Energising a

Sustainable
Future

Integrated
Report
2024
Statement of Purpose
A Progressive Energy and Solutions Partner
Enriching Lives for a Sustainable Future

Shared Values

Loyalty
Loyal to corporation

Integrity
Honest and upright

Professionalism
Strive for excellence

Cohesiveness
United, trust and respect for
each other
 2024
PETRONAS Cultural Beliefs
at a Glance

Customer Focused
Presence in
I deliver solutions from the customer lens
over 100 countries

Innovate Now
I challenge norms and push boundaries
RM55.1 billion RM102.5 billion
profit after tax cash flows from
Be Enterprising operations
I seek opportunities and make them happen (2023: RM80.7 billion) (2023: RM114.2 billion)

2,451 thousand 35.7 million

Speak Up
barrels of oil equivalent per metric tonnes (MMT) gross
I express my views openly day (kboe/d) liquefied natural gas sales
(2023: 2,431 thousand) (2023: 32.9 million)

Courage to Act
I take action to progress with pace
91.2% 247.8 million
Overall Equipment barrels petroleum
Effectiveness for Downstream product sales
business
(2023: 87.2%) (2023: 296.1 million)

10.1 million 8 gigawatts

metric tonnes (MMT) of secured cumulative global
chemical product sales renewable energy capacity,
including both installed and
under construction
(2023: 9.4 million) (2023: 2.9 gigawatts)

0.10 46.55 million

lost time injury frequency tonnes of carbon dioxide
per million hours worked equivalent (CO2e) for
PETRONAS Malaysia core
business operations excluding
Maritime, Corporate and
Others (KLCC Group of
Companies)
(2023: 0.11) (2023: 45.38 million)

Please refer to Strategic Review on pages 60 to 81 and

Sustainability Performance Review on pages 82 to 175.
2 PETRONAS • Integrated Report 2024

Inside This Report

Energising a Sustainable Future

The theme reflects our commitment to delivering energy responsibly while navigating an
increasingly complex and fast-changing global landscape. It conveys how we are evolving
with purpose, adapting to new challenges and supporting the long-term energy needs of
those we serve.

The cover visual, with its dynamic streams of light and movement, symbolises the
momentum behind our transformation. These lines represent the various forces shaping
the energy transition, including innovation, collaboration, knowledge and resilience. Their
convergence at the centre signifies a shared direction, reinforcing our collective focus as
we progress together as one organisation.

We remain committed to managing this transition in a way that delivers enduring value for
Malaysia and the communities we serve globally.

Basis of This Report Sustainability Performance Commitment to Governance

Review 176 Board Composition
We Are Passionate About Progress
84 Creating Sustainable Value 177 Profile of Board of Directors
8 PETRONAS Energy Solutions
through Responsible 180 Profile of Company Secretaries
10 2024 Key Highlights
Governance
12 Awards and Recognitions 181 Profile of Executive Leadership Team
85 Safety Management 186 Corporate Governance at PETRONAS
Key Messages 90 Cyber Security and
14 Chairman’s Letter Data Protection
Financial Review and Other Information
18 President and Group Chief
92 Delivering Net Zero 206 Group Financial Results and Position
Executive Officer’s Letter
22 Executive Vice President and 93 Climate Change 206 Analysis of Financial Results
Group Chief Financial Officer’s 93 Greenhouse Gas 212 Analysis of Financial Position
Letter Emissions 214 Analysis of Cash Flow
26 Vice President and Group Chief
217 Five-Year Key Financial Indicators
Sustainability Officer’s Letter 112 Thriving with Nature

How We Create Value 113 Nature and 219 Index

Biodiversity
29 PETRONAS Energy Transition 219 Ipieca Sustainability Reporting
118 Environmental
Strategy Guidance for the Oil and Gas
Management
30 Value Creation Model Industry
124 Circular Economy
32 Operating Landscape 222 Global Reporting Initiative (GRI)
34 Risks Linked to Creating Value
130 Fostering a Just Transition Standards
48 Our Approach to Sustainability
227 World Economic Forum’s (WEF)
50 Material Topics 132 Human Rights
54 Engaging with Stakeholders 145 Sustainable Supply Stakeholder Capitalism Metrics
Chain 229 International Financial Reporting
Strategic Review 147 Employee Attraction, Standards (IFRS) S2: Climate-
60 Core Business: More Energy, Retention and related Disclosures
Less Emissions Development
70 New Business: Capturing New 159 Health and 231 Glossary of Terms
Growth Opportunities Well-being
78 Net Zero Carbon Emissions:
Pathway to Net Zero 163 Sustainability Key
80 Leveraging Innovative Solutions Performance Data
 3

