Qualampur: Malaysia’s oil and gas services and equipment (OGSE) companies have been urged to consider strategic partnership and get more energy transition opportunities beyond the industry.
Malaysia Petroleum Resource Corporation (MPRC) Senior Vice President/Operations Head Mustafa Akbar Reza said that OGSE industry consolidation has been canceled to focus on strategic participation.
“The idea is that there are many OGSE companies and each company focuses on a business.
Launched by the Ministry of Economy in April 2021, the OGSE Bloprint aims to develop a strong, flexible and globally competitive Malaysian OGSE region.
In 2023, there were 3,392 OGSE companies under standardized work and equipment categories, licensed and registered by Petroleum Nasal BHD.
Mustafa said strategic participation would help OGSE companies diversify and make better competition, especially outside Malaysia, which can also help them diversify their customer base.
He said that MPRC is committed to advancing the strategic partnership of OGSE companies and the agency is looking for a series of programs to increase the competition and flexibility of OGSE companies to run strategic partnership within the industry.
He said, “More details will be shared during the OGSE Mid-Term Review launch.”
Mustafa said that MPRC plans to introduce another major component of strategic participation on March 20 that may include an understanding or formal agreements signed between one or two partners and said that adoption of technology was historically a field where OGSE companies lagged behind.
He said, “We have seen our efforts to promote the pace of adopting technology from last year,” he said that new development will be announced under the OGSE development grant.
Since the launch in 2021, RM20 million has been allocated through OGSE development grant, benefits 64 companies, 22 companies successfully commercialized and generated a joint revenue of RM38.3 million.
Mustafa said that the OGSE development grant has not found adequate representatives of Saba and Sarwak and MPRC will work closely with the stakeholders in both states to address the issue.
Explaining the mid-term review report, Mustafa said that the report was organized by MPRC to evaluate progress and to ensure that the industry is forming an alliance with national priorities and successfully suited to the developed energy landscape.
In general, Mustafa stated that most OGSE companies are small and medium enterprises, so the effect of OGSE Bloprint, especially about their most pressure “pain points”, such as Apasilling Talent, Adoption of Technology and Access to Finance, benefits SMEs.
He said, “OGSE Blown is a long -term document, which includes stakeholders of all OGSE ecosystem, with any undertaking of this size, a challenge is making sure that everyone is committed to work together to the finish line,” he said.
The talent interval in the major milestones achieved since the OGSE Blown Launch was reduced and the need for the industry for one-stop source of information available to OGSE companies and information on services was addressed.
On talent development, Mustafa stated that around 600 persons were trained under coaching and mentorship programs, increasing the knowledge and expertise of the OGSE industry, and there were over 300 upskild and certified in excessive demand after technical subjects.
He said that the launch of the I-OGSE portal in 2023, which provided information about areas including financing and export programs, has received grants, alternative financing and export assistance to more than 60 companies.
Mustafa said that eight new or expansion projects have been approved by MIDA, multinational investment and 160 companies have been attracted and a total RM2 billion has been recorded in potential export sales through Matrid -led trade matching and global trade fairs.
Since 2021, Mustafa said that some OGSE companies are gradually transferred to new surrounding areas in energy infections, entering solar and other renewable energy with companies. He said, “This is a major milestone in the development of the OGSE region, where we see companies pivying for new businesses, providing low emission solutions with oil and gas industry change,” he said.
