corporate profile

OUR BUSINESS
Crude Oil Natural Gas

Exploration, Development and Production Rening Processing Liquefaction Liqueed Natural Gas (LNG)

F G H I J

Petroleum Products Petrochemical Plant Liqueed Petroleum Gas (LPG) Processed Gas/Peninsular Gas Utilisation (PGU) System Regasication Terminal

Transportation Sector - Diesel, Gasoline, Jet Fuel and Lubricants Industrial Sector - Ethylene, Methanol, MTBE, Polyethylene, Propylene, Urea and VCM Residential and Commercial Sectors Power Sector Industrial Sector Export Sector

B C D E

VISION
Mission
We are a business entity Petroleum is our core business

TO BE A LEADING OIL AND GAS MULTINATIONAL OF CHOICE

Shared Values
Loyalty
Loyal to nation and corporation

Our primary responsibility is to develop and add value to this national resource Our objective is to contribute to the well-being of the people and the nation

Integrity

Honest and upright

Professionalism

Committed, innovative and proactive and always striving for excellence

Cohesiveness

United in purpose and fellowship

CONTENTS
Our Business Corporate Statements About PETRONAS Exploration & Production Maximising Resources for Growth Gas & Power Expanding Our Horizons Downstream Building Upon Our Achievements Technology & Engineering Enhancing Value for the Business Our People The Companys Greatest Asset Health, Safety & Environment A Responsible Corporate Citizen Corporate Social Investments Growing with the Nation

3 4 6 8 12 16 20 22 24 26

PETRONAS - reimagining energy We focus on collective efforts to do things differently by continuously challenging industry norms to achieve real, sustainable and long-term growth. Guided by this bold commitment, we constantly strive for new solutions and push boundaries to stay ahead.

CORPORATE PROFILE

PETRONAS
P
etroliam Nasional Berhad (PETRONAS) is Malaysias National Oil Company, and wholly-owned by the Government. Established in 1974, PETRONAS is ranked amongst the largest companies in the world with a proven track record in integrated oil and gas operations. Our business activities include (i) the exploration, development and production of crude oil and natural gas locally and abroad; (ii) the liquefaction, sale and transportation of Liqueed Natural Gas (LNG); (iii) the processing and transmission of natural gas, and the sale of natural gas products; (iv) the rening and marketing of petroleum products; (v) the manufacture and sale of petrochemical products; (vi) the trading of crude oil, natural gas, LNG, petroleum products and petrochemical products; and (vii) shipping and logistics relating to LNG, crude oil and petroleum products. Committed to ensuring long-term business sustainability, PETRONAS also strives to responsibly manage natural resources in a way that contributes holistically to the well-being of the people and nations where we operate. www.petronas.com

About

CORPORATE PROFILE

CORPORATE PROFILE

EXPLORATION & PRODUCTION

Maximising Resources for Growth

he establishment of PETRONAS is an important catalyst for the development of oil and gas resources in Malaysia, driving domestic growth in Exploration and Production (E&P) activities. As Malaysias basins become more mature, we will face greater challenges to sustain production. Nevertheless, we have laid out clear strategies to arrest the decline. This involves extending the lifecycle of existing resources by optimising exploration, development and production activities. We are committed to three strategic focus areas as identied under the Governments Economic Transformation Programme, which are to rejuvenate the production of existing elds through improved oil recovery and enhanced oil recovery (EOR), development of marginal elds through innovative solutions and intensive exploration activities.

CORPORATE PROFILE

CORPORATE PROFILE

10

Our E&P business is divided into two key portfolios the Petroleum Management Unit (PMU) and PETRONAS Carigali Sdn Bhd (PETRONAS Carigali), a subsidiary of PETRONAS. PMU manages Malaysias domestic oil and gas resources. This includes enhancing the prospectivity of domestic acreages by pioneering innovative solutions to attract investments and protect national interest. PETRONAS Carigali, the E&P operating arm of PETRONAS, is a hands-on operator with an established track record of successful oil and gas developments, in Malaysia and abroad. We harness and implement new technologies, powered by a performance-driven workforce to capitalise on opportunities that further strengthen our capabilities in exploring new growth frontiers. With the establishment of PETRONAS E&P Technology Centre, we are poised to develop and implement EOR and carbon dioxide (CO2) management technologies. The seamless integration of Research & Development, eld development planning, initiation of EOR projects and monetisation of high CO2 gas elds leverages on technical collaboration and sharing of capability, and resources between PETRONAS and the industry. Abroad, we are growing our E&P portfolio to ensure successful delivery of business objectives.

