PETRONAS

Activity Outlook
2022-2024

PETRONAS Activity Outlook 2022-2024

PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
1
 Our Story
The oil and gas majors are starting to record improvements, with both profit and cash flow
from operations surging upwards. Nevertheless, industry players remain vigilant and continue
to take very cautious steps. Beyond the challenges, the future remains optimistic and the Cautionary Statement
prospects for recovery are in sight, though it may be slow.​
This report was developed based on currently available information from internal
​
and external sources. PETRONAS believes that the expectations of its Management
The global energy transition continues to gather pace, driven by technological advancements
as reflected by such forward-looking statements are reasonable based on
and supported by societal and regulatory push towards attaining net zero carbon emissions information currently available to it. PETRONAS makes no representation on the
by 2050 (NZCE 2050). ​ accuracy or completeness of any information provided in this report and expressly
​ disclaims any liability whatsoever arising from, or in reliance upon, the whole or any
In bringing everyone together and ensuring long-term value creation for the stakeholders, part of its contents. PETRONAS undertakes no obligation to update or revise any of
PETRONAS offers innovative, sustainable and customer-centric solutions. Our expanded them, whether as a result of new information, future developments or otherwise.
portfolio is well-positioned to respond to the shifting needs of our customers from creating
more access for natural gas and LNG to power a variety of industries. Accordingly, readers are cautioned not to place undue reliance on the forward-
looking statements, which speak only as of the date they were made.

Images are for illustrative purposes only.

Released in December 2021.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

2 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
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 Table of
Contents
06 Reform Acceleration
44 Activity Outlook
• Methodology
Foreword by Vice President,
• Quick Reference for 2022
Group Procurement
• Subsurface
- Drilling Rigs and Hydraulic

08 Industry Overview Workover Units

• Engineering, Construction
and Projects
- Offshore Fabrication
- Offshore Installation
- Hook-up and Commissioning
- Decommissioning
• Equipment and Material
- Supply of Linepipes
• General Facilities Maintenance
- Offshore Maintenance,
Construction and Modification
- Underwater Services
- Plant Turnaround
• Logistics

75 - Offshore Support Vessel

12
Contracts • Chemicals

In the Spotlight Outlook • Indirect

• Digital and ICT
• Hydrogen: The Future of Energy
• The Power of Zero
• PETRONAS Ventures
84
List of
• Transforming Project of the Future Abbreviations

36 86
Glossary
Business Overview
• Upstream
• Gas + New Energy
• Downstream
89
Frequently Asked Questions (FAQs)

91
More on PETRONAS

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

4 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
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 Dear Esteemed Partners,

We are pleased to present this year’s edition of the PETRONAS Activity Outlook, covering insights on the industry
and demand outlook from 2022 to 2024. As we enter the year 2022, the global economy is staging with multi-
speed recovery across countries and sectors. At the same time, increased fields complexity and decarbonisation of
operations require more extensive technology deployment and smarter solutions. Accelerated energy transition will
also pose further challenges to the traditional oil and gas business. Thus, the industry must be innovative and remain
competitive in the course of doing business, to ensure projects and production remain feasible in the uncertain
economic climate.

Immediate reforms along the value chain have become increasingly important focusing on greater operational
efficiencies and higher productivity. PETRONAS is collaborating with industry players in pursuit of maximising existing
assets for better efficiency and cost optimisation. Oil and Gas Services and Equipment (OGSE) industry can capitalise
on new opportunities which have emerged from changes introduced in the way we operate, whether it is rethinking
how we do projects or leveraging on the rapid advancements of technology in the form of Artificial Intelligence (AI),
machine learnings, robotics and Internet of Things (IOT). Globally, we have seen companies forming collaboration
to accelerate technology uptake and create an array of new revenue streams while sharing the resources and
investment.

Reform
It is our aspiration to achieve net zero carbon emissions by 2050 (NZCE 2050) and we have taken steps to realise the
aspiration towards the energy transition and to embrace a low-carbon energy future by accelerating our Stepping
Out strategy into renewables such as solar and hydrogen businesses.

Acceleration As we approach sustainability from the Environmental, Social and Governance (ESG) perspective, PETRONAS is
guided by four sustainability lenses - Continued Value Creation, Safeguard the Environment, Positive Social Impact
and Responsible Governance. The oil and gas industry and its players must collaborate in moving forward together,
Foreword by Vice President, embedding ESG as part of our industry’s DNA.
Group Procurement, PETRONAS
There is also a need to intensify the adoption and capitalise on digital transformation and technology advancement.
We must continue to remain focused in our efforts on technological advancements, digitalisation of processes,
as well as harmonisation of standards for equipment and services. Leveraging technology and digital solutions to
optimise cost while securing bottom line and performance are becoming more significant and vital.

PETRONAS has intensified efforts through partnerships to accelerate sustainable industry practices. At PETRONAS, we
remain committed to upholding the highest standards of corporate governance and practices zero tolerance against
bribery and corruption, in line with our Code of Conduct and Business Ethics (CoBE). We will continue to ensure
individual and organisational integrity becomes a way of life in PETRONAS and we espouse the same for the industry.
In navigating through the challenging conditions, safety is not to be compromised. While keeping the operations cost
down and increasing pace, Health, Safety, Security and Environment (HSSE) practices must be upheld at all times.

On behalf of PETRONAS, we look forward to the continuous support and efforts from the entire ecosystem to shift
the norm and foster stronger creative partnership to unlock opportunities in enabling a smooth journey towards a
low-carbon economy. Together, we will move forward and thrive together in enriching lives for a sustainable future.

Freida Amat

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

6 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
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 Industry
Overview

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

8 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
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 Shifting Landscapes
Average Northeast Asia LNG spot prices Unit: US$/MMBtu

2020: US$4.20 2021: US$15.50 (YTD)

As the world reopens and economic activities resuming, the global economy is staging its most robust 1H ’20: US$2.70 2H ’20: US$5.60 1H ’21: US$9.50 2H ’21: US$25.10
post-recession rebound with speedy recovery seen across countries and sectors. A pervasive roll-out of
vaccines in 2021 provided support to the recovery of road transport fuels amid pent-up traveling demand. Q1: US$3.4 Q2: US$2.1 Q3: US$3.4 Q4: US$7.9 Q1: US$9.5 Q2: US$9.4 Q3: US$17.9 Q4: US$32.3
However, the aviation sector is only expected to return to pre-pandemic level by 2024. The path towards
sustained oil demand recovery remains fragile and uncertain due to the emergence of new COVID-19
variants that trigger fresh waves of lock-downs. Northeast Asia LNG spot price (Unit: US$/MMBtu)

While most industry players are optimistic with the economic recovery, they still remain cautious. Thus, 60 Asian spot LNG prices surge
Asian freeze sends natural Southern China's trucked past $50/MMBtu as European
the smarter approach would be to strengthen efforts collectively and be ready to face the oil price gas cargo prices into the LNG prices surge on strong gas crisis intensifies
50
volatility. stratosphere summer demand Platts, June. 2021
40 Bloomberg, Jan. 2021 Platts, June. 2021

Daily Dated Brent Prices YTD 2021: 30 2021

USD70.6/bbl
Unit: USD/bbl
20 2020
90 2020
10 2020
Feb 17: US Texas Mar 23: Third COVID-19 July 18: OPEC+ agrees to fully Oct 1: Widening Nov 23: US to
ice storm; 40% wave hits Europe, unwind cuts by end-2022, lifts energy crisis in release 50 mil 2020
US oil disrupted lockdowns return five member countries’ Sept 8: Libya Asia and Europe bbls oil release 0
80 production baselines protests block oil lifts oil demand from SPR Jan June Dec
exports from key
eastern terminals
Mar 7: Houthi
attacks Saudi
70 oil facilities
This year saw major carbon emitters pledging their net-zero aspirations by the middle of the century,
setting the stage for a stronger commitment on the decarbonisation agenda. Post 26th UN Climate
60 Change Conference of the Parties (COP26), the call for action has grown louder with greater scrutiny on
governments and industries on top of a stronger demand for transparency and progress of pledged targets.
Sept 9: China
50 announces oil Amidst accelerating energy transition, gas and renewable will play a bigger role in meeting global
Mar 4: OPEC+ and sales from Nov 26: COVID-19
Saudi extend cuts
June 2: OPEC+
sticks to plan to Aug 29: Hurricane
strategic Omicron variant energy needs. Gas is more resilient than oil as growing share of electric vehicles (EVs), rising demand
until April reserves triggers travel bans
40
ease supply cuts
through July
Ida shuts 1.7 mil
bpd of US Gulf of
for sustainable fuels and increasing efficiency of the transport sector would erode the consumption of
Mexico’s oil output oil. While gas is cleaner than oil, challenges come in the form of methane leakages from operations and
pipeline targeted by policymakers, following more stringent emission goals set at COP26.
30
Jan 5: Saudi Apr 1: OPEC+ agrees to Aug 5: China reimposes Nov 19: COVID-19
announces unilateral gradually ease 1 mil bpd lockdown restrictions lockdowns return On the home front, the 12th Malaysia Plan (RMK-12) comes at an opportune time as the nation recovers
cut of 1 mil bpd in of output cuts; Saudi in Europe
20 February and March phases out voluntary from the COVID-19 pandemic. Setting strategic direction for Malaysia’s development for the period of
cuts by July
2021 to 2025, it aims to address current issues with strategic directions to achieve a sustainable economy
focusing on rejuvenating economic growth; ensuring prosperity is distributed more fairly and equitably;
10 and maintaining environmental sustainability.

0
With the objective of achieving a “Prosperous, Inclusive and Sustainable Malaysia”, the third focus of
Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 RMK-12 accelerates the nation’s progress in moving towards a low-carbon nation, safeguarding natural
Source: Argus, PETRONAS internal analysis
endowments, and increasing resilience against climate change. The green growth will be strengthened by
a robust enabling environment and supported by a mindset change as well as behavioural shift.

The energy crisis that unfolded in 2021 led to gas and Liquefied Natural Gas (LNG) prices surging to a In addition, energy sustainability will be further enhanced by an ensuring adequate supply of energy
record high. Asian spot LNG prices soared above US$50/MMBtu, a historic high, due to factors including resources and related infrastructure; while renewable energy as an alternative energy source will be
higher demand as economies re-open, rising competition for gas between Europe and Asia, a hotter augmented to complement energy efficiency measures.
summer and colder winter, as well as a coal crunch in China which led to a spike in demand for gas.
In moving towards a low-carbon nation which will address the energy trilemma, the industry will need to
The LNG spot prices in the coming years are also expected to experience volatility due to the weather brace and act towards supporting RMK-12. It is imperative to relook the business model and mindset shift
pattern and also potential change in policy, altering the supply-demand dynamics. as energy transition is accelerating players to fast-track and step-out. PETRONAS will continue to focus
on maximising value by leveraging the Group’s integrated value chain to capture new opportunities and
This underscores the need for continuous investments in the energy sector to ensure reliable and mitigate the impact of market uncertainties.
sustainable supply of energy in an equitable manner.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

10 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
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 In the
Spotlight

In the
12
PETRONAS Activity Outlook 2022-2024
Spotlight PETRONAS Activity Outlook 2022-2024
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PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
 Hydrogen:
The Future
of Energy
PETRONAS will leverage its existing infrastructure and venture
into strategic partnerships to grow its capabilities as a blue and
green hydrogen producer and supplier.

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14 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
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 Hydrogen: The Future of Energy
Hydrogen, although a small molecule, has great potential. It can power up cities, vehicles and many
other sectors. More importantly, it is clean as it emits zero CO₂ when used. This makes it a critical energy
vector to decarbonise the world, complementing other clean energy sources.

