Petronas aims to cut a whopping RM50 billion in operating (Opex) and capital expenditure (Capex) over the next four years in the face of sliding global oil prices.

"This means that we are going to have to defer some of our projects.

"We have also made a strategic decision to begin a review of Petronas' business operating model for better efficiency in response to the external environment.

"This review will result in a change to our existing organisation structure, the details of which I hope to be able to share with you in March," said Petronas president Wan Zulkiflee Wan Ariffin in an internal memo delivered on Monday.

The memo was sighted by Malaysiakini today.

Petronas is expected to release a press statement on the matter.

In the memo, the Petronas president said there are no signs of recovery following the drop in oil prices.

“The reality of the situation is in the numbers. Brent closed at US$28 per barrel on Friday, and continues to slide. There are still no signs of recovery,” he said, adding that the national oil company reacted quickly at the first signs of trouble by cutting Capex and Opex.

Presently, Brent crude oil is priced at US$29.10.

Affecting workforce

Wan Zulkiflee said Petronas also made a strategic decision to begin review of the firm's business operating model to ensure better efficiency.

"This review will result in a change to our existing organisation structure, the details of which I hope to be able to share with you in March," he added.

Presently, he said the national oil company has yet to determine how the review and structural change would affect its workforce.

However, Wan Zulkiflee assured that it would study all possible options to ensure Petronas strikes the right balance between the welfare of its employees and best interests of its business.

"In the meantime, we have started a review of contract positions, which is expected to affect contract positions currently not critical to Petronas' core business activities. Concurrently, reviews of positions filled by our manpower supply contractors are also underway, as an initial step in reducing manpower costs," he said.

Though admitting that he could not answer all the burning questions and allay the anxiety of the staff, he assured them that everything would be fine, and he and the leadership team would keep them informed of these developments.