PETRONAS introduces two initiatives to strengthen Malaysia’s oil and gas sector

PETRONAS, through Malaysia Petroleum Management (MPM), announced two initiatives aimed at strengthening the strength of the local oil and gas sector, namely the introduction of the Integrated Well Continuity Services contract and the planned establishment of the Academy of the MPM Hydraulic Reconditioning Unit.

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

The IWCS implementation adopts a global 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.

After a thorough and rigorous technical evaluation process, 34 qualified contractors were selected to carry out the work. This new approach is expected to foster equitable and effective collaboration on well engineering projects.

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

The Academy, scheduled to open in 2025, will play a key role in developing specialized skills in well abandonment and workover. The objective of this initiative is to train a capable workforce for the sustainable growth of the local oil and gas industry.

MPM Senior Vice President Datuk Ir. Bacho Pilong said: “The IWCS contract is a significant leap in our well management strategy, focused on resource optimization and work continuity. “In addition, the MPM HWU Academy will be essential in strengthening local expertise and preparing the sector for the future.”

The IWCS introduces a more balanced approach to cost and margin management compared to a previous iteration

“PETRONAS continues to prioritize initiatives such as the IWCS contract and the MPM HWU Academy to improve operational efficiency and foster collaboration across the sector. “These efforts will help strategically position Malaysia more competitively in the global energy market,” he added.

PETRONAS remains steadfast in its commitment to ensuring optimal and sustainable supply of oil and gas for energy security, and MPM plays a crucial role in managing oil deals and administering upstream oil activities in Malaysia.