Ever since its inception in 1974, Petroliam Nasional Berhad or Petronas has grown by leaps and bounds.
From a small company, it has grown to be one of the world’s wealthiest organisation and has been named as one of the Fortune 500 companies.
Petronas has also contributed immensely to the rakyat.
Let us take a look.
Petronas pay annual royalty to the government
Petronas is wholly-owned by the government and it pays the government royalites or dividends.
The dividends come from the sale of petrol and diesel as well as engine lubricants and others.
Petronas paid RM26 billion royalty in 2015 and RM16 billion in 2016 and is expected to pay RM13 billion this year.
When prices of oil was above US$100 per barrel, Petronas was able to pay billions in royalties to the government.
The government will then spend the royalty on the rakyat to build schools, hospitals, mosques, roads and others.
Petronas role in nation building cannot be disputed as it has contributed a lot to the country.
And because of that, the rakyat will always hold Petronas close to their hearts.
Things getting better for Petronas, pays extra RM3 billion dividend
Despite the hard times, Petronas has demonstrated that it will continue to pay dividends.
And now things are getting better and Petronas President Datuk Wan Zulkiflee Wan Ariffin said that it will pay extra RM3 billion on top of the RM13 billion.
Speaking to a news conference on August 25, Wan Zulkiflee said this is due to an improved second quarter earnings which improved to RM10.6 billion from RM3.3 billion.
Petronas pays royalty during good times and hard times.
This shows how Petronas takes care the welfare of the rakyat.
Petronas committed to expand and grow
Although oil prices has gone down to US$50 per barrel, the company said it will still spend RM60 billion for expansion plans.
This include various activities such as exploration, opening of new petrol stations and research and development.
This is important so that Petronas can continue to be active and prepare for the future.
Oil prices may be low now, but once it recovers, Petronas will be ready to go as it has made preparations by investing RM60 billion to expand.
Petronas help the rakyat by tying up with big oil giants
As a small country, there are not many oilfields in the country.
Malaysia has limited oil around its shores and that is why it is always tying up with other oil companies.
Petronas is always partnering with Shell, ExxonMobil and others to explore new oil fields.
And when the partnership discovers oil, Petronas will get a share of the slice of the pie.
In this way, Petronas’s aspiration to become a major oil power becomes faster.
And it will be able to earn profits even faster and share with the rakyat.
All this is for the rakyat.
Rapid project to boost the country’s economy
Petronas has also launched the Rapid or Refinery and Petrochemical Integrated Development project in Pengerang, Johor which is almost the size of Singapore.
This project is aimed at improving Malaysia’s position in the world’s oil and gas industry among the world giants.
The Rapid project is also to rival Singapore to attract big oil companies to come and invest in Malaysia.
The Rapid project is already attracting big investments such as Saudi Arabia’s Aramco which has agreed to invest RM31 billion in Malaysia.
The Rapid project is responsible in strengthening our economy as well as provide thousands of jobs for the rakyat.
Petronas provide jobs and train local graduates
Petronas has also trained so many local graduates to become professional engineers, drillers, technicians, geologists, operators, divers and so many more.
Petronas has without a doubt provided so many jobs for the rakyat.
Thus it is important that we the rakyat be grateful to Petronas who has trained thousands of Malaysians to become professionals.
These professionals are part of the rakyat able to make a living, provide for their families and contribute to the country’s economy.
Petronas at the forefront of research and development
Petronas however is not one of the world’s biggest oil companies such as Shell, ExxonMobil and BP.
Malaysia is also not a member of Organisation of Petroleum Exporting Countries or OPEC.
Thus Petronas realises that it needs to diversify into other businesses such as making its own engine and engine lubricant.
That is why it is venturing into Formula One racing and sponsoring the Petronas Mercedes Formula One Racing Team to make the best engine for the future.
With its own engine, Petronas will be able to diversify and ensure a sustainable income which will be channelled back to the rakyat.
Things are getting better for Petronas
Petronas has been hit hard by the weak crude oil prices which has dropped to US$40-US$50 per barrel level compared to US$100 before.
But things are getting better as the oil giant’s net profit more than quadrupled to more than RM7 billion for the second quarter ended June compared to RM1.7 billion in the same quarter before.
This is good news for the rakyat because Petronas which is our symbol of pride and joy must remain strong and solid so that it can play its role as the champion and protector of the rakyat.