Dateline 2015-06-14, TMI:
Petroliam Nasional Bhd (Petronas) will continue to implement cost-cutting measures, concentrate on profitable projects, as well as eye opportunistic acquisitions abroad to adjust to the “ups and downs” of oil price.
Its Executive Vice-President/Chief Executive Officer of Upstream, Datuk Wee Yeow Hin, said this time people thought the oil price will be soft for a little bit longer.
“Therefore all companies, including us, are adjusting our capital expenditure (capex),” he said.
Unlike the previous cycle in 1998/1999 whereby the price stabilised by 2000, and during the 2008 global recession where it went down to US$45 per barrel to recover by 2009, this time there is no indication that the oil price will pick up to US$100 per barrel in the next three to four years.
Wee said for oil, short-term duration contract will be one year, unlike liquefied natural gas, where the contracts could last 20 to 30 years.