By DayakDaily Team
KUCHING, June 6: Petroliam Nasional Bhd (PETRONAS) is undertaking a right-sizing exercise affecting approximately 5,000 employees — about 10 per cent of its total workforce — as part of efforts to adapt to increasingly challenging industry conditions, particularly due to falling crude oil prices.
According to a report by The Edge Malaysia today, Prime Minister Datuk Seri Anwar Ibrahim briefly stated that the workforce reduction is a strategic move, with the majority of the affected positions being contract roles.
PETRONAS president and Group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said those impacted by the exercise will be notified in stages beginning next year.
“PETRONAS 2.0 will be run differently, organised differently, with different work processes. To move towards that, we have to correct the current workflows,” he said during a media briefing in Kuala Lumpur on Thursday (June 4).
He stressed that the company’s transformation is aimed at achieving a leaner and more agile structure, regardless of oil price volatility — even if crude hits US$100 (RM423) per barrel.
“There’s a logic and a set of assumptions that support this move. Historically, when the fields were easier, our profit before tax margins stood at 35 per cent to 40 per cent. Today, they’ve narrowed to between 25 per cent and 38 per cent — and will continue to shrink as fields mature and yield less.
“This means PETRONAS 2.0 must evolve into an organisation that monetises molecules competitively and commercially, both in Malaysia and internationally,” he explained.
The group has budgeted based on Brent crude averaging US$75 to US$80 per barrel, but prices have recently slipped to around US$65 — down about 13 per cent year-to-date — amid global trade tensions and rising output from Opec+.
For the financial year ended Dec 31, 2024, PETRONAS posted a net profit of RM55.1 billion, a 31.7 per cent decline from RM80.7 billion the previous year, driven by lower average realised prices and the absence of one-off tax adjustments seen in 2023.
On the ongoing federal-State negotiations over Sarawak’s oil and gas rights, Tengku Muhammad Taufik acknowledged continued uncertainties in PETRONAS’ dealings with Petroleum Sarawak Bhd (PETROS).
Nevertheless, he said the company remains open to further discussions.
This follows the signing of a Joint Declaration on May 21, 2025, by Anwar and Sarawak Premier Tan Sri Abang Johari Tun Openg. The agreement affirmed PETRONAS’ role under the Petroleum Development Act 1974 (PDA 1974), while laying the groundwork for enhanced cooperation with the Sarawak government.
The declaration also acknowledged both federal and Sarawak laws, recognises existing agreements, and outlines key principles to facilitate further negotiations between PETRONAS and PETROS.
Under the declaration, Sarawak has appointed PETROS as the State’s official gas aggregator effective March 1, 2025. PETRONAS and PETROS are expected to expand cooperation through discussions in meeting Sarawak’s gas requirements across several areas.
