Kuala Lumpur, 30 January 2026 – Malaysia’s national energy company Petroliam Nasional Berhad (PETRONAS) is signalling an uneven but targeted recovery in oil and gas (O&G) activity in 2026, with certain subsegments expected to see improved momentum even as overall capital spending remains relatively constrained this year.
According to the company’s Activity Outlook 2026–2028, industry participants in Malaysia should prepare for selective increases in demand across the O&G value chain, especially in areas tied to fabrication, production support and plant upkeep, rather than a broad-based capex surge.
Key Activity Trends for 2026
- Fabrication and FPSO demand: The outlook highlights a pickup in fabrication work for fixed structures such as wellhead and processing platforms, along with renewed activity in floating production, storage and offloading (FPSO) units, segments that support offshore production and midstream operations.
- Maintenance and plant services: Onshore downstream plant turnarounds, linepipe supply and gas turbine replacements are also expected to gather pace, indicating continued operational work even without a full capex rebound.
- Hook-up and commissioning: Installation, hook-up and commissioning services are projected to benefit from project execution cycles, offering opportunities for contractors oriented to technical services.
At the same time, the outlook notes relative softness in several other subsegments, including offshore support vessels, drilling rig utilisation, broader project works and production chemicals, areas that may face reduced headroom in 2026 if overall capex remains subdued.
Implications for Industry Players
Market analysts, citing the Activity Outlook, have identified several potential beneficiaries from these selective upticks, including fabrication and engineering firms, FPSO-oriented contractors and service providers involved in plant maintenance and specialised technical services. Conversely, companies tied to more cyclical drilling and rig support, such as offshore support vessel operators, could see softer demand this year.
The specialised nature of the expected activity reinforces a broader trend: O&G spending patterns in Malaysia are likely to favour execution and maintenance work over new large-scale offshore developments in 2026, even as Petronas and local partners seek to sustain core production and infrastructure reliability.
Longer-Term Outlook
Beyond 2026, Petronas’ wider Activity Outlook through 2028 emphasises enhancing the domestic O&G ecosystem, strengthening energy security and supporting the transition to lower-carbon solutions within its upstream, downstream and gas portfolios. This reflects a dual focus on keeping the industry competitive while navigating global market shifts and sustainability imperatives.
