In its activity outlook report for 2022-2024, released on Tuesday, Petronas said: “The path towards sustained oil demand recovery remains fragile and uncertain due to the emergence of new Covid-19 variants that trigger fresh waves of lockdowns.”

It said industry players were optimistic about economic recovery but remained cautious. “The smarter approach would be to strengthen efforts collectively and be ready to face oil price volatility,” it said.

After 2024, Petronas said, it foresees a positive outlook for drilling rigs activity while continuing to enhance and upgrade capability.

It also expects a steady outlook for fabrication of fixed structures and subsea facilities as it continues efforts to monetise its oil and gas resources.

Liquefied natural gas spot prices were expected to be volatile in the coming years because of the weather pattern and potential policy changes that can alter supply-demand dynamics, it said.