Petronas outlines 6 plans to remain profitable
Published on: Tuesday, October 13, 2015
Kuala Lumpur: Petroliam Nasional Bhd (Petronas) has outlined six strategies to tide over the trying times in the oil and gas (O&G) industry, and to stay profitable.In an exclusive interview with the New Straits Times (NST), Petronas President and Group Chief Executive Officer Datuk Wan Zulkiflee Wan Ariffin said in the next few years, the company should focus firstly on cash generation."What I mean by cash generation is our plants must be in tip-top condition running all the time – and we must sell our products at the best value we can get, so it has to be all across the value chain," he said in the interview, the first he has given to the press since assuming the number one position in April.
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Secondly, Wan Zulkiflee said Petronas needs to deliver on its growth projects – the Refinery and Petrochemical Integrated Development (RAPID), the Floating Liquefied Natural Gas (FLNG), more projects in Sabah and the project in Canada."We need to deliver these projects well – no cost overruns, and on time and with good health and safety levels," he said.He said the O&G projects that have already been sanctioned will go ahead, but the company would also ask for rebidding for some of the packages in the RAPID project to reflect the lower prices of raw materials.Striking down costs and simplification is the third strategy.
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"We are reviewing some of the processes across the group. These include human resource, procurement and planning processes."If we are able to simplify and reduce man-hours, the man-hours saved can instead be allocated for cash generation. These will be our short-term measures," said the Penang-born Wan Zulkiflee, as quoted by NST.
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Investing in technology, better talent management and improved work culture were the three other measures named by Wan Zulkiflee.Stay up-to-date by following Daily Express’s Telegram channel.
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