Serba Dinamik Annual Report 2019

99 (Source: PETRONAS) (Source: Bank Negara Malaysia) (Source: Bank Negara Malaysia) For FYE2019, Malaysia remained our largest market in terms of revenue contribution, accounting for 29% of our total revenue where a substantial proportion of this revenue was generated from the oil and gas industry. As such, developments in the oil and gas industry in Malaysia will have an impact on our business. PERFORMANCEOF THEUPSTREAMOIL ANDGAS SECTOR IN MALAYSIA All of the existing producing oil and gas fields in Malaysia are located offshore. As at October 2019, Malaysia’s upstream oil and gas sector is supported by: 353 offshore platforms and 14 subsea structures; 726 units of rotating equipment comprising 258 compressors, 187 pumps and 281 power generators; 13 onshore crude and gas terminals; and 16 floating facilities comprising seven floating production storage and offload, eight floating storage and offload, and one floating LNG vessels. Figure 4-3: Some of Malaysia’s Upstream Facilities Figure 4-4: Local Production of Crude Oil and Condensate Figure 4-5: Local Production of Natural Gas 2015 -2019 CAGR = 2.0% • 2017 -2019 CAGR = 4.3% 2015 -2019 CAGR = 1.9% • 2017 -2019 CAGR = 1.3% As we service the upstream sector of the oil and gas industry in Malaysia, all these facilities, machinery and equipment used in production will need to be continually maintained, which will provide us with the basis for business sustainability and growth. Production output of crude oil and gas would indicate activities in the upstream sector of the oil and gas industry in Malaysia. Production of crude oil and condensates decrease by an annual average rate of 2.0%, whereas local production of natural gas grew at a CAGR of 1.9% between 2015 and 2019. The decline in crude oil production was due to construction constraints and voluntary supply reduction by PETRONAS from 2017 to 2019. 367 platforms and subsea structures 726 rotating equipment 13 onshore crude oil and gas terminals 16 production, storage and offload vessels 0 4 4 . 3 M A L A Y S I A O I L A N D G A S I N D U S T R Y Barrels Per Day (’000) Growth Rates (%) 2019 2018 2015 2016 2017 604.5 660.4 654.2 666.5 652.8 -7.4% -0.9% -1.1% 8.5% 1.9% Growth Rate Crude Oil and Condensates Production Standard Cubic Feet Per Day (Billion) Growth Rates (%) 2019 2018 2015 2016 2017 6.6 6.8 6.1 6.5 6.4 3.4% 4.0% -5.8% -3.1% 6.5% Growth Rate Natural Gas Production C H A P T E R