Kuala Lumpur: The domestic oil and gas services and equipment (OGSE) sector is set for continued growth as Malaysia accelerates its energy transition, as outlined in the National Energy Transition Roadmap (NETR).

According to BERNAMA News Agency, Malaysian Oil, Gas and Energy Services Council (MOGSC) president Syed Saggaf Syed Ahmad stated that the OGSE sector remains relevant as its services are still necessary to support carbon capture and storage (CCS) projects, even amid the growing focus on clean energy. He remarked, “The OGSE sector is ready to support the national energy transition agenda, and industry players have already participated in Petronas’ CCS Kasawari construction,” following a panel session titled ‘Decarbonising Malaysia’ at the Energy Asia 2025 conference.

Syed Saggaf emphasized that ongoing CCS projects, such as the Kasawari project in Sarawak, continue to rely on the existing oil and gas (O and G) ecosystem. He explained, “When we talk about energy transition, it is the same ecosystem, the OGSE sector, that will drive it forward. This transition is not about starting from scratch. It must be carried out by the current ecosystem because we cannot afford to reinvent the wheel.”

However, he acknowledged that small and medium enterprises (SMEs) within the OGSE ecosystem face challenges in adopting environmental, social and governance (ESG) principles. Around 80 percent of companies in the O and G ecosystem are SMEs, many of which have varying levels of understanding of sustainability practices, making it difficult for all to immediately align with the energy transition agenda.

Syed Saggaf noted that the MOGSC is actively working to ensure that these companies understand the ESG journey. He mentioned, “For instance, we are collaborating with Petronas, which has several programmes that can be rolled out to SME companies, helping them move forward collectively on the ESG path.”