KUALA LUMPUR, February 7, 2025 – Petronas is taking strategic steps to restructure its operations to ensure the national oil company remains competitive and continues to contribute to the country’s development.
Petronas President and Chief Executive Officer, Tengku Tan Sri Muhammad Taufik, emphasized that this transformation is a pressing necessity to address the dynamic challenges of the global oil and gas sector.
The Need for Restructuring
According to him, the oil and gas industry is undergoing major changes, with profit margins declining from 40-45% to around 20%, and they are expected to decrease further to 16-18% in the near future. Given this situation, Petronas cannot rely on outdated models and must adapt to the new industry requirements and market demands.
“As a national oil company (NOC) operating like an international oil company (IOC), Petronas must be prepared to make difficult decisions to remain relevant, not just domestically but also in the global market,” he said in a briefing to media editors.
He added that Petronas needs a workforce that aligns with its future direction, particularly in leading the green energy sector and meeting the growing demand for sustainable, safe, and affordable energy.
Petronas’ Significant Contribution to the Nation
Since its establishment, Petronas has contributed over RM1.5 trillion in the form of dividends, state sales taxes, cash payments, export duties, and contributions to the National Trust Fund. To ensure this contribution continues, workforce and operational transformation must be implemented to maintain Petronas’ position as a key contributor to the country’s economy.
Gradual Implementation and Workforce Support
The restructuring will be carried out in phases and fairly, with planning already underway. Employees will be informed about these changes in the second half of 2025, with assurances that necessary support will be provided during the transition.
“We understand that these changes will impact many people, but without this strategic step, Petronas’ sustainability and resilience in facing global challenges will be compromised,” explained Tengku Muhammad Taufik.
Commitment to Excellence and Sustainability
After achieving success for 50 years, Petronas is now setting a new direction to remain a high-performing organization driven by innovation, productivity, and sustainability. This restructuring is not just about workforce realignment but also a transformation to ensure Petronas remains a leader in the energy sector, aligning with the nation’s aspirations for a more sustainable economy.
With this new strategy, Petronas aims to maintain its role as the backbone of national development and continue contributing significantly to Malaysia’s economic growth.