KUCHING, June 7 — Petroliam Nasional Berhad’s (Petronas) decision to cut over 5,000 jobs, along with a freeze on all promotions and recruitment until December 2026, is unrelated to the recent recognition of Petroleum Sarawak Berhad (Petros) as Sarawak’s sole gas aggregator.

Deputy Prime Minister Datuk Seri Fadillah Yusof clarified this when met by reporters at the Majlis Ibadah Korban held at Masjid Darul Husni Warrahmah here today.

“No, it has nothing to do with that. It is actually due to the global situation, particularly the decline and fluctuation in oil prices,” he said.

Petronas had earlier stated that its internal budgeting was based on Brent crude prices averaging between US$75 and US$80 per barrel.

However, the global benchmark has since fallen and is currently hovering around US$65 per barrel.

“Even for Petronas to remain sustainable, oil prices must be above US$60 per barrel. That is why they have to re-evaluate their position,” Fadillah added.

Fadillah, who also serves as the minister of energy transition and water transformation, said he would be meeting with Petronas to receive a detailed briefing and to ensure that the planned job cuts could be reduced or, if possible, avoided altogether.

“I have yet to meet with Petronas to get the full details. Hopefully, once I receive the briefing, I’ll be in a better position to explain the rationale behind the decision.

“My aim is to engage with them and see whether there are ways to address the issue,” he said.

It was recently reported that Petronas is planning a significant workforce reduction as part of a broader restructuring effort aimed at cutting costs in response to falling crude oil prices.

Its chief executive officer, Tan Sri Tengku Muhammad Taufik Aziz, stated that all employees affected by the restructuring will be informed by the end of the year.

Petronas contributed approximately 10 per cent of Malaysia’s national revenue in 2024 through dividends and taxes.

The company’s net income dropped by 32 per cent in 2024, following a 21 per cent decline in 2023. — The Borneo Post