Malaysia's OGSE Industry: Navigating the Energy Transition

Malaysia's oil and gas services and equipment (OGSE) industry is at a critical turning point as the global energy landscape shifts, demanding it to overcome the challenges of competitiveness and agility to remain sustainable, despite contributing a significant 5-8% to the national GDP. PETRONAS's senior general manager, Mohd Razali Kamin, stressed at the Oil and Gas Asia (OGA) 2025 conference that in order to stay resilient, the industry must embrace digitalisation, innovate, and reinforce its technical capabilities. A recent review of the National OGSE Industry Blueprint revealed that 85% of companies have not published sustainability reports, and 45% lack R&D resources, putting them at a disadvantage. To address these shortcomings, PETRONAS has introduced several initiatives, including the Vendor Development Programme (VDP), the Vendor Financing Programme (VFP), and the new PETRONAS Supplier Support Programme (PSSP) to assist vendors with ESG practices. Industry experts insist that organisations must actively drive their own change, even though these initiatives provide the means for growth. The industry aims to achieve ambitious targets by 2030, while sustaining its RM50 billion GDP contribution and generating 25% of its income from lower-carbon sectors like carbon capture, utilization, and storage (CCUS) and renewables. According to leaders, this transformation is no longer optional but a pressing need that requires broad collaboration across the entire ecosystem.