The world has been consuming hydrogen for many decades, primarily for industrial uses. But as the
world moves towards cleaner energy, coupled with hydrogen’s potential in many other sectors, it is Countries are implementing decarbonisation policies, spearheading
projected that the demand for hydrogen will increase by almost eight-fold to 550 million tonnes per the development of hydrogen supply chain and its demand.
year compared to 70 million tonnes in 2020. As such, hydrogen is a key component in PETRONAS’
commitment towards sustainability.
EU
2030: 20 mtpa
2050: 68 mtpa
Demand for hydrogen has quadrupled since the 1970’s
UK
Global demand for pure hydrogen, 1975-2018 (million tonnes) Canada 2030: 1 mtpa China
2030: 4 mtpa 2050: 14 mtpa 2030: 35 mtpa
72 74 2050: 20 mtpa 2050: 60 mtpa
Germany
62 2030: 3 mtpa Japan
54
52 2050: 11 mtpa South Korea
2030: 3 mtpa
2050: 20 mtpa
40 USA 2030: 3.9 mtpa
35 2030: 17 mtpa India 2050: 27.9 mtpa
30 2050: 63 mtpa 2030: 8 mtpa
24
18 2050: 26 mtpa

Malaysia
Singapore Developing hydrogen
2030: 0.3 mtpa strategy via National Energy
2050: 1 mtpa Policy and Hydrogen
1975 1980 1985 1990 1995 2000 2005 2010 2015 2018 Roadmap (2021 - 2022)

Refining Ammonia Others

Global Hydrogen Demand Forecast

Million By 2050, hydrogen production is expected to
Tonnes
account for 10 per cent of natural gas use and
500
25 per cent of renewable additions, with the most
Supply Node Demand Centre Self-sufficient
rapid adoption of low-carbon hydrogen taking
place in developed economies like Europe, Japan The figure above shows the trade flow between importing and exporting nations, where net importers include
400
and South Korea. According to industry experts, the likes of Japan, South Korea and Germany; while exporters include Australia, Middle East and Chile.
hydrogen is forecasted to contribute up to
18 per cent of the global energy mix by 2050,
300 eliminating 6 giga tonnes of CO₂ annually and In this current nascent stage of the hydrogen industry, the demand for this molecule is mainly driven by
requiring a total investment of USD11 trillion. country policies where decarbonisation agenda holds strong. Advanced countries are also seeking to
diversify their energy source with alternative energy like hydrogen and seizing the potential growth in
200
With much emphasis on decarbonisation goals, the green economy.
global hydrogen demand is forecasted to accelerate
around 2030 driven by policy, technology, market To create a competitive global hydrogen supply chain, it will require cost reduction along its value chain,
100
competitiveness and cost reduction. Prior to 2030, particularly in hydrogen production. Additionally, industry players would also need to unlock the challenges
to transport hydrogen. While technology advancement would enable this, another key factor in making
demand for clean hydrogen is expected to increase
this happen involves the government’s support through policies and incentives, as well as development of
steadily as industries start to decarbonise their
0 global hydrogen standards.
existing operations by switching to clean hydrogen.
The versatility of hydrogen as fuel, heat source
2020 2030 2040 2050 and feedstock allows for the demand to further
grow and be used in many other sectors such as
Transport Industry Heat & Power transport, industries and power generation.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

16 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
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 Getting to Know Hydrogen
Hydrogen is the lightest and most abundant element in the universe, yet this tiny molecule has huge
potential to connect energy generation, energy storage, transportation and industry, as an energy
carrier. It is approximately 73 per cent of all the mass in the visible universe. The most common place
to find hydrogen on earth is in water. It is also a clean-burning gas that contains more energy per unit
of weight than fossil fuels.

Produced from Natural Gas (NG) Produced from water N N

through Stream Methane Reforming through electrolysis N
(SMR) process. powered by RE.
N

H₂ H₂ H₂
Ammonia Liquid Organic
Hydrogen Carrier Short distance Mid distance Long distance Fuel for Heat for Feedstock for
(LOCH) Trucking Pipeline Shipping Mobility Power Buildings Industries Chemicals Products
Grey Blue Green
Hydrogen Hydrogen Hydrogen

Emits CO₂ CO₂ is sequestered Emits zero CO₂

H2 H2

Liquefied Compressed
hydrogen hydrogen

Production Conversion and Transportation Application

KEY INSIGHTS For the power sector, Japan and South Korea have
announced initiatives to co-combust ammonia in their
Production Cost Hydrogen needs to be converted to other forms Transportation is the least matured but a coal-fired power plants, and using hydrogen in combine
Current production cost of blue hydrogen is more than twice of for it to be transportable, especially for long key segment of the value chain to build cycle gas turbine, to decarbonise the power sector.
the cost of grey hydrogen and current production cost of green distance transportation. global network of hydrogen. Unlocking
hydrogen is also more than twice the cost of blue hydrogen. • Ammonia: Most matured form of this will allow demand centres (such International Maritime Organisation (IMO) targets to
transportation, with existing facilities. as Japan and South Korea) to import reduce the total annual GHG emission by 50% when
Key Cost Elements hydrogen from supply centres (such as compared to 2008, reducing 500 million tonnes of
Seventy per cent of the price of green hydrogen comes from the • Liquid Organic Hydrogen Carrier (LOHC):
Malaysia, Australia, and the Middle East). CO2 emissions per year. As such, industry players are
cost of Renewable Energy (RE); 30 per cent of the price of blue Chemically-bonded hydrogen with carriers
collaborating to develop ammonia fuel bunkering supply
hydrogen is from the cost of Carbon Capture and Storage (CCS). such as toluene enables transportation in
chain, with ammonia-fueled vessels expected to be
ambient conditions.
Technology to Improve Production Cost rolled out 2025 onwards.
• Compressed: Hydrogen is compressed
For blue hydrogen, further improvements in carbon capture between 350 bar and 700 bar, may be limited Many countries are also looking to decarbonise their
and storage technology, and other new technology like to short-range transportation (such as land). mobility segment and have set targets for the number of
methane pyrolysis can be the catalyst for cost reduction. fuel cell vehicles on the road by 2030. Hydrogen fuel cell
• Liquefied: Energy intensive nascent
For green hydrogen, continuous improvements in terms of technology requiring supercool temperatures technology is expected to provide the solution for long-
renewable and electrolyser efficiencies are needed to reduce of -2530C to liquify hydrogen. haul heavy road vehicles, complementing the battery
green hydrogen cost below USD2/kg. electric vehicle (BEV) for short range and light vehicles.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

18 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
19
 PETRONAS Hydrogen: Future-Ready Energy
PETRONAS venture into the hydrogen business is anchored on its passion to bring cleaner energy to
the world to create a sustainable future. PETRONAS possesses ready capability and facilities to produce

Did You Know?

blue hydrogen. This builds upon our experience in petrochemical industry and as a world-renowned
reliable LNG supplier. With our renewable portfolio expansion and strong partnerships, PETRONAS is also
poised to be a competitive green hydrogen solutions provider. With ready capabilities and leveraging our
proximity advantage to key hydrogen demand centres in Asia, PETRONAS is poised to grow our presence
in the global hydrogen value chain.

With emerging clean energy sources like hydrogen, innovation and collaboration amongst industry
In
75%
players in projects and technology will be crucial towards achieving cost competitiveness and scalability

1950
for hydrogen. This is all in the pursuit to make hydrogen more affordable as an attractive clean fuel.

For PETRONAS, we are targeting for our domestic hydrogen projects to commence operation from 2024
onwards starting with blue hydrogen and subsequently green hydrogen production, while we continue to
expand our supply capacity globally to serve our targeted markets.

of the sun is
NASA used liquid made up 1 Legend:
4
hydrogen as fuel for of hydrogen 3 2

space missions
Malaysia as competitive
hydrogen supply hubs
Global market and
supply expansion
H₂
Blue Hydrogen

Produces
H₂
10 3x 2022
1

2024
2

2026
3

2027
4

2028 2030
Green Hydrogen

per cent of PETRONAS Value Proposition

living things energy as fossil
are hydrogen fuel for the same
amount of weight
Geographic Advantage Valued Relationship In-house Capacity Alternative Offering
Strategic location of Long history and Availability of resources H₂ as an alternative
supply nodes, proximity trusting relationship as and logistic ability to product,

1
to H₂ demand centres. a reputable LNG and supply competitively. complementing LNG,

H₂
petrochemical supplier. petrochemical and RE.

Strong Partnership Capability and Technology Ready Assets

in a fuel cell, Access to partners in both supply and Leadership in project development On-the-ground facilities,
emits hydrogen releases demand sides, creating a complete chain. and energy solutions. reducing costs to serve.
zero GHG a single product
which is water Seize the Chance to Accelerate the Business Advancement of Hydrogen
OGSE players are encouraged to collaborate in scaling up hydrogen in a coordinated way. An opportunity
to diversify spurs new business growth while upskilling capabilities in line with charting our aspiration
going into low-carbon economy. To reach out and consider opportunities/collaboration with PETRONAS
Hydrogen, contact hydrogen@petronas.com.

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20 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
21
 The Power
of Zero

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

22 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
23
 M+ by PETRONAS unlocks We harness the power of the sun
the Power of Zero to power the nation sustainably
1. Largest rooftop solar installed in a single compound -
Malaysia Marine & Heavy Engineering Holdings Bhd (MMHE)
Zero Techno-Financial Risks for a Seamless Switch
With zero CAPEX and up front investment, businesses can now
embark on their sustainability journey with a peace of mind

18,720 solar panels installed Clean energy generated equivalent

across an area of 440,496 sqft to planting 2 million trees​

RM
Zero Interruptions for 24/7 Clean Energy CO2
Businesses can now be energy independent with a reliable
supply of clean energy day and night with our battery storage
Up to RM30 million 8.3 MWp solar capacity generating Reduced carbon emissions
and hybrid solutions
cost savings over 10 GWh electricity per annum by 132,000 tonnes of
the next 2 decades​ (197 GWh electricity over 21 years) carbon emissions

2.Powering one of the largest hypermarket chain in Malaysia -

Zero Wastage for Maximum Energy Efficiency Lotus’s Malaysia (formerly known as Tesco Malaysia)
State-of-the art technology via Hawk Ai Energy & Monitoring
Solution and real-time energy visibility for our customers to make
informed, data-backed decisions to optimise and extend their
clean energy usage

Largest commercial solar 18 GWh of clean energy

power purchase agreement generated annually to power
signed in the nation 15 Lotus’s stores nationwide

Zero Hassle for a Tailored Fit

Custom fitted solar solutions that achieves a perfect harmony with CO2
our customers’ energy requirements and available space, be it for
Bespoke Solar Developer
on-site or off-site solar solutions
A joint collaboration between Reduce approximately 13,624
PETRONAS New Energy and tonnes of carbon emissions
NEFIN Group into the atmosphere

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24 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
25
 PETRONAS
Ventures
Innovation to Spur Growth

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26 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
27
 Driving technology
The resounding success of the first edition of the programme has prompted PETRONAS to launch the second edition
in 2021 called FutureTech 2.0 (FT2.0). In the edition, PETRONAS continues its partnership with 500 Global as well
as teaming up with two local corporate giants, namely Telekom Malaysia (TM) and Sime Darby Plantation (SDP) to
unlock synergies from cross-industries expertise and maximise value impact of the programme to local startups.

innovation for growth

In the current increasingly agile market, trends may come and go. However, one industry that remains relevant and
is gaining ever-increasing importance is the energy sector. The important role of energy has only been magnified
by the unpredictable global events which see crucial responsibility from energy sectors in spearheading innovations
in key areas, besides emboldening startups and companies from other relevant verticals to initiate growth and
innovation in their own industries. ​
​
Towards this end, PETRONAS has set up a venture capital arm, PETRONAS Ventures, to drive technology innovation “We need to go beyond just oil and gas, which means we have to move
and maintain a competitive edge to support its core oil and gas business for further growth. ​ towards a broader energy sector. Partnering with startups is the way
​ to go because it provides PETRONAS with the insider intelligence and
PETRONAS Ventures “tests what’s out there, which could complement” potential investments anchored to three key insights needed to accelerate in areas we may not currently see (from the
pillars: Future of Facilities, Future of Energy, and New Chemicals/Advanced Materials, in alignment with PETRONAS’ perspective of) a traditional oil and gas company.”
Technology Agenda.
Arni Laily Anwarrudin, Head of PETRONAS Ventures.