Highlights:
1. Using smart eld development approach, Sepat Oil project achieved rst oil more than a year ahead of schedule while Tangga Barat Gas project achieved rst production ve months ahead of schedule. 2. Two EOR Production Sharing Contracts were signed between PETRONAS and Shell, worth RM36 billion in CAPEX and are expected to recover more than 750 million barrels of oil for projects using EOR technology to boost crude oil and natural gas production from existing elds offshore Sabah and Sarawak. 3. PETRONAS acquired 50 percent equity from Progress Energy Resources Corporation to explore shale gas opportunities in northeastern British Columbia, Canada. 4. The Balai and Berantai Risk Service Contracts - PETRONAS pioneered innovative scal measures to develop domestic marginal elds.

CORPORATE PROFILE

11

CORPORATE PROFILE

12

Expanding Our Horizons

GAS & POWER

e aspire to be a leading integrated gas, Liqueed Natural Gas (LNG) and power player through two major portfolios; Global LNG business and Infrastructure, Utilities & Power business.

PETRONAS Global LNG business commands a sizeable market share in the Far East. This is made possible by owning and operating one of the worlds largest LNG production facilities in a single location. We are responsible for the marketing and trading of the LNG produced. The PETRONAS LNG complex, located in Bintulu, Sarawak, Malaysia currently has a combined capacity of 25.7 million tonnes per annum (mtpa). We aim to sustain our market position and preserve our reputation as a reliable supplier of LNG by embarking on projects such as LNG Train 9 and Floating LNG that will increase our production capacity by 3.6 mtpa and 1.2 mtpa, respectively. We will supplement this effort by diversifying our supply sources and increasing our market presence. Driven by our aim to become a market leader, PETRONAS has expanded into unconventional plays by venturing into the GLNG project in Gladstone, Australia to process coal bed methane to LNG. This was followed by our acquisition of shale gas assets in northeastern British Columbia, Canada, with the aim of monetising it through an LNG venture.

CORPORATE PROFILE

13

CORPORATE PROFILE

14

PETRONAS constantly explores opportunities to expand our involvement along the gas value chain and one such effort is establishing our foothold in the European energy trading sector, which includes gas and electricity. Our Infrastructure, Utilities & Power business is focused on ensuring long-term security and sustainability of the gas market in Malaysia. Through our subsidiary, PETRONAS Gas Berhad, we own and operate the Peninsular Gas Utilisation (PGU) system, delivering gas to the power and non-power sectors in Peninsular Malaysia as well as the power industry in Singapore. We have been operating the system at reliability rates exceeding world class standards. PETRONAS is currently constructing Malaysias rst LNG Regasication Terminal in Melaka. When commercial operation begins in 2012, the nations long-term gas requirements will be addressed through LNG imports at market prices. Development works of regasication terminals in Pengerang, Johor and Lahad Datu, Sabah are also in progress. PETRONAS is committed to expand our Infrastructure, Utilities & Power portfolio, leveraging on existing capabilities, to capture opportunities in key focus markets in Asia and the Middle East.

Highlights:
1. The GLNG Project in Australia is on track to produce an estimated 7.8 million tonnes per annum (mtpa), scheduled for rst delivery in 2015. 2. PGBs Network Code introduces third party access to the PGU system. This provides transparent and uniform principles for the PGU system subscribers thus facilitating LNG importation by third parties. 3. PETRONAS International Corporation Ltd acquired a 30% stake in GMR Energy Singapore Pte Ltds 800 megawatt Combined Cycle Gas Turbine Power Plant on Jurong Island, Singapore.

