BEARING FRUIT

and gas player.

“We looked at how we were managing our costs, cash generation, talents and project deliveries as well as manpower while simplifying processes, cutting across inefficiencies and overlaps.”

The first thing on Wan Zulkiflee’s mind when oil prices took a dive was how the lower prices would impact the group’s financials.

“One of the major things that we had to do was to cut RM50 billion in our capital expenditure in the next four years at the time. This was essentially the outcome of our deliberation on how we should react to the falling prices.

“We had to revise our budget a few times as the prices kept falling after each revision and we also had a team to scrutinise how the company should react and what steps to take at the time.

“It was a challenging time for the whole group, not to mention the industry and globally.

“We tried our best to understand what was happening to the best of our ability, and we decided and acted on it,” he said.

On what was the most difficult decision he had to make, Wan Zulkiflee said: “It was decisions involving manpower cuts because it involved my friends, the people I know and my colleagues.

“We had to let go of about 2,300 employees due to overlaps so that we could become more efficient and have simplified processes. “Most of them were contract staff but there were also a few hundred permanent staff we had to release. If you ask me, that was the hardest decision to make.

“However, I am guided to do what is best for the organisation. And I am very clear on that in my mind.”

The group made big adjustments to stay resilient and is determined to fit into a new business model that is profitable.

“We have ‘tempered optimism’ on what crude oil prices will be and it is important that Petronas is profitable at US$100 a barrel of oil or US$80 or even US$50 a barrel.

“That is our business model to be profitable at different oil prices. Maybe we will do different things, such as if the oil price drops. But what is crucial is to have a robust portfolio,” he said.

Wan Zulkiflee said the organisation is preparing itself to have a succession of leaders who can work in any uncertainty, deemed a highly important attribute.

“We want our leaders to be able to cope with that kind of environment.

“If any challenge that is thrown at us and we can manage it, that is the kind of leadership team that Petronas requires. But we have to be prepared for this kind of volatility,” he said.

It was a challenging time for the whole group, not to mention the industry and globally.