Petronas refutes claim it has shut down most of its oil rigs

Petronas has refuted reports that the company has shut down 14 out of 18  oil rigs.

"Petronas would like to clarify that the company has not shut down any of its rigs," it said in a statement today, in response to a New Straits Times report.

It said the only exceptions were those concluding their drilling campaigns or those under temporary suspensions due to the Covid-19 pandemic.

It added that 18 rigs were still in operation within Malaysian waters.

"Petronas also wishes to clarify that there was a temporary suspension of projects at some worksites due to the movement control order (MCO) implemented by the government.

"Currently, most of these projects have either resumed their work activities or will be resuming them soon upon securing the necessary approval from the government," it said.

The national oil company also denied shutting down 14 other projects.

However, it acknowledged that some projects may face delays due to the current economic environment.

Petronas is striving to minimise the impact on its planned domestic capital expenditure programme in the face of the current challenges.

"However, we do expect that some projects will be naturally delayed due to the prolonged lockdowns implemented globally and the MCO in Malaysia and further disruptions anticipated to the global supply chain," it said.

Brent crude oil has plunged to US$21.44 per barrel as a vast portion of the global economy comes to a grinding halt amidst lockdowns to contain the Covid-19 pandemic. - Mkini