[size=150][b]You think Shell is the only on cutting staff?..PETRONAS IS CUTTING MORE!!!..HALF YEAR EARNINGS ARE DOWN NEARLY 50%
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http://www.upstreamonline.com/live/article181895.ece
Petronas looks to cut cost by 30%
Petronas plans to slash its expenditure by 30% from the amount it spent in its 2006 fiscal year to arrest a decline in its net profit.
News services Friday, 26 June, 2009, 03:35 GMT
The Malaysian national oil company reported a 14% drop in its annual net profit to 52.5 billion ringgit ($14.9 billion), despite an18.4% revenue hike for the 2009 financial year.
Revenue rose 18.4% to 264.2 billion ringgit, largely thanks to higher liquefied natural gas prices and higher sales of petroleum products.
Higher raw material and service costs, however, have resulted in a lower annual net profit, according to Chief Executive Hassan Marican.
Costs, such as for steel and charges by service providers, remained high and even increased despite a drop in the demand and price of crude oil, the Star newspaper cited Hassan as saying during a press briefing.
While cost cutting would be pursued, Hassan said capital expenditure domestically would not be affected as spending by Petronas had a huge multiplier effect on the Malaysian economy.
We plan to spend the same level this financial year to sustain production levels, he said, adding that spending had to go on regardless of the price of crude oil to continue developing reserves.
Malaysian Tapis crude fetched on average $88 per barrel last year, but has declined to $51.08 in May.
The countrys crude production has fallen from a peak of 700,000 barrels per day to 553,000 bpd in 2009 due to the depletion of its existing reserves.
Oil and gas explorers will need to move to deeper and more remote basins to seek out new discoveries in Malaysia, according to Hassan.
Deep-water oilfields now accounts for 15% of Petronas total reserves.
Petronas has detected signs of sizeable hydrocarbon presence in the South China Sea, which may be the key to counter the 12% decline in the existing reserves on Malaysias continental shelf.
Wells in the deep-water basin, however, cost twice as much to drill than the ones on the continental shelf, according to Hassan.
Hassan said Petronas will be looking into raising funds in the bond market to fund its exploration and production activities.