Petronas to cut 10% of its workforce — Tengku Muhammad Taufik

TheEdge Thu, Jun 05, 2025 06:25pm - 1 week View Original


Petronas has based its budget on Brent crude trading between US$75 and US$80 per barrel. The benchmark is currently near US$65, down roughly 13% this year, amid global trade tensions and rising Opec+ output.

KUALA LUMPUR (June 5): Petroliam Nasional Bhd (Petronas) is cutting 10% of its workforce to cope with challenging operating conditions, particularly due to falling crude prices.

President/group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said the number of staff involved in the right-sizing process currently stands at around 5,000, and those affected will be notified in stages next year.

“Petronas 2.0 will be run differently, organised differently, will have different work processes, and to move towards that, we have to correct the work process,” he said at a media briefing here on Thursday.

He said the group aimed for a lean and nimble operation even if oil prices were to reach US$100 (RM423) per barrel. 

“There is a logic, an assumption set, and a projection that backs it up. Over time, we have seen this — those who have tracked our history will know that when the fields were easier, our profit before tax margin was around 35% to 40%.

“Today, it is [between] 25% and 38%. These margins are going to shrink further, and the fields are going to get smaller. So the value-added [Petronas] 2.0 has to transform into an organisation that monetises molecules commercially and competitively, not just at home, but also abroad,” he said.

Petronas has based its budget on Brent crude trading between US$75 and US$80 per barrel. The benchmark is currently near US$65, down roughly 13% this year, amid global trade tensions and rising Opec+ output.

The group reported a net profit of RM55.1 billion for the financial year ended Dec 31, 2024, down 31.7% from RM80.7 billion a year earlier, due to lower average realised prices and favourable tax adjustments in 2023.

On Petroleum Sarawak Bhd (Petros), Tengku Muhammad Taufik voiced concern over the uncertainty surrounding a deal between the two parties, adding that Petronas remains open to further negotiations on its role in the state.

On May 21, 2025, Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Tun Openg signed a joint declaration stating that Petronas will continue to carry out its functions, activities, responsibilities and obligations under the Petroleum Development Act 1974 (PDA 1974) and related regulations.

According to the Prime Minister’s Office, key principles have been agreed to support further negotiations between Petronas and Petros.

The joint declaration acknowledges both federal and state laws, the status of existing agreements, and the need for a cooperative framework between the two parties.

Under the declaration, the Sarawak state government has appointed Petros as the gas aggregator effective March 1, 2025. Petronas and Petros will also enter discussions to expand cooperation in meeting Sarawak’s gas requirements across several areas.

Read also:
Petronas not exiting Canada business, says CEO
Petronas dismisses report suggesting potential exit from Canada

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Comments

Tteffub Nerraw
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Let me pretend i am EPIC_Malaysian

First, they say, "Wah, save money save money," so they fire all the fresh and junior engineers. Those guys are cheap but do all the hard, slow work nobody wants to do. Then what happen? The mid-level managers kena do everything — even work Saturday and Sunday like no holiday. Wah, so stress until want to resign liao.

Then company say, "Never mind, hire young cheap managers from outside." But those new managers don’t know much, so quality start to drop, accident also come one. Then company start to blur-blur, cannot find local people already, so must go and employ people from India.

Like that la, company cut cost here and there, but in the end, everything become jialat (worst!!). Quality drop, people quit, accident happen, company also suffer. So funny right? Save money till lose money, later kena headache big time. Finally, bail out loh.

Moral of the story: Who is right, Who is wrong, i don't know. If you want good work, you pay good money. Cut corners only make things worse, then you cry later. But sometimes company only know how to “save pennies”, not saving brain one.

Above story is just for comedy purpose. Don't take it too seriously.
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Mr Ong Ti Chiang
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Should starts from president, ceo
or from top 1000,those position bleed the company

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