Latest news with #MohdJukris
The Star
a day ago
- Business
- The Star
PETRONAS sharpens its focus
KUALA LUMPUR: With Brent crude prices hovering around US$65 per barrel and expectations that this modest environment will linger, Petroliam Nasional Bhd (PETRONAS) is rethinking how it runs its business. For the national oil company, the challenge is as much about efficiency as it is about endurance – sustaining liquidity, funding long-term capital expenditure, and meeting hefty dividend commitments to the federal government. Executive vice-president and chief executive officer of upstream business Mohd Jukris Abdul Wahab made it clear that the company's survival and competitiveness depend on more than incremental changes. 'Looking at the outlook of the price today, it is hovering around US$64–US$65 per barrel. We expect the outlook could remain at this level for quite some time,' he said during an editors' briefing here yesterday. 'One of the things that we are currently doing is to review our operational efficiencies and cost efficiencies. The way we have done things over the past 50 years may not necessarily keep us competitive in the years ahead,' he added. That review is reaching into the very core of how PETRONAS operates. No stone is left unturned – from maintenance schedules and field operations to logistics, procurement, and the way offshore and onshore facilities are managed. 'Can we do this at a lower cost? Can we do this faster than what we did before? Can we cut the time by half?' These are the questions currently being asked, Mohd Jukris explained, signalling a willingness to dismantle decades-old processes if they no longer give the company a competitive edge. Global supply chain disruptions, exacerbated by tariff impositions, have added urgency to this exercise. 'We can't be telling people not to impose tariffs on us – it's impossible,' he said. 'The only thing that we can do is to respond internally... Some fundamental changes have to happen in terms of how we do things,' he added. Mohd Jukris pointed out that while PETRONAS remains a national oil company, it acts and competes like an international oil company (IOC). 'We have come a long way and can stand shoulder-to-shoulder with other IOCs. But to stay relevant, we must continue to review and reshape our portfolio, like other major players in the industry,' he said. For PETRONAS, every efficiency gained directly strengthens its financial resilience and its ability to invest for the future. Mohd Jukris added that PETRONAS regularly subjects its global assets to rigorous tests, requiring a break-even oil price of US$50 per barrel or less and a unit production cost below US$6. Assets that fail to meet these parameters face difficult questions about their place in the portfolio. This approach has already led to significant changes, including the sale of gas assets in Azerbaijan and the scaling back of operations in Mexico, where PETRONAS exited eight offshore exploration blocks. He emphasised that partnerships play a crucial role in this recalibration. 'Partnerships bring not only capital but also new operating philosophies and standards,' Mohd Jukris said. He said collaborating with operators who can manage certain assets more efficiently is one of the best ways to unlock value. 'We have to bring partners to collaborate with us. Make sure that the partners take some of the risk. In this industry, we can't operate in isolation.' He added that these strategic alliances not only help advance energy innovation but also strengthen PETRONAS' competitive edge while creating new growth opportunities for local energy players. 'With our CCS (carbon capture and storage) hubs gaining momentum, we are unlocking even greater potential for Malaysian businesses to lead in energy transition. 'This is how we are powering progress – building a sustainable energy ecosystem that benefits Malaysia and beyond.' Even as it trims and streamlines, PETRONAS is keeping an eye on strategic growth opportunities. Canada has become a central pillar in its liquefied natural gas (LNG) ambitions, with 50 trillion cu ft (TCF) of gas reserves. 'We are very keen on expanding our presence in Canada, as opposed to the news that we are leaving the country. 'With 50 TCF (of gas reserves), we can support several more LNG projects as the resource size is not the issue,' he added. PETRONAS is a major equity partner in LNG Canada, which has a US$40bil (RM169.38bil) LNG facility and is involved in the North Montney joint venture upstream gas project. He also noted good progress in Suriname and other markets. 'We have entered into joint study agreements in Indonesia, Vietnam, Turkmenistan and Oman. 'These are some of the work that we are currently doing to make sure that the funnel will always be filled by (new) exploration discoveries,' he explained. > TURN TO PAGE 2 For Mohd Jukris, the review exercise also aims to position PETRONAS for an energy market expected to be more complex, competitive and volatile by 2035. 'We have to be cognisant of what is happening around us, namely geopolitics, jurisdictional changes, shifting policies, and global conflicts,' he said. 'The future is going to be very complex and challenging. We need to ask ourselves how we want to position PETRONAS. 'We have to meet the targets that we set for ourselves over the next 10 years. It is then that the portfolio is going to be ready for transformation,' he added. Mohd Jukris shared that PETRONAS is embarking on an ambitious expansion that will grow its international portfolio by 60% over the next decade, building on its existing 40% to 50% global presence. He added that from its first platform in Kertih to its growing ventures in Canada and other international markets, this global network serves as a powerful engine for progress. 'Malaysia remains a core part of our investment portfolio and we are committed to this market. Our recent successful discoveries in Peninsular Malaysia further reinforce our long-term strategy and confidence in the region,' Mohd Jukris said.