CORPORATE PROFILE

15

CORPORATE PROFILE

16

DOWNSTREAM

Building Upon Our Achievements

ETRONAS downstream business plays a strategic role in increasing the value of every molecule extracted through our exploration activities. We are pursuing ambitious downstream expansion through our integrated operations in rening and trading, marketing of crude oil and petroleum products locally and internationally, including manufacturing and marketing of petrochemical products. PETRONAS owns and operates three reneries in Malaysia: two in Melaka and one in Kerteh, Terengganu. Our rening portfolio is also complemented by our rening presence in Africa through 80% owned subsidiary, Engen Petroleum Limited (Engen), a leading South African rening and marketing company which owns and operates a renery in Durban, South Africa.

CORPORATE PROFILE

17

CORPORATE PROFILE

18

In Malaysia, PETRONAS Dagangan Berhad (PDB) manages all domestic marketing and retailing activities for a wide range of petroleum products. We also operate service stations in various international markets including Indonesia, Thailand, South Africa and Sudan. PETRONAS Lubricants International (PLI) is the global lubricants manufacturing and marketing arm of PETRONAS, with a strong presence in more than 20 countries. PLIs product range includes lubricants and functional fluids for both the automotive and industrial markets as well as a range of unique car care products. Meanwhile, the integrated development of Malaysias petrochemicals industry is expected to promote the development of the countrys industrial base, especially the plastics and chemicals based component manufacturing industry. Our consolidated petrochemicals business is managed by the PETRONAS Chemicals Group Berhad (PCG), which is the largest integrated petrochemicals producer in Malaysia, and among the largest in South East Asia. PETRONAS robust development of its downstream portfolio is expected to further enhance Malaysias economic, industrial and knowledge base. In the long term, this augurs well to support Malaysias growth agenda and our integrated plan to become a key downstream player in the region.

Highlights:
1. Achieved 98.4% overall reliability rate for domestic reneries. 2. PDB retained its position as a market leader for Commercial Business in Malaysia. 3. Groups petroleum product sales volume recorded healthy growth, testimony of the aggressive growth and portfolio management of retail and marketing arm operations domestically and internationally. 4. Establishment of PETRONAS Lubricants Africa Ltd (PLAL) in growing the lubricant business in African countries. 5. Expansion to ve LPG Terminals, with the construction of a new terminal in Cebu, Philippines, further strengthens PETRONAS downstream marketing portfolio. 6. PLI is set to invest Euro 50 million to build a state-of-the-art Research & Development Centre in Turin, Italy to enhance its product capability in providing fluid technology solutions.

CORPORATE PROFILE

19

CORPORATE PROFILE

20

Enhancing Value for the Business

TECHNOLOGY & ENGINEERING

ecognising technology as a key driver for growth, PETRONAS through its Technology & Engineering (T&E) Division pursues strategic development and deployment of technology to further enhance operational excellence and maximise the potential of our existing assets and emerging opportunities. T&E Division aspires to attain leadership in delivering integrated innovative technology solutions and projects across PETRONAS by anchoring on the following areas: Delivering projects at competitive cost, on schedule and with assured operability Driving category management for cost and delivery advantage to projects and for operational requirements Providing value adding technical solutions and instituting technical governance for operational excellence Providing stewardship for Groupwide technical capability development and knowledge assets Developing and deploying technology for PETRONAS growth and future positioning Commercialising technology solutions for value and competitive advantage

Highlights:
1. Enhanced Oil Recovery (EOR), carbon dioxide (CO2) management, contaminants removal and green and sustainable technologies are being pursued. 2. Accredited the Quality Management System ISO 9001:2008 for the Integrated Plant Operations Capability System and the management of PETRONAS Technical Standards. 3. Entered the renewable energy sector through involvement in solar projects.

CORPORATE PROFILE

21

CORPORATE PROFILE

22

OUR PEOPLE

The Companys Greatest Asset

ur people are the key driving force in achieving PETRONAS business aspirations. Our workforce comprises a dynamic mix of people, who bring with them diversity in thought, experience and knowledge to take our business to newer heights. Our human capital development efforts promote the culture of continuous learning. We provide a structured development framework to support and grow our staffs potential through various technical and management programmes to bring about a favourable change in mindset, including enhancing capabilities and skills. This includes education-led transformation based on industry engagements and Research & Development stewardship.

