The global energy landscape is in constant flux, with the dual pressures of energy transition and economic shifts reshaping industries worldwide. For Malaysia's Oil & Gas Services and Equipment (OGSE) industry, navigating this new reality requires vision, resilience and strategic foresight.
This was the central theme of a panel session at the MOGSC Conference held in conjunction with Oil & Gas Asia (OGA) 2025, titled “Strengthening Malaysia’s OGSE Ecosystem”. Moderated by Natrah Mohd Tahir, Head of Sustainability, Group Procurement, PETRONAS, and joined by industry leaders including Mohd Razali Kamin, Senior General Manager of Enterprise Category Management, Group Procurement, Ts. Syed Saggaf Syed Ahmad President, Malaysian Oil, Gas & Energy Services Council (MOGSC), and Mohd Yazid Ja’afar, President/CEO of Malaysia Petroleum Resources Corporation (MPRC), outlined the industry’s path forward as set out in the National OGSE Industry Blueprint 2021–2030 (OGSE Blueprint).
The OGSE Blueprint, refreshed through its Mid-Term Review (MTR) in March 2025, provides a roadmap to build a resilient, competitive, and future-ready industry. As Yazid highlighted during the session, this requires OGSE players not only to withstand external pressures but also to seize new opportunities:
“In line with the energy transition, we are advocating for OGSE companies to pivot towards sustainability, not only as a necessity, but as a business opportunity.”
This strategic pivot is crucial, as the industry faces several key challenges that must be addressed to unlock its full potential.
Industry peers echoed this sentiment during the discussion. PETRONAS’ Mohd Razali Kamin reaffirmed support for the OGSE Blueprint, stressing that resilience is about capability, competitiveness, and agility rather than size. Of Malaysia’s 4,000 registered OGSE companies, fewer than half are active, highlighting the need for stronger technical expertise, financial fundamentals, and ESG compliance. He urged players to strengthen debt-to-equity ratios, secure financing, and embrace responsible practices while expanding beyond Malaysia to regional markets like Thailand and Indonesia, positioning themselves as sustainable and trusted global partners. Similarly, MOGSC’s Ts. Syed Saggaf emphasised that collaboration and partnerships are essential for the OGSE industry to move forward, particularly in emerging areas such as CCUS. He noted that while MOGSC is encouraging its members to partner and specialise within key segments, traditional services remain equally important. With OGSE players in a prime position to drive the energy transition, their active involvement is critical to turning aspirations into reality.
The OGSE Blueprint MTR identified several capability gaps within the industry that require urgent attention. Among them:
• Digital adoption remains slow. Nearly half of OGSE companies report limited resources for R&D and innovation.
• Sustainability is lagging. An overwhelming 85% of surveyed companies have yet to publish sustainability reports.
• Emerging opportunities require new skills. Areas such as Carbon Capture, Utilisation and Storage (CCUS) and decommissioning are set to grow, with PETRONAS planning to decommission 153 wells and 37 offshore facilities. These shifts demand capabilities in asset repurposing, integrated solutions, and workforce upskilling.
• Structural issues persist. Industry fragmentation, dominated by many small players, and challenges in securing financing continue to hold back growth.
To address these challenges, the OGSE Blueprint MTR introduced targeted initiatives:
• OGSE Technology Network (OGTEN): Driving innovation through stronger collaboration across government, industry, and academia.
• National OGSE Sustainability (NOS) Programme: Launched in 2023 to guide companies in embedding sustainability practices, reframing sustainability from compliance to value creation.
• Talent development initiatives: Focused on upskilling and certifying the workforce to meet the evolving needs of the industry.
These efforts are not meant to force OGSE companies to abandon their core business, but rather to reposition their talents, assets, and infrastructure to thrive in a low-carbon energy ecosystem.
Looking ahead to 2030, MPRC has set ambitious yet achievable targets for the OGSE industry. These aspirations are firmly rooted in the National Energy Transition Roadmap (NETR) and the OGSE Blueprint MTR, providing a clear vision for success.
A key part of this vision acknowledges the continued importance of hydrocarbons in Malaysia's energy mix, with fossil fuels projected to make up 77% of the total primary energy supply by 2050. This stability provides a solid foundation for the OGSE sector's evolution. Yet, the true test lies in how effectively the OGSE sector can diversify, innovate, and compete globally.
Yazid captured this vision succinctly:
The goals for 2030 are multifaceted:
• 50% of revenue from exports, reflecting global competitiveness.
• Emergence of 20 billion-ringgit companies, signalling growth and consolidation.
• Universal adoption of sustainability reporting, including 100% of PLCs, 75% of MTCs, and 50% of SMEs.
• 25% of revenue from “Beyond OGSE” activities, such as Hybrid Hydro Floating Solar (HHFS).
By addressing structural challenges and pursuing bold aspirations, Malaysia's OGSE industry is not just preparing for the future; it is actively shaping it. With the strategic initiatives led by MPRC and the clear direction provided by the OGSE Blueprint, the industry is on course to remain a vital engine of economic growth while advancing Malaysia’s energy security and sustainability journey.