Facilities of the Future

• Robotics and Automation (AI/ML)
• Sensors and vision technnology (surface/subsurface)
• Asset intelligence/connected factory

Iron Sharpens Iron

• Smart Maintenance and Inspection
• 3D printing and in-situ manufacturing

The bigger value proposition of the programme is that, opportunities are largely open, paving ways for corporate
tie-ups with PETRONAS and its partners, where they get to learn from 500 Global top-tier curriculum as well as
Future of Energy access to corporate business experts and networks. In addition, mentors share relevant pain points within specific
• Novel energy generation business segments during a 12-week programme. ​
• Energy efficiant/storage solutions ​
• Smart grid, electrification This non-traditional partnership will create a synergy that will open possibilities and maximise benefits for the
• Renewables (solar/wind/bio) startups to accelerate their business and scale up to global standards. As for the corporates, access to business
• Vehicle automation solutions is key. As technology and innovation are fast revolving, startups will play an important role. Through this
• Hydrogen effort, all participating parties gain value from each other’s wealth of knowledge and experience, harnessing key
contributors that help accelerate each other’s journey towards a healthy market strategy. The partnership, clearly
refreshes and changes the corporate innovation landscape and trend by encouraging the innovation culture using
more agile approaches. By leveraging non-traditional thinking embedded in startup culture and the industry
Specialty Chemicals and Advanced Materials know-how of corporates, both stakeholders stand a better chance of fostering smarter, stronger and more resilient
• Electronic Chemicals forms of innovation. ​
• Surfactant ​
• Coatings What is more, PETRONAS in playing its role in catalysing technology startup innovation in the energy sector, as well
• Additives (food/feed) as internalising important processes in approaching how startups operate. Through FT2.0, participating startups are
• CO₂ to value products able to extend their services and commercial offerings with PETRONAS and its corporate partners, in ways that are
• Lubricants lean and agile while still conforming with corporate governance standards. In a nutshell, this helps to fast-track their
ability to commercialise within PETRONAS and the partners’ ecosystem. ​
​
PETRONAS Ventures is continuously looking for more technology partners with new ideation to ride the wave together!​
​
Start-ups enthusiasts can reach out for more info: petronasventures@petronas.com
Realising the prospects of the startups space in Malaysia, PETRONAS kicked-off its PETRONAS FutureTech in October
2019, an accelerator programme to encourage local innovations and support Malaysian startups. Through FutureTech,
PETRONAS is providing the opportunity to help the startups to realise the opportunity to grow even up to a global level.​

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28 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
29
 Transformation:
Delivering
Project with
Excellence​

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

30 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
31
 Project Management of
One of the four Transformative areas, which is the Construction-Based Engineering is optimising
construction cost through process improvements. ​Aimed to optimise value delivery through
improvement in efficiency, productivity and profitability, it is imperative for the industry to adopt

the Future (PMoF)​ Advanced Work Packaging (AWP) and Project Production Management (PPM) methodologies in delivering
projects. A Joint Industry Collaboration (JIC) between industry players was established to accelerate
maturity of the adoption. ​

Efficiency as Enabler
In the pursuit of maximising existing assets that provide strong and stable cash flow, continuous Advanced Work Packaging (AWP): “Begin with the end in mind”​
improvement to the way we operate is inevitable. Rethinking on how projects are being delivered with AWP is a construction-driven project delivery process that adopts the fundamental philosophy of
sustainability at the forefront and leveraging on the rapid advancements of technology in the form of “beginning with the end in mind.” A key requirement of this process is the collaboration between
Artificial Intelligence (AI); machine learnings, robotics and Internet of Things (IOT) supported by 5G data construction and engineering during early project phase to create a constraint-free work environment
network, execution of projects is expected to be faster, cheaper, safer and of the highest quality. The in the field. With construction being part of consideration during project planning, reduction in overall
highest degree of efficiency in our project delivery practices enables better project outlook, which will labour cost is realised through minimised productivity losses.
create value for the industry and maintains its competitive advantage and sustainability.

Front-end Engineering Detailed Design Construction

Transformation of Project Management – Delivering Project with Excellence
PMoF is established to drive and realise both transformative and progressive improvements in project Before Detailed design based on
delivery practices, via four Transformative Areas. engineering sequence
Design and Build
Input:
1. PDE (Project Delivery Digital Eco-system)​ 3. SPS (Smart Project Site) ​
Project delivery Digital Backbone + Adoption of robotics and smart devices to Discipline Engineers Discipline LLI
Engineering
AI-enabled to assist decision making​ deliver insights and optimisation at project site Construction
Sequence
Delivery
date
Sequence
Typical FEED deliverables
2. CBE (Construction-based Engineering)​ 4. DFG (Disruption for Growth) ​ Detail Engineering Design (DED) Deliverables
Engineering interface and process Step change in project delivery ecosystem
improvements towards cost optimisation through R&D of project delivery practices
After Detailed design based on
Build and Design engineering sequence
Discipline Engineers
Highlights of the Transformation Areas
Construction Installation
Work Package Smallest package – Work Package
(CWP) reference for (IWP) Productive
construction time on tools

Procurement
Construction Area Work Package
Project Management Interactive Planning (PWP)
Align with “POC”
- DED deliverables
Team Project Digital Control Tower IOT-enabled
construction site
Path of Construction (POC) Engineering
defined Work Package
(EWP)
Align with “POC”
Constraint-free
construction

Data-centric and Connected worker, material It is important for industry players to be equipped with appropriate knowledge on AWP methodology and
open collaboration
Project Digital Twin
with RFID tracking augment the principles in project delivery work processes. Closer collaboration between Project Owners
and Contractors enables the achievement of common objective, improving productivity and overall
project outcome.​

Key benefits of AWP:​

Consultants and Laydown and
Material and Transportation
Contractors fabrication yard
Equipment

Reduced cost Improved Improved Improved Better alignment

through improved constructability input overall project safety among
labour productivity​ and installation quality​ predictability​ awareness stakeholders​

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

32 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
33
 Project Production Management (PPM): Understanding project behaviours for optimised execution​ New ways of working in Project Execution and Delivery​
Project Production Management (PPM) utilises operation science in understanding project behaviours, • Insights from Operation Science together with capitalisation of technology and digital tools enable
ensuring projects achieve business objectives with minimal use of resources. This approach alleviates proactive and effective mitigation of underlying project performance challenges.
gaps in conventional project management by considering the impact of inventory and variability to
project delivery outcome. Operation Science ​
“Study of transformation of resources to create and distribute goods and services with
Comprehensive Approach for Project Optimisation focus on interaction between demand, production and the associated variability”
• Viewing “Project” as a “Production System” to deliver final product through a network of
processes and inventories. • Project practitioners have clear understanding of inter-relating processes, align expectations and
• Understanding projects as an interconnection between five levers of PPM. synchronise effort in the interest of the overall project objective.​

Conventional Project Management Project Production Management

Strategic Partnership Established to Facilitate CBE Adoption by
the Industry
Cost, Time and Cash Cost, Time and Cash In progressing the JIC for CBE, a strategic partnership within the industry was
established with the goals to:​

Be a platform for collaboration and information sharing​

Scope and Quality Scope and Quality

Gather feedback on challenges and constraints in
implementation and deliberate the best mitigation approach​

Schedule Process design Establish industry guideline and standardise implementation approach​

EPC
Resources Capacity contractors
“PETRONAS is transforming the way we deliver
projects through digitalisation and adoption of
Engineering Solution industry best practices and new ways of working.
Consultants Providers This can only be achieved if the Malaysia’s oil and
Inventory gas industry players collaborate and move forward
Examples for Inventory:
Owner/Operator as the same direction with PETRONAS.
• Equipment and labor handling
• Equipment holding PETRONAS We are in this together as one eco-system.
preservation and degradation​ PACS ONE TEAM ONE GOAL”
• Equipment obsolescence
due to design change​ Government Noor Ilias Mohd Idris
Academia
Agencies Vice President, Group Project Delivery,
PETRONAS
Variability Institutional
Examples for Variability​: Partners
• Weather​
• Resources
• Demand​
• Material availability​
As PETRONAS and the industry continue to collaborate and move forward together, it is aspired that
industry players are able to provide solutions which contribute to lesser greenhouse gas (GHG) emissions
and demonstrate strong commitment towards sustainability. Innovation, creative partnerships and
• Utilising project planning and tracking data to generate critical insights through various analytics acceleration of technological development towards low carbon energy and solutions is paramount in
based on Operation Science.​ realising PETRONAS’ target of achieving the NZCE 2050 and support Malaysia’s commitment of becoming
a carbon-neutral nation by 2050.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

34 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
35
 Business
Overview

PETRONAS Twin Towers

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

36 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
37
 Upstream
Overview
As the custodian of Malaysia’s petroleum resources, PETRONAS is focused on pursuing sustainable value-
driven production growth, monetising oil and gas resources, strengthening core capabilities and building niche

Upstream
competencies.

Below is a snapshot of Upstream Malaysia’s facilities dimension, operated by ~30 Petroleum Arrangement
Contractors (PACs) as at October 2021.

Platform and Pipelines Terminals

Subsea Structures

~11,000 km 4 Onshore Crude Terminals

~300
Offshore Platforms
Pipeline
8 Onshore Gas Terminals
2 Onshore Crude and
Gas Terminals

Floaters Supply Bases

10 FPSOs 3 Supply Bases

10 FSOs 3 Airports
2 MOPUs 7 Ports
1 FPS
1 SPAR

Gemusut Kakap, off the coast of Sabah

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

38 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
39
 Gas + New Energy
Overview

Gas +
The Gas + New Energy portfolio reflects our intent in PETRONAS’ Statement of Purpose that places an
emphasis on sustainability. The illustration below depicts the spectrum of domestic value chain for the
Gas + New Energy business.

New Energy
Plant/Midstream Marketing and Trading Customers

LNG Assets
4 LNG Plants ~29.3 mtpa
LNG Marketing
2 Floating LNGs ~2.7 mtpa and Trading
LNG Buyers

Gas and Power

5 Gas Processing Plants
1,750 mmscf/d
2 Regasification Terminals PETRONAS
990 mmscf/d
Gas Processing Plant in Kerteh, Terengganu
4 Gas Pipelines 2,623 km Energy and
1 Power Plant 285 MW
Gas Trading Power, Non-Power
Supported by Utilities Plant: and Exports
Power 541 MW
Steam 960 MT/hr

New Energy
1 Solar Farm ~10.0 MW Renewable
2 Rooftop Solar ~16.9 MW Power
Production
Commercial and
Industrial Users

Hydrogen
(Green and blue hydrogen Low Carbon
under development) Hydrogen Production Industry, Power
and Mobility

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

40 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
41
 Downstream
Overview
Downstream business plays a strategic role in enhancing the value of molecules through its multiple
integrated operations, transforming it into high-quality and value-added products. The diverse activities
include refining, trading, and marketing of crude oil and petroleum products, the manufacturing and

Downstream
marketing of petrochemical and specialty chemical products, as well as the supply of lower carbon and
sustainable solutions such as sustainable aviation fuel and LNG bunkering to customers.

1 2 3
PETRONAS Floating LNG SATU Refining Petrochemical Marketing
and Trading
21 Petrochemical >1,000 Retail Stations
Processing Plants*
3 Refineries 1 Lube Oil Blending Facility
*Including the one at
Malaysian Refining Pengerang Integrated Complex
Company Sdn Bhd 11 LNG Bunkering Facilities
PETRONAS Penapisan 1 LNG Bunkering Vessel
Marketing Office
(Terengganu) Sdn Bhd 2 LNG Bunker Distribution Hubs
Headquarters in Kuala Lumpur 4 LNG Bunkering Sites
Pengerang Integrated Complex 4 LNG Trucks

Trading Office 12 Conventional Fuel

Headquarters in Kuala Lumpur Bunkering Facilities
1 Conventional Fuel
Distribution Hub
11 Diesel Bunkering Facilities

38 Terminals
17 Fuel Terminals
13 Aviation Terminals
8 LPG Terminals and
Bottling Facilities

Pengerang Integrated
PETRONAS Activity Complex
Outlook (PIC)
2022-2024 PETRONAS Activity Outlook 2022-2024
42 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
43
 Methodology
Scope of Coverage

Activity
This section provides the activity outlook for core categories, serving as leading indicators to many other supporting
services. The interdependencies create multiplier effects across the value chain.

For Upstream-related information, this report covers the activity outlook for Malaysia. This includes activities from
PETRONAS Group of Companies and other Petroleum Arrangement Contractors (PACs). Activities governed under

Outlook
the Malaysia-Thailand Joint Development Area (MTJDA) are excluded from this report.

For Downstream and Gas + New Energy-related information, this report covers the activity outlook for PETRONAS
Group of Companies in Malaysia only.

Time Horizon
The report provides information on activities within a three-year period, from 2022 to 2024. Information is accounted
for when a specific activity begins and not by contract award. Using the Offshore Fabrication as an example, we
report the date of the first steel-cut instead of the date of Engineering, Procurement, Construction, Installation and
Commissioning (EPCIC) contract award. Another example is Plant Turnaround that begins in December 2022 and
ends in January 2023, is only accounted for once, which is in 2022.

Directional narratives are provided for the medium-term (which is post-2024), to support outlook analysis using the
following signposts:

Positive
Medium Term Outlook

Steady
Medium Term Outlook

Modest
Medium Term Outlook

Actual vs Plan 2021

Actual numbers are based on data as at October 2021.

