"The reform of oil and gas industry should be undertaken to achieve the national goal, which is to develop the energy industry," IPA president Craig Steward said here on Wednesday.
He said the oil and gas industry has been under pressure in recent years because of the weakening global oil and gas prices.
The oil industry, according to Steward, must undertake major restructuring in operations and investment to manage the business so that the sector continues to perform even when the world oil prices drop.
In addition to low oil prices, he said, the oil and gas industry also suffered due to less than positive exploration results, a bureaucracy difficult to deal with, unclear regulations, difficulties in gas commercialization, too long project period, land acquisition related issues and criminal element that the sector has to deal with.
"Also, there are various other operational issues that make the industry less attractive and result in a fall in oil and gas production," Steward said.
According to him, the government has made significant efforts in tackling the problems in the last year, and the IPA will continue to work together with the government to ensure that effective reforms happen.
"The new Board of Directors of the IPA will continue to remain committed and play its role as the governments partner to reform the oil and gas industry," he said.
IPA director Sammy Hamzah hoped that the government would provide incentives for the oil and gas industry to encourage its development.
He also expected the next government to be more consistent in applying the rules to lend a sense of certainty in business and investment.(*)