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OGSE industry needs changes to tackle energy transition, decarbonisation challenges -- Mustapa

04/10/2022 02:40 PM

KUALA LUMPUR, Oct 4 (Bernama) -- The oil and gas, services and equipment (OGSE) industry needs to change its systems, business models, economic assumptions, market rules and governance frameworks in order to tackle the challenges posed by energy transition and decarbonisation, said Datuk Seri Mustapa Mohamed.

The Minister in the Prime Minister Department (Economy) said the OGSE industry plays an integral role as industry players are best positioned to advise on technological needs and technical know-how. 

“The government will press on with our efforts to engage and collaborate with the industry. In today’s interconnected and globalised world, no man is an island,” he said in his keynote address at the National (OGSE) Roadshow 2022 here, today.

As the country navigates this global energy transition, he said it is important that the OGSE industry is able to build upon its resilience towards external shocks and enhance its capabilities towards adjacent skill-sets such as renewable energy, energy storage and decarbonisation.

“OGSE companies must also embed a sustainability component into their business strategy. I firmly believe that those able to develop products and services that address global energy challenges will be around for the long haul.

“I am optimistic that these initiatives will help OGSE players to meet the needs of the sustainability agenda,” he added.

Mustapa said the Economic Planning Unit (EPU) and the Malaysia Petroleum Resources Corporation (MPRC) are currently working on formulating the National OGSE Sustainability Plans (NOSP), scheduled to be published by the end of the year. 

According to the minister, the government’s plans for OGSE sustainability will be outlined through the development of the National OGSE Sustainability Roadmap in 2023 and the National OGSE Sustainability Framework in 2024. 

“Our commitment to the 2030 Agenda (for sustainable development) remains a priority for the nation. This is also reflected in our pursuit of achieving sustainable growth in the oil and gas industry.

“Undertaking this exercise on an annual basis will allow us to address structural changes in this dynamic industry and make adjustments where necessary,” he said.

Meanwhile, MPRC president and chief executive officer Mohd Yazid Ja’afar said the National OGSE Roadshow 2022 will not only enable participants to familiarise themselves with the OGSE Blueprint but also what it means to them.

He also noted that the recently launched National Energy Policy 2022-2040 aims to bring benefits across Malaysia’s economy as the oil, gas and energy sector embarks on the energy transition path.

“I am pleased to share that we will have a session on the National Energy Policy by the EPU in the Prime Minister’s Department as part of our programme.

“In line with the event’s theme of ‘Unlocking Opportunities in Malaysia’s Energy Landscape’, today’s presentations and panel session will spotlight prospects in the oil, gas and energy industry, especially in light of the energy transition and low carbon future that is upon us,” he said

Mohd Yazid believes that today’s session will provide an impetus for companies to embrace the anticipated lower carbon nature in the traditional oil and gas activities and explore new growth opportunities in oil and gas adjacent sectors, how best to build up capabilities to be relevant and succeed in a low-carbon, sustainable energy-focused future. 

“Indeed, we also hope that you (companies) leverage on the government support available through the OGSE Blueprint to help you thrive,” he added.

Meanwhile, Mustapa said the government, through MPRC, which is an agency under the EPU, has been hard at work to accomplish the initiatives set out in the blueprint.

“The government has committed RM8.48 million to 36 companies for the OGSE Development Grant. This grant aims to accelerate technology adoption.

“Some of the projects being undertaken by the recipients include robotics and artificial intelligence analytics,” he said.

In total, the government has allocated RM25 million for the OGSE Development Grant under the 12th Malaysia Plan.

In developing and retaining talent, he said the government also has actively been promoting OGSE job opportunities and capacity building to encourage upskilling and certification in line with industry requirements. 

“We are also making headway with the OGSE company recognition initiative. Formal recognition will allow for targeted support through which industry players will be empowered to meet their working capital needs and expand their businesses.

“To date, almost 500 companies have been recognised as OGSE companies,” he said.

-- BERNAMA


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