PETRONAS lay-offs not Petros-related, says DPM


Aidiladha offering: Fadillah (second from right) presenting sacrificial meat to one of the recipients while attending the Kampung Sungai Laruh sacrificial ceremony at the Taman Hussein Mosque in Kuching. — Bernama

KUCHING: PETRONAS’ move to trim its workforce by 10% is not linked to the national oil company’s ongoing issues with Petros, says Deputy Prime Minister Datuk Seri Fadillah Yusof.

He said the national oil com­pany’s move to downsize its ­workforce was instead due to global challenges.

The restructuring process, he said, is necessary given the decline in crude oil prices.

Fadillah also plans to meet with PETRONAS to get more details on the restructuring ­process.

“That is why PETRONAS has to relook its entire operation.

“I am planning a meeting with them to get a briefing on the matter and to ensure that the number of lay-offs can be reduced, if not avoided,” Bernama reported him as saying after the Aidiladha sacri­ficial event at Taman Hussein Mosque here yesterday.

On June 5, PETRONAS president and chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said the national oil company would be cutting 10% of its workforce to cope with challenging operating conditions, ­particularly due to falling crude prices.

Tengku Muhammad Taufik said the number of staff involved in the downsizing process currently stands at around 5,000, and those affected will be notified in stages next year.

Prime Minister Datuk Seri Anwar Ibrahim said on the following day that the lay-off exercise involved mostly contract workers.

On May 21, the federal and the Sarawak state governments signed a joint declaration, esta­blishing clear parameters and a collaborative framework for PETRONAS and Petros in the oil and gas sector.

According to the joint declaration, Petronas will continue its functions, activities, respon­si­bilities and obligations entrusted to the company, under the Petro­leum Development Act and its regulations.

Following the joint declaration, the Prime Minister’s Office said all relevant federal and state laws relating to gas distribution in Sarawak are to co-exist and be respected by all parties.

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