Petronas Initiates Productivity Review Amid Revenue Challenges

Kuala Lumpur, The Gulf Observer: Petroliam Nasional Bhd (Petronas), Malaysia’s national oil company, has announced a comprehensive review of its productivity aimed at optimizing its operations, addressing inefficiencies, and focusing on initiatives that yield measurable value.

This initiative aligns with Petronas’ ongoing commitment to advancing its energy transition strategy while ensuring continuous operational improvements. The company aims to enhance its agility in commercial operations, bolster cost-efficiency, and remain competitive within the dynamic global energy sector.

“In discharging its mandate as enshrined under the Petroleum Development Act (PDA) 1974, Petronas remains fully committed to continue creating value for its shareholders. To do so, it must ensure it can compete and thrive in an evolving energy sector landscape at home and on the global stage,” Petronas said in a statement to media.

The announcement comes in response to media reports suggesting the group might face a 30% revenue loss following the implementation of a new natural gas distribution formula in Sarawak. While the details of the agreement remain undisclosed, the report highlighted potential implications for the company’s workforce as Petronas navigates the associated challenges.

As the sole Malaysian company listed on the Global Fortune 500, Petronas emphasized its commitment to balancing shareholder value creation with the realities of a transforming energy landscape.

The company reiterated its resolve to adapt to market changes and continue delivering value despite the pressures stemming from the gas distribution agreement. Further updates regarding its workforce and operational adjustments are anticipated as the review progresses.