Malaysia’s state-owned energy player Petronas has launched two initiatives through Malaysia Petroleum Management (MPM) to strengthen the country’s oil and gas sector and ensure an optimal and sustainable supply to boost energy security.
These dual initiatives, which are expected to bolster the local oil and gas sector, entail the introduction of the integrated well continuity services (IWCS) contract and the planned establishment of the MPM Hydraulic Workover Unit (HWU) Academy.
Designed to address the challenges posed by rising costs and dynamic market conditions, the IWCS is envisioned to bring a more balanced approach to cost and margins management compared with an earlier iteration known as the integrated well services (IWS) model.
As a result, the implementation of IWCS is perceived to signify the adoption of a comprehensive contracting strategy, segmenting the work into four primary packages and 13 sub-packages, covering well interventions, well abandonment and workover, alongside subsea intervention services.
According to Petronas, 34 qualified panel contractors have been selected to deliver the work after a thorough and rigorous technical evaluation process was carried out, thus, the new approach is anticipated to foster “equitable and effective” collaboration in well-related engineering projects. No further information about the contractors was disclosed at this time.
On the other hand, the second initiative is expected to pave the way for the establishment of the MPM HWU Academy through a memorandum of understanding between the Malaysian energy giant and both local and international HWU service providers.
With the launch slated for 2025, the academy is anticipated to play “a pivotal role” in developing specialized skills in well abandonment and workover, aiming to empower a capable workforce for the “sustainable growth” of the local oil and gas industry, based on Petronas’ plans.
Datuk Ir. Bacho Pilong , Senior Vice President of MPM, commented: “The IWCS contract is a major leap in our wells management strategy, focusing on resource optimisation and job continuity. In addition, the MPM HWU Academy will be essential in strengthening local expertise to future proof the sector.
“Petronas continues to prioritise initiatives such as the IWCS contract and the MPM HWU Academy to enhance operational effectiveness and foster collaboration across the industry. These efforts will contribute to strategically positioning Malaysia more competitively in the global energy market.”
In line with its goal to drive growth through sustainable energy initiatives and its target to achieve net-zero carbon emissions by 2050, Petronas is part of a joint industry partnership (JIP) to step up carbon capture, utilization, and storage (CCUS) projects with the establishment of industry guidelines for CO2 specifications.
Recently, the firm also signed a gas sales agreement (GSA) for gas delivery to Sabah Electricity (SESB) and joined forces with energy players from the Association of Southeast Asian Nations (ASEAN) to drive methane emissions reduction efforts in the region.
Given the belief that liquefied natural gas (LNG) will play an important part in the energy transition journey, ties were strengthened with Mitsubishi Corporation , thanks to new agreements related to two of Malaysia’s LNG plants in the country’s Sarawak region, MLNG Dua and MLNG Tiga .
Petronas is also searching for more hydrocarbons, as illustrated by its recent offshore oil and gas discovery at the Bekok Deep-1 exploration well in Peninsular Malaysia.