Navigation Icons

PETRONAS Energy Transition Strategy Sustainability Approach

Creating Sustainable
Core New Net Zero Carbon Delivering Thriving Fostering a Just
Value through
Business Business Emissions Net Zero with Nature Transition
Responsible Governance

Six Capitals Key Stakeholders

FC Financial Capital FG Federal Government M Media

MC Manufactured Capital SG State Governments Government-linked Companies

GIP
and Industry Partners
HC Human Capital HG Host Governments
Communities and
CN
Non-Governmental Organisations
IC Intellectual Capital C Customers
IO International Organisations
NC Natural Capital E Employees

SRC Social and Relationship Capital Shareholders, Investors and

SIC
Credit Rating Agencies

Key Risks Material Topics

MR Market Risk CE Circular Economy GHG Greenhouse Gas Emissions

FLR Financial Liquidity Risk

CC Climate Change HW Health and Well-being

LR Legal and Regulatory Risk

CG Corporate Governance HR Human Rights
SR Sustainability Risk
Cyber Security and
CDP IT Innovation and Technology
Health, Safety, Security and Data Protection
HSR
Environmental Risk
Lower-Carbon and Energy
GR Geopolitical Risk EC Economic Contribution LCT
Transition Business

Hydrocarbon Reserves Employee Attraction,

HR EAR NB Nature and Biodiversity
and Resources Risk Retention and Development

TR Technology Risk
EM Environmental Management SM Safety Management

ER Execution Risk
EI Ethics and Integrity SC Sustainable Supply Chain
HCR Human Capital Risk

Cross References

Indicates where additional information To access more information online: Scan the QR code to access
can be found in this Report. www.petronas.com additional information online.
4 PETRONAS • Integrated Report 2024

Basis of This Report

The Petroliam Nasional Berhad (PETRONAS) Integrated Thinking and Reporting Process
Integrated Report 2024 is a comprehensive resource
for understanding the energy market landscape, This Integrated Report outlines how PETRONAS integrates
our operating environment, strategy, financial and effectively balances financial, environmental and social
and operational performance, as well as our future considerations in delivering the PETRONAS Energy Transition
Strategy. It details our performance across all aspects of
direction. This Report reflects our purpose as a
sustainability focusing on the 16 material topics most relevant to
progressive energy company and is designed to offer a
our stakeholders and our business.
balanced and comprehensive perspective on our value
creation journey. Aligning our business-critical focus areas with PETRONAS
Sustainability Approach helps ensure that sustainability objectives
Scope and Boundaries remain central to our decision-making and directly contribute to
the broader goals of the PETRONAS Energy Transition Strategy.
The PETRONAS Integrated Report, published annually, By adopting an integrated approach, we aim to create long-term
covers the calendar year from 1 January to 31 December value for our stakeholders while contributing towards addressing
2024, unless otherwise specified. It encompasses all complex challenges such as industry impacts on energy security
operations and activities within PETRONAS and its and the environment.
subsidiaries (PETRONAS Group), joint operations and
associate companies. This Report was published in June To enhance accessibility and transparency, we have embedded
2025. QR codes to allow stakeholders easy access to additional
content, such as updates, detailed insights and supporting data.
Materiality Considerations
Forward-looking Statements
The material topics presented in this Report represent
the most significant sustainability matters to PETRONAS This Report contains forward-looking statements, with words
and our stakeholders identified through our assessment such as “believe”, “anticipate”, “intend”, “seek”, “will”, “plan”,
conducted in 2024. These topics are categorised under the “could”, “may”, “endeavour” and similar expressions used to
components of Delivering Net Zero, Thriving with Nature represent our judgements and future expectations. These
and Fostering a Just Transition. This structure is guided by statements involve risk and uncertainty because they relate to
our commitment to Creating Sustainable Value through future events and circumstances and should be considered in
Responsible Governance, reflecting PETRONAS’ refreshed light of various important factors.
approach to sustainability.
Factors that could significantly deviate our actual performance
Reporting Frameworks from the forward-looking statements include:

