According to WPB, Malaysia's national oil company, Petronas, is projected to pay much less to the government's fiscal coffers next year as global oil prices keep declining. The Finance Ministry's budget forecast indicates the company's dividend remittances to the government dropping by nearly 38%, the lowest level since 2017.
Petronas is expected to remit around $4.7 billion (20 billion Malaysian ringgit) to the Malaysian government in 2026, down from around $7.6 billion (32 billion ringgit) this year. The reduction is largely attributed to the envisaged curb in Brent crude oil prices, which are expected to rise between $60 and $65 per barrel, down from around $70 a barrel this year.
The company remains under serious headwinds in maintaining profitability and production levels intact. Petronas recorded a decline in revenue by 24% and post-tax profit by 19%, primarily due to divestments, negative foreign exchange rates, and subdued realized prices of petroleum products, crude oil, and condensates amid the overall fall in benchmark prices globally.
Additionally, the company's average daily production declined to 2.403 million barrels of oil equivalent per day (boepd) during the first half of 2025 — a decrease of 3.2% compared to the same time period in 2024. This decreased mainly because of lower gas production from domestic operations and lower liquid production from its foreign holdings.
Petronas has been attempting to develop Malaysia's oil and gas industry, but persistent uncertainty in the global markets and ongoing economic stress have constrained its growth. In a further bid to adapt to these pressures, the company announced it will cut approximately 10% of its total staff, describing the action as part of its strategy to deal with a "polycrisis" driven by world economic transformation and resource development issues in Malaysia.
Despite all these, Petronas remains an important pillar of the economic pillar of Malaysia. The company keeps working towards improving operational efficiency, diversifying the energy mix, and building resilience against market fluctuations, as the government refines its fiscal policy to ensure long-term stability and sustainable growth.
By Bitumenmag
Bitumen, Oil, Petroleum
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