35 ANNUAL REPORT 2024 FUTURE OUTLOOK AND PROSPECTS According to PETRONAS' Activity Outlook 2025-2027 Report, Malaysia’s upstream industry is experiencing a surge of investments with more than 80.0% of Malaysia’s offshore acreage awarded to PACs. To this end, PETRONAS remains steadfast in its target to grow and sustain Malaysia’s oil and gas production to 2 million barrels of oil equivalent per day (MMboe/d). For the next 2 years, approximately 15 exploration wells are forecasted to be drilled each year focusing on shallow water wells and deepwater wells. Apart from wells, exploration activities also include non-seismic, seismic and geological studies which are crucial for derisking and maturing of prospects. This, in turn, will create a cyclical impact, fostering the development of additional projects that benefit the entire ecosystem. Over the next 3 years, more than 400 wells are forecasted to be drilled and 39 upstream projects are expected to be executed. As a result, outlook for OSV in the next 3 years depicts a moderate requirement in 2025 with minor fluctuations in demand until 2027, which is reflective of the planned drilling, maintenance, construction and modification (“MCM”), HUC and T&I activities during that period. The expected combined number of AWBs and barges to support drilling and projects is 38 for 2025, with the majority of vessels required to support Drilling (Exploration and Development) and projects will be sourced via PAC’s panel contractor contract. Meanwhile, based on supply and demand analysis of OSVs in Malaysia, there will be a critical shortage of AHTS < 80MT beyond 2030, unless owners acquire new vessels. (Kindly refer to the following graph for illustration) LCT GPV/SBV Work Boat/ Work Barge PSV/SSV FCB AHTS>100MT AHTS<100MT 2024 2025 Vessels Supporting Drilling and Projects 0 50 100 150 200 250 No. of Vessels Supporting Drilling (Exploration and Development) and Projects 250 10 54 39 32 60 52 30 39 61 40 45 40 45 33 45 45 45 7 7 59 37 42 38 10 220 234 222 2026 2027 Contracted Not yet contracted UV (Source: PETRONAS' Activity Outlook 2025-2027 Report) In view of our market position as a panel contractor with PCSB and PACs, we are cautiously optimistic about our future prospects, supported by the outlook of the local upstream industry. To capitalise on such growing trend, we endeavour to ensuring that our fleet of vessels remains in good working condition, with optimal technical specifications to meet our customers’ requirements. MANAGEMENT DISCUSSION AND ANALYSIS (cont’d)
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