We have referenced the following national and • Alterations to the International Financial Reporting Standards
international guidance, frameworks and standards to help and related interpretations, applications and practices
ensure the accuracy, reliability and comprehensiveness of affecting past, present and future periods;
this Report: • Ongoing and future acquisitions;
• Shifts in domestic and international businesses and market
• International Integrated Reporting <IR> Framework conditions, such as currency and interest rate fluctuations;
• International Financial Reporting Standards (IFRS) • Changes in domestic and international regulatory and
Sustainability Disclosure Standards S1 and S2 legislative environments;
• Malaysian Financial Reporting Standards • Shifts in domestic and international operational, social,
• Sustainability Reporting Guidance for the Oil and Gas economic and political conditions;
Industry by Ipieca, the American Petroleum Institute, • Potential labour disruptions and industrial actions; and
and the International Association of Oil and Gas • Repercussions of any material litigations.
Producers
• Global Reporting Initiative Standards
• World Economic Forum’s Stakeholder Capitalism
Metrics
 5

Assurance Independent limited assurance on the following subject matter

information was provided by SIRIM QAS International Sdn Bhd,
The financial information in this Report has been extracted in accordance with the International Standard on Assurance
from the consolidated Audited Financial Statements for the Engagements 3000 (Revised), Assurance Engagements Other
financial year ended 31 December 2024 and was audited than Audits or Reviews of Historical Financial Information:
by KPMG PLT. KPMG PLT has reviewed financial-related
information in this Report and did not note any material • Corporate Governance
inconsistencies with the said financial statements. • Cyber Security and Data Protection
• Economic Contribution
• Employee Attraction, Retention and Development
Scan the QR code to access the • Ethics and Integrity
Audited Financial Statements 2024
• Health and Well-being
• Safety Management

The Group’s greenhouse gas (GHG) emissions data covering

Malaysia and the global operations has been assured by LRQA Scan the QR code to access the
Inspection Malaysia Sdn Bhd, an independent and accredited Assurance Statement
third-party assurance provider. The data verification was
performed in accordance with ISO 14064-3:2019.

• Limited assurance for PETRONAS’ 2023 Scope 1 and 2 GHG Approval by the Board
emissions from Core Business Operations (Upstream, Gas,
and Downstream) under the Operational Control approach. The PETRONAS Board of Directors acknowledges its
responsibility in ensuring the integrity of this Integrated
• Reasonable assurance for PETRONAS’ 2024 Scope 1 and 2 Report which in the Board’s opinion, addresses the Group’s
GHG emissions from Core Business Operations ability to create value and fairly presents the Group’s
(Upstream, Gas and Downstream) under the Operational integrated performance.
Control approach.
To the best of the Board’s knowledge, this report has been
• Limited assurance for PETRONAS’ 2019–2023 Scope 1 prepared in accordance with the International Integrated
and 2 GHG emissions from Groupwide Operations under Reporting <IR> Framework.
the Equity Share approach.
Approved by the Board of Directors and signed on behalf
• Limited assurance for PETRONAS’ 2019–2023 Scope 3 of the Board.
emissions (Category 11: Use of Sold Products - Fuel) from
Core Business and Groupwide Operations, under both
Tan Sri Dato’ Seri Mohd Tan Sri Tengku
Operational Control and Equity Share approaches.
Bakke Salleh Muhammad Taufik

Chairman President and Group

Scan the QR code to access the
Chief Executive Officer
GHG Assurance Statements

Feedback and Point of Contact Please send your feedback to:

Group Strategic Relations and Communications
We are committed to continuous
Petroliam Nasional Berhad (PETRONAS),
improvement and value the insights of our
Level 72, Tower 2, PETRONAS Twin Towers,
stakeholders. We encourage feedback on
Kuala Lumpur City Centre,
our Integrated Report.
50088 Kuala Lumpur, Malaysia.

digital.comm@petronas.com
6 PETRONAS • Integrated Report 2024

We Are Passionate About Progress

At Petroliam Nasional Established in 1974 as Malaysia’s national oil and

gas company to manage and develop the country’s
Berhad (PETRONAS), hydrocarbon resources, we have grown into a global
energy and solutions partner with presence in over
we are committed to 100 countries. PETRONAS is ranked among the largest
corporations on Fortune’s Global 500® list.
addressing growing
energy needs responsibly We continue to expand our portfolio to offer integrated
solutions across conventional and cleaner energy. We offer

and sustainably. a diverse range of fuels, lubricants, petrochemical products,

renewable energy, green mobility and biofuels to meet
growing and evolving customers’ needs amid the energy
transition.

