The Time is Now for OGSE Co’s to Embrace Sustainability

KUALA LUMPUR, NOVEMBER 2022: Oil & gas services and equipment (OGSE) companies must embrace the sustainability agenda or risk being left behind as governments and oil majors embark on net zero carbon policies.

“The Government has already introduced and is continuing to develop new policies to support the UN 2030 Agenda for Sustainable Development (2030 Agenda).

“Among these are the forthcoming Long- Term Low Emissions Development Strategy (LT-LEDS), led by the Ministry of Environment and Water (KASA) while EPU’s recently-launched National Energy Policy 2022-2040 featured the Low Carbon Nation Aspiration 2040. PETRONAS has also shared the short term and 2030 mid-terms GHG targets and energy sector decarbonisation business opportunities leading to Net Zero Carbon Emissions by 2050.

“It is clear that OGSE companies have no time to waste in embracing and incorporating sustainability practices, focusing on climate action, into their business strategy in line with the energy transition. Environmental, social and corporate governance (ESG) compliance will also assist OGSE companies in improving their competitiveness,” says Datuk Yatimah Sarjiman, Deputy Director General (Sectoral), Economic Planning Unit.

Datuk Yatimah was delivering the keynote address at Malaysia Petroleum Resources Corporation’s (MPRC) National OGSE Sustainability Forum 2022.

Themed Positioning OGSE Sector in Driving Energy Transition and Economic Sustainability, the forum also saw the introduction of the National OGSE Sustainability Plans (NOSP), which MPRC developed in September this year.

Mohd Yazid Ja’afar, President/CEO of MPRC, an agency under the supervision of the EPU, says, “The NOSP was produced through rigorous analysis of the sustainability landscape globally, regionally and in Malaysia. We then studied sustainability trends among Malaysia’s top 100 OGSE companies by revenue, from a list curated and analysed by MPRC every year, known as the OGSE100.

“We then engaged with OGSE ecosystem stakeholders including Ministries and government agencies, PETRONAS, Shell, industry associations and OGSE companies through interviews, surveys, and workshops. These engagements provided us with a deeper understanding of the issues and challenges faced by the OGSE sector to explore initial opportunities for the sector to comply with sustainability requirements through 11 recommendations presented in the NOSP.”

The NOSP will further be used as a basis for MPRC to commence the establishment of the National OGSE Sustainability Roadmap in 2023, followed by the introduction of the National OGSE Sustainability Framework in 2024, Mohd Yazid adds.

Now in its second annual instalment, the National OGSE Sustainability Forum 2022 brought together close to 300 participants from the OGSE sector, government agencies as well as sustainability experts from the energy, capital market and financial industries.

The event featured speaking sessions on opportunities and challenges in adopting sustainability among OGSE players. Six exhibitors from financial institutions were also present to promote pathways to sustainability financing for OGSE companies.