KUALA LUMPUR: Having Petroliam Nasional Bhd (Petronas) listed can be a setback for Malaysia as the national oil company (NOC) can lose its status on the international level.
It could also affect the future of some 150,000 people employed in the industry, according to Petronas president and group chief executive officer Datuk Tengku Muhammad Taufik Tengku Aziz.
Petronas had benefited from higher commodity prices, reliable production and favourable foreign-exchange rates, he said, adding that the improvements would not come as a result of a listing.
Tengku Muhammad Taufik also dismissed the notion that a listing would allow Petronas to elevate its annual profit to up to RM100 billion and that it had RM20 billion-RM30 billion in hidden profits.
"I don't know where that comes from," he said at a session with the media on Thursday.
Last week, Subang member of parliament Wong Chen suggested the listing of Petronas as a means for the government to raise money to help reduce its debt.
He claimed that if Petronas was managed as a company with high international governance standards, its average profit would exceed RM60 billion a year and could reach RM100 billion annually.
The suggestion received mixed reaction, with some analysts questioned whether a listing would bring long-term and sustainable reduction to national debt.
Tengku Muhammad Taufik said any implication of a listing had to be thought through thoroughly, given the possible repercussions to an industry that employed 150,000 people.
Ultimately, he said a decision on listing Petronas would be the prerogative of the government as its shareholder.
"If the prime minister asks me, I will give him the implications of both sides of the equation, whether it is catalytic oil and gas and equipment services industry, energy security...those are the dimensions that you really need to think very hard about.
"It is beyond dividends or fiscal as there are 150,000 people employed within this industry apart from our employees," Tengku Muhammad Taufik added.