Veteran oil and gas executive Ahmad Nizam Salleh has been appointed the new Petronas chairperson.

Nizam's appointment was announced in a statement by the Prime Minister's Office.

The statement also said that Wan Zulkiflee Wan Ariffin will remain as Petronas president and group chief executive.

Nizam, who was previously considered as a frontrunner for the post of Petronas CEO back in 2015, replaces Mohd Sidek Hassan, who resigned as Petronas chairperson last week.

The PMO said he has 37 years of experience in oil and gas.

The announcement comes a week after speculation that Prime Minister Dr Mahathir Mohamad would have a closer watch over Petronas, which is expected to be placed either under his office or the Prime Minister's Department.

Mahathir had previously served as Petronas advisor.