Today, some 85 per cent of the energy consumed in Asia comes from fossil fuels, and by 2030, this region’s demand for energy is projected to double.

“A just and equitable transition away from the conventional fossil fuels system will take time and resources. This means that in the immediate juncture, we must continue investing in our existing energy system to provide secure and affordable energy that the markets we serve still need,” he added.

Taufik stressed that many of these projects are taking place in Sabah.

“Just last year, we signed four production sharing contracts and achieved FID for Southeast Asia’s first nearshore LNG facility all located here in Sabah.

“I wish to emphasize that the success of Sabah is the success of Petronas and Malaysia.

“With that said, the continued exploration, development and production of hydrocarbons to serve market demand must now be done in a differentiated way,” he said.

Together with its OGSE vendors, Taufik said Petronas must leverage the expertise and knowledge accumulated over the years to innovate new technologies that can contribute towards Malaysia’s Nationally Determined Contributions of cutting carbon intensity against GDP by 45 per cent by 2030 compared with 2005 levels.

“Towards this end, Petronas conducted three flare reduction efforts just last year, two of which are in Sabah, including at the Kinabalu block with a reduction of 0.003 million tCO2e and at the Sabah Oil and Gas Terminal with a further 0.05 million tCO2e.

“As you might be aware, Petronas is the first Southeast Asian oil and gas company to declare our net zero carbon emissions by 2050 aspiration.

“Alongside the OGSE industry, we are also working to move the needle along in support of the targets as outlined in Malaysia’s National Energy Transition Roadmap,” he further explained.

Source:
courtesy of THE BORNEO POST

by MARIAH DOKSIL

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