Embracing change: PETRONAS steps boldly into the future

Free Malaysia Today

FMT highlights how PETRONAS' decision to rightsize paves the way for greater agility and success, empowering the company to thrive in an ever-evolving landscape.   Read More: https://www.freemalaysiatoday.com/category/nation/2025/07/22/embracing-change-petronas-steps-boldly-into-the-future  Laporan Lanjut: https://www.freemalaysiatoday.com/category/bahasa/tempatan/2025/07/22/terap-perubahan-petronas-orak-langkah-berani-ke-hadapan  Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTNews #PETRONAS #OilAndGas

Transcript

00:00The oil industry is under pressure.

00:04On June 5, Brent crude opened at US$64.91 a barrel, a far cry from the US$93.72 average

00:14we saw less than two years ago. That same day, Petronas announced that it would focus on a

00:20company-wide transformation effort, signaling how oil companies are taking steps to adapt to

00:26shifting market dynamics. But the falling price is only the tip of the iceberg. Volatile markets,

00:33costly extraction, global conflicts and a world steering away from fossil fuels

00:38are forcing oil giants to rethink their operations.

00:47For one, Chevron is cutting 20% of its workforce, a move that will see 9,000 employees exit the

00:53company by the end of 2026. Shell is following a similar path, expecting to reduce its workforce

01:00by 20% by the end of this year, while aiming to cut costs by between US$2 billion and US$3 billion.

01:07Like many in the sector, Petronas is also seeing profits shrink from RM101.6 billion in 2022

01:14to RM55.1 billion in 2024. In response, the company is rolling out Petronas 2.0,

01:22a strategic restructuring aimed at streamlining operations, rethinking its organization and

01:27refocusing its long-term priorities. Part of the financial strain comes from its deep

01:34water projects in areas like Sabah and Suriname. These require specialized technology and infrastructure,

01:40which means higher production costs. Another challenge comes from Petronas'

01:46sour gas projects off Sarawak's coast. These fields contain high levels of hydrogen sulfide and carbon

01:53dioxide, contaminants that make the gas significantly more expensive to process.

01:59But the biggest pressure of all? Mother Nature.

02:06With climate regulations tightening, fossil fuels, once the engine of global growth, are now under intense

02:12scrutiny. And in Malaysia, Petronas plays a critical role in the National Energy Transition Roadmap,

02:19the blueprint for a cleaner, more resilient energy system. But this is where the pivot begins.

02:26Group CEO Tunku Mohamad Taufid Tunku Aziz said Petronas is doubling down on automation, artificial

02:32intelligence, and advanced digital systems, part of a broader push to become leaner and more cost-efficient,

02:39while advancing the company's energy transition strategy. But beyond that, Petronas can also

02:44reinvest resources in sectors that are poised for growth. This would include liquefied natural gas,

02:50downstream value chains including specialty chemicals, sustainable fuels, and low-carbon solutions

02:56like blue ammonia and carbon capture and storage. During this period of accelerating change,

03:02right-sizing isn't optional. It's necessary for long-term stability. And by moving early,

03:08while still in a strong financial position, Petronas is positioning itself to lead, not just adapt.

03:14Attach Abuse, FMT

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