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KUALA LUMPUR: Petroliam Nasional Bhd expects the oil and gas industry to remain challenging next year amid a backdrop of global economic slowdown, geopolitical upheaval and prolonged trade tensions.

Petronas vice president of group procurement Liza Mustapha said the oil and gas giant maintained a prudent view and would continue to respond cautiously to the unpredictable landscape.

Petronas also encouraged partners to be conscious in managing costs, implement activity levelling to sustain offshore activities and pursue innovative solutions in unlocking value in the supply chain, she said in its Petronas Activity Outlook for 2020-2022.

"Industry players need to look beyond cost savings, as managing costs has its limit.

“Industry players need to embrace innovation, technology and digitalisation, which can bring bigger benefits over a longer horizon to enhance competitiveness, speed, accuracy, agility and ultimately resiliency.

"The industry also needs to forge stronger partnerships that would ultimately enrich lives for a sustainable future,” Liza said.

However, Petronas foresaw a steady outlook for drilling, production support, marine vessels and decommissioning activities.

"The abundance of investment opportunities in Malaysian waters with a portfolio of projects coming onstream in the future depicts a healthy outlook," it said.

For downstream, there is a positive outlook for turnaround and maintenance activities, it added.

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