Kuala Lumpur: Petroliam Nasional Bhd (Petronas) is set to cut 10 per cent of its workforce due to challenging operating conditions, primarily attributed to falling crude prices. The President and Group Chief Executive Officer, Tan Sri Tengku Muhammad Taufik Tengku Aziz, announced that approximately 5,000 employees would be affected by this right-sizing process, with notifications to be delivered in stages next year.
According to BERNAMA News Agency, Tengku Muhammad Taufik explained during a media briefing that Petronas 2.0 will undergo significant changes in its operation and organization. The aim is to establish lean and nimble operations, irrespective of oil prices reaching US$100 per barrel. Historical data shows that profit margins for Petronas have decreased from 35-40 per cent to 25-38 per cent, necessitating a transformation to a commercially competitive organization both domestically and internationally.
Petronas has projected its budget based on Brent crude prices ranging from US$75 to US$80 per barrel. However, the benchmark currently hovers near US$65, marking a 13 per cent decline this year due to global trade tensions and an increase in OPEC+ output. For the financial year ending December 31, 2024, Petronas reported a net profit of RM55.1 billion, a 31.7 per cent decrease from RM80.7 billion the previous year, attributed to lower average realized prices and favorable tax adjustments in 2023.
In relation to Petronas Petroleum Sarawak Bhd (Petros), Tengku Muhammad Taufik confirmed that discussions about Petronas’ role in the state remain ongoing. On May 21, 2025, a Joint Declaration was signed by Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Tun Openg, affirming Petronas’ continued responsibilities under the Petroleum Development Act 1974 and related regulations. The declaration emphasizes federal and state law recognition, existing agreement status, and the necessity for a cooperative framework.
The Sarawak state government has designated Petros as the gas aggregator effective March 1, 2025. Petronas and Petros are expected to engage in discussions aimed at expanding cooperation to fulfill Sarawak’s gas requirements across various areas.