Petronas aims to increase the share of revenue from its international upstream operations from 40% to over 60% within the next decade, says the firm’s executive vice-president and CEO of upstream Jukris Abdul Wahab.
“This is not about pulling back from Malaysia. It will always be our core investment base. But we want a balanced and resilient portfolio that can withstand changes in the global energy landscape.
“The aspiration is to expand our international business from what we have today,” he told an editors’ briefing yesterday.
He said the expansion would focus on the company’s “heartland” markets, which include Suriname, Turkmenistan, Abu Dhabi and Vietnam, as well as unconventional oil and gas resources that can be quickly scaled up or down.
While Malaysia remained a key investment destination, Jukris said a broader international spread would help the company adapt to different market and regulatory environments.
“We still see a lot of prospectivity in Malaysia. New geological plays are opening up, and we are attracting interest from major players,” he said.
At the briefing, Jukris also said that Petronas was exploring more liquefied natural gas (LNG) projects in Canada, where it holds about 50 trillion cubic feet of gas reserves. This follows the first shipment from its LNG Canada Phase One venture in July.
The company is also reviewing its upstream portfolio to ensure that assets meet set criteria for cost, emissions and value, he said, adding that it was prepared to take on more calculated risks to drive down costs.
“Portfolio reviews are common in this industry. The aim is to make sure our assets remain competitive and deliver long-term value.
“We can’t expect zero risk in our operations. We have to be comfortable taking a little bit of risk,” he said.
He said some technical standards used over the years came with added costs, and that the company was considering adopting “fit-for-purpose” standards without compromising safety.
However, he said that partnerships would remain important for sharing capital requirements and access to technology.
“You can’t operate alone in this industry. The best value often comes when partners bring different operating philosophies, technology and market access,” he said.
