Calling it a long overdue process, he said the evolving dynamics of the global oil and gas sector require Petronas to reinvent itself to remain future-ready.

“Petronas is a national oil company, but it has always operated as an international oil company. And our competitors have made such tough decisions as well,” Bernama quoted him as saying at an editors’ briefing today.

Petronas currently has a workforce of 52,000, including 16,000 core enablers.

Tengku Taufik said the industry’s margin has shrunk significantly, dropping from 40%-45% to about 20%, with further declines to 16%-18% expected.

“For the other international oil companies it is about 12%-13%,” he said.

He said that to continue contributing to nation-building, which means investing and expanding into green energy, Petronas must have the right talent to meet evolving client demands.

Since its establishment, Petronas has contributed RM1.5 trillion in dividends, state sales tax, cash payments, export duties, and payment to the national trust fund.

Tengku Taufik said Petronas will face a limited future if it does not take the “bitter pill” measures now.