We aim to maintain our role as a trusted energy partner

in the transition towards a lower-carbon future, further
strengthened by our continued efforts to drive improved
emissions performance, address impacts on nature and
support social progress.

Malaysia Petroleum
Upstream Gas and Maritime
Management

Malaysia Petroleum Management The Upstream business is responsible for The Gas and Maritime business
oversees the management and exploring and developing hydrocarbon provides gas solutions and energy-
development of Malaysia’s oil and gas resources, and managing oil and gas related maritime services, which
resources, and upstream petroleum production assets in Malaysia and include liquefied natural gas, natural
industry as entrusted under the around 20 other countries. We focus on gas infrastructure and transportation,
Petroleum Development Act 1974. We developing resources that are efficient gas processing, and marketing and
provide stewardship in building a robust and lower in emissions to help meet trading. We transport gas and petroleum
and sustainable oil and gas ecosystem. global energy demand while maintaining products and supply maritime assets for
commercial viability. offshore oil and gas resources extraction
Our focus is on shaping Malaysia’s activities.
upstream industry into a thriving As part of our emissions reduction
investment destination by cultivating a efforts to support the energy transition, Through our integrated value chain, we
competitive and conducive environment we are advancing carbon capture contribute to a reliable supply of natural
while ensuring optimum production and storage (CCS) projects to reduce gas and liquefied natural gas. We work
through prudent and safe practices. emissions from our operations and closely with customers to help meet
develop Malaysia’s potential as a CCS their energy and transportation needs.
hub in the Asia Pacific region.
1 We Are Passionate About Progress 7

Ranked 1st Top 10 Ranked Highest Ranked 167th

Most Valuable Most Valuable ASEAN Brand on Fortune’s
ASEAN Brand* Global Oil and for Sustainability Global
Gas Brand* Perceptions Value** 500® list

* Brand Finance Global 500 report. ** Brand Finance ASEAN 500 report.

Europe
Central Asia
North America

Asia Pacific
Middle East

Africa

Latin America and the Caribbean

Downstream Gentari Other Business

The Downstream business converts PETRONAS, through its subsidiary Our other ventures include property
hydrocarbon resources into a range Gentari Sdn Bhd (Gentari), is supporting investment and development, notably
of products for over 100 markets the adoption and commercialisation of through our subsidiary, KLCCP Stapled
worldwide. Our operations span the cleaner energy solutions to complement Group, Malaysia’s largest real estate
refining, marketing and trading of crude existing energy systems. As a key driver investment trust and the only stapled
oil and petroleum products, as well as in diversifying and future-proofing security in the country, with landmark
the manufacturing and marketing of PETRONAS’ portfolio, Gentari provides assets such as the PETRONAS Twin
petrochemicals, derivatives and specialty solutions in renewable energy, hydrogen Towers.
chemicals. and green mobility that align with
customers’ needs.
Our venture into specialty chemicals aims
to capture future growth opportunities Our aspiration is for Gentari to become
in delivering long-term value to our Asia Pacific’s most valued clean energy
customers. To reinforce our support for solutions partner by 2030, grounded
the shift in energy demand, we are further in customer-centric innovation, agile
diversifying our portfolio by developing execution and strategic collaboration.
cleaner energy solutions such as biofuels,
circular economy initiatives and advanced
fluid technologies. Our convenience
business continues to grow with products
and services aimed at broader consumer
needs.
Please refer to Strategic Review on pages 60 to 81.
8 PETRONAS • Integrated Report 2024

PETRONAS Supply and Generation

Energy
Solutions
Liquefaction
Natural Gas

Processing

Crude Oil

Refining

Exploration,
Development and Renewables
Production
Renewable Energy
1 We Are Passionate About Progress 9

Products and Solutions Utilisation

Power

Liquefied Processed Gas Liquefied

Natural Gas Petroleum Gas

Industrial

Commodity Chemicals Specialty Chemicals

Commercial

Petroleum Products, Convenience

including Bio-based Business

Residential

Electricity and Hydrogen Green

Storage Mobility