The Sun
a day ago
- Business
- The Sun
Petronas reviewing operational and cost efficiencies amid low-price environment
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) expects the low oil price environment to persist, with prices hovering at around US$64 to US$65 (RM270.90) to RM275.10) per barrel, said executive vice-president and chief executive officer (CEO) of upstream business Mohd Jukris Abdul Wahab. He said the national oil company is reviewing its operational and cost efficiencies in response to the low-price environment, and challenging how it approaches everything – from maintenance, field operations, logistics management and procurement to the running of its offshore and onshore facilities. 'We are reviewing both our operational and cost efficiencies (as) the way we have done things over the past 50 years may not necessarily keep us competitive in the years ahead,' he said during a briefing for editors today. Also present was senior vice-president of Malaysia assets and Petronas Carigali Sdn Bhd CEO Hazli Sham Kassim. Mohd Jukris also said the US tariff environment has affected the global supply chain. 'It (the tariff imposition) affects the way we do business. The only thing that we can do is to respond internally and how we drive ourselves to become more cost efficient,' he added. Replying to a question on portfolio review, Mohd Jukris said the oil company assesses the need to bring in partners to reduce risk exposure, particularly for assets that require high capital investments but deliver limited value. 'Partnerships bring not only capital but also new operating philosophies and standards. In this industry, we can't operate in isolation. We must identify partners who can operate certain assets more efficiently than we can. This is the best way to unlock maximum value,' he said. Mohd Jukris said Petronas conducts portfolio reviews from time to time to ensure its assets remain competitive, with each asset having to meet specific standards. 'For example, they must have a break-even price of US$50 per barrel or less. Anything above that raises the question: do we keep this asset or not? 'Operational efficiency is another key criterion. Our unit production cost must remain below US$6 per unit. We set these parameters to guide every portfolio review,' he said. Petronas has seen its portfolio evolve, including the sale of its gas assets in Azerbaijan and, in 2021 and again last year, the scaling back of operations in Mexico through the exit from eight offshore exploration blocks. Mohd Jukris also said Petronas is very keen to expand its presence in Canada as the country is now one of its major liquefied natural gas (LNG) suppliers. He said Petronas has about 50 trillion cubic feet (TCF) of gas in Canada and the current LNG Canada project is only in Phase 1; hence the energy company has embarked on a series of LNG projects backed by this resource portfolio. 'With 50 TCF, we can support several more LNG projects as resource size is not the issue here,' he told an Editors Briefing today. Mohd Jukris also expressed hope for Canadian government's support for additional LNG projects. 'We are keen to expand our presence there and see Canada as one of our major LNG supply bases going forward,' he said. Petronas shipped the first LNG cargo from its LNG Canada facility in Kitimat, British Columbia, on July 8. Petronas operates the North Montney Joint Venture upstream gas project and is a major equity partner in LNG Canada, a US$40 billion LNG facility. – Bernama
Business Times
a day ago
- Business
- Business Times
Malaysia's Petronas to boost international portfolio to 60% over next decade
[KUALA LUMPUR] Malaysia's state energy firm Petronas plans to raise the share of its international portfolio to 60 per cent of its total business over the next decade, it said on Monday (Aug 11). The firm will build on its current international portfolio, which now accounts for around 40 to 50 per cent of its investments, by integrating its domestic expertise with global partnerships, it said in a fact sheet shared with Reuters. In a volatile market, Petronas is upgrading its upstream operation portfolio to focus on high-quality assets while at the same time ensuring that energy supplies for Malaysia remain reliable, the company added. 'Malaysia remains a core part of our investment portfolio, and we are committed to this market,' executive vice-president and chief executive officer of upstream business Mohd Jukris Abdul Wahab said in the fact sheet. Malaysian state news agency Bernama reported that Mohd Jukris saying Petronas would review its operations including maintenance, field operations and others in order to mitigate the impact of lower crude oil prices. Crude oil prices are currently trading at US$66.68 per barrel as of 1006 GMT. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Mohd Jukris said Petronas would consider partnering with other firms to reduce its risk exposure, especially for projects requiring high capital investment. He added that Petronas is also considering expanding its presence in Canada, given that the country has now become one of its major liquefied natural gas suppliers, Bernama reported. In July, Petronas delivered its first LNG Canada cargo to Japan from its newly operational LNG facility in Kitimat. Petronas has a 25 per cent stake in the Kitimat LNG plant in British Columbia on Canada's west coast. REUTERS
