Petronas reviewing 70% domestic, 30% export strategy, says VP

 Vice-president of upstream development Nazlee Rasol says the company is considering if there is a need for adjustment in light of global oil disruptions.

Petronas’s vice-president of upstream development, Nazlee Rasol said the company has formed a task force to assess measures to boost output, to help ensure continued supply to its refineries. (Reuters pic)

PETALING JAYA:

 Petronas says it is re-evaluating its balance between domestic refining and exports as part of its efforts to strengthen Malaysia’s energy security amid the global oil disruptions.

Petronas’s vice-president of upstream development, Nazlee Rasol said about 70% of the company’s production is refined domestically, while the remaining 30% is exported.

He said the national oil company is reviewing whether this structure should be maintained or adjusted to better support Malaysia’s long-term supply needs in light of the Middle East conflict, which has triggered energy shortages across the world.

“So, of course, we need to think about whether we want to continue to do that, or whether we need to make changes,” Bernama quoted him as saying.

Nazlee said Petronas has formed a task force to assess measures to boost production, which would help ensure continued supply to its refineries.

He said the company is working with relevant authorities and industry players to identify ways to accelerate production, including discussions with service providers on technologies that could improve output.

He was speaking at a panel session at the Offshore Technology Conference Asia (OTC Asia) in Kuala Lumpur, themed “Accelerating Development for Energy Security: Fast-Tracking Field Strategies in a Volatile World”.

On Monday, Petronas said it will work with its subsidiaries to secure sufficient petrol and diesel supply to address the shortfall in the commodity caused by the Middle East conflict.

In a statement, it said that even though Malaysia is an oil-producing nation, it is not fully insulated from the impact of the war in Iran, with nearly 40% of the country’s crude oil requirements transiting through the Strait of Hormuz, which Iran has closed since the start of the war.

Earlier this month, Prime Minister Anwar Ibrahim said Malaysia has sufficient supply of petrol to maintain the subsidised price at least until May. - FMT