PETRONAS Restructures Workforce to Face Future Challenges

PETRONAS’ workforce restructuring aims to ensure that the national oil company continues contributing to the country’s development, said its President and CEO, Tengku Tan Sri Muhammad Taufik.

Currently, PETRONAS has a workforce of 52,000 employees, with 16,000 identified as key enablers.

He stated that the evolving dynamics of the global oil and gas sector necessitate changes within PETRONAS to address future challenges, emphasizing that this process has been long overdue.

Since its establishment, PETRONAS has contributed RM1.5 trillion in dividends, state sales taxes, cash payments, export duties, and sovereign wealth funds.

“PETRONAS is a national oil company (NOC) but has always operated as an international oil company (IOC). Our competitors have also made similar tough decisions,” he said during a media briefing today.

Globally, oil and gas industry margins have decreased from 40-45% to just 20%, and PETRONAS has experienced the same margin pressures.

“Current projections suggest that margins could drop further to 16-18%,” he added.

Tengku Muhammad Taufik emphasized that to continue contributing to national development—through investments and expansion in areas such as green energy—PETRONAS needs a workforce that aligns with evolving customer demands.

“PETRONAS must decide whether it will remain relevant, not only domestically but also in the markets where it operates and continues to invest.

“We cannot afford to have a workforce that is misaligned with the market’s current demand for affordable, secure, and more sustainable energy solutions,” he said.

He stressed that without implementing these difficult measures, PETRONAS’ sustainability would be at risk.

After marking its historic 50-year milestone, PETRONAS must continue striving to be a high-performance organization, ensuring its resilience by focusing on productivity, innovation, sustainability, and a commitment to excellence.

The restructuring will be carried out prudently, with planning already in progress. Employees will be informed in the second half of this year, and the entire process is expected to be completed by the end of 2025.

“They will be provided with the necessary assistance,” he assured.

Tengku Muhammad Taufik reaffirmed that, in fulfilling its mandate under the Petroleum Development Act 1974, PETRONAS remains fully committed to creating value for its stakeholders.