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HENGYUAN REFINING COMPANY BERHAD I 39

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According to mIDF Research,
the oil and gas industry 2021 OIL AND gAS SECTOR TRENDS
demand recovery remains Pivoting to the new energy future could be tough and may require
fragile as new COvID-19 cases companies to make bold choices. The following lists important signposts
surge while oil supply is for O&G companies in deciding their strategy and direction in 2021:
expected to remain in excess • Reduction of operating costs
going into the first half of 2021. • Maintaining agility and flexibility in operations
Brent crude price is expected • Acceleration of digital transformation
• Optimising capital allocation for clean energy transition plans
to average at USD51 / bbl • Changes in end-use demand patterns and supply composition
next year. • The rise of environmental, socially responsible and impact-focused
investing
• An adoption of new talent strategies to succeed in the future of work
As fresh sets of lockdowns in several • Consolidation in a low-priced environment
countries continue to derail demand
recovery, MIDF Research anticipates that Source: Deloitte oil and gas industry outlook
major recovery can only begin in the
second half of 2021, should the
pandemic be well-contained worldwide For HRC, 2020 was a year of responding to unprecedented challenges. The next
and vaccination programmes launched. few years will be focused on completing the construction of our key projects
The industry is expecting the Organisation while harvesting profits and benefits, and fine-tuning the business. Further in
of the Petroleum Exporting Countries the future, sustainable energy remains a key agenda. HRC will stay committed
Plus allies (Opec+) to continue restricting to the long-term and stable supply of refined products and continue to realise its
supplies into 2021 to help stabilise oil vision of focusing on petrochemicals and new energy solutions.
price while demand gradually recovers to As we move into 2021, our key focus will be on the following areas:
pre-COVID-19 levels.
1. Personal and Process Safety. Avoid any injuries or process safety incidents by
All in all, MIDF Research is maintaining continuously enhancing a proactive safety culture.
its ‘neutral’ stance on the sector for the
upstream and downstream sub-segments, 2. Asset Reliability. We aim to put significant effort to improve refinery
given that the sector will continue to be availability.
susceptible to the on-going development 3. major Projects Completion. Complete all on-going major projects
of the pandemic. successfully according to the planned schedule, and work towards starting up
Both upstream oil producers and oil and the plants seamlessly.
gas service providers will also have to 4. values, Costs and Profitability. Work with our values and to assure
balance future growth and business the best interest for HRC. We are cultivating a cost-conscious mindset
sustainability while they navigate through and will continue to challenge, develop and improve current work processes
the current adverse operating environment as well as to find ways to improve plant profitability.
going into 2021.
5. Competencies. Improve our competencies to meet the refinery’s operational
Where opportunities are concerned for needs. We are targeting to be equipped with relevant knowledge and to
the domestic market, the outlook for the keep upgrading our skills. Succession planning, experience and information
oil market will depend on the efforts of sharing with team members are the other main focus areas.
the Government to contain the COVID-19
pandemic and government spending to
boost local economic activities.