Integrated Report 2021
A progressive energy and solutions partner enriching lives for a sustainable future.
PETRONAS remained on steady
footing to weather possible market shocks
PETRONAS delivered a strong set of financial and operational results for the year as we continued to accelerate recovery efforts. The focused execution of strategies coupled with agile and resilient operations, have been key to PETRONAS' commendable performance in 2021.
Tan Sri Dato' Seri
Mohd Bakke Salleh
PETRONAS is well-positioned to progress with pace and resilience to deliver profitable and sustainable growth aligned to our Three-Pronged Growth Strategy and net zero carbon emissions by 2050 (NZCE 2050) aspiration.
President and Group Chief Executive Officer
The Group is confident that with the strength and reliability of its core portfolio combined with new offerings of cleaner energy solutions, PETRONAS will evolve to present itself to customers as an 'energy superstore' that powers businesses and fuels progress in a just and sustainable manner.
Focused execution of strategies, along with agile and resilient operations have been key to the Group's commendable performance in 2021
Our role as Malaysia's fully integrated energy provider is built on a dynamic value chain. Through our core businesses, we are able to deliver society's growing energy needs and contribute to a better tomorrow for everyone.
PETRONAS' Upstream business is a fully integrated business that encompasses Exploration, Development, Production and Malaysia Petroleum Management (MPM), covering a broad portfolio of resources and play types. Upstream's presence extends across more than 20 countries globally with 247 producing fields, 432 offshore platforms and 30 floating facilities.
Upstream also promotes sustainable and orderly development of Malaysia's petroleum resources through 100 active Petroleum Arrangement Contracts (PACs), including within the Malaysia-Thailand Joint Development Area. We are also involved in 65 PACs internationally.
Gas + New Energy (G+NE) business comprises the Liquefied Natural Gas (LNG), Gas and Power, New Energy and Hydrogen business segments.
As PETRONAS' one-stop centre for a reliable and cleaner energy solutions, G+NE provides accessible cleaner energy fueling through our integrated value chain to meet the growing global demand.
In addition, we strive to create sustainable value and profitable growth for PETRONAS and our partners by focusing on customer-centricity, operational and commercial excellence, supported by the right talent, culture and digital innovations.
PETRONAS' Downstream business enhances the value of petroleum resources through the refining, marketing and trading of crude oil and petroleum products, as well as manufacturing and marketing of petrochemicals, specialty chemicals and derivatives.
Downstream owns and operates an extensive retail network of more than 2,000 PETRONAS and Engen stations in Malaysia and sub-Saharan Africa respectively, offering high quality fluids and lubricants, as well as innovative non-fuel solutions to create seamless and frictionless experience for our customers.
Guided by PETRONAS' Sustainability Agenda, the Downstream business also offers cleaner energy solutions including sustainable aviation fuel (SAF), LNG bunkering and electric vehicles (EV) infrastructure and fluids in supporting PETRONAS' NZCE 2050.
PETRONAS' Project Delivery and Technology (PD&T) Division innovates and enables tech-digital transformation for PETRONAS, and leverages technology and digital synergy to achieve sustainable and regenerative development. PD&T's role is to service, safeguard, and shape the Group's growth and strategy, backed by distinctive research and technical expertise, innovative solutions, as well as robust systems and processes.
In recent years, PD&T's role has increased significantly as PETRONAS moves into new areas of opportunities beyond oil and gas to meet our NZCE 2050 aspiration. As the engine that drives groupwide growth, PD&T is committed to support the Group's business targets by leveraging data to deliver value via a wide spectrum of technology and digital products and solutions.
We are committed to keeping the industry on our forecasted level of
activities for the next 3 years, as well as contracting opportunities for the next 5 years.
We look forward to forming strong collaborations with our industry partners for the
country's and industry's mutual growth.
Our Continued Value Creation
PETRONAS is committed to creating long-term value that focuses on growth towards sustainability.
Continued Value Creation is one of the Sustainability Lenses which focuses on making sound investments that
will benefit the business and community in the long run. Efforts such as research on carbon capture and storage
(CCS) and harnessing solar energy will bring us closer to achieving NZCE 2050.
Sustainability is deeply rooted in our Statement of Purpose, "A progressive energy and solutions partner enriching lives for a sustainable future". As a purpose-driven organisation, sustainability considerations contribute directly to what we do as a business, how we operate and how we engage with our stakeholders.
Net Zero Carbon Emissions by 2050 (NZCE 2050)
PETRONAS' leadership with a mandate from the Board announced our net zero
carbon emissions by 2050 (NZCE 2050) aspiration. The delivery of this aspiration will
build resilience and better prepare the organisation and Malaysia's value chain for a
sustainable future, create social value, and promote a Just Transition.
aspiration is defined as
Balancing the remaining Scope 1 and Scope 2 GHG emissions from its assets under operational control with carbon offsets.
Because We Care
Leveraging our wide network, PETRONAS partnered with various state governments
and forged several alliances to drive economic recovery; through on-the-ground
support, digital solutions or monetary contributions.
PETRONAS contributed monetary and medical equipment/supply aid during the COVID-19 pandemic and natural disasters that occurred in 2021. This included contributions to various hospitals, COVID-19 vaccination and quarantine centres, including the Malaysia Agro Exposition Park Serdang (MAEPS). Additionally, PETRONAS also channeled about RM15 million for flood relief efforts throughout the country.
We leveraged on technology and innovative solutions to ensure the well being of our customers especially during the lockdown period; such as Setel® App to enable seamless purchases at stations, and security of energy supply through ROVR, ISO tanks, bunker solutions, Virtual Pipeline System (VPS) and others.
We continued to support our suppliers and vendors during the lockdown, such as helping to obtain financial assistance, and facilitate approvals with authorities to operate in order to ensure business continuity.
The safety and well-being of our employees remain a top priority. A total of 11 vaccination centres across our operations nationwide were established to accelerate vaccinations amongst employees. In addition, the implementation of a flexible working arrangement policy, ensured the safety and health of employees. Various support channels were introduced to employees for mental well-being and to assist in work-life balance.
PETRONAS initiated the COVID-19 relief aid by providing necessary supplies to impacted communities located across our domestic and international assets. This included donations of more than RM2 million for the PETRONAS Food Bank, contributions of medical equipment and hygiene products/kits and funded over RM30 million worth of learning devices that benefited 12,000 B40 students to support virtual learning during the pandemic.