KUALA LUMPUR (May 18): The financial status of oil and gas firms is likely to improve, particularly with the commitment of capital expenditure and projects by oil producers, thus reducing losses suffered, said the Malaysian Oil, Gas and Energy Services Council president Syed Saggaf Syed Ahmad.

Citing an analysis of 34 oil and gas companies on the Malaysian stock exchange, he said the total loss was successfully reduced by approximately 60% in 2022 to RM2 billion from RM6 billion in 2021.

“Close and transparent communication has succeeded in overcoming several industry issues, especially related to market liquidity issues and better contract structuring,” he said in his keynote address during the 20th annual grand meeting held here recently.

However, Syed Saggaf acknowledged there is a large gap in terms of income among oil producers and industry players.

“We will continue to fight for the fate of oil and gas industry players in Malaysia and will also continue to play an important role in strengthening and realising a competitive oil, gas and energy ecosystem,” he said.

Syed Saggaf added that the association has now solidified its position as a prominent industry voice and will continue to strive and continue to bring industry issues to stakeholders.

“Within one year, many engagement sessions have been held with stakeholders, especially with Petronas, to present industry issues and pain points to ensure industry players can move forward in line with their aspirations to realise a healthy and sustainable business environment in Malaysia,” he said.