PETRONAS CEO Tengku Tan Sri Muhammad Taufik exposed gloomy prospects for the national oil company, even going to the point of saying they must choose the bitter pill or get a defined shelf life.
He said Petronas is undergoing a rightsizing initiative to ensure its long-term sustainability and continued contributions to ‘nation-building’.
“Petronas is a national oil company but it has always operated as an international oil company. And our competitors have made such tough decisions as well,” he said at an editors’ briefing here yesterday (Feb 7).
“The current margin projections could even go down to 16% to 18%,” he warned. “Petronas has to decide if it’s going to remain relevant, not only at home but also in the markets it operates in and continues to invest in.”
The company, which currently has 52,000 employees, is responding to global oil and gas sector challenges, including shrinking profit margins that have dropped from 40% to 45% to around 16% to 18%.
“We can’t have a workforce that is not suited to carry out those agile package solutions that the markets are asking for now (involving) affordable, secure and more sustainable energy,” he added.
To stay competitive and relevant both locally and internationally, Petronas is aligning its workforce with market demands particularly in green energy and renewables.
The restructuring process, set for completion by the end of 2025, is being carried out with careful planning and affected employees will receive necessary assistance. Petronas remains committed to fulfilling its mandate under the Petroleum Development Act 1974 while ensuring productivity, innovation and sustainability.
Hence, Tengku Muhammad Taufik stressed that without “the bitter pill action, there will be a defined shelf life for Petronas.” — Feb 8, 2025
