Could you introduce ABL to our international readers?

The ABL Group has four main pillars: ABL, representing the marine oil and gas consultancy; Longitude, our engineering arm; AGR, focused on multidisciplinary engineering, consultancy, and software for drilling and well management services; and OWC, our offshore consultancy firm focused on renewables. ABL, formerly recognized under various titles, is presently known as the ABL Group.

Each of the companies under the ABL umbrella brings its own legacy and subsidiaries, that we as a group tap into, leveraging multiple synergies. From being competitors in the past, we are now brothers, covering a bigger market globally and offering a fully integrated service. 

What role does Malaysia play within ABL’s APAC structure?

In APAC, ABL has a presence in Singapore (APAC HQ), China, Taiwan, Korea, Japan, Malaysia, Thailand, Indonesia, Vietnam, and Australia. The Malaysia office has a 30-year operating history in the country. Currently, we have an exceptional track-record in rig inspections and drilling planning services on the drilling side, with the rig moving services on the marine side for the oil and gas sector. On the maritime side, we cover ships' newbuilding construction supervision, modification, conversation and repairs of vessels, transportation, offshore installation, loss management, insurance, risk assessment surveys as well as on shipyards, etc. 

What are the main demand trends you note this year in the oil and gas space and to what extent do energy transition projects, including CCS or renewables, provide an opportunity for ABL?

The pandemic caused a downturn, but demand picked up by the end of 2022, and we have seen a continuous upward trend since. 2024 started strong and we are getting busier as the drilling activity recommenced across Southeast Asia. 

We also expect to see a boom in renewables. 2030 is only six years away, leaving a short timeframe to invest and execute projects that will allow Malaysia to meet its carbon commitments. Projects in carbon capture, floating solar, green hydrogen, and battery energy storage systems (BESS) are expected to grow in number and generate demand. Our strategy as a group is to generate half of our revenue from oil and gas and the other half from renewables, but we would need supporting regulation and all players aligning to net-zero ambitions.

How do you think Malaysia will progress in the energy transition?

Some people are skeptical about Malaysia’s ability to meet its net-zero goals by 2050. For now, companies are going all out to get most of the hydrocarbon existing before 2030. I do not believe the investment will drop from there on. The intensity will come down, and maybe the type of projects selected will be different, but I doubt the oil and gas sector will simply die. The involvement of governments is critical in defining a clear roadmap paving the way for this industry. The push is already there. Big companies in Malaysia have a strong renewables strategy in place, and they have already started executing rig decommissioning and well abandonment work. 

Could you elaborate on the risk management expertise you provide on the maritime side? How has the market evolved in the last year?

The maritime sector has seen multiple disruptions in the last few years, but the stress has eased now. New vessels entered the market, and China is building bigger and bigger ships, especially in the liquid bulk space (versus container ships). Disruptions in any part of the world cause ripple effects and more risks in other parts of the world, so ABL provides risk management, like audits of vessels to identify potential risks, including cyber security. We help underwriters and vessel owners to mitigate risk, which dictates the policy of the insurance. This year, we have seen a rise in requests to do assessments on shipyards. Vessels that had been sitting idle are being reactivated and require inspections. At the port level, most port authorities and operators undergo plans to make the ports greener. The EU awarded a 1.9 million euro grant to the two major port operators to assess Malaysia’s attractiveness in the maritime sector. There is truly a tremendous opportunity on the maritime side. A major oil and gas operator in Malaysia aims to build up to one hundred offshore support vessels within the next four years. Acquisitions are also driving demand for pre-purchase inspections and technical due diligence for the buyers.