KUALA LUMPUR, Jan 5 — The Malaysian Oil, Gas and Energy Services Council (MOGSC) has called for an equitable contracting mechanism to be in place to ensure prudent management of the industry’s overall ecosystem.

In a statement, the industry association said that in the last two years, oil and gas, services, and equipment (OGSE) players had brought forward their grievances and pain points relating to contracts in the past and also recommendations on improvements through a series of workshops and engagements.

"MOGSC applauds Petroliam Nasional Bhd (Petronas) for acknowledging the need for improvement in the contracting system.

"This recognition is crucial to ensuring a conducive business environment while simultaneously strengthening the OGSE supply chain.

"We would want to continue our efforts in this so that our ecosystem can be resilient and competitive,” said MOGSC.

In light of the recent release of the Petronas Activity Outlook 2024-2026, MOGSC said OGSE players would be busy in the coming years, collaborating with Petronas to support the nation-building agenda.

"We believe that the OGSE players will look forward to collaborating with Petronas, especially in the space of emissions reduction in line with Malaysia’s National Energy Transition Roadmap launched last year,” it said.

As access to funding and financing is always a challenge for OGSE players, especially due to the nature of the industry, the association looked forward to continuing its collaboration with Petronas to encourage financial institutions to be more receptive to financing OGSE players.

This is important to ensure sufficient liquidity in the market so that the supply chain can be sustained, it added.

In addition, MOGSC said it would continue its advocacy role to assure that the OGSE players are ready for a sustainable future, with managing environmental, social, and governance (ESG) requirements becoming key.

"We would like to urge all OGSE players to seize the opportunities that have been presented to us with responsibility to ensure we can all be successful with no one left behind,” it added. — Bernama