- to ensure survival in coming decades
- If don't do it now, no company in 10 years, says CEO
- right-size workforce, increasingly challenging environment
-
not a retrenchment; it is right-sizing workforce
(OSTB : Hello brader, call it what you want, it is buang kerja lah).
- already halted team-building initiatives and non-essential projects
- Discontinued bonuses, reduced salary increments
- incurred high consultancy costs
- red tape
- too many committees
- new structure in second half of the year
- employees will be redeployed, displaced
- to reduce admin staff - now above industry average
- currently 15,000 - 16,000 admin (out of 53,000 total staff)
- to ensure survival in coming decades ??
(OSTB: ensure survival in coming decades ? It is not that grandiose. The global oil and gas industry can still fizzle out - for other reasons. But of more immediate concern is if no buang kerja, there may not be enough money to pay salaries).
- right-sizing not because of Sarawak
take over gas
(OSTB: Yes it is. If you are going to lose 30% of your revenue to Sarawak, you better cut costs now).
- Upstream projects more risky, difficult
- will eat into pr----tion sharing contracts
- "partners" require bigger share for high risks
- average cost per barrel US$50
- long-term oil price downtrend
- lower-cost producer Russia
- drilling bonanza in the US
(OSTB: Partners? There are no partners brader. It is called collecting rental. Largely this has been the business model here).
- lucrative margins will shrink
- from above 20% to low double digits
- blue ammonia ?
- using carbon capture
- one of the largest deepwater carbon capture projects in the
world
(OSTB: Dont waste our money ok. The technology is not yours. The technology is not proven - wrt its cost effectiveness. Do not forget Dr Mahathir's horribly failed 'gas reduction technology' at Perwaja. With Donald Trump as president now, carbon capture in the US is dead. Global warming is dead.
American and European banks are pulling back their 'carbon footprint' prerequisites for financing fossil fuels. Meaning they are back in the game - at full throttle. The sky is not falling anymore ok.
You say you dont have enough money. Then why risk so much of our money with this new fangled, carbon capture escapade? "one of the largest deepwater carbon capture projects in the world"?? Really? Why does it have to be so large? Is this what the consultants and committees came up with? Hello Ahli Parlimen sila ambil perhatian. Suruh dia explain berapa billion duit kita akan dilabur? Atau dilebur?)
- facing cessation of gas (revenue) in Sarawak
- channelled RM1.2 trillion to gomen since inception
- RM235 billion dividends in last five years
- volatility in petrochemical demand
- higher dividends to gomen
- higher oil revenue and sales tax paid to Sabah and Sarawak
- six months June 2024, net profit RM32.38b, revenue RM156.9b
- Capex totalled RM25.72b
- Sarawak (Petros) taking over gas in the state
- rising exploration and production risks.
-
faces estimated 30% revenue loss
(because of Sarawak)
- concerns about ability to finance necessary operational equipment
- once new distribution formula takes effect
- productivity reviews aimed at “eliminating inefficiencies"
(OSTB: Oh oh. If they cannot "finance necessary operational equipment" then it must be really bad. I have more to say about this. Perhaps later).
