Petronas CEO speaks on journey to world class brand
KUALA LUMPUR: Petroliam Nasional Bhd President and Chief
Executive Officer Tan Sri Wan Zulkiflee Wan Ariffin takes a journey down memory
lane on the evolution of the national oil corporation into a world brand and
Malaysia's sole company listed on the Fortune 500.
And in doing
so, he paid a glowing tribute to several of his predecessors whom he described
as "great personalities that Petronas has been blessed with" for
turning the 45-year old entity from the regulator for the oil and gas industry
into what it is today -- a full-fledged integrated company from upstream right
until the end of the supply chain into retail and everything in between.
In an
interview with Bernama, Wan Zulkiflee said it was the wisdom of the previous
craftsmanship of Petronas that placed the corporation under the Companies Act
for an organisation established under the Petroleum Development Act 1974
(PDA74).
" We have been blessed by great
personalities in the past among them Tengku Razaleigh Hamzah, Datuk Rastam
Hadi, M.B. Hashim, Tan Sri Abdullah Salleh, Tun Azizan Zainal Abidin and Tan
Sri Hassan Merican.
"
There has also been a pipeline of leaders in Petronas that have really shaped
the organisation and so, as a result, we have evolved from a regulator into a
full-fledged oil and gas company including refining, gas processing, pipeline,
LNG and also the lubricants," he said.
He said
before PDA 1974 came into being, there were only concession agreements in the
industry but after the introduction of the game-changer production sharing
contract (PSC), Petronas was able to shape the eco-system for the oil and gas
industry.
"It has been a vibrant industry and a fairly
resilient industry in good and bad times. And also we have put a lot of
emphasis on Bumiputera participation in this industry".
Asked what
made the industry so vibrant and resilient, Wan Zulkiflee said it was so
because of the eco-system being provided.
"To be honest, I don't think that we are at an
ideal point yet. I have been on record saying that we need further
consolidation for the oil and gas industry. Today we got around 3,700 companies
registered with Petronas to provide services. If you contrast with Norway, a
smaller country but with oil production similar if not more than us, they have
got 700 or so registered companies.
"So I
think this fragmentation is not the most efficient structure but we are
encouraging consolidation to the extent that it is possible for us to do but a
lot has to come from the industry itself," he added.
He pointed out that in this industry, efficiency and
competitiveness were crucial in order to survive the oil price circle during
the high time and the not so good time.
On the
outlook for the industry in the second half of 2019 up to early 2020, Wan
Zulkiflee said despite so many things happening, Petronas remained very
conservative as well as being prudent in its financial planning because it
expected a volatile outlook.
"Because
if you look at the supply side, there are different trends on different fronts,
now the US-Iran sanction which means a lot of Iranian volume will not be coming
to the market. And today we got Venezuela issues affecting the production
coming into the market.
"On the
hand, in North America, shale oil is really a booming business, in the past,
this business was done by small players but now the big companies are already
in that space and they are financially strong.
Now we have
got ExxonMobil, Total and the big boys playing shale, so that's why I think on
the supply side there will be in abundance in spite of what happens in Iran,
Iraq and the attacks on Saudi petroleum facilities", said Wan Zulkiflee.
On the
demand side, the US-China trade war will hit the global economic growth and so,
too, the demand growth for oil.
"So with this, looking at the fundamental supply
and demand, that is why we are saying that it will be volatile and lower this
year for our planning purposes," he said. - Bernama
My comments:
The
success of Petronas is at the expense of two states in Malaya and two colonized
nations in Sarawak and Sabah. Petroliam
Nasional Bhd President and Chief Executive Officer Tan Sri Wan Zulkiflee Wan
Ariffin no doubt must thank these great personalities in the past among them
Tengku Razaleigh Hamzah, Datuk Rastam Hadi, M.B. Hashim, Tan Sri Abdullah
Salleh, Tun Azizan Zainal Abidin and Tan Sri Hassan Merican for knowing how to
tricked the colonised nations to sign such an equal treaty which is a breach to
MA63 which has been discovered to be a fraud from the very beginning.
The present
Petronas ….CEO Tan .. Wan Zulkiflee Wan Ariffin is still plundering,
exploiting, oppressing, suppressing, robbing and bullying the two colonised
nations to enrich this company and Malaya in the name of Malaysia.
Refusing to
give back the two nations 20% profit in the business dealings will end Petronas
Nasional Bhd badly one day if they refuse to pay back 20% to Sarawak and Sabah just
as how they pays properly to other oil producing countries that Petronas has
business with. They will face the curses
for being so aggressive, oppressive, suppressive, and exploitive towards
Sarawak and Sabah.
