PETRONAS Activity Outlook 2021-2023 PETRONAS Activity Outlook 2021-2023 1 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. PETRONAS Activity Outlook 2021-2023 Our story The New Normal The industry needs to brace itself against the dual impact of a low oil price environment combined with the COVID-19 pandemic. We must remain resilient and ready to respond to disruptions as we adapt to what is now regarded as “the new normal”. The year 2020 ushered in a “great reset” for the oil and gas sector given the acceleration of the energy transition. With the rise in renewable energy, industry players must continue to acquire new capabilities and knowledge through digital and analytics, technology adoption, and creative partnerships to unlock new opportunities and move ahead with courage into a sustainable future. 2 PETRONAS Activity Outlook 2021-2023 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. Cautionary Statement This report was developed based on currently available information from internal and external sources. PETRONAS believes that the expectations of its Management as reflected by such forward-looking statements are reasonable based on information currently available to it. PETRONAS makes no representation on the accuracy or completeness of any information provided in this report and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents. PETRONAS undertakes no obligation to update or revise any of them, whether as a result of new information, future developments or otherwise. Accordingly, readers are cautioned not to place undue reliance on the forward- looking statements, which speak only as of the date they were made. Images are for illustrative purposes only. Released in December 2020. PETRONAS Activity Outlook 2021-2023 3 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. Table of Contents 16 10 - Industry Overview 27 In the Spotlight • Hello, New Energy • Levelling up With Digital and Technology • Going Green 6 A Great Reset 28 - 35 Business Overview • Upstream • Gas and New Energy 8 • Downstream Shifting Norms 4 PETRONAS Activity Outlook 2021-2023 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. 63 - 71 Contracts 36 Outlook - 62 Activity Outlook • Methodology • Quick Reference for 2021 • Subsurface 72 - Drilling Rigs and Hydraulic Workover Units List of • Engineering, Construction Abbreviations and Projects - Offshore Fabrication - Offshore Installation - Hook-up and Commissioning 74 - Decommissioning • Equipment and Material Glossary - Supply of Linepipes • General Facilities and Maintenance - Offshore Maintenance, 77 Construction and Modification - Underwater Services Frequently - Plant Turnaround Asked • Logistics Questions - Marine Vessels (FAQs) • Chemical • Indirect • Digital and ICT 78 More on PETRONAS PETRONAS Activity Outlook 2021-2023 5 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. A Great Reset President and Group Chief Executive Officer PETRONAS Imbak Canyon Conservation Area, Sabah 6 PETRONAS Activity Outlook 2021-2023 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. Esteemed partners, We are pleased to present this year’s edition of the PETRONAS Activity Outlook, covering insights for the industry and demand outlook from 2021 to 2023. The outlook for the industry remains challenging due to emerging fresh waves in the number of COVID-19 cases and prevailing uncertainties over OPEC+ production cuts in 2021. The effects of the pandemic are difficult to estimate, while their impact cannot be overstated as the industry continues to face the dual impact of demand destruction combined with an oil price rout due to the supply glut. Therefore, we believe the industry is now contending with a Great Reset. This is an undeniable and unavoidable imperative, requiring immediate reforms along the whole value chain. Collectively, as an industry, we must step up from doing business as usual and compel innovation at all levels - implementing new ways of working with focused execution at pace. Against this backdrop, PETRONAS has undertaken purposeful measures to strengthen our resilience and steer the organisation towards a path to recovery. We are committed to being relentless in our pursuit of becoming a more cost-efficient producer. At the same time, we have little choice but to continue taking steps to further de-risk our investments, focusing on areas of our business that will both deliver quicker cash returns and are less volatile, as well as to embark into more innovative solutions while pivoting our portfolio. This will all be centred around evolving into a stronger, more customer-centric workforce, committed towards the pursuit of our growth strategies. The measured steps taken also demonstrate our stronger commitment to Sustainability as we take cognisance of the acceleration of the global energy transition, heightened by stakeholder expectations and its vast opportunities. Built on PETRONAS’ desire to drive a fundamental shift in the way energy is produced, we announced our aspiration to achieve net zero carbon emissions by 2050 as part of our holistic approach to Sustainability that balances Environment, Social and Governance (ESG) considerations across our value chain. With this target, PETRONAS intends to continue intensifying efforts towards reducing Scope 1 and Scope 2 greenhouse gas (GHG) emissions from our assets through continuous improvements in operational excellence, and by deploying innovative operations and technologies. Together with these efforts, the Group will also pursue new avenues of revenue creation via investments in nature-based solutions as well as establish greater accessibility to cleaner energy solutions. As an industry that is vulnerable to cyclical swings, I believe that we should never waste a crisis. The challenges we face today must be seen as an opportunity to shift towards greater digitalisation and for companies to make the switch in providing greater technology-driven solutions. Digital tools present valuable opportunities to realise significant improvements in planning, operational efficiencies and optimisation of resources - all of which are critical elements in order to remain resilient amid ever-intensifying global competition. Inevitably, companies within this industry must continue to drive the next wave of operational effectiveness through technology such as automation and robotics to unlock value and deliver sustainable solutions for our industry. Arguably, the most important facet of all is that as an industry that inherently contends with many risks, we must reinforce and strengthen our commitment to undertake proactive, effective hazard and risk assessments in our day to day work. It is our shared responsibility to create a conducive and safe working environment where preventive health and safety measures are enforced to ensure that our employees, customers and contractors can keep each other safe. As the industry continues to navigate challenging market conditions and sets its sights on increasingly daunting targets, I wish to take this opportunity to reiterate there can be no compromises where safety is concerned. On behalf of PETRONAS, we look forward to building on the strong partnership with our industry partners for the shared prosperity of the country and the industry. Tengku Muhammad Taufik President and Group Chief Executive Officer PETRONAS PETRONAS Activity Outlook 2021-2023 7 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. Shifting Norms Vice President, Group Procurement PETRONAS 8 PETRONAS Activity Outlook 2021-2023 PETRONAS expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of this report. Dear Partners, The current crisis presents us with the need to remain resilient and agile, taking decisive measures in weathering the market volatility and energy transition. On this note, PETRONAS has taken measures to optimise production to preserve its integrated value chain, exercise tighter fiscal discipline and continue to drive down costs to mitigate the negative impact to its profitability and liquidity. All facets of the ecosystem must react, and it is imperative for industry players to adapt and embrace the new normal. Working with tighter margins require industry players to shift the norms, and embrace digitalisation, technology advancement and creative partnership to unlock opportunities. Industry players are encouraged to be cognisant of opportunities in renewable energy and for oil and gas players to diversify and acquire new capabilities in enhancing the industry’s competitiveness and agility, as well as to sustain relevancy. We will continuously collaborate with industry players and move forward in achieving this intent. As shared in our previous editions, we have embarked on various transformation and industry initiatives. New developments and changes in our procurement system as well as industry initiatives are shared through our “Be Our Partner” page in the PETRONAS website. PETRONAS is committed