PETROLIAM NASIONAL

BERHAD (PETRONAS)

FACULTY: FACULTY OF ACCOUNTING

P R O G RA M M E C O D E : A C 1 1 0
M G T 1 5 3 – I N T R O D U C T I O N T O BU S I N E S S

L E C T U R E R’ S N A M E : M R . M A Z I Z U A N BI N
MAZALAN
G RO U P C L A S S : M A C 1 1 0 1 F
 MEMBERS:

1. NADIA FARHANA BINTI WARDI

( 2016488642 )
2. NUR AQILAH BINTI NORZLAN
( 2016802322 )
3. NURUL AIN NADIRAH BINTI ABDUL MOHIN
( 2016802268 )
4. NURUL AISYAH BINTI MISRI
( 2016696992 )
5. NURUL NAZIRAH BINTI MOHD FARID
( 2016699288 )
 PETRONAS BACKGROUND

PETRONAS is an acronym for Petroliam Nasional Berhad. It was established in

17 August 1974 as the national oil company for Malaysia. As the custodian for
Malaysia’s national oil and gas resources, we explore, produce and deliver energy to
meet society’s growing needs.
The growing demand for energy inspires and strengthens our purpose to
steadily drive for new solutions and push boundaries towards a sustainable energy
future.
We apply innovative approaches to technology which helps us unlock and
maximise energy sources from even the most remote and difficult environments.
Our fully integrated value chain spans from exploration to marketing, logistics to
technological infrastructures, with operations in over 50 countries around the
world.
PETRONAS is doing its business with the major strategy of integration, adding
value and globalization. Their major facets of business integration are Exploration
and Production; Oil, Gas, Petrochemicals, Logistics and Maritime, Research and
Technology and Corporate Sustainability.
PETRONAS MISSION, VISION AND VALUES

1. Vision
A Leading Oil and Gas Multinational of Choice

2. Mission
Our mission is we are a business entity. Oil and gas is our core business and add
value to this resource. We also contribute to the well-being of the society.

3. Values
Our values are embedded in our culture as the backbone of our business conduct,
reflecting our sense of duty and responsibility in upholding our commitment
towards contributing to the well-being of peoples and nations wherever we operate.

(a) Loyalty - Loyal to corporation

(b) Integrity - Honest and upright
(c) Professionalism - Strive for excellence
(d) Cohesiveness - United, trust and respect for each other
 FOUNDER OF PETRONAS

Tan Sri Tengku Razaleigh Hamzah (born 13 April 1937) is a Malaysian elder
statesman and a major political figure from the state of Kelantan. He is dubbed the
Father of Malaysia's Economy for playing a pivotal role in establishing and
implementing key foundations and policies in Malaysia's economy. He is fondly
known as Ku Li.
  He was the Minister of Finance (1976–1984), Minister of International Trade
and Industry (1984–1987), the former chairman of the World Bank and IMF, former
chairman of Asian Development Bank, former chairman of Islamic Development
Bank and the Founding Chairman and Chief Executive of Malaysian oil company,
PETRONAS. He is now the longest serving member of parliament in Malaysia.
 BOARD OF DIRECTOR

 Chairman - Tan Sri Mohd Sidek Hassan

President & Group Chief Tan Sri Dr Mohd Irwan
Executive Officer – Serigar Abdullah
Datuk Wan Zulkiflee
Wan Ariffin
Tan Sri Amirsham A Aziz Datuk Muhammad
Ibrahim
 MAIN BUSINESS OF PETRONAS

PETRONAS has come a long way from managing the work of foreign
production sharing contractors. We have evolved our own upstream capabilities and
ventured into the entire spectrum of downstream activities to add value to our
petroleum resources.

With our strategy of integration, adding value and globalization, PETRONAS

continues to deliver excellence towards realizing our vision of becoming a leading
oil and gas multinational of choice.

Our business strategy to drive long term corporate growth and profitability
mandates a holistic approach in responsibly managing the Health, Safety and
Environment. The Company takes proactive steps through product stewardship
commitment to continually comply with the global regulatory requirement and
communicating safe management of our product with our stakeholders.
 PETRONAS - MOTORSPORTS

PETRONAS has been involved in motorsports from as early as 1988 with our
sponsorship of a local rally team competing at local, regional and international
levels. Since then, this involvement has expanded to include various forms of
motorsports, notably Formula 1, the pinnacle of motorcar racing.

More than just an image and brand building exercise, the PETRONAS

Motorsports sponsorship programme serves as an effective platform for enhancing
our technological and human capabilities through research & development (R&D) of
PETRONAS’ fuel and lubricant products as well as the nurturing of indigenous
technological capabilities in the field of automotive engineering within the
PETRONAS Group, particularly powertrain research and development.
 PETRONAS - EDUCATION

PETRONAS awards education sponsorships in the form of convertible loans to

Malaysian and international students to further their studies at local or foreign
universities. The PETRONAS unit that is responsible for handling education matters
is called the Sponsorship & Talent Sourcing Unit (STS).

These sponsorships are awarded based on academic results, co-curricular

activities, family background as well as an assessment of student personality (which
is conducted throughout a program called EduCamp, which all prospective
PETRONAS students are required to undergo).

Students who are absorbed by PETRONAS at the end of their tertiary studies
have their convertible loans converted into full scholarships. These students are
under contract agreement to work for the company for two years for every one year
they are sponsored.

