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Petronas CEO says "No" to layoffs, skill redeployment a priority

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has dismissed employee layoffs as a priority amid challenging conditions and the global shift towards cleaner energy.

Instead, Petronas president and group chief executive officer Tengku Tan Sri Muhammad Taufik stressed that the national oil and gas company would focus on skill redeployment in areas relevant to new businesses.

He added that Petronas was exploring new business areas beyond its traditional scope in line with the global transition towards clean energy.

Petronas, Tengku Muhammad Taufik said, had set a target to achieve 30 per cent revenue contribution from non-traditional businesses by the end of this decade.

"I do not anticipate employee layoffs. I am not someone who carries out such actions," he said at a media briefing ahead of Petronas' announcement of its first quarter results here today.

Tengku Muhammad Taufik said Petronas would continue investing in its core portfolio as well as cleaner energy production.

He noted that hydrocarbon usage remained relevant and was expected to persist for at least the next 30 years, making up 40-45 per cent of the global energy mix.

"We see the energy mix still consisting of 40-45 per cent oil and gas. Whether you like it or not, your mobile phone contains plastic components (made from chemicals sourced from oil and gas), and so do cars," he said.

Petronas has consistently said it would continue implementing prudent and disciplined financial management to reinvest in providing the required energy security today and facilitating a fair and responsible transition.

It will focus on delivering its three-pronged growth strategy and the country's aspiration of achieving net zero carbon emission by 2050 in a disciplined manner, including managing financial commitments and debt obligations prudently.

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