Base and High Case Scenarios for 2022–2024

Outlook numbers for most categories are provided via a lower and upper band:
• Base Case – Activities with high probability of occurrence; high project maturity and certainty of requirement
PETRONAS Floating LNG DUA • High Case – Activities with lower probability of occurrence; lower project maturity and certainty of requirement

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

44 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
45
 A Subsurface
Quick Reference for 2022 Drilling Rigs and Hydraulic Workover Units
Drilling Rigs are used to drill wellbores. Activity outlook will be provided for all types of rigs operating in
Malaysia, i.e. Jack-up Rigs (JURs), Tender Assisted Drilling Rigs (TADRs), Semi-Submersible Rigs and Drillship.
A Subsurface B Engineering, Construction The Hydraulic Workover Units (HWU) are utilised to perform workover for recompletion and plugged
Drilling Rigs and Hydraulic Workover and Projects abandonment work and could function as an alternative to the rigs mentioned above.
Units (HWUs) Offshore Fabrications
• 9 JURs • 5 WHPs Semi-
Type of Rigs Jackup TADR Submersible Drillship HWU
• 4 TADRs • 1 SURF
• 3 Semi-Submersibles/Drillship
• 6 HWUs Activity Phase • Exploration • Development • Exploration • Exploration • Production
Offshore Installations
• Development • Abandonment • Development • Development • Abandonment
• 11 lifts for Heavy Lift • Abandonment • Abandonment
• Abandonment
• 1 installation for Floatover
• 240 days for Pipeline Installation
Application The most Typically used in The most stable Typically used for Typically used for
Hook-up and Commissioning (HUC) common type deepwater with type of rig, drilling in deepwater workover
• 6.3 million man-hours of offshore rig space/load/ typically used /ultra deepwater. operations, e.g.
due to its approachability for drilling in Can also be used for recompletion,
C Equipment and Material Decommissioning flexibility. limitations, e.g. deepwater and/ well maintenance, well repair and
Supply of Linepipes • 2 Platforms Typically used deepwater spars, or harsh completion and barrier placement.
• 301 km Carbon Steel for drilling in tension environment. capping works.
• 2 Pipelines
shallow water. leg platform
• 20 km CRA • 31 Wells
(TLP), etc.

Supporting vessels, Oil Country Tubular Goods (OCTG), OCTG and third Supporting
Associated
third party drilling services, e.g. drilling fluids, Directional party drilling vessels, production
Services
Drilling (DD)/Measurement While Drilling (MWD)/Logging services. logging, slickline,
E Logistics
While Drilling (LWD), wellheads, drill bits, cementing, wellhead, fishing
Offshore Supply Vessel fishing, slickline, etc. cementing, etc.
• 114 AHTS • 65 FCB
D General Facilities and
• 57 PSV/SSV • 40 Workboat/Work Barge
Maintenance • 31 GPV/SBV • 11 UV Number of Rigs:
Maintenance, Construction and Modification • 18 LCT 29
(MCM) 6

• 11.5 million man-hours 24

22 22 7
4
5
Underwater Services 6

• 581 days for DP2 DSV (ROV and Air Diving System) F Chemicals 16
3
3 4
• 330 days for DP2 DSV • 0.82 Catalyst 3 3 16

(Built-in Saturation Diving System) • 1.04 Production Chemicals 4 1

4 4
• 55 days for DP2 DSV (ROV Intervention) • 1.43 Integrity Chemicals 3
10
9 9 9

Plant Turnaround HWU

Semi-Submersible and Drillship

• 5 with >350k man-hours
• 2 with <=350k man-hours Others TADR
JUR
• 4 with <=100k man-hours 2021 2022 2023 2024
G Indirect Plan Actual Three-Year Outlook
H Digital and ICT
Outlook includes activities which may have been contracted out at the time of reporting

• In 2021, the rig count declined from 2020 due to reprioritisation of investments. ​
• Positive outlook is expected for the next three years given the oil price recovery with relaxation of pandemic SOP/
Activity Phase (Upstream, Downstream and Gas + New Energy): directives and increase of plug and abandonment (P&A).
• Outlook for 2022 to 2024 is based on full year utilisation. Actual numbers may vary based on campaign duration
and/or optimisation, project deferment, cancellation, etc.
Exploration Development/Project Production/Operation Abandonment

Medium Term Outlook – Post 2024

Positive outlook is expected for drilling rigs activity while continue focusing to enhance and upgrade the rig
capability and mature the integrated operations scope via integrated rig, drilling and completions services
(i-RDC) to deliver operational excellence and cost effective solutions.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

46 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
47
 Engineering, Construction B Engineering, Construction
B and Projects
and Projects
For the purpose of this report, the timeline for each project is segregated into three stages, i.e. (i)
The outlook for Engineering, Construction and Projects is best represented by activities related to Engineering and (ii) Fabrication, (iii) Installation, Hook-up and Commissioning. There may be overlap of
development projects, i.e. offshore fabrication, supply of linepipes, offshore installation, hook-up and activities between the two stages, as depicted by the gradient. Also illustrated are indicators for facility type
commissioning as well as decommissioning. and; installation requirements.

Typical upstream project development comprises Engineering, Procurement, Construction, Installation, The list below depicts upstream greenfield development projects:
Hook-up and Commissioning (EPCIC) stages.

The following portfolio of projects showcase abundant investment opportunities in the Malaysian waters Greenfield Projects1
over a longer period. Large pool of projects are continuously and rigorously reviewed to materialise a
steady pipeline of feasible and economically viable projects for production sustainability. Installation
Project 2022 2023 2024 Facilities Type Requirement

Kasawari CPP C

Kasawari (E11R-AA) L

NMB Phase 4A (Kangsar) M

6 8 7 4 7 10
Project 1 M
Greenfield Greenfield Greenfield Greenfield Greenfield Greenfield
Projects Projects Projects Projects Projects Projects Project 2 C

Project 3 M

Project 4 M

Project 5 F S PETRONAS is
open to any
Project 6 S cost effective
and innovative
Project 7 S
method of
Project 8 H installation.
13 23 11 10 1 32 Proposals are
Brownfield Brownfield Brownfield Brownfield Brownfield Brownfield Project 9 L welcome.
Projects Projects Projects Projects Projects Projects L
Project 10

Project 11 L

Fields to be Project Geological Conceptual Front-end Field Development Plan Project 12 M

Developed Planning and Reservoir Facilities Engineering sanctioned for execution Project 13 H
Modelling Design Design (FEED)
Project 14 H C
Number of projects are as at November 2021, and inclusive of infill drilling projects.
Project 15 M

Project 16 M
The fields to be developed include marginal fields, late life assets, fields with high contaminants,
high complexity reservoirs and distant fields that offer opportunities for investors to turn the projects 1At the time of reporting, high number of projects are still under review

viable through innovative, disruptive and cost-effective solutions. This is a niche play that can create a Engineering
marketspace for a profitable and sustainable business. Fabrication,
Installation and Hook-up Commissioning
In Execution

i Did you know? Legend for Facilities Type:

L WHP Lightweight – total tonnage ≤ 1,000 tonnes H WHP Heavy Weight – total tonnage > 7,500 tonnes
• PETRONAS has announced its endorsement of the World Bank’s Zero Routine Flaring Fixed
by 2030 Initiative and the recommendations of the Task Force on Climate-related structure M WHP Medium Weight – total tonnage ≤ 7,500 tonnes C CPP Heavy Weight – total tonnage > 7,500 tonnes
Financial Disclosures, as part of its broader effort for greater transparency around
its action on climate change, in line with the Group’s aspiration to achieve Net Zero Floating F Floaters – Floating Production Storage and Offloading (FPSO) / Floating Storage and Offloading (FSO) /
Carbon Emissions by 2050. structure Mobile Operating Production Unit (MOPU)
• The Zero Routine Flaring Initiative aims to end routine flaring of associated gas from
oil production. Under this Initiative, PETRONAS pledges to avoid routine flaring in new Subsea S Subsea – Subsea Production System and Subsea Umbilical, Riser Flowline (SURF)
structure
oil field developments and end routine flaring at existing oil production sites by 2030.
This is applicable to PETRONAS’ Upstream operations within operational control and ZERO EMISSION
excludes flaring sources due to safety and non-routine flaring.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

48 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
49
 B Engineering, Construction B Engineering, Construction
and Projects and Projects
For the purpose of this report, brownfield projects are segregated by: For brownfield projects (without new structural installation), the activity types are indicated as:
1. Brownfield Projects (with new structural installation)
Drilling of new wells in an existing field within the original well patterns to
2. Brownfield Projects (without new structural installation) Infill Drilling
accelerate production.
Modifying existing structures to enable rig move-in (for infill drilling) or to serve
Platform Modification new/additional operational objectives. May involve minor fabrication works.
Brownfield Projects2 (with new structural installation)
Connecting two or more structures to complete the chain of production
Host Tie-in
facilities, allowing production to commence.
Installation
Project 2022 2023 2024 Facilities Type Requirement
Brownfield Projects (without new structural installation)
GK Ph3 S PETRONAS is
open to any Project 2022 2023 2024 Activity Type
Bayan Gas Phase 2 F cost effective
and innovative
Project 1 M F Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ID HTI PM
method of
installation.
Proposals are Project 1
welcome. Project 2
Project 3
2At the time of reporting, higher number of the projects are still under review Project 4
Project 5
Engineering
Fabrication,
Project 6
Installation and Hook-up Commissioning Project 7
In Execution Project 8
Legend for Facilities Type: Project 9
Project 10
Fixed L WHP Lightweight – total tonnage ≤ 1,000 tonnes H WHP Heavy Weight – total tonnage > 7,500 tonnes
Project 11
structure M WHP Medium Weight – total tonnage ≤ 7,500 tonnes C CPP Heavy Weight – total tonnage > 7,500 tonnes
Project 12
Floating Project 13
F Floaters – Floating Production Storage and Offloading (FPSO) / Floating Storage and Offloading (FSO) /
structure Mobile Operating Production Unit (MOPU) Project 14
Project 15
Subsea S Subsea – Subsea Production System and Subsea Umbilical, Riser Fowline (SURF) Project 16
structure
Project 17
Project 18
Project 19
Project 20
Project 21
Project 22
Project 23
Project 24
Project 25
Project 26
Project 27
Project 28
Project 29
Project 30
Project 31
Project 32

Legend:

ID Infill Drilling HTI Host Tie-in PM Platform Modification

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

50 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
51
 B Engineering, Construction B Engineering, Construction
and Projects and Projects
Brownfield Projects (without new structural installation)
Brownfield Projects (without new structural installation)
Project 2022 2023 2024 Activity Type
Project 2022 2023 2024 Activity Type
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ID HTI PM
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ID HTI PM
Project 33
Project 34 Project 73
Project 35 Project 74
Project 36 Project 75
Project 37 Project 76
Project 38 Project 77
Project 39 Project 78
Project 40 Project 79
Project 41 Project 80
Project 42 Project 81
Project 43 Project 82
Project 44 Project 83
Project 45 Project 84
Project 46 Project 85
Project 47 Project 86
Project 48 Project 87
Project 49 Project 88
Project 50 Project 89
Project 51 Project 90
Project 52 Project 91
Project 53 Project 92
Project 54 Project 93
Project 55 Project 94
Project 56 Project 95
Project 57 Project 96
Project 58 Project 97
Project 59 Project 98
Project 60 Project 99
Project 61 Project 100
Project 62 Project 101
Project 63 Project 102
Project 64 Project 103
Project 65 Project 104
Project 66 Project 105
Project 67 Project 106
Project 68 Project 107
Project 69 Project 108
Project 70
Legend:
Project 71
Project 72 ID Infill Drilling HTI Host Tie-in PM Platform Modification

Legend:

ID Infill Drilling HTI Host Tie-in PM Platform Modification

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

52 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
53
 B Engineering, Construction B Engineering, Construction
and Projects and Projects
Floating Structures: Floaters
Offshore Fabrication For the purpose of this report, floaters refer to non-fixed structures involved in processing and/or storage of
Offshore fabrication outlook is provided for fixed and floating structures, with first steel-cut as the indicator hydrocarbons, like the Floating Production Storage and Offloading (FPSO), Floating Storage and Offloading
of commencement of fabrication activity. (FSO) and Mobile Offshore Production Units (MOPU).
Application: Used as relocatable production facilities, generally to enable monetisation of marginal or
Fixed Structures: Wellhead Platform/Central Processing Platform isolated oil and gas fields without existing export facilities (pipeline) in the vicinity.
Wellhead Platform (WHP) Application: Used to house wellheads and equipment that extract oil/gas Associated Services: Engineering, structural steel, equipment supplies (e.g. mechanical, electrical,
from the seabed and serve as a platform for drilling activities. Typically, it is linked to other fixed or floating instruments, etc.), fabrication yards, shipyards, transportation and installation, hook-up and commissioning
structures for oil/gas processing. and Marine Warranty Surveyor.
Central Processing Platform (CPP) Application: Used to house wellheads and equipment that extract
and process oil/gas from WHPs and piped to point of export. CPP typically acts as the central hub for the Floating Production, Storage and Offloading
entire field complex. Vessel used for the processing of hydrocarbons, as well as
for storage of crude oil before export via tanker lifting.
Associated Services: Engineering, structural steel, bulk material (such as piping, cables, etc.), equipment FPSO

supplies (like mechanical, electrical, instruments, etc.)

