Petronas Layoffs Due To Global Challenges Not Petros Issue Fadillah


 



Petronas’ move to trim its workforce stems from global challenges and is not connected to the national oil firm’s issues with Petroleum Sarawak Bhd (Petros).
Deputy Prime Minister Fadillah Yusof said the restructuring process is necessary amid the decline in crude oil prices.
He also plans to meet with Petronas to get more details on the restructuring process.
“That is why Petronas has to relook at its entire operation. I’m planning a meeting with them to get a briefing on the matter and to ensure that the number of layoffs can be reduced, if not avoided,” he told reporters attending the Aidiladha sacrificial event at Taman Hussein Mosque in Kuching today.
On June 5, Petronas president and chief executive officer Tengku Taufik Tengku Aziz reportedly said the national oil firm is cutting 10 percent of its workforce to cope with challenging operating conditions, particularly due to falling crude prices.
ADSTaufik said the number of staff involved in the downsizing process currently stands at around 5,000, and those affected will be notified in stages next year.
On May 21, the federal and state governments reached an understanding on matters involving Petronas and Petros.
According to the joint declaration, Petronas will continue its functions, activities, responsibilities and obligations entrusted to the company in Malaysia, under the Petroleum Development Act 1974 (PDA 1974) and its regulations.
Any agreements and arrangements between Petronas and its subsidiaries with third parties for the purpose of liquefied natural gas (LNG) sales from upstream operations through to LNG exports to foreign parties remain unaffected.
A media statement by the Prime Minister's Office following the joint declaration said all relevant federal and state laws relating to gas distribution in Sarawak are to co-exist and be respected by all parties.
- Bernama


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