PETALING JAYA: Having suffered slow job flows this year, the guidance by Petroliam Nasional Bhd (Petronas) for a higher capital expenditure (capex) from 2022 onwards comes as good news to domestic oil and gas (O&G) players.
National oil producer Petronas is allocating an average annual capex of RM20bil in upstream activities in 2022-2027, with 60% of the allocation benefiting the domestic upstream space.
As most of the local names in the O&G industry are equipment or service providers to Petronas, the higher capex allocation and the resulting recovery in industry activities should help boost domestic O&G players’ earnings profile.
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