Highlights:
1. More than 43,000 employees Groupwide. 2. Empowered leaders and business savvy workforce, with excellent competencies to deliver value. 3. Constantly strengthening a high performance culture to broaden our talents knowledge and experiences in the oil and gas industry.

CORPORATE PROFILE

23

CORPORATE PROFILE

24

A Responsible Corporate Citizen

HEALTH, SAFETY & ENVIRONMENT

ETRONAS is committed to Health, Safety & Environment (HSE) excellence in all our areas of operations. We adhere to international standards and industry best practices. We strive to balance and integrate economic, environmental and social considerations in our business decisions, guided by our Corporate Sustainability Framework. This covers seven key result areas namely, shareholder value, natural resource use, HSE, product stewardship, societal needs, climate change and biodiversity.

Highlights:
1. Rolled out a HSE Mandatory Control Framework and established best practices for Mercury and Asbestos Management to elevate HSE Governance and Risk Management efforts. 2. Cascaded Process Safety Leadership programme to management and personnel Groupwide to institutionalise HSE best practices throughout our operations.

CORPORATE PROFILE

25

CORPORATE PROFILE

26

Growing with the Nation

CORPORATE SOCIAL INVESTMENTS

e strive to enrich the lives we touch through various holistic efforts that aim for sustainable long-term growth.

Education and Capability Building Knowledge is energising and the capability unlocked by it liberates people; it removes mindset blocks that hamper progress; it enables full human potential to be realised; it inspires, res up the imagination and shows people what is possible; and it gives people the ability to break free from mediocrity. At PETRONAS, we encourage and facilitate life-long personal and professional development to ensure the availability of a sustainable pool of motivated and knowledge-empowered talents for PETRONAS, our partners, host nations and communities where we operate. Our education initiatives include educational and training institutions, education sponsorships as well as schools outreach and industrial training programmes.

CORPORATE PROFILE

27

CORPORATE PROFILE

28

Community We are mindful of our responsibility to return the value we create through our business to the community. Over the years, we have initiated and supported various social, environmental and community projects. We adopt a holistic approach for sustainable long-term growth for the benet of people in the areas of our operations, locally and abroad. Our signature efforts include community programmes (Program Sentuhan Harapan PETRONAS), schools outreach (Program Bakti Pendidikan PETRONAS), anti-drug awareness (Program Sahabat Pendidikan Pencegahan Dadah PETRONAS) and arts appreciation (Galeri PETRONAS, Dewan Filharmonik PETRONAS and the Malaysian Philharmonic Orchestra). Abroad, our community initiatives include the Yetagun Socio-Economic Development Programme in Myanmar as well as School Refurbishment programmes and Mobile Basic Healthcare services in Iraq.

Highlights:
1. Partnership with Yayasan Sabah in the Imbak Canyon Conservation Area which includes the Imbak Canyon Studies Centre for environmental research, education and outreach programmes. 2. The PETRONAS Leadership Centre continues to offer integrated learning solutions and consultancy services to the PETRONAS Group and industry players in Malaysia and abroad. 3. Program Bakti Pendidikan PETRONAS held more than 1,000 academic and fun learning sessions in schools throughout Malaysia, benetting over 3,000 primary school students.

CORPORATE PROFILE

29

For further information, please contact: PETRONAS Group Corporate Affairs Division Level 70, Tower 1, PETRONAS Twin Towers Kuala Lumpur City Centre, 50088 Kuala Lumpur, Malaysia Tel : +603 2051 5000 Fax : +603 2026 5050 www.petronas.com PETRONAS Listed Subsidiaries: PETRONAS Chemicals Group Berhad - www.petronaschemicals.com PETRONAS Dagangan Berhad - www.mymesra.com.my PETRONAS Gas Berhad - www.petronasgas.com MISC Berhad for Logistics and Maritime - www.misc.com.my KLCC Property Holdings Bhd - www.klcc.com.my

Please visit our Corporate Website for more information on our other businesses and related subsidiaries.

2012 PETROLIAM NASIONAL BERHAD (PETRONAS) All rights reserved. PETRONAS makes no representation or warranty, whether expressed or implied, as to the accuracy or completeness of the facts presented. PETRONAS disclaims responsibility from any liability arising out of reliance on the contents of this publication.

www.petronas.com