The Star
2 days ago
- Business
- The Star
PETRONAS reviewing operational, cost efficiencies amid low oil price environment
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) expects the low oil price environment to persist, with prices hovering at around US$64 to US$65 per barrel, said executive vice president and chief executive officer (CEO) of upstream business Mohd Jukris Abdul Wahab. (US$1=RM4.24) He said the national oil company is reviewing its operational and cost efficiencies in response to the low-price environment, and challenging how it approaches everything -- from maintenance, field operations, logistics management and procurement to the running of its offshore and onshore facilities. "We are reviewing both our operational and cost efficiencies (as) the way we have done things over the past 50 years may not necessarily keep us competitive in the years ahead,' he said during an Editors Briefing today. Also present was senior vice president of Malaysia assets and Petronas Carigali Sdn Bhd CEO Hazli Sham Kassim. Mohd Jukris also said that the US tariff environment has affected the global supply chain. "It (the tariff imposition) affects the way we do business. The only thing that we can do is to respond internally and how we drive ourselves to become more cost efficient,' he added. Replying to a question on portfolio review, Mohd Jukris said the oil company assesses the need to bring in partners to reduce risk exposure, particularly for assets that require high capital investments but deliver limited value. "Partnerships bring not only capital but also new operating philosophies and standards. In this industry, we can't operate in isolation. We must identify partners who can operate certain assets more efficiently than we can. This is the best way to unlock maximum value. "We've done this before -- in Mexico, for example, and in Azerbaijan a few years back,' he noted. Mohd Jukris said Petronas conducts portfolio reviews from time to time to ensure its assets remain competitive, with each asset having to meet specific standards. "For example, they must have a break-even price of US$50 per barrel or less. Anything above that raises the question: do we keep this asset or not? "Operational efficiency is another key criterion. Our unit production cost must remain below US$6 per unit. We set these parameters to guide every portfolio review,' he said. Petronas has seen its portfolio evolve, including the sale of its gas assets in Azerbaijan and, in 2021 and again last year, the scaling back of operations in Mexico through the exit from eight offshore exploration blocks. - Bernama
New Straits Times
2 days ago
- Business
- New Straits Times
Petronas eyes bigger footprint in Canada
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) wants to expand its presence in Canada as the country is now one of its major liquefied natural gas (LNG) suppliers. Executive vice president and chief executive officer of upstream business Mohd Jukris Abdul Wahab said Petronas has about 50 trillion cubic feet (TCF) of gas in Canada. The current LNG Canada project is only in Phase 1, hence the national oil company has embarked on a series of LNG projects backed by this resource portfolio. "With 50 TCF, we can support several more LNG projects as resource size is not the issue here," he told an editors briefing here today. Mohd Jukris expressed hope for Canadian government's support for additional LNG projects. "We are keen to expand our presence there and see Canada as one of our major LNG supply bases going forward," he said. Petronas shipped the first LNG cargo from the LNG Canada facility on July 8. Petronas entered Canada in 2012 by acquiring Progress Energy for US$5.3 billion, securing shale gas assets in northeastern British Columbia. Currently, Petronas operates the North Montney Joint Venture (NMJV) and holds a 25 per cent share in LNG Canada, a significant US$40 billion liquefied natural gas project in Kitimat, British Columbia. Other LNG Canada partners include Shell plc, PetroChina, Mitsubishi Corp and Korea Gas Corp.
