117 ANNUAL REPORT 2022 STRATEGY & OUTLOOK BUSINESS REVIEW - OFFSHORE MARINE & MALAYSIA OPERATIONS REGULUS OFFSHORE GOALS & STRATEGIES GOALS • Maintain a strong utilisation rate. • Maintain an industry-leading safety and performance track record. • Create further value through synergistic merger opportunities. Strategies Short to medium-term (1 to 5 years) • Achieve strong utilisation rate through active client engagement. • Adopt industry best practises to meet safety and operational targets. • Streamline business and seek synergistic mergers for value creation. Long-term (6 to 10 years) • Establish industry-leading improvements in safety and performance processes. • Execute synergistic mergers for overall value creation of the Group. MARKET OVERVIEW Malaysia is one of the key oil & gas producers in the Asia Pacific region, with an average daily production of more than 1.7 million barrels of oil equivalent in 2018 and contributing around 20% of the Malaysia’s annual GDP. Correspondingly, the oil & gas, services and equipment (“OGSE”) industry contributes between 5% and 8% of the country’s GDP, with an annual revenue of more than RM65.1 billion from over 4,000 vendors and employing about 59,000 core talents in 2019. The oil & gas industry is mature in Malaysia, having served the global energy supply chain for over 40 years. In recent years, Malaysia’s oil & gas industry as a whole has been undergoing a significant transformation, with companies working to reshape their business models and implement strategies to bolster resilience amid evolving global circumstances. PETRONAS, Malaysia’s national oil company, has announced its aspiration to achieve net zero by 2050, spurring Malaysia’s energy supply chain to align their strategies accordingly. The National OGSE Industry Blueprint 2021-2030, released by the country’s Economic Planning Unit last year, outlines a roadmap to pivot the industry towards the energy transition. The Blueprint affirms the country’s aspirations to be at the forefront of the world’s transition to renewable forms of energy, while endeavouring to produce its oil & gas as cleanly as possible. In line with this, the FPSO sector in Malaysia provides moderate opportunities, with environmentallyfriendly FPSO designs prioritised. According to the PETRONAS Activity Outlook 2022 to 2024, over 300 new offshore platforms and 11,000km of pipeline are anticipated to be established in Malaysian waters over the next two years. This provides a healthy and stable market for Malaysia’s Offshore Support Vessel (“OSV”) segment in the near term, as OSV services are required for the construction and operation of offshore assets and infrastructure. Globally, the push for low-carbon power generation technology deployment is likely to augment growth of the global OSV market, with reports estimating the market to reach USD23.6 billion by 2028. The market size stood at USD13.8 billion in 2020. Malaysia’s cabotage policy, implemented in 1980 through the Merchant Shipping Ordinance 1952 continues to be a significant factor affecting the domestic marine industry. The policy, which prioritises Malaysian vessels for operations domestic shipping operations, aims to develop Malaysian ownership and local shipping in general, whilst reducing Malaysia’s dependence on foreign vessels and reducing the outflow of foreign exchange in the form of freight payments. YEAR IN REVIEW Malaysia operations update Our maiden Malaysian offshore production asset, FPSO Helang, started operating on 6 December 2019 at Block SK10, offshore Miri. The asset went into production after achieving a timely delivery, 19 months after contract signing. The FPSO has recorded a good operational performance since the start of operations, with average technical uptime of 99% (100% commercial uptime) recorded in FYE 2022. Safety-wise, we are pleased that FPSO Helang has performed well with FYE 2022 marking the asset’s second LTI-free year in a row and no major gas leaks or oil spills since the commencement of operations. As part of our early intervention measures to manage the Covid-19 pandemic, FPSO Helang was one of the first offshore facilities in Sarawak to implement mandatory antigen rapid testing followed by RT-PCR testing prior to boarding. The unit achieved 100% vaccination status by 25 September 2021, making it the first unit in Yinson fleet to mark this milestone. As mentioned above, PETRONAS is serious about its carbon goals, and has been cascading this down to the oil & gas RO
RkJQdWJsaXNoZXIy NDgzMzc=