Petronas to cut capital, operational expenditure by up to RM20b in 2016

Kuala Lumpur

MALAYSIA'S national oil company Petronas is aiming to cut an additional RM15 billion-RM20 billion (S$5 billion-S$6.7 billion) in capital and operational expenditure this year amid a prolonged slump in oil prices that whittled away its net profit by 56 per cent to RM21 billion for the year 2015, and necessitated RM18 billion in non-cash impairments.

Its Floating LNG2 project at the Rotan field north-east of Sabah will be re-phased with the commissioning date pushed back by two years while the US$16 billion Rapid, or the refinery and petrochemical integrated development in Pengerang, Johor, might be scaled down, said Petronas president and group chief executive Wan Zulkiflee Wan Ariffin at a media briefing on Monday.