PETRONAS Unveils Dual Initiatives to Strengthen Malaysia's Oil & Gas Sector

Kuala Lumpur, 25 October 2024 – PETRONAS, through Malaysia Petroleum Management (MPM), announced two initiatives aimed at bolstering the robustness of the local oil and gas sector, namely the introduction of the Integrated Well Continuity Services contract and the planned establishment of the MPM Hydraulic Workover Unit Academy.

The first initiative, the Integrated Well Continuity Services (IWCS) contract was designed to address the challenges posed by rising cost and dynamic market conditions. The IWCS introduces a more balanced approach to cost and margins management compared with an earlier iteration known as the Integrated Well Services (IWS) model.

The implementation of IWCS adopts a comprehensive contracting strategy, segmenting the work into four primary packages and 13 sub-packages covering critical areas such as well interventions, well abandonment and workover, as well as subsea intervention services.

Following a thorough and rigorous technical evaluation process, 34 qualified panel contractors were selected to deliver the work. This new approach is expected to foster equitable and effective collaboration in engineering projects for wells.

The second initiative paves the way for the establishment of the MPM Hydraulic Workover Unit (HWU) Academy through a Memorandum of Understanding between PETRONAS, and both local and international HWU service providers.

Expected to be launched in 2025, the Academy will play a pivotal role in developing specialised skills in well abandonment and workover. This initiative aims to empower a capable workforce for the sustainable growth of the local oil and gas industry.

Senior Vice President of MPM, Datuk Ir. Bacho Pilong, said “The IWCS contract is a major leap in our wells management strategy, focusing on resource optimisation and job continuity. In addition, the MPM HWU Academy will be essential in strengthening local expertise to future proof the sector.

“PETRONAS continues to prioritise initiatives such as the IWCS contract and the MPM HWU Academy to enhance operational effectiveness and foster collaboration across the industry. These efforts will contribute to strategically positioning Malaysia more competitively in the global energy market,” he added.

PETRONAS remains steadfast in its commitment to ensure an optimal and sustainable supply of oil and gas for energy security, with MPM playing a crucial role in managing petroleum arrangements and providing stewardship for upstream petroleum activities in Malaysia. For more information on investment opportunities in Malaysia, please visit https://www.petronas.com/mpm/.