Seeking higher yields at lower costs, even if it has to go abroad.
As the world struggles with an energy crisis and uncertain oil prices, Petronas first acted quickly, investing heavily abroad for a future of cheaper oil, lowering the cost of crude oil production to $50 per barrel (RM212), compared to the current rate of between $60 and $70 over the past five years.
Petronas Upstream Division Chief Executive Officer, Mohd Jukris Abdul Wahab, said the move was part of the company's strategy to restructure its portfolio to face uncertainties in the global energy landscape.
He announced that the company would prioritize investments in countries where it already has existing operations such as Canada, Suriname, Brazil, Turkmenistan and several Southeast Asian countries.
As global crude oil prices remain volatile due to geopolitical tensions in the Middle East, Petronas has also taken restructuring measures including planning a 10% workforce reduction and reducing dividend payments to the government to RM32 billion this year, compared to RM50 billion in 2022.
Mohd Jukris stated that every capital investment in international assets needs to provide strong returns given the increasing operational risks in several locations.
Petronas also aims to increase the net value of its international upstream portfolio to 60% within five to 10 years, compared to the current level of between 40% to 50%.
Commenting on the domestic outlook, Mohd Jukris remains confident in the potential of Malaysia's oil and gas sector, especially in the waters of Peninsular Malaysia which continue to attract interest from international exploration companies.
