Petronas Case Study

982 Words4 Pages
1.0 Introduction About PETRONAS PETRONAS, the acronym for Petroleum Nasional Berhad is Malaysia’s leading international petroleum corporation and it was established in 17 August 1974.Under the leadership of Tan Sri Hassan Marican, PETRONAS has transformed into a global company by business joint ventures with overseas partners and with oil explorations. PETRONAS is also listed in FORTUNE GLOBAL 500’s largest companies in the world. While playing the role of a custodian for Malaysia’s national reserves, PETRONAS source, produce and deliver products to meet society’s growing energy needs. PETRONAS apply innovative approaches to technology which helps them to maximise energy sources from even the most remote and difficult situations. The growing…show more content…
PETRONAS is the largest contributor to the Malaysian government budget, accounting for 39.9% of the federal government’s revenue in 2008, up from 36.4% in 2007.Malaysian government has been subsidizing the local fuel prices since 2004 with the financial help of PETRONAS which is different from other countries whose followed the exact fuel prices regulated by the global market price of gasoline. During the a conference around June 2013, a PETRONAS official said that the company is planning to build two liquefaction plants on Lelu Island near Price Rupert’s port on the B.C. coast which requires them to invest between $9 billion and $11 billion. Plus, another $5billion in a 750 kilometre gas pipeline. This leads the company to spend an additional cost between $14 billion…show more content…
As PETRONAS holds many stakes in various countries, their political stability plays an important role in PETRONAS developments and production of oil and gas. PETRONAS strategy of growth through Joint venture and partnering in the global is an excellent way to reduce the political risk in the business. Plus, in order to succeed the development of political components in the Middle East countries, Malaysian Government has to be proactive too. Therefore, PETRONAS has to keep an eye on other external environment and as well as maintain the political components in order sustain the number one positon in their current
Open Document