PETRONAS has released its PETRONAS Activity Outlook 2026-2028, providing Malaysia’s oil and gas services and equipment (OGSE) industry insights into forecasted activities across its Upstream, Downstream, Gas & Maritime businesses for Malaysian operations. The outlook is intended to aid industry planning and readiness over the next three years, as PETRONAS continues to strengthen energy security, enhance delivery performance and support Malaysia’s energy transition agenda.
Amid rapidly evolving market conditions, technological disruption and decarbonisation imperatives, the Activity Outlook 2026-2028 reflects PETRONAS’ dual focus on strengthening operational competitiveness and resilience while developing Malaysia’s energy ecosystem for long-term sustainability. PETRONAS will continue supporting platforms, mechanism and conditions that enable Malaysian OGSE companies to build sustainable competitive advantage even as we progress towards becoming an integrated energy company serving the world’s energy and solutions needs safely, reliably and sustainably by 2035.
'The Activity Outlook provides strategic visibility to support long-term industry capability planning and readiness,' said Vice President of Group Procurement, Rashidah Alias. 'PETRONAS remains committed to delivering reliable and progressive lower-carbon energy solutions, while strengthening the OGSE ecosystem as a strategic imperative. With the right technology access, capability development collaborations, and structured pathways for Malaysian companies to advance from domestic excellence to regional competitiveness, we are building an ecosystem capable of securing Malaysia’s energy future while positioning Malaysian industrial capabilities for global readiness.'
In Upstream, as energy security becomes paramount, PETRONAS aims to sustain domestic production at approximately two million barrels of oil equivalent per day (MMboe/d) through continued investment in exploration, deepwater development and enhanced oil recovery. Resource optimisation projects from producing assets such as Belud, Sepat and Kurma Manis continue to play a critical role in supporting Malaysia’s energy security, creating sustained demand for technical services and innovative solutions from OGSE partners. At the same time, decarbonisation initiatives under the BIGST (Bujang, Inas, Guling, Sepat and Tujoh) cluster, are progressing to advance PETRONAS’ Net Zero Carbon Emissions by 2050 pathway, enabling lower-carbon operations in Peninsular Malaysia.
Given anticipated margin pressure and persistent volatility in its Downstream segment, PETRONAS will prioritise operational excellence, supply chain resilience and product diversification, while deepening its expansion in specialty chemicals and biofuels, with a biorefinery targeted to commence operations in the second half of 2028. The outlook also highlights product innovations such as thermal intelligent fluids PETRONAS Iona for electric vehicles and Iona Tera for data centre cooling, designed to meet evolving customer needs amid the global shift towards sustainability.
For Gas & Maritime, in support of the Group’s advocacy of gas as a key transition fuel, PETRONAS will continue to ensure reliable supply of natural gas and LNG, while improving efficiency and reducing emissions across its operations. Key priorities include fleet rejuvenation, investments in lower-emission shipping solutions and continued development of its LNG portfolio and regasification capacity to support Malaysia’s evolving energy needs.
The outlook also highlights progress under PETRONAS’ cleaner energy solutions, with Gentari having achieved more than 8.5 gigawatts of global renewable energy capacity and matured 175 kilotonnes per annum of clean hydrogen opportunities. PETRONAS energy transition initiatives are being structured to systematically develop Malaysian OGSE competencies in emerging domains – from carbon capture and storage to renewable energy infrastructure, positioning the domestic industry for participation in high-growth markets beyond traditional oil and gas.
The developments outlined in the Activity Outlook 2026-2028 are structured to enable OGSE companies to advance from executing established scopes to co-developing solutions for emerging technical challenges, with PETRONAS providing technology access, capability-building partnerships, and pathways to regional and international markets.
To download a digital copy of the PETRONAS Activity Outlook 2026-2028, click the link below:
PETRONAS Activity Outlook 2026-2028.pdf
Source: PETRONAS
