Petronas weathers oil price rout with cost-cutting, deferral of big projects

Dateline 2016-03-23, AsiaOne:

THE realities of low oil prices have forced Malaysia’s oil-and-gas (O&G) industry to undertake extensive cost- cutting, in addition to deferring projects demanding large capital expenditure, although national oil company Petronas has braved the global headwinds to press on with two multibillion-dollar projects.

Prime Minister Najib Razak noted at the official opening of OTC Asia (Offshore Technology Conference Asia) 2016 in Kuala Lumpur on Tuesday that Petronas had been forced to employ measures to ride out the storm resulting from an acute and dramatic decline in oil prices over the last two years.

Petronas CEO Wan Zulkiflee Wan Ariffin (commonly known as Wan Zul) said the Malaysian O&G industry has collectively saved RM2.44 billion (S$817 million) by implementing cost-cutting – through which efforts by Petronas towards “internal cash management, cost efficiency and simplification” yielded RM1.4 billion in cost savings alone in 2015.

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