Number of Fixed Structures Fabrication: Floating Storage and Offloading

A simplified FPSO without the capability for oil or gas
13 13
processing.
1 1
FOS
1 6

11

8
Mobile Offshore Production Unit
Portable structure that can be reused in offshore well
7 1
production. In this report, MOPU refers to the portable
1 6 5

5
wellhead platform.
5 1 5 6
MOPU
4 1 1

2 2

2
Number of Floating Structures Fabrication:
2 1 2 2

1 1 1

2021 2022 2023 2024 2022 2023 2024

1
Plan Actual Base Case High Case
Three-Year Outlook

WHP Light (<1k MT) WHP Medium (1k MT - 7.5k MT) WHP Heavy (>7.5k MT) CPP Heavy (>7.5k MT) 1 1 1 1 1

Outlook includes activities which may have been contracted out at the time of reporting

0 0 0

2021 2022 2023 2024 2022 2023 2024

FPSO/FSO
Plan Actual Base Case High Case
MOPU
Three-Year Outlook
• For 2021, one Medium WHP was deferred to 2022 due to realignment of strategy.
• In 2023 and 2024, most projects are at the preconception selection stage, which are still subjected
to projects’ economic feasibility. Therefore, there is a disparity in the high and base case
Outlook includes activities which may have been contracted out at the time of reporting

i Did you know? • Globally, the FPSO market is picking up from 2021 amidst the energy transition and lowering of
carbon emissions. FPSO industry players also need to adapt and move towards achieving the
• PETRONAS focuses on the development and monetisation of high cotaminant fields which include high CO² gas
common aspiration of net zero carbon emissions.
fields. The development of these fields will help meet PETRONAS’ commitment in reducing GHGs which will be
commenced through Sarawak Integrated Sour Gas Evacuation System (SISGES) Plant.
-SISGES Phase 1 (2022); Development of onshore plant and projects engineering for offshore.
-SISGES Phase 2 (2023): Projects engineering for offshore.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

54 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
55
 B Engineering, Construction B Engineering, Construction
and Projects and Projects
Subsea Structures Offshore Installation
Subsea structures are facilities located on the sea floor, as Offshore installation outlook for each project is provided by the type of installation barge required for
opposed to on the surface. The petroleum is extracted on facility installation, i.e. heavy lift, floatover or pipelaying barge.
the sea floor, and then “tied-back” to an existing production
platform using Subsea Umbilical, Riser and Flowline (SURF)
facilities.
SURF
Structural Installation – Heavy Lift
Subsea Umbilical, Riser and Flowline
Application: Used to provide safe and efficient interconnection (SURF) comprises subsea completed
Application: Used for installation of jackets (for WHPs and CPPs) and
from the topside platforms and vessels to the wellheads and wells, subsea Christmas trees and topsides (for WHPs).
pumps on the sea floor, and vice versa for a reliable oil and gas wellhead systems, subsea tie-in to Associated Services: Supporting vessels, diving and remotely operated
extraction from subsea wells. flowline system, jumpers, umbilical
vehicles (ROVs), welding and non-destructive testing (NDT).
and riser system, and subsea
Associated Services: Engineering, equipment supplies (e.g.: equipment to operate the well.
mechanical, electrical, instruments, etc.), installation.

Number of Projects for SURF:

5 Number of Lifts Using Heavy Lift Barges:
Hook-up and
24 Commissioning

2
12 12
1 1 1 1 11 11

8 8
Base Case
0 High Case
4
2021 2022 2023 2023
2024 Base Case
Plan Actual High Case
Three-Year Outlook
2021 2022 2023 2024

Outlook includes activities which may have been contracted out at the time of reporting Plan Actual
Three-Year Outlook

• Subsea tie-backs are gaining traction as they present economic viability for monetisation of previously Outlook includes activities which may have been contracted out at the time of reporting
untapped and less economically viable discoveries, i.e. deepwater and marginal fields.
• Demand for SURF in 2023 could be higher as more deepwater projects are maturing.
• Deepwater projects in Malaysia are maturing and having a long-term arrangements for SURF is one of the
options to support the project requirement. • In 2021, all planned activities for structural installation were materialised despite pandemic challenges and
Movement Control Order (MCO) restrictions.
• Outlook number is measured in terms of number of lifts, counted separately for each jacket and topside,
and excludes heavy lift barges utilisation for facilities decommissioning.
Medium Term Outlook – Post 2024 • This outlook may be read together with the outlook for offshore fabrication.
• Steady outlook is expected for fabrication of fixed structures (especially Lightweight) and subsea • In 2024, most projects are at preconception selection stage, which are still subjected to projects’ economic
facilities as PETRONAS continues monetising its oil and gas resources for cash generation while feasibility. Therefore, there is a disparity in the high and base case.
meeting gas customers’ demand.
• Modest outlook is expected for heavier structures as cost competitiveness drives development
projects to opt for WHP tie-ins to existing nearby facilities.
• Modest outlook is also expected for floaters, as technology advancements present favourable
options for monetisation of remote fields.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

56 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
57
 B Engineering, Construction B Engineering, Construction
and Projects and Projects
Structural Installation – Floatover Pipeline Installation – Pipelay
Application: Used for installation of heavier or integrated topsides (for CPPs). Application: Used to install rigid linepipes (e.g. carbon steel, corrosion
resistant alloy (CRA), etc.) for offshore projects.
Associated Services: Supporting vessels, diving and ROVs, welding and NDTs.
Associated Services: Supporting vessels, diving and ROVs, fill joint
coating services, welding and NDT.

Number of Structural Installation Using Floatover Barges: Number of Installation Days:

539

344

1 1 1 1 1 1
240 240
189 189

64
56
Base Case
Base Case High Case

0 0 High Case 2021 2022 2023 2024

2021 2022 2023 2024 Plan Actual
Three-Year Outlook
Plan Actual
Three-Year Outlook

Outlook includes activities which may have been contracted out at the time of reporting

Outlook includes activities which may have been contracted out at the time of reporting

• Outlook number is measured by number of installation days, based on estimated number of pipe joints and
length, and covers carbon steel and Corrosion Resistant Alloy (CRA) pipeline only.
• Numbers indicated are base case and are measured in terms of number of projects. Duration may vary. • This outlook exclude requirement for pipeline replacement.
• Modest outlook is expected for floatover barges with lower number of projects requiring CPPs. • In addition, there are potential installation requirements for flexible pipes as follows:
a) 10 km in 2022
b) 44 km in 2024
• This outlook may be read together with the outlook for supply of linepipes.

Medium Term Outlook – Post 2024

• Steady outlook is anticipated for heavy lift barges given the steady amount of projects Medium Term Outlook – Post 2024
requiring WHPs. • Steady outlook can be expected for pipelay barges as more development projects opt for tie-ins
• Modest outlook is expected for floatover barges with lower number of projects to existing WHP or processing facilities.
requiring CPPs.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

58 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
59
 B Engineering, Construction B Engineering, Construction
and Projects and Projects
Hook-up and Commissioning Decommissioning
Decommissioning refers to activities to restore previously producing sites to safe and environmentally
Hook-up and Commissioning (HUC) ties in all components of the facilities including all function tests and
stable conditions.
start-up of facilities.
Activity Phase: Abandonment
Outlook is stated in man-hour units as the activities are labour intensive.
Application: Decommissioning comprises two activities:
Activity Phase: Development and Production
• Well Abandonment: prepare wells to be closed permanently.
Application: Greenfield HUC involves works on newly-installed platforms
during development stage. Typically bundled as part of EPCC/EPCIC contracts. • Upstream Facilities Decommissioning: permanently make safe
Brownfield HUC involves works on existing offshore facilities and equipment; the facilities, e.g. WHP, CPP, Subsea Tree, etc.
including rejuvenation/redevelopment, general topside modification, infill Associated Services: Drilling rigs and HWU, offshore support vessels,
drilling activity, etc. lifting and third-party drilling services, engineering services, yard facility,
Associated Services: Marine spread (accommodation work barge, workboat, transport, cutting services, conductor removal, pipeline flushing, etc.
Fast Crew Boat), logistics services, pre-commissioning services, inspection
services, etc.

Decommissioning of Facilities and Wells:

Number of Man-Hours (Millions): 50

6.6
6.3 40

5.4
31
4.7 4.5
4.4
4.1 23
Wells
Pipeline
2.9 13
FPSO/FSO
Subsea
3 3 2 2 3 CPP
1 1 1 1 WHP

2021 2022 2023 2024

Base Case
High Case Plan Actual
Three-Year Outlook
2021 2022 2023 2023
2024
Outlook includes activities which may have been contracted out at the time of reporting
Plan Actual
Three-Year Outlook

Outlook includes activities which may have been contracted out at the time of reporting
• Lower number of wells abandonment executed against planned due to COVID-19 restriction. However, for Pipeline
decommissioning activity was executed as planned in 2021. ​
• PETRONAS currently is focusing on Wells P&A for the next three years as preparation for future facilities removal
campaign.
• In 2021, actual numbers are higher than planned due to acceleration of project execution after CAPEX • PETRONAS is currently exploring innovative decommissioning solutions focusing on technologies, re-use/purpose
deferment in 2020. options, integrated approach as well as identifying potential alternatives that can introduce cost compression. Thus,
• By 2023 and 2024, there are many current projects which are expected to be completed. participation and collaboration are encouraged from all parties.
• Many of the initially planned projects for 2022, 2023 and 2024 had to be deferred and rationalised due to the
COVID-19 pandemic. The projects which survived are expected to resume and peak only in 2025.
• Outlook excludes manhours from EPCC and/or EPCIC projects.

Medium Term Outlook – Post 2024

Medium Term Outlook – Post 2024
• Steady outlook is expected for decommissioning activities as more fields have come to the end of
• Steady outlook for Brownfield HUC to maximise hydrocarbon recovery from existing fields.
life and PETRONAS as the host Authority in Malaysia and as a responsible operator will execute the
abandonment’s obligation, respectively.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

60 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
61
 C Equipment and Material D General Facilities
Maintenance
Supply of Linepipes
Linepipes and flexible pipes are used to transport oil or gas between two or more facilities. In this report, Offshore Maintenance, Construction and Modification
pipeline requirement is indicated by its type, i.e. rigid linepipe, flexible pipe, or both. Offshore Maintenance, Construction and Modification (MCM) covers activities related to the repair and
In this report, outlook is provided in relation to development projects’ requirement and pipeline maintenance of existing topside facilities.
replacement projects, reflecting the year’s activities which have started to meet the required-on-site date. Outlook is stated in man-hour units as the activities are labour intensive.
Application (Linepipes): Generally used for longer Activity Phase: Production
Linepipes
distances, typically for platforms to onshore plants. Rigid linepipes, generally
made of carbon steel material
Application: MCM involves two types of activities:
Application (Flexible Pipes): Generally for shorter or corrosion-resistant alloy
distances, typically for floating production systems with i. Scheduled Maintenance: Planned activities.
(CRA).
high-pressure production risers, export risers, chemical/ ii. Corrective Maintenance: Unplanned activities arising from unforeseen circumstances.
water/injection lines, and gas lift lines.
Associated Services: Supply vessel, inspection services, blasting, painting services, etc.
Associated Services: Engineering, pre-commissioning Flexible Pipes
services, logistics, coating services (only for linepipes). Flexible pipes are strong and
adaptable pipes that are high-
pressure resistant, bendable,
adjustable and retrievable
Number of Man-Hours (Millions):
11.82
Length of Linepipes (km): 11.49 11.44

10.13
607 12
13
582
8.50

368
321 330 38
20 20 330
310
301
186 194
27 47
159 Flexible
81 147
2 50 Corrision
43 Resistant Alloy
7 17 17 17 17 17
41 38 Carbon Steel
2021 2022 2023 2024
2021 2022 2023 2024 2022 2023 2024
Plan Actual
Plan Actual Base Case High Case Three-Year Outlook
Three-Year Outlook
Outlook includes activities which may have been contracted out at the time of reporting

Outlook includes activities which may have been contracted out at the time of reporting

• In 2021, the actual man-hours were slightly lower than planned due to directives and restriction of the COVID-19.
• In 2021, the length of linepipes being procured was more than what was planned due to realignment of strategy. • Activity is expected to remain stable over the next three years, given the oil price recovery with relaxation of
• The outlook is for carbon steel, CRA and Flexible pipes only. COVID-19 SOP and contractors are fully adapted to the new norm and improve their overall manpower planning.
• This outlook may be read together with the outlook for installation of linepipes.

