Kuala Lumpur: Petroliam Nasional Bhd’s (Petronas) decision to reduce its workforce is attributed to global market challenges rather than issues with Petroleum Sarawak Bhd (Petros). Deputy Prime Minister Datuk Seri Fadillah Yusof emphasized that the restructuring is a strategic response to the drop in crude oil prices.

According to BERNAMA News Agency, Fadillah stated that the reassessment of Petronas’s operations is crucial, and he intends to meet with the company to gain further insight into the restructuring process. The goal of this meeting is to explore possibilities to minimize or avoid layoffs. These remarks were made during an event at Taman Hussein Mosque.

Earlier reports from June 5 revealed that Petronas President and CEO, Tan Sri Tengku Muhammad Taufik Tengku Aziz, announced a 10 percent workforce reduction to manage the challenging operating environment caused by declining crude prices. Approximately 5,000 employees are involved in this downsizing, with notifications to be issued progressively s
tarting next year.

The decision comes after an understanding was reached on May 21 between federal and state governments regarding Petronas and Petros. A joint declaration affirmed Petronas’s continued role and responsibilities under the Petroleum Development Act 1974 (PDA 1974) and its regulations. Agreements between Petronas, its subsidiaries, and third parties for LNG sales from upstream operations to foreign exports remain intact.

A statement from the Prime Minister’s Office highlighted that all relevant federal and state laws concerning gas distribution in Sarawak should coexist and be respected by all entities involved.