PETRONAS has its own university, Universiti Teknologi PETRONAS (UTP).

Built in 1997, the campus is located in Seri Iskandar, Perak.
 ARTICLE ABOUT PETRONAS

1. PETRONAS COLLABORATES WITH UITM ON CAPABILITY

BUILDING
 
KUALA LUMPUR, 6 September 2016 – PETRONAS recently signed a
Memorandum of Understanding (MoU) with Universiti Teknologi MARA (UiTM) to
further collaborate in the areas of joint research and development (R&D), students’
internship as well as adjunct lecturer programmes. 

The MoU was signed between PETRONAS Senior Vice President of Group Human
Resource Management, Dato’ Raiha Azni Abd Rahman and UiTM Vice Chancellor,
Prof. Emeritus Dato’ Dr Hassan Said, and witnessed by the Minister of Higher
Education, Dato’ Seri Idris Jusoh.  

Students from five faculties of UiTM namely Accountancy, Law, Communication &
Media Studies, Business Management and Information Management will be given
exposure via internship placements in PETRONAS, attaining first-hand knowledge
from subject-matter experts as well as gaining experience in or other related
industry areas in PETRONAS. 
2. PETRONAS TO RAISE RM29.5BIL FOR RAPID
 
KUALA LUMPUR: Petroliam Nasional Berhad (PETRONAS) is seeking to raise
US$7.2bil (RM29.5bil) for its Refinery and Petrochemical Integrated Development
(Rapid) project in one of the largest project financings from Asia in recent years,
Thomson Reuters LPC reported on Wednesday.
 
The state-owned oil company has asked banks for underwriting commitments of at
least US$500mil (RM2.0bil) by next week, LPC reported, citing sources.

A banking source confirmed to Reuters that Petronas has issued a request for
proposals for the loan to be used to finance the US$16bil (RM65.5bil) Rapid project.
Petronas did not immediately reply to requests for comment.

The project in the southern state of Johor is set to be Malaysia’s largest liquid-based
green-field downstream development. It will consist of a 300,000-barrels-per-day
refinery and petrochemical complex, with a combined chemical output capacity of
7.7 million metric tonnes per year. – Reuters
3. PETRONAS STATIONS TO HELP OUT DURING EMERGENCIES

KUALA LUMPUR: The Go-To-Safety-Points programme, under which the public

can go to Petronas stations to seek help during emergencies, will be extended to
1,067 stations. Inspector-General of Police Tan Sri Khalid Abu Bakar said the
programme, a collaboration with Petronas Malaysia, now covered 512 stations.

Also present was Petronas Chairman, Tan Sri Mohd Sidek Hassan and the president
and group chief executive officer, Datuk Wan Zulkiflee Wan Ariffin. Khalid said the
police would also provide specific training to the petrol station operators and
supervisors who are part of the programme. Khalid said the training would help
provide them with some ways of helping the public who encountered emergencies.

Petronas Dagangan Berhad (PDB) managing director and chief executive officer,
Mohd Ibrahimuniddin Mohd Yunus in a statement said among the training modules
provided were self-defence, citizen's arrest, handling victims in trauma and
administering first aid. – Bernama
 PROBLEM FACED BY PETRONAS

1. OIL PRICE SLUMP, WORRIES AS PETRONAS SLASHES DIVIDENDS,

CAPITAL EXPENDITURE

KUALA LUMPUR, Dec 2 —The recent global oil price slump has affected both
Putrajaya and domestic oil and gas (O&G) industry which depend heavily on
Petroliam Nasional Bhd (Petronas), after the local giant decided to slash its
dividends and capital expenditure.
In the aftermath of the slump, media reports revealed declines in the ringgit,
local stock market, and net worth of industry players including billionaires Tan Sri
Robert Kuok and T. Ananda Krishnan, and even Tan Sri Mokhzani Mahathir.
With the US crude oil prices at a five-year low, Petronas Chief Executive Tan Sri
Shamsul Azhar Abbas told reporters on Friday after the that payments to the
government in the form of dividends, tax and royalties could be 37 per cent lower
from the previous year to about RM43 billion in 2015 if oil stays around US$75
(RM275) a barrel.
As a result, Malaysia’s ringgit headed for its biggest two-day decline since the
1997-98 Asian financial crises yesterday.
2. Petronas Plans Cuts and Review To Counter Oil Price Slump
 
KUALA LUMPUR, January 2016 Petroliam Nasional Berhad (Petronas) plans to cut
spending by up to 50 billion ringgit ($11.4 billion) over the next four years and
review its business structure in response to the profit-sapping slump in oil prices.

The state-owned Malaysian company brings in nearly half of the Southeast

Asian country's oil revenue and its woes are bound to add pressure to an economy
already reeling from a slide in the ringgit and political uncertainty after a scandal
surrounding state investor 1Malaysia Development Berhad (1MDB).

Petronas said in November that it would cut its 2016 dividend to the
government by nearly 40 percent after a 91 percent drop in profit, with analysts
suggesting the payout could be trimmed back again in future. Petronas made its
announcement on spending cuts in an internal memo, a copy of which was seen by
Reuters.
 REFERENCE

1. http://
www.petronas.com.my/sustainability/community/
sports/Pages/sports/motorsports.aspx
2. http://
www.petronas.com.my/media-relations/media-rel
eases/Pages/article/PETRONAS-UITM-MOU.aspx