Petronas reviews productivity after potential downsizing report

In reaction to an online news portal’s report that Petroliam Nasional Bhd (Petronas) may be reducing its employment because of its gas distribution arrangement with Petroleum Sarawak Bhd, the company stated that it is undertaking a thorough analysis of its own productivity.

It stated in a statement on Monday that the evaluation is being conducted in order “to streamline its ways of working, to eliminate inefficiencies and focus on undertakings that can deliver measurable value.”

Additionally, it stated that the action is a component of its endeavors to carry out its energy transition plan “while delivering continuous improvements by becoming more operationally focused, commercially agile, and cost efficient.”

The announcement followed Scoop’s report on Saturday, which cited sources, that Petronas would likely lose roughly 30% of its revenue after the agreed-upon formula for natural gas distribution in Sarawak was put into effect.

According to Scoop, Petronas’ department town halls and internal meetings addressed the possible downsizing as a way to deal with the anticipated loss. Petronas is reportedly unlikely to keep the majority of its contract-based employees, in addition to possible adjustments to the company’s compensation plan, such as eliminating bonuses and lowering salary increases across divisions.

Earlier in the year, Sarawak said that Petros will replace Petronas as the state’s exclusive gas aggregator. The aggregator is in charge of developing Sarawak’s gas distribution network and system as well as acquiring natural gas for distribution or supply. Petronas now fills that function.

Prime Minister Datuk Seri Anwar Ibrahim declared on December 12 that the talks between Petronas and Petros over gas distribution in Sarawak had been concluded and that the specifics, including the parameters and potential legal ramifications, were being finalized. Meanwhile, Sarawak Premier Tan Sri Abang Johari Openg had stated that Anwar would make the announcement regarding the distribution’s specifics.

In a statement issued on Monday, Petronas added, “Having passed the historic milestone marking its first 50 years of existence, in order to ensure its viability in the future, Petronas must continuously endeavour to remain a high-performing organisation — one that is driven by productivity, innovation, sustainability and a commitment to excellence.”

READ MORE:

Sheraton Kuala Lumpur Faces Backlash Over Worker Dispute

Civil servants will receive a two-month bonus

620,000 jobs in 10 sectors at risk of AI displacement