Petroliam Nasional Bhd (Petronas) will continue to implement cost-cutting measures, concentrate on profitable projects, as well as eye opportunistic acquisitions abroad to adjust to the "ups and downs" of oil price.
Its Executive Vice-President/Chief Executive Officer of Upstream, Datuk Wee Yeow Hin, said this time people thought the oil price will be soft for a little bit longer.
"Therefore all companies, including us, are adjusting our capital expenditure (capex)," he told Bernama.
Unlike the previous cycle in 1998/1999 whereby the price stabilised by 2000, and during the 2008 global recession where it went down to US$45 per barrel to recover by 2009, this time there is no indication that the oil price will pick up to US$100 per barrel in the next three to four years.
Wee said for oil, short-term duration contract will be one year, unlike liquefied natural gas, where the contracts could last 20 to 30 years.
"Projects may not necessarily be profitable within these period, so you either cut or postpone them.
“We only undertake projects that are profitable, within the time frame that we look at and we have to reduce cost. How can we do a project in a smarter way, simplify and cost less?” Wee said.
In relation to this, Petronas is leading an industry-wide effort, the Cost Reduction Alliance initiative involving 25 petroleum arrangement contractors to embrace a structural change in the oil and gas upstream business environment in Malaysia.
“(We look at) how we can do things differently, design cheaper projects, collaborate in areas where we can be more efficient, streamlining and centralising operations. Within Petronas, we have started in January and has saved a couple of hundred million,” he said.
Moving forward, Wee said, Petronas will concentrate in areas where there will be growth and value.
He said Malaysia will always be its priority, which now accounted for about 65 per cent of its business.
“I think it is okay for now, and we review this every two years. However, our focus area for oil is overseas and geographically we like West Africa because it has a lot of good prospects,” said Wee.
It was reported earlier that from the RM70 billion capex allocated by Petronas for this year, RM54 billion would be spent in Malaysia.
Petronas' upstream business has spread to 24 countries, on the basis of value growth, with a venture in shale oil being the latest.
Bernama
Sun Jun 14 2015
Moving forward, Petronas will concentrate in areas where there will be growth and value.
Kes model sambilan bunuh teman lelaki: Tarikh baharu sebutan ditetap 28 Mei
Mahkamah Majistret menetapkan 28 Mei ini sebagai tarikh baharu sebutan kes seorang model sambilan wanita yang didakwa membunuh teman lelakinya.
Pantau Agenda Reformasi: Misi Break The Siege: Freedom Flotilla to Gaza
Pantau Agenda Reformasi hari ini membawakan Profesor Hubungan Antarabangsa di Fakulti Undang-Undang dan Hubungan Antarabangsa di UNISZA, Prof Dr Mohd Afandi Salleh, yang juga merupakan bekas peserta misi Flotilla ke Gaza pada 2018, berkongsi pengalamannya ketika ditahan pihak rejim Israel sewaktu misi tersebut. Antara lain perbincangan tertumpu ke arah aspek hubungan antarabangsa serta undang-undang di perairan antarabangsa.
Nahas helikopter Lumut: Mindef pertimbang keperluan teliti SOP latihan udara - Mohamed Khaled
Mindef akan mempertimbangkan keperluan untuk meneliti semula SOP latihan udara membentuk formasi penerbangan lintas hormat bagi mengelak tragedi.
Keselamatan siber: Keterangkuman, kepelbagaian perkasa sumbangan wanita
Wanita harus mula memberi fokus dan penekanan terhadap keterangkuman dan kepelbagaian perspektif bagi membolehkan mereka menangani cabaran industri dengan berkesan.
Penyerang Kamal Adli dijatuhkan hukuman lebih 2 tahun oleh mahkamah Singapura
Lelaki yang menyerang pelakon Malaysia, Kamal Adli menggunakan belantan tahun lepas, dijatuhkan hukuman penjara dua tahun, empat bulan dan dua minggu.
Peruntukan pembangkang: Terserah Muhyiddin untuk persoal keikhlasan kerajaan - Fadillah
Beliau enggan melayani sindiran bekas Perdana Menteri yang juga Pengerusi Perikatan Nasional, Tan Sri Muhyiddin Yassin tentang isu tersebut.
SPRM jangka ada beberapa tangkapan isu tuntutan palsu anak menteri besar - Azam
SPRM akan membuat beberapa tangkapan lagi, berhubung kes melibatkan anak seorang menteri besar bagi membantu siasatan kes tuntutan palsu berjumlah RM600,000.
SPRM akan panggil beberapa lagi individu bantu siasatan
Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) akan memanggil beberapa lagi individu bagi membantu siasatan dakwaan pemalsuan dokumen tuntutan berjumlah RM600,000 melibatkan lima individu termasuk anak seorang Menteri Besar.
Pak Lah stabil, masih perlukan rehat secukupnya
Mantan Perdana Menteri, Tun Abdullah Ahmad Badawi dimasukkan ke Institut Jantung Negara (IJN), di sini, pada Rabu setelah mengalami small spontaneous pneumothorax.
Buat masa ini, keadaan beliau dilaporkan stabil dan masih dirawat di Unit Penjagaan Koronari (Coronary Care Unit).
Buat masa ini, keadaan beliau dilaporkan stabil dan masih dirawat di Unit Penjagaan Koronari (Coronary Care Unit).
SPRM tidak pernah henti siasatan kes LCS - Azam Baki
Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) tidak pernah menghentikan siasatan berhubung kes pembinaan Kapal Tempur Pesisir (LCS).
Harga minyak AS jatuh bawah $0
Harga minyak mentah Amerika Syarikat jatuh ke paras negatif -$37.65 setong pada lewat Isnin.
Oil hits US$80, highest since Nov 2014
Brent crude futures reached an intraday high of US$80.18 a barrel before receding to US$79.67 at 1326 GMT.
Asia stocks flirt with historic highs on global growth cheer
Investors also piled into emerging market trades, delivering a record peak for Philippine stocks, a 24-year top for Thailand and a decade-high for Hong Kong.