KUALA LUMPUR – Petronas has set up two internal bodies to manage the impact of its ongoing restructuring, which includes cutting over 5,000 jobs. The national oil company said the move is part of a broader transformation to remain competitive amid global shifts in the energy sector.
The newly formed Transition Council and Human Capital Development Committee are tasked with overseeing a fair and structured redeployment of staff. Employees affected by the downsizing will be offered competitive separation packages and a full transition support programme.
This includes career counselling, emotional and mental health support, upskilling opportunities, financial planning advice and job-matching assistance. The support is being provided in collaboration with Socso, government-linked companies and Petronas’ entrepreneurial initiatives.
According to Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said, the measures are designed to strengthen Petronas’ long-term resilience without compromising its financial contribution to the country or disrupting national development policies.
She said the restructuring and transformation were strategically planned to ensure continuity in both revenue generation and national policy goals, despite the workforce reductions.
Azalina was responding via a written reply posted on the Parliament website to a question by Sabri Azit (Jerai-PN), who questioned the government’s stance on the impact of Petronas’ job cuts on national income.
In a separate reply to Datuk Seri Richard Riot Jaem (Serian-GPS), Azalina also addressed concerns over overlapping roles between Petronas and Petroleum Sarawak Bhd (Petros). She said a joint declaration signed on May 21, 2025, had set the foundation for a joint framework to clarify responsibilities.
Under the agreement, Petronas will maintain its roles under the Petroleum Development Act 1974, including upstream activities and international LNG sales. Petros, meanwhile, has been appointed by the Sarawak state government as the gas aggregator for the state’s domestic market effective March 1, 2025.
Azalina also clarified that any existing LNG sales agreements between Petronas or its subsidiaries and third parties will remain valid and unaffected by the new arrangement. – July 31, 2025