PETALING JAYA: The recovery in the oil and gas (O&G) sector is likely to be slow as the demand and supply situation remains unstable.
O&G activity level in Malaysia is expected to stagnate this year as most of the value chains are expected to see flattish or lower activity levels in 2021 from last year, according to Kenanga Research.
“This somewhat downplays the possibility of a recovery to pre-pandemic activity levels during the year, amid Petroliam Nasional Bhd’s (Petronas) increased prudence in spending given its dwindling net-cash position, coupled with increased tax and dividend commitments, ” it said in a report yesterday.
Referring to the Petronas Activity Outlook 2021-2023 report, Kenanga said while there is no clear winner, it expected that the players in the brownfield sector would benefit from the increased activities across various value-chains.
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