KUALA LUMPUR, June 8 \u2013 Petroliam Nasional Bhd (PETRONAS) is set to reduce its workforce by 10 percent, affecting approximately 5,000 employees, as part of a major restructuring initiative to address operational challenges driven by declining global oil prices.<\/p>\n
Group President and CEO Tan Sri Tengku Muhammad Taufik Tengku Aziz announced the plan during a media briefing on Thursday, stating that affected staff will be notified in stages throughout next year.<\/p>\n
\u201cPETRONAS 2.0 will be managed differently, operated differently, and will feature new workflows. To achieve this transformation, we need to streamline our processes,\u201d he explained.<\/p>\n
The move comes as PETRONAS targets a leaner and more agile operational structure despite oil prices briefly hitting US$100 per barrel. However, global benchmark Brent crude has since dropped to around US$65 per barrel, a 13% decline this year, largely due to trade tensions and production adjustments by OPEC+.<\/p>\n
Tengku Muhammad Taufik noted that profit margins have already declined. Previously, when oil fields were larger, PETRONAS maintained pre-tax profit margins of 35\u201340%. Currently, that margin has dropped to 25\u201338%, with projections suggesting further reductions.<\/p>\n
\u201cAs oil fields become smaller, the PETRONAS 2.0 initiative is essential to transform the company into a commercially driven and globally competitive organization,\u201d he said.<\/p>\n
PETRONAS’ current capital expenditure is based on an assumed Brent crude price of US$75\u201380 per barrel, although the market is now trading well below that range.<\/p>\n
For the financial year ending December 31, 2024, PETRONAS reported a net profit of RM55.1 billion, a 31.7% decrease from RM80.7 billion the previous year, largely due to lower average realized prices and tax adjustments in 2023.<\/p>\n
PETROS Partnership Discussions Ongoing
\nMeanwhile, regarding operations in Sarawak, Tengku Muhammad Taufik reaffirmed PETRONAS\u2019 openness to ongoing discussions with Petroleum Sarawak Bhd (PETROS).<\/p>\n
On May 21, Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Tun Openg signed a Joint Declaration affirming PETRONAS\u2019 continued responsibilities under the Petroleum Development Act 1974 (PDA 1974) and related regulations.<\/p>\n
The Prime Minister’s Office (PMO) stated that both federal and state governments have agreed on basic principles to facilitate further negotiations between PETRONAS and PETROS.<\/p>\n
Under the declaration, PETROS will be formally appointed as Sarawak\u2019s gas aggregator effective March 1, 2025. Both PETRONAS and PETROS will also engage in discussions to explore expanded business collaborations to support Sarawak\u2019s gas needs in various regions.<\/p>\n
The move signals a new chapter in federal-state energy cooperation, aimed at enhancing the long-term development of Malaysia\u2019s oil and gas industry.<\/p>\n
-MelakaDaily.my<\/p>\n","protected":false},"excerpt":{"rendered":"
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