Analysts expect Petronas Activity Outlook 2020-2022 will help upstream activity levels in the oil and gas industry to stay elevated from 2019 levels with some of them set to surge.

Biggest rise in activities would come from offshore fabrications, especially for wellhead platforms (WHP), which almost saw a doubling in number of projects and marine vessels, which will see aa rise in demand for anchor handling tug supply (AHTS), platform supply vessels (PSVs), straight supply vessels (SSVs) and other forms of support vessels.

Kenanga Research in a recent note said among biggest winners from Petronas’ Activity Outlook includes fabricators like Sapura Energy Bhd and Malaysia Marine and Heavy Engineering Holdings which will see a surge in numbers of WHPs.

Rise in activities would also come from maintenance, construction and modification, which is expected to see a peak in man-hours for 2020 despite a strong year in 2019. Other activities are in supply of marine and supply vessels.

Kenanga Research said most of the other value chains are expected to see maintained activity levels as in 2019. Notably, drilling – jack-up demand to remain at approximately 16 rigs, hook-up and commissioning flattish at approximately 4.6mil man-hours and decommissioning – is expected to see a slight dip in number of wells for 2020, before a surge in 2021.

All in, the research house maintain ‘neutral’ on the oil and gas sector, given limited upsides on large-cap Petronas-related counters.

Sources: Linkedin Azlan Abu Bakar