'Rightsizing so Petronas can keep contributing to nation-building'

Petronas’ rightsizing efforts are to ensure it can continuously contribute to nation-building, said its president and CEO Tengku Muhammad Taufik today.

Currently, the national oil company has a workforce of 52,000, of which 16,000 are core enablers.

The changes and dynamics of the global oil and gas sector demand that Petronas reinvents itself to be future-ready, he said, adding that it is a long overdue process.

Since its establishment, Petronas has contributed RM1.5 trillion in the form of dividends, state sales tax, cash payments, export duty, and national trust fund.

“Petronas is a national oil company but it has always operated as an international oil company. And our competitors have made such tough decisions as well,” Muhammad said at an editors’ briefing in Kuala Lumpur today.

He noted that globally, the oil and gas industry’s margin has been squeezed from what used to be 40-45 percent to 20 percent and Petronas has been experiencing similar margin pressure.

“The current margin projections could even go down to 16-18 percent,” he said.

‘Bitter pill action’

Muhammad said contributing to nation-building means investing and expanding in, for instance, green energy and renewables.

He said to be able to continuously do that, Petronas needs to have the right talent to be able to serve according to its clients’ demands.

“Petronas has to decide if it’s going to remain relevant, not only at home but also in the markets it operates and continues to invest in.

“We can’t have a workforce that is not suited to carry out those agile package solutions that the markets are asking for now (involving) affordable, secure, and more sustainable energy,” he said.

Hence, he stressed that without “the bitter pill action, there will be a defined shelf life for Petronas.”

Respectful rightsizing

Muhammad said that, having passed the historic milestone marking its first 50 years of existence, Petronas must, in order to ensure its viability in the future, continuously endeavour to remain a high-performing organisation – one that is driven by productivity, innovation, sustainability, and a commitment to excellence.

The rightsizing effort will be done in a respectful manner, he added.

Currently, the mapping of jobs and planning are being done. Employees will be informed in the second half of the year and the whole process is set to be completed by the end of 2025.

“They will be given the necessary assistance,” he assured.

Muhammad reiterated that in discharging its mandate as enshrined under the Petroleum Development Act 1974, Petronas remains fully committed to continue creating value for its shareholders.

- Bernama

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