KUALA LUMPUR: Petroliam Nasional Bhd (PETRONAS) will increase its upstream activities internationally by 60 per cent in the next 10 years, as the group maintained a robust expenditure outlook despite shifting domestic sentiments.
PETRONAS chief operating officer (COO)/executive vice-president and chief executive officer (CEO) for upstream Mohd Jukris Abdul Wahab said the group continues to adopt a robust expenditure outlook in line with its expansion strategy in Malaysia and abroad.
"The outlook for upstream is very positive for us. Our expenditure remains robust, aligning with our growth expansion in Malaysia and beyond.
"For PETRONAS, as far as upstream is concerned overall, we set our sights on expanding our international growth to about 60 per cent over the next 10 years,” he told reporters after the announcement of PETRONAS’ financial results for the year ended Dec 31, 2025, here today.
Mohd Jukris said there would be a slight reduction in domestic exploration expenditure, reflecting prevailing investor sentiment over the past few years, although not due to a lack of geological potential.
Meanwhile, PETRONAS president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said the group remained focused on ensuring value accretion as it monetised its hydrocarbon resources.
"We have a duty to make sure, as we monetise these hydrocarbons, the economic returns for PETRONAS and indeed the petroleum arrangement contractors that work with us are met.
"That is challenging because there is cost inflation meeting head-on with softening prices. Notwithstanding what you see as crises of security across the world, we have seen prices only range-bound between US$65 and US$72 per barrel,” he said.
Tengku Muhammad Taufik also said that PETRONAS anticipates Brent crude oil prices will stay within a range of US$65 to US$70 per barrel over the next five years.
On gas infrastructure, PETRONAS executive vice-president and chief executive officer of gas and maritime, Datuk Adif Zulkifli, said the group is working closely with the Ministry of Economy and the Energy Commission to develop a third regasification terminal (RGT) to meet rising energy demand.
He said demand growth in Peninsular Malaysia is being driven by urbanisation, expanding industrial activity, as well as new data centre and artificial intelligence developments.
"Given that our offshore supply is quite limited to a certain extent, there will be a need to import more energy. With that, there will be a requirement for a third RGT,” said Adif.
He noted that while the Third Party Access in the oil & gas industry has been approved for several years, full market development, projected by the government to materialise by 2028, would be a key catalyst to spur energy imports.
"In the meantime, PETRONAS is out securing new supplies to ensure energy security for Malaysia,” said Adif. - Bernama