Medium Term Outlook – Post 2024

Medium Term Outlook – Post 2024 • Steady outlook can be expected for MCM activities for the next three years due to its cyclical nature.
• Steady outlook is expected for supply of linepipes as steel price will stabilise starting Q3 2022 and Potential growth due to activities for newly producing PACs.
onwards.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

62 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
63
 D General Facilities D General Facilities
Maintenance Maintenance
Underwater Services Plant Turnaround
Underwater Services cover inspection, maintenance and repair activities performed for underwater Plant Turnaround is defined as a major engineering event during which an onshore facility is shut down for
structures such as platform jacket inspection, offshore pipeline inspection, debris survey and removal, etc. equipment inspection and overhaul, debottlenecking, revamps and catalyst regeneration projects.
For the purpose of resource planning and optimisation, the outlook is represented by the number of days Turnaround comprises main mechanical work, which constitutes the bulk of total activities (~60 per cent).
for activities execution. Other activities are discipline-specific, e.g., electrical, instrument, inspection and rotating equipment
maintenance. Since turnaround is labour intensive, the activity outlook is stated in man-hour units.
Activity Phase: Development and Production
Application: Inspection, maintenance and repair activities for continuity of Activity Phase: Operations
services, safety and integrity of underwater structures, e.g. platform jackets, Application: Turnarounds are scheduled periodically, important to ensure timely
pipelines, subsea equipment, etc. renewal of Certificate of Fitness (CF) by the authorities and maximise plant
Associated Services: Diving and support vessel, air and saturation diving efficiency and capacity.
system, ROV and Project Management Team (PMT), etc. Associated Services: Equipment services (e.g. mechanical, electrical,
instruments, etc.), inspection services, manpower.

Number of Days: Number of Turnarounds:

614 11 11
581 1 10 1

517 3 1 3 9 9
490 3
1 5
431 2
2 1
330
5 1 3
1 SB/SK<=100k man-hours
243 3 3
4 PM<=100k man-hours
161 164 1
137 SB/SK<=350k man-hours
1 1
DPII DSV - ROV & AIR Diving System PM<=350k man-hours
69 73 2 2 2 2
55 61 SB/SK>350k man-hours
DPII DSV - Built in Saturation Diving System
1 PM>350k man-hours
0
DPII DSV - ROV Intervention
2021 2022 2023 2024 2021 2022 2023 2024

Plan Actual Plan Actual Three-Year Outlook

Three-Year Outlook
Outlook includes activities which may have been contracted out at the time of reporting
Outlook includes activities which may have been contracted out at the time of reporting

• In 2021, one turnaround was deferred to 2022.

• Plant Turnaround activities for the next three years outlook remain steady and shall provide sustainable demand.
• Outlook is based on estimated number of days for execution of underwater activities utilising Diving Support • The outlook represents the number of PETRONAS Operating Units (OPUs) to perform turnaround and
Vessel (DSV). Vessel specification may vary depending on scope requirement. excludes PETRONAS upstream onshore facilities and plants not operated by PETRONAS. Activities under
• While activity prioritisation continues for the next three years, requirement for DSV is anticipated to be Pengerang Refining and Petrochemical (PRefChem) are also excluded from the outlook.
consistent. Where possible, optimisation will be exercised through activity consolidation across PACs.
• Prioritisation of local vessels will continue to be exercised.

Medium Term Outlook – Post 2024

Medium Term Outlook – Post 2024 • Steady outlook is expected, given the cyclical requirement of maintenance for downstream plants.
• Steady outlook is expected for Underwater Services as activities are periodically scheduled.
However, constant cost pressure will continue to drive further scope optimisation/prioritisation.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

64 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
65
 E Logistics E Logistics

The Logistics category covers transportation, logistics, warehouse, workshop, storage and Off- Number of Vessels Supporting Production Operations:
shore Support Vessel (OSV).
151
10
Offshore Support Vessel (OSV) 131 17
138
9
138
8
137
7 7
13 13
12 13
30
30 28 28 29
Anchor Handling Tug Platform Supply Vessels (PSVs)/
Type of Vessel Supply (AHTS) Straight Supply Vessels (SSVs) Fast Crew Boat (FCB) 2
14 2 3 2
16 15 14 13
Activity Phase • Exploration • Production • Development 47
• Development • Abandonment • Production 46 46 47 UV
• Abandonment 43 LCT
GPV/SBV
WORK BOARD/ WORK BARGE
Application High-speed vessel 31
PSV/SSV
Used to assist in anchor Transport equipment and 26 26
for the transportation 23 25 FCB
handling operation, towing supplies to offshore
of crew to offshore AHTS < 100 MT
and transport supplies to platforms/drilling rigs
facilities and inter rigs
and from offshore
2021 2022 2023 2024
platforms/drilling rigs
Plan Actual
Three-Year Outlook

Associated Vessel inspection services, bunkering services, port services, tank cleaning services
Services Outlook includes activities which may have been contracted out at the time of reporting

• In 2021, the actual numbers were higher due to additional vessels required in view of compliance to
COVID-19 quarantine requirement for vessels and marine crews, particularly in Sabah and Sarawak.
• Outlook depicts consistent demand for vessels supporting production operation from year-to-year.
Workboat/ General Purpose Vessel (GPV)/ Utility Landing Craft • This is an opportunity for local players and financiers to re-evaluate its position for investment as there is
Type of Vessel Work Barge Standby Vessel (SBV) Vessel (UV) Tank (LCT) consistent demand for vessels supporting production operation.
Activity Phase • Development • Development • Production
• Production • Production
• Abandonment Medium Term Outlook – Post 2024
• Steady outlook is expected for OSV due to the consistent activity of production operations
throughout Malaysian waters.
Application Transport
Accommodation Standby support, rescue and emergency duties
equipment and
for personnel
supplies to
offshore
platforms/drilling
rigs

Associated
Services Vessel inspection services, bunkering services, port services

For the purpose of activity outlook, the number represent OSVs requirements for Production
Operations, Drilling and Projects (Wells).

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

66 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
67
 E Logistics F Chemicals
Chemicals are utilised in both Upstream and Downstream businesses, mainly during maintenance and
operation activities.
Number of Vessels Supporting Drilling and Projects: For the purpose of this report, only the primary categories (excluding chemicals used as feedstocks) are
highlighted as below:
2 198
5 187
1
3 38 5
7 172 3 172 Process Commodity Chemical Services
39 5
2
4
30
138 42 34 Main Catalysts, production Base oil, lubricants, API Class G Catalysts and
6 31
composition chemicals, corrosion cement, glycols, amines, resins, internal media
39 1 change out
23 inhibitors and biocides, chloralkali, solvents
30
boiler and cooling water
34 19 21 UV chemical, sulfiding agent
16 16 LCT and additives
57 52
48 52 GPV/SBV
15
Work Boat/Work Barge Utilisation Chemicals that are used to Chemicals that are commonly Periodical services
PSV/SSV accelerate plant processes, used in process and operations. during unit shutdown
43 maximise asset reliability
FCB or turnaround based
35
30 32 31
AHTS > 100 MT
and improve productivity. on catalysts/internal
16 AHTS < 100 MT
media life and/or
operation requirements
2021 2022 2023 2024
Plan Actual
Three-Year Outlook Outlook • Catalysts, production chemicals, corrosion inhibitors and biocides, oil and lubricants,
glycols and base oil amount to 80 per cent of spending in chemicals.

Outlook includes activities which may have been contracted out at the time of reporting • Continuous requirement for purchases and services related to catalyst and internal media
across PETRONAS’ OPUs in view of multiple change out or top up requirements for the
period 2022 to 2025.

• In 2021, lower actual number of vessel as activities were slowly recovering from the pandemic during the
first half of the year. Majority of the drilling campaigns/projects were deferred to the following year.
Selected major categories outlook highlighted in this report for Process Chemicals, i.e. Catalyst, Production
• Slight decrease in requirement for 2023 and 2024 in view of potential vessel optimisation across drilling
Chemicals and Integrity Chemicals (Corrosion Inhibitors and Biocide) for reference.
campaigns/project (Wells).
• This outlook excludes the requirement of vessels for HUC, MCM and Underwater Services activities, EPCC
and EPCIC which will be sourced separately.

Catalyst Production Chemicals Integrity Chemical

(Corrosion Inhibitors and Biocide)

Medium Term Outlook – Post 2024

• Modest outlook can be expected for OSV supporting drilling and projects (Wells) through
PETRONAS’ effort of optimising its resource requirement.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

68 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
69
 F Chemicals F Chemicals
Catalyst Number of Chemicals’ Purchase Ratio:

Catalyst is a substance that increases the rate of a reaction without being consumed in the reaction.​

Application: 1.43 1.46

Petroleum refining, chemical synthesis, petrochemical production, polymer processing, environment
protection reactions.​ 1.09
1.04 1.12 1.04 1.04
0.91
Associated Services: 0.82
Supply of catalyst, supply of internal media, logistics services, catalyst change-out services.​

In PETRONAS, purchase of new catalyst is for top-up requirements and catalyst-changeout activities, Catalyst
depending on the catalyst lifespan (ranging from 2-10 years) and/or plant turnaround/shutdown activities. Production Chemicals
Lorem ipsum Integrity Chemicals

2022 2023 2024

Production Chemicals Three-Year Outlook

 
The usage of production chemicals is crucial to prevent flow assurance and process integrity threat in Note: Chemicals’ Purchase Ratio is based on the forecasted purchase in comparison to actual purchased in base year 2020.
the production system. It is essential to ensure optimum and uninterrupted flow for higher productivity.
Examples of these chemicals are Demulsifier and Pour Point Depressant.

Integrity Chemicals  (Corrosion Inhibitors and Biocide)  • Catalyst: Continuous requirement for purchases and services related to catalyst across PETRONAS’ OPUs
in view of multiple periodical change-out and/or top-up requirements.​
• Production Chemicals: Outlook will depend on the projection of crude oil production and alignment
towards low-carbon world.​
Type Description Function Application Criticality • Integrity Chemicals (Corrosion Inhibitors and Biocide): Continuous requirement in ensuring the asset
integrity/reliability especially to the pipeline, equipment and piping from corrosion/leak. Also, additional
Corrosion Any chemical To protect the Upstream: Pipeline, demand for Cooling Water System to remove heat from process or equipment.
Inhibitor used to mitigate pipeline, equipment Crude Pipeline, Wet equipment and
the corrosion at and piping from Gas Pipeline and piping integrity
recommended internal corrosion Dehydrated Gas
concentration threat related to Pipeline
and dosage Carbon Dioxide
(CO2) corrosion Downstream:
Cooling Water Medium Term Outlook – Post 2024
System, Boiler and • Steady outlook is expected given the continuous requirement for upstream and downstream (for
Heat Exchanger maintenance and operation activities).

Biocide Any chemical To protect the Upstream:

used to control pipeline, equipment Crude Pipeline
and reduce and piping from
microbial growth internal corrosion Downstream:
that can lead to threat related to Cooling Water
microbiological Microbial Influenced System, Boiler and
induced corrosion Corrosion (MIC) Heat Exchanger
issues

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

70 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
71
 G Indirect H Digital and ICT
The Indirect category covers diverse products and services such as Human Resource Services; Health,
Safety, Security and Environment (HSSE); Marketing, Advertising and Public Relations; Office Administration Digital and ICT cover all digital and ICT-related products and services such as application software,
and Professional Services; as well as Corporate Services; mainly supporting internal usage to maintain the Information Technology (IT) consultancy and professional services, as well as telecommunications and
company’s daily operations. network hardware and software. The key approach for sourcing of digital and ICT is through integrated
consolidated contracts across PETRONAS’ corporate and business units.
Primary highlights are tabulated below:
PETRONAS is taking a fit-for-purpose procurement approach for Digital and ICT to adapt and respond
Office,
Human Marketing, Administration to the rapidly changing digital landscape:
Resource HSSE Advertising and and Professional
Services Public Relations Services
• Drive flexible contracting to co-innovate and capture “unknown” future requirements.
• Foster long-term strategic partnership to co-create and incentivise partners to ‘scale fast or fail fast’
• Business travel
• Manpower supply • Waste management • Creative outcomes.
Main management
composition • Capability • Medical services and supply advertising • Allow pace in procurement to match with the shorter innovation cycle.
• Onshore and
development • Media
• Protection equipment offshore catering • Optimise value for PETRONAS through governance based on outcome/value and Total Cost of
advertising
• HSSE consultancy • Brand
• General Ownership (TCO) throughout the lifecycle of the asset.
• Safety and firefighting consultancy
management
equipment and services services
• Laboratory services

The key approach for sourcing within the Indirect category will be via:
• Integrated contracts across corporate and business units through volume consolidation to achieve
Economies of Scale (EoS).
i Did you know?
• Established efficient and cost-effective procurement method by providing online buying experience PETRONAS has accelerated the digital transformation through execute-and-adopt digital strategy by being
for low value transactions through external Business-to-Business (B2B) marketplaces, i.e. Lapasar and outcome-led and user-centric; leveraging digital technologies, expertise and infrastructure to achieve the
Dropee, expanding opportunity for suppliers to access wider clientele not limited to oil and gas industry. desired business outcomes supported by the right culture and mindset.
• New ways of working through technology driven initiatives, such as, Scheduled Waste (SW) transition This is achieved through the following;
from disposal to 3R (Reduce, Reuse and Recycle) in line with PETRONAS’ net zero carbon emissions by
2050 (NZCE 2050) aspiration. Award Winning Solutions
Digital solutions built in-house such as the Alpha LNG is transforming
Harnessing data PETRONAS from supply and demand driven, to capture market opportunities.
to deliver value
Data as an via tech-digital Another example is STELLAR which has clinched multiple industry awards in
Asset products and 2021 where the solution has enabled MLNG to achieve an optimised plant
solutions. start-up, leading to millions in savings.

