Based on the provided Petronas Energy Outlook, the near-term landscape for floating production units in Malaysia is limited, while significant opportunities exist for platform fabrication and broader industry efficiency initiatives.

Limited Near-Term FPSO Opportunities

The outlook identifies only two floating production, storage and offloading (FPSO) vessel requirements through 2028. These are for the Sepat field offshore Peninsular Malaysia, whose contract is already awarded, and the Kikeh field replacement project off Sabah, for which a final decision on deployment is pending. Both are scheduled for installation and hook-up in 2028. Petronas emphasizes a strategic shift towards optimizing the approximately 20 existing FPSO/FSO units, focusing on lifecycle performance, cost efficiency, and fit-for-purpose utilization to support marginal and deepwater field development.

Robust Platform Fabrication Pipeline

In contrast to floaters, fabrication yards have a substantial pipeline of fixed platform work. Over the next three years, 23 fixed platforms and one onshore facility are slated for award. The schedule includes multiple medium wellhead platforms (WHPs) each year from 2026 to 2028 across Sarawak, Sabah, and Peninsular Malaysia, alongside one light WHP in 2026 and one heavy WHP in 2028. Malaysian yards are expected to win the majority of these contracts.

Productivity and Efficiency Drives

Petronas is actively pushing for greater efficiency across the offshore sector. For fabrication yards, the Malaysia Yard Productivity Target (MYPT) aims for a 30% productivity improvement by 2030 through increased automation and reduced foreign manpower dependency, with agreements already signed with five major local fabricators. Separately, within the hook-up, modification, and maintenance sector, an initiative targets a 30% improvement by 2030 across six key trade disciplines, including welding, scaffolding, and electrical work.

Project Portfolio and Strategic Focus

The project portfolio through 2028 includes 10 projects under execution and 15 upcoming projects, encompassing marginal fields, late-life assets, and complex reservoirs that require innovative solutions. To sustain domestic production, Petronas will continue investing in exploration, deepwater development, and enhanced oil recovery, with resource optimization projects like Belud and Sepat supporting energy security. Internationally, the strategy focuses on monetizing high-value, low-carbon resources and expanding unconventional gas assets in Canada and Abu Dhabi to ensure long-term resilience and competitiveness in a low-price environment.