Regulatory Non-Compliance and Its Limitations Towards Risk Minimisation in the Oil and Gas Industry

Abstract

The Piper Alpha Case, the Deepwater Horizon Case, and the Petronas Pengerang Integrated Complex Fire and Explosion are examples of undesirable occurrences in the oil and gas industry. These incidents frequently underscored the potential for extensive damage and losses that could result in injuries. Given the oil and gas industry's vast and critical nature, operational disruptions and events that jeopardise production were expected to be minimised at all times. Hence, this study aimed to identify the limitations of regulatory implementation in minimising risk impact within the Malaysian oil and gas industry. Initially, the risks of non-compliance with regulations in Malaysia's oil and gas industry were highlighted, followed by a discussion on the limitations of current regulations affecting overall performance. The findings identified and examined barriers to efficient risk management, such as non-standard regulations, communication issues, and technological changes. Understanding the key factors influencing regulatory non-compliance was beneficial for further assessing preventive actions and strategies to bring improvements to the practice.