Cloud will allow PETRONAS to unlock many benefits – a consistent, global

experience to our digital solutions, eliminate CAPEX investments and flexibility to
scale up and down, access to vast choices of advanced technology (e.g. Artificial
Strengthening the Intelligence, Machine Learning, Analytics). 
Digital digital landscape and
as an ensuring stable and Putting together a data management platform – the award-winning Enterprise
efficient operations. Data Hub. To enable a data-driven organiSation, there must be single point of
Accelerator visibility via a connected data ecosystem. 

Security - to ensure PETRONAS are cyber secure and safe from the increasing
cyber threats in the current digital landscape.

PETRONAS is synergiSing efforts in upskilling talents. The goal is to create an

inclusive digital future and mindset for the benefit of both the people and the
Building a future-ready nation.
Ways of workforce via retooling
and upskilling of talents
Working in new way of working.
These are done through establishing immersive learning initiatives such as the
Digital Academy, SWITCH, and the Citizen Analytics Programme, which has also
bagged numerous industry awards by being one of the best internally
established training and development programme.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

72 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
73
 H Digital and ICT
In addition, Digital and ICT is constantly focusing for business continuation.
Primary highlights are tabulated below: Contracts
Description
Archetype 1
Run and Maintain

Focuses on everyday
digital and ICT operations
of the business such as
Archetype 2
Essential Building Block

Foundational infrastructure,
application and security
requirements for enterprise.
Archetype 3
Sandbox and Scale

Explore or experiment and

develop“among first of its
kind” concepts, use cases or
Outlook
software maintenance products which need to be
and license renewal, proven in PETRONAS’
application support, etc. context at pace, at scale.

Outlook Positive outlook for digital and ICT services, in line with active digitalisation efforts in PETRONAS

PETRONAS desires fit-for-purpose technologies to support cost competitiveness and encourage

innovative solutions to enable PETRONAS to be a progressive energy and solutions partner,
enriching lives for a sustainable future.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

74 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
75
 Contracts Outlook No.

Individual - Upstream
Contract Start 2021 2022 2023 2024 2025

The outlook comprises the following contracts: 11 Wellhead Maintenance Services 2017
Surface Controlled Subsurface Safety Valve System 2018
12 Installation and Services
Geophysical, Geomatics, HSE and Technical Auditor 2018
13
Consultancy Services
Pan-Malaysia contracts Integrated Downstream contracts 14 Remotely Operated Vehicle (ROV) 2018
Joint contracts among Petroleum Joint contracts among PETRONAS’
Arrangement Contractors (PACs) in Malaysia Downstream Operating Units (OPUs) for 15 Drilling Tools, Well Test Tubular and Accessories Rental 2018
for similar scopes of services and material. similar scopes of services and material. 16 Surface Sand Management 2019
Gas Lift Valves (GLV) and Insert Strings Equipment, 2019
17 Accessories and Services

18 Real Time Metocean Observation System and Services 2019

Integrated Upstream and
Downstream contracts Upstream and Downstream 19 Drilling Rigs – Offshore Rig – Integrated Rig, Drilling 2021
and Completion (i-RDC) Services
Joint contracts among PETRONAS’ OPUs
Individual contracts 20 Marine Site Investigation Survey 2020
for similar scopes of services and material in
Upstream and Downstream. 21 Offshore Surveying and Positioning Services 2020
Metal Expandable Packer (MEP) for Annular
22 Barrier Equipment 2019

As many of these contracts are due for re-tendering in the period 2022-2024, this would be an
opportune time for players to strategise on resources, new technology offerings and strategic
partnerships, while maintaining the highest degree of efficiency in performing jobs. With that,
industry players will have sufficient time to offer proposals to PETRONAS.

Details of the contracts are based on data as at October 2021.

A Subsurface B Engineering, Construction

2021 2022 2023 2024 2025
and Projects
No. Contract Start 2021 2022 2023 2024 2025 No. Contract Start 2021 2022 2023 2024 2025
Pan-Malaysia
Pan-Malaysia
01 Slickline 2018 Engineering, Procurement and Construction 2018
(EPC) of Fixed Offshore Structure
02 Tubular Handling, Conductor Installation and Slot Recovery 2018

03 Well Testing and Tubing Conveyed Perforations (TCP 2017

Integrated Upstream and Downstream
04 Drill Bits (Rock/PDC) and Hole Enlargement Tools 2017
02 Engineering Services (Major) 2019
05 Mudlogging 2017

06 Cementing and Downhole Tools 2018 Individual - Upstream

07 Drilling Fluids 2018 Marine Warranty Survey and Technical Services
03 for Offshore Facilities 2020
08 Deepwater Subsea Wellhead Equipment, Tools and Services 2019
04 Integrated Hook-up and Commissioning (HUC) 2020
09
Directional Drilling (DD)/Measurement While Drilling 2020
(MWD)/Logging While Drilling (LWD)
10 Fishing Equipment and Services 2020

Notes: Notes:
• In contract • In contract
• The final procurement approach may change to fit PETRONAS’ overall strategy. • The final procurement approach may change to fit PETRONAS’ overall strategy.
• This list includes contracts for Gas + New Energy. • This list includes contracts for Gas + New Energy.
• The list excludes OEM supplied item contracts. • The list excludes OEM supplied item contracts.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

76 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
77
 C Equipment and Material D General Facilities
Maintenance
2021 2022 2023 2024 2025 2021 2022 2023 2024 2025

Pan-Malaysia Pan-Malaysia
Mechanical Rotating Equipment Services and Part 2019 01 Inspection and Corrosion Monitoring Services (ICMS) 2018

02 Underwater Services 2018

Integrated Upstream and Downstream
Maintenance, Construction and Modification (MCM) - 2018
Maintenance and Services of HV/LV Motor 2018 03 Offshore and Onshore
and Alternator
03 Instrument Maintenance and Services 2019 Integrated Upstream and Downstream
Heat Exchanger, Pressure Vessel and Utility Tank 2019
04 Maintenance 04 Mercury and Pyrophoric Decontamination Services 2019

05 Centrifugal and Reciprocating Type Gas Compressors 2019 05 Pump Maintenance Services (Region 1) 2020
General Electrical Equipment ServicesTank 2020
06
Maintenance 06 Water Treatment Solution Programme 2017

07 Pump Maintenance Services (Region 2) 2020

Integrated - Downstream
Maintenance for Single Point Mooring and
08 Supply of Marine Hoses 2020
Water Treatment Solution Programme for Boiler 2017
07 and Cooling Water System

08 Repair and Refurbishment of Mechanical Seal 2020 Integrated - Downstream

2019 09 Atmospheric Storage Tank Maintenance Services 2021
09 Critical Flange Management Services
Civil Maintenance Work for Process and
10 Supply of Gaskets 2019 10 Non-Process Area 2020

2021 11 Fire and Gas Maintenance Services 2020

11 Maintenance for Switchgear and Transformer
Integrated Turnaround Main Mechanical and
12 Maintenance Mechanical Static 2019
Individual - Upstream
13 Support Services for TA, Shutdown, Catalyst Change 2021
12 Operational Pigging Services 2018
14 Mechanical Pipelines Maintenance 2019
13 Pressure Relief Device Maintenance Services 2019

14 Reciprocating Engine and Compressor Maintenance 2019 Individual - Upstream

2019 Production Optimisation with CO₂ Tracer 2018
15 Material Disposal Services 15
Pumping Services
16 Valve Maintenance Services 2020 Maintenance, Construction and Modification 2018
16 (MCM) - Onshore

17 Marine Operations and Maintenance for Floating LNG 2019

Individual - Downstream
17 Supply of Gas Turbine Filters 2018 18 Operation and Maintenance for Kerteh Airport 2019
Integrity and Fitness for Service (FFS) Assessment
19 of Pipelines 2019

20 Pipeline Isolation Services 2019

Maintenance, Construction and Modification
21 (MCM) - Offshore 2017

Notes: Notes:
• In contract • In contract
• The final procurement approach may change to fit PETRONAS’ overall strategy. • The final procurement approach may change to fit PETRONAS’ overall strategy.
• This list includes contracts for Gas + New Energy. • This list includes contracts for Gas + New Energy.
• The list excludes OEM supplied item contracts. • The list excludes OEM supplied item contracts.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

78 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
79
 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025

Individual - Downstream Individual - Upstream

22 General Maintenance Work at PETRONAS stations 2019 07 Chemical Treatment and Chemical Cleaning Services 2019
Fabricate and Reconditioning of LPG Cylinder
23 and Supply of LPG Compact Valves 2019 08 Supply of Production Chemicals 2017
Requalification and Shot-Blast Repainting of
24 LPG Cylinder 2019
Individual - Downstream
25 Civil Works Maintenance for Gas Pipeline 2022
Supply of New Empty High Density Polyethylene 2019
09
(HDPE) Drums
26 Main Cryogenic Heat Exchanger (MCHE) Repair 2019
10 Catalyst & Adsorbent Change Out 2020
27 Refractory Inspection and Repair 2019 Precious Metal Silver Leasing for Ethylene Oxide
11 2017
Catalyst Production
28 Supply and Maintenance of LPG Cylinder Steel Pallets 2019
12 Supply of Di-Iso Propanol Amine (DIPA) and Sulfolane 2020
29 Maintenance for Actuated Valve 2019 2020
13 Laboratory Analysis for Petroleum Products

30 Repainting of LPG Cylinders 2018

31 Terminal Operations and Maintenance Services 2018

Overall Commissioning and Maintenance for
32 2019
Chillers and Freezers

33
Inspection and Servicing Electrical Works at
PETRONAS stations
34 Facilities Maintenance, Associated Works and
2020

2020
F Indirect
Bush Control
Maintenance of Fuel Dispenser, Accessories and
35 2020
Equipment for PETRONAS stations
Overall Upgrading, Renovation and 2021 2022 2023 2024 2025
36 2020
Decommissioning of PETRONAS stations
Pan-Malaysia
37 Online Leak Sealing Services 2021 2020
Comprehensive Integrated Medical Services

Integrated Upstream and Downstream

Flame Resistant Coverall and Headscarf 2019

03 Supply and Delivery of Safety Footwear 2020

E Chemicals
04 Environmental Monitoring and Analysis 2017

05 Manpower Supply Services 2019

06 Environmental Impact Assessment 2019

07 Media Advertising Services 2020

2021 2022 2023 2024 2025
08 Talent Acquisition Services 2020
Pan-Malaysia
2018 09 Travel Management Company 2020
01 Chloroalkali Chemicals

02 Sulphuric Acid Chemicals 2018 10 Global Mobility Services 2018

03 Base Oil 2018 Integrated - Downstream

11 Pest Control Management 2020
Integrated - Downstream
04 Supply of Caustic Soda 2019 Individual - Upstream
12 H2S Safety Equipment and Services 2019
05 Sample Management Programme 2019
Quality Assurance/Quality Control and
Integrated Flushing and Passivation Services for Boiler 13 2019
06 Feedwater and Cooling Water Systems 2018 Inspection Services

Notes: Notes:
• In contract • In contract
• The final procurement approach may change to fit PETRONAS’ overall strategy. • The final procurement approach may change to fit PETRONAS’ overall strategy.
• This list includes contracts for Gas + New Energy. • This list includes contracts for Gas + New Energy.
• The list excludes OEM supplied item contracts. • The list excludes OEM supplied item contracts.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

