KUALA LUMPUR: Petroliam Nasional Bhd (Petronas), the national oil company, is undertaking a thorough review of its productivity to streamline operations, eliminate inefficiencies, and focus on activities that can provide measurable value. This move is aimed at supporting its energy transition strategy and ensuring continuous improvement in operational focus, commercial agility, and cost efficiency.

According to BERNAMA News Agency, Petronas stated that this initiative aligns with its commitment to fulfilling its obligations under the Petroleum Development Act (PDA) 1974, by continuing to create value for its shareholders. The company emphasized the importance of remaining competitive and thriving in the rapidly evolving energy sector, both domestically and globally.

Petronas’ announcement came in response to inquiries about a news report suggesting that the company could face a significant revenue loss of approximately 30 percent due to the implementation of a new natural gas distribution formula in Sarawak. Although details of the agreement have not been disclosed, the report indicated that Petronas, the only Malaysian company listed on the Global Fortune 500, might have to make difficult decisions regarding its workforce as a result of the distribution agreement.

By addressing these challenges, Petronas aims to maintain its position in the global energy market while adapting to changes in the industry landscape.