Petronas facts for kids
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Petronas is headquartered in Tower 1 of the Petronas Twin Towers (right) in Kuala Lumpur, Malaysia
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Trade name
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PETRONAS |
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Native name
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Petroliam Nasional Berhad
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| State-owned enterprise | |
| Industry | Oil and gas |
| Founded | 17 August 1974 |
| Founders |
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| Headquarters | Tower 1, Petronas Towers, 50088 Kuala Lumpur, Malaysia |
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Area served
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Worldwide |
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Key people
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Tengku Muhammad Taufik Tengku Aziz (President and CEO) Mohd Bakke Salleh (Chairman) |
| Products | Petroleum, natural gas, petrochemicals, renewable sources, ready range of advanced products and adaptive solutions |
| Services | |
| Revenue |  US$73.01 billion (2023) |
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Operating income
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US$30.08 billion (2022) |
| US$17.15 billion (2023) |
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| Total assets | US$164.40 billion (2023) |
| Total equity | US$94.28 billion (2023) |
| Owner | Government of Malaysia |
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Number of employees
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47,669 (2020) |
| Subsidiaries | See subsidiaries |
National Petroleum Limited (Petroliam Nasional Berhad), known as Petronas, is a big energy company from Malaysia. It works in over 100 countries around the world. Petronas was started in 1974.
The company manages all of Malaysia's oil and gas. Its job is to find and make these resources more valuable. Petronas is one of the world's most important energy companies. It is often called one of the "new seven sisters" of oil companies.
Petronas does many things with oil and gas. This includes finding oil and gas underground. They also refine oil and sell petroleum products. They process natural gas and run pipelines. Petronas also makes chemicals and provides shipping services. You can find their gas stations in many places.
Petronas gives a lot of money to the Malaysian government. It provides more than 15% of the government's income. The company's main office is in Tower 1 of the Petronas Towers in Kuala Lumpur, Malaysia.
Contents
History of Petronas
Before Petronas was formed, a company called Royal Dutch Shell started looking for oil in Miri, Sarawak, in 1909. The first oil well was drilled there in 1910. It is now known as the Grand Old Lady. More oil was found in Brunei in 1929.
In the 1960s, other companies like Exxon and Shell got rights to explore for oil. They paid royalties and taxes to the government. By 1974, Malaysia was producing about 90,000 to 99,000 barrels of crude oil each day.
Starting the Company: 1970s
In the early 1970s, Malaysia decided to create its own oil and gas company. Oil prices were going up a lot. Other countries were also changing how they shared oil money. The Malaysian government felt foreign companies were not sharing enough information. This meant Malaysia was losing money.
The government also wanted Malaysians to have more control over important industries. This was part of a plan called the New Economic Policy.
A politician named Abdul Rahman Ya'kub first suggested starting a Malaysian oil company in 1965. He wanted to make sure Sarawak's oil rights were clear. Later, his nephew, Abdul Taib Mahmud, also worked on this idea. He visited Indonesia to learn about their state oil company, Pertamina.
Taib suggested that Malaysia should change its oil agreements. He wanted to move from a "concession system" to a "production sharing agreement." This would give Malaysia more control and a bigger share of the oil.
Tengku Razaleigh Hamzah helped create the Petroleum Development Act. This law allowed Malaysia to take back control of its oil resources. Petronas was officially started on August 17, 1974. Tengku Razaleigh became its first chairman.
At first, foreign oil companies like Exxon and Shell did not want to give up their old agreements. But Petronas told them they would be operating illegally if they did not negotiate. After talks, the foreign companies agreed to new terms.
All oil-producing states in Malaysia signed the new oil agreement. This included a 5% oil royalty for the states. With these agreements, Petronas gained full control of all oil and gas in Malaysia.
Petronas started its own oil exploration in 1978 with Petronas Carigali Sdn Bhd. In 1980, it began making fertilizers in Sarawak.
Dealing with Oil Supply: Late 1980s
Petronas continued to look for new oil fields. They used new technology to find oil in deeper waters. They also re-explored old fields that were thought to be empty.
Petronas also started looking for oil outside Malaysia. In 1989, Vietnam and Myanmar invited Petronas to help explore for oil. In 1990, Petronas Carigali Overseas Sdn Bhd was created for this purpose. This was Petronas's first oil exploration outside Malaysia.
Malaysia and Thailand also worked together on oil projects in the Gulf of Thailand. They planned to build pipelines to move natural gas. This project helped delay the time when Malaysia's oil would run out.