80 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
81
 2021 2022 2023 2024 2025

Individual - Downstream
14 Associated Services for Solid Product Warehouse

15 Associated Services for Bagged Urea

2021

2018
H Digital and ICT
16 Digital Agency Services 2018
2021 2022 2023 2024 2025
17 Above-The-Line (ATL) Creative Advertising Services 2018
Integrated Upstream and Downstream
18 Janitorial Services for Malaysia LNG 2019
01 Supply of Digital Microwave Radio and Auxilliary Services 2020
19 Above-the-Line (ATL) Creative Advertising Services 2020
Integrated Downstream
20 Supply of New Empty Steel Drum 2019
Supply and Services of Desktop,
21 Geohazard Assessment for Onshore Gas Pipeline 2019 02 Notebook and High-end Workstations 2018

Supply and Commissioning of Public

22 Printing and Delivery of Promotional Materials 2020 03 Address and General Alarm (PAGA) System 2019

23 Vehicle Leasing for Onshore Plants 2020 Maintenance and Support of Public Address
04 General Alarm (PAGA) System 2020

05 Intrinsically Safe Smart Devices 2018

06 Access Control System (ACS) 2020

07 Data Engineering Professional Services 2020

G Logistics 08 Software Engineering Works

Supply and Maintenance of Video Surveillance

09 Management System
2020

2020

10 Structured ICT Cabling and Electrical Works 2020

2021 2022 2023 2024 2025 Supply and Maintenance for Private Long-Term
11 Evolution (LTE) 2021
Pan-Malaysia
Offshore Support Vessels for PACs’
01 Production Operations 2018 Individual - Upstream
Offshore Support Vessel (OSV) Services for 12 Wells Real Time Centre Services 2019
02 PETRONAS PACs’ Drilling Project Activities 2019

Integrated Downstream Contract Individual - Downstream

03 Intra-Plant Transportation and Related Services 2017
Supply and Maintenance of Payment Terminal and
13 2019
Individual - Upstream Other Peripherals for PETRONAS stations

04 Material Coordination Services 2018 Software Support and Maintenance Services of

14 Cloudbased Point-of-Sale (POS) for PETRONAS stations 2019
05 Vessel Tracking System (VTS) 2019
Supply of Hardware for Cloud-based Point-of-Sale
15 (POS) for PETRONAS stations 2020
Individual - Downstream
Supply and Maintenance of Visual Element for
06 Transportation Services for Bulk Petroleum Products 2019 16 PETRONAS stations 2020

Notes: Notes:
• In contract • In contract
• The final procurement approach may change to fit PETRONAS’ overall strategy. • The final procurement approach may change to fit PETRONAS’ overall strategy.
• This list includes contracts for Gas + New Energy. • This list includes contracts for Gas + New Energy.
• The list excludes OEM supplied item contracts. • The list excludes OEM supplied item contracts.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

82 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
83
 List of Abbreviations List of Abbreviations
Abbreviations used in the report Abbreviations used in the report (continued)
Unit Definition Used for Unit Definition Used for
AHTS Anchor Handling Tug Supply MCM Maintenance, Construction and Modification
A AI Artificial Intelligence MCO Movement Control Order

CCS Carbon Capture and Storage

M MCH Methylcyclohexane

COVID-19 2019 novel coronavirus (or 2019-nCoV) MOPU Mobile Offshore Production Unit

C COP26 26th UN Climate Change Conference of the Parties MTJDA Malaysia-Thailand Joint Development Area

CPP Central Processing Platform NDT Non-Destructive Testing

CRA Corrosion Resistant Alloy

N NZCE Net zero carbon emissions

DD Directional Drilling OCTG Oil Country Tubular Goods

D DP Dynamic Positioning
O
OEM Original Equipment Manufacturer

DSV Diving Support Vessel OGSE Oil and Gas Services and Equipment

EPCC Engineering, Procurement, Construction and Commissioning OPEC Organization of the Petroleum Exporting Countries
E EPCIC Engineering, Procurement, Construction, Installation and Commissioning PAC Petroleum Arrangement Contractors

FCB Fast Crew Boat PIC Pengerang Integrated Complex

P
F FPSO Floating Production Storage and Offloading PM Peninsular Malaysia

FSO Floating Storage and Offloading PSV Platform Supply Vessel

G GPV General Purpose Vessel

R
RMK-12 The 12th Malaysia Plan

HR Human Resource ROV Remotely Operated Vehicle

HSSE Health, Safety, Security and Environment SB Sabah

H HTI Host Tie-in SBV Standby Vessel

HUC Hook-up and Commissioning SDG Sustainability Development Goals

HWU Hydraulic Workover Unit

S SK Sarawak

ICT Information and Communications Technology SSV Straight Supply Vessel

I ID Infill Drilling SURF Subsea Umbilical, Riser and Flowline

IMO International Maritime Organisation TADR Tender Assisted Drilling Rigs

JUR Jack-up Rig

T TLP Tension Leg Platform
J JIP35 Joint Industry Programme 35 USD United States Dollar

LCT Landing Craft Tank

U UV Utility Vessel

L LOHC Liquid Organic Hydrogen Carriers WHP Wellhead Platform

W WTI West Texas Intermediate

WTE Waste to Energy

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

84 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
85
 Glossary Glossary
Industry terms used in the report Industry terms used in the report (continued)

Unit Definition Used for Unit Definition Used for

A Aframax
Mid-sized tanker with a dead weight tonnage (DWT) between 80,000 MT-120,000 MT
and oil storage capacity of approximately 600 kkbls–750 kbbls I Infill Drilling
Drilling of new wells in an existing field within the original well patterns to
accelerate production.

A standard unit of measurement for oil production. One barrel contains Natural gas that is liquefied under extremely cold temperatures of about
Barrel 159 litres of oil. Liquefied 260 degrees Fahrenheit to facilitate storage or transportation in specially
Natural Gas (LNG)

Barrels of Oil
A unit of measurement to quantify amount of crude oil, condensates and
natural gas. Natural gas volumes are converted to barrels on the basis of
L designed vessels.

A high strength carbon steel pipe used for transporting crude oil,
Equivalent (boe) Linepipes petroleum products, natural gas and water.
energy content.

The benchmark crude oil price in Europe, as traded on International Achieved by balancing carbon dioxide (CO₂) emissions with removal (for example,

B Brent Price Petroleum Exchange in London. Brent crude refers to a particular grade
of crude oil, which is slightly heavier than WTI crude. See WTI price. N Net Zero Carbon
Emissions
through carbon capture and sequestration) or simply eliminating CO₂ emissions
altogether (for example, decarbonisation of energy systems through solar and
wind energy).
Field that has been previously developed and has reached its peak oil/ gas
Brownfield production level. Organic and inorganic compounds and mixtures derived from petroleum,
Petrochemicals used principally to manufacture chemicals, plastics and resins, synthetic
fibres, detergents, adhesives and synthetic motor oils.
Brownfield Development Projects to improve oil and/or gas recovery from an existing producing
field, inclusive of infill drilling, Improved Oil Recovery (IOR) and Enhanced
Project A contract that combined the requirement for more than one PACs to
Oil Recovery (EOR) projects. Pan-Malaysia Contract
P
get Economies of Scale (EOS).

C COVID-19 The name of the disease caused by the novel coronavirus, SARSCoV- 2,
and is short for “2019 novel coronavirus (or 2019-nCoV)” Panamax
Smaller-sized tanker with a dead weight tonnage (DWT) between
65,000 MT-80,000 MT and oil storage capacity of approximately 350 kbbls.

Projects in water depths exceeding 450 feet. Unique methods are Modifying existing structures to enable rig move-in (for infill drilling) or to serve
Deepwater required to produce the oil and gas from ocean bed at such depths. Platform Modification new/additional operational objectives. May involve minor fabrication works.
See Floating Production Unit.

Activities following discovery that are necessary to begin production and A purification process for natural resources which includes hydrocarbons,
Development Refining using distillation, cooling and/or compression.
transportation of crude oil and natural gas.

D All segments of a value chain that add value to the crude oil and natural
gas produced. For example, oil refining, gas processing, gas liquefaction, R Regasification
Process of converting LNG temperature back to natural gas at|
atmospheric temperature.
Downstream petrochemical manufacturing, marketing of petroleum and petrochemical
products, storage and transportation. The total estimated quantities of petroleum at a specific date to be contained
Resources in, or that have been produced from known accumulations of hydrocarbon.
Decarbonisation is the term used for removal or reduction of carbon
Decarbonisation
dioxide (CO₂) output into the atmosphere.
17 interlinked goals adopted by all United Nations Member States in 2015 as
Sustainable a universal call to action to end poverty, protect the planet and ensure that all
Enhanced Oil Recovery Any method(s) applied to productive reservoirs in order to increase Development Goals people enjoy peace and prosperity by 2030. Also known as the Global Goals.
(EOR) production rates and to improve the overall recovery factor.

E Exploration The search for crude oil and/or natural gas by geological and topographical
S Spars platform
An offshore floating product unit with relatively large aspect ratio
(draft over diameter).
studies, geophysical and seismic surveys, and drilling of wells.

F
Relating to, or being something located beneath a surface and
Field A geographical area overlying a hydrocarbon reservoir. Subsurface especially underground.

The segment of value chain pertaining to finding, developing and producing

Greenfield Field that has proven oil/gas reserves but has never been developed.
U Upstream crude oil and natural gas. These include oil and gas exploration, development

G
and production operations, also known as Exploration and Production (E&P).

Greenfield Projects to start the production of oil and/or gas from new,
Development Project undeveloped reserves. Stands for West Texas Intermediate (WTI), which refers to a type of high
WTI Price quality crude oil, as the benchmark crude oil price in the US, measured

W
in USD per barrel.
A compound of hydrogen and carbon, such as any of those which are the
Hydrocarbon chief components of petroleum and natural gas.
H Hydrogen
Hydrogen is a clean alternative to methane, also known as natural gas. It is the
Wellheads
Component at the surface of an oil or gas well that provides the structural
and pressure-containing interface for the drilling and production equipment.
most abundant chemical element, estimated to contribute 75 per cent of the
mass of the universe.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

86 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
87
 Glossary Frequently Asked Questions (FAQs)
Units used in the report

Unit Definition Used for 1 2

GW Gigawatt Power How does this report benefit the local Oil and What is the USD50s to USD60s per barrel expectation
Gas Services and Equipment (OGSE) sector? based on? Do these figures represent PETRONAS’
kbd Kilobarrels per day Production Rate This report will improve visibility on PETRONAS’ domestic view on the crude price?
activities, enabling better planning of resources and Most industry analysts like research houses and banks, publicly
investments by vendors. share this expectation. Companies may take a conservative
km Kilometre Distance approach in their assumption. PETRONAS remains prudent and
will continue to adopt a lower-for-longer approach until we are
confident that the current uptrend is sustainable.
MMscfd Million metric standard cubic feet per day Production Rate

MMstb Million stock tank barrels Volume

mtpa Million tonnes per annum Capacity

3 4
How will the OGSE sector be affected if oil What is the accuracy and reliability of the outlook
MMBtu Million British thermal unit Heating Value
price recovers? data? Would this be in line with what has been
If oil price recovers for a sustainable period, we expect a previously disclosed to the public?
MT Metric tonne Weight higher number of greenfield and brownfield projects to
become commercially viable, provided that we keep the
This data is based on the projection of activities with high/
base scenarios indicating the project milestones at the time
cost at a competitive level. Thus, activities for OGSE sector of release. Changes are to be expected in response to market
MWp Megawatt peak Power may increase accordingly. dynamics and operational requirements.

km2 Square kilometres Area

5 6
Is this outlook referring to tenders to be issued or Should I make my investment decisions/business
contracts to be awarded? planning based on this report?
The outlook provided is based on activities per year, not on The intent of this outlook is to provide a general direction
tender issuance nor contract award. Therefore, it includes for the industry and be sufficient for players to make their
activities which may have been contracted at the time of high-level planning. We recommend players to also make
reporting. An overview of contracts with its current duration reference to other sources of data/information to
is provided in this document. Companies may use them as an complement their decision making.
indicator for opportunities that may arise in the future.

7 8
WHP, CPP and rigs information are primarily for Is this a one-off exercise or a regular effort?
larger players. How will smaller players benefit from This is the fourth edition of the report and is part of PETRONAS’
the information? effort to increase engagement with the OGSE sector. We
The outlook in this report prioritises leading indicators for endeavour to provide this report on an annual basis.
a broad spectrum of activities in the oil and gas industry, as
indicated in the list of associated services, which may benefit
smaller players.

PETRONAS Activity Outlook 2022-2024 PETRONAS Activity Outlook 2022-2024

88 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report.
89
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