Petronas also started its own shipping business in 1990. This was to help transport its growing exports of natural gas. A new refinery was built in Malacca in 1994. This allowed Petronas to refine all its own crude oil.
Petronas became very important to Malaysia's economy. Oil taxes made up a large part of the government's income. Petronas was not just an oil company; it was a key part of the country's development.
Growing Globally: 1990s–Today
In the 1990s, Petronas focused on expanding worldwide. They found oil in Vietnam in 1994. That same year, they opened their first gas station outside Malaysia, in Cambodia.
Petronas also started new businesses. They began importing and selling cooking gas (LPG). They also opened a plant to make polyethylene, a type of plastic. Some Petronas companies, like Petronas Dagangan Bhd, became public companies. This means people could buy shares in them.
In 1996, Petronas started making aromatics, which are chemicals used in many products. They also began exploring for oil in China. Even during the Asian economic crisis in 1997-1998, Petronas continued to grow. They moved into their new headquarters in the Petronas Twin Towers.
Petronas continued to expand its chemical plants. They also bought a large share in Malaysia International Shipping Corporation Berhad (MISC). In 1998, Petronas introduced the Petronas E01, Malaysia's first prototype engine.
In the 2000s, Petronas kept growing internationally. They signed new deals for oil exploration in Pakistan, Gabon, Egypt, and other countries. They also built new chemical facilities.
By 2003, Malaysia became one of the world's largest producers of liquefied natural gas (LNG). This was a big achievement for Petronas. The company had become a global oil giant and a symbol of Malaysian success.
Petronas bought oil and gas assets in Mauritania in 2007. They found oil there in 2008. In 2004, Petronas gave RM 25 billion to Malaysia's government. By 2008, 40% of Petronas's income came from its international projects.
In 2012, Petronas bought a gas producer in Canada for $6 billion. In 2013, they found new onshore oil and gas in Sarawak, Malaysia. This was the first onshore oil discovery in Malaysia in 24 years.
In 2015, Petronas bought oil and gas assets in Azerbaijan for $2.25 billion. However, due to low oil prices, Petronas reported a loss in 2015. They had to cut their spending.
In 2017, Petronas achieved a milestone with PFLNG Satu. This is the world's first floating liquefied natural gas facility. It successfully loaded its first cargo in Sarawak. Later that year, Petronas canceled a large LNG project in Canada due to poor market conditions.
How Petronas Works
Petronas is a company created under Malaysian law. It reports to its Board of Directors. The Malaysian government is the only owner of Petronas. The government also chooses the main leaders of the company. It decides how much money Petronas pays to the government each year.
Production Sharing Contracts
Petronas signs agreements called Production Sharing Contracts (PSCs) with other oil companies. These agreements decide how oil and gas profits are shared. For example, in 1976, it was agreed that foreign companies would get 20% of the oil to cover their costs. The remaining oil was then shared between Petronas, the foreign companies, and the state governments.
Over the years, these contracts have changed. Newer models were developed to encourage companies to explore for oil in deeper waters. This is because deep-water exploration is more expensive. The sharing of profits can be different depending on how deep the oil is found.
Money Matters
Petronas has shared its financial reports online since 2008. The company's profits are managed by the Malaysian government.
In 2020, about one-third of Petronas's total income came from its international operations. Petronas regularly pays money to the Malaysian government from its profits. Since 1974, Petronas has paid over RM 403 billion to the government. In 2022, Petronas gave RM 50 billion to the federal government.
Company Look and Feel
Petronas's logo was designed in 1974 by Dato Johan Ariff. He also designed logos for many other Petronas companies and properties. These include the Kuala Lumpur City Centre (KLCC) and the Petronas University of Technology.
In 2013, Petronas updated its company logo.
Petronas Companies
Petronas has more than 100 smaller companies and about 40 joint venture companies. In these joint ventures, Petronas owns at least 50% of the company. Some of Petronas's companies are listed on the Malaysian stock exchange.
Petronas Dagangan Berhad
This company sells finished petroleum products. It also runs over 870 gas stations across Malaysia.
Petronas Dagangan Berhad works with other companies. They team up with fast-food chains like McDonald's and KFC. They also work with banks and transport companies. This helps them offer more services at their gas stations.
Petronas Gas Berhad
This company processes and transports natural gas. It owns and operates the Peninsular Gas Pipeline. This pipeline is 2,550 kilometers long. It runs across Peninsular Malaysia.
MISC Berhad
This company owns and operates ships. It also provides other shipping and logistics services. MISC Berhad has the largest fleet of ships that carry liquefied natural gas (LNG).
KLCC Properties Berhad
This company develops and manages the Kuala Lumpur City Centre project. This project includes the famous Petronas Twin Towers. It also includes Menara Exxon Mobil and KLCC Park.
Petronas Chemicals
Petronas Chemicals is one of the newest Petronas companies to be publicly listed. It is the largest producer of petrochemicals in Southeast Asia. Petrochemicals are chemicals made from oil and gas. They are used to make plastics, fertilizers, and other products.
In 2022, the company bought a Swedish plastics company called Perstorp.
Malaysian Marine and Heavy Engineering
This company builds large offshore structures for the oil and gas industry. It also repairs big ships. It can convert vessels into floating production and storage units.
Other Important Companies
Some other key Petronas companies include:
- Petronas Carigali Sdn Bhd – This is the main company for finding oil and gas.
- E&P O&M Services Sdn Bhd (EPOMS) – This company provides maintenance services for oil and gas operations.
- Petronas Research Sdn Bhd – This company does research and development for Petronas.
- Petronas Fertiliser Kedah – This company makes urea fertilizer.
- Petronas Methanol (Labuan) Sdn. Bhd. (PMLSB) – This company runs a methanol plant.
Car and Motorcycle Partnerships
Petronas is a recommended fuel and lubricant for many car brands. These include Mercedes-Benz, Proton, Perodua, and Tata Motors. They also work with motorcycle brands like Modenas and Yamaha.
Motorsport Involvement
Car Racing
Petronas has been a big sponsor in Formula One racing. They used to sponsor the BMW Sauber team. They provided lubricants and fuel for the team. Petronas also sponsored the Malaysian Grand Prix race.
Since 2010, Petronas has been the main sponsor of the Mercedes-AMG PETRONAS Formula One team. This team has won many championships. Petronas provides fuel and lubricants for Mercedes and other teams that use Mercedes engines.
Petronas also sponsors other motorsports teams. This includes the PERT (Petronas EON Rally Team). They also sponsored the Petronas Toyota Team TOM'S in the Super GT series.
Motorcycle Racing
Petronas has also been involved in motorcycle racing. In 1996, they sponsored a Grand Prix motorcycle racing team. They also sponsored the Malaysian Cub Prix races.
Petronas was a team sponsor in the Moto2 championship from 2011 to 2017. They supported Malaysian riders like Hafizh Syahrin. In 2019, Petronas became the main sponsor of the PETRONAS Yamaha SRT in MotoGP. This team had famous riders like Valentino Rossi. Petronas provided fuel and oil for this team. Their partnership ended in 2021.
In 2022, Petronas returned to Moto2 as a sponsor for wildcard riders. From 2023, Petronas became the main sponsor of the MIE Honda Racing Team in World Superbike and World Supersport.
Petronas also helps underprivileged children by bringing them to watch races. This is part of their community work.
Petronas Motorcycles
Petronas once developed its own racing motorcycle called the Petronas FP1. This bike was meant for the World Superbike (WorldSBK) racing event. Petronas worked with Suter Racing Technology to build it.
The Petronas FP1 had a powerful 899.5 cc, 3-cylinder engine. It could produce 127.4 horsepower. Petronas planned to make 150 road versions of the FP1.
Petronas formed the Foggy Petronas Racing team to compete in WorldSBK. The team was led by former WorldSBK champion Carl Fogarty. Famous riders like Troy Corser and Chris Walker raced for the team.
However, the FP1 bike faced challenges. Rules changed in 2003, allowing other bikes to have bigger engines. The FP1 was less competitive and had some technical problems. Even so, the bike achieved three podium finishes.
The project ended in 2006. The road versions of the Petronas FP1 are now very rare.
Education Programs
Petronas offers educational sponsorships to students. These are like loans that can become full scholarships. They help Malaysian and international students study at universities.
Students are chosen based on their grades, activities, and family background. They also go through a special program called EduCamp. If students join Petronas after they graduate, their loans become scholarships. They agree to work for the company for a certain time.
Petronas also has its own university. It is called Universiti Teknologi PETRONAS (UTP). It was built in 1997 in Seri Iskandar, Perak.
See also
In Spanish: Petronas para niños
- PETRONAS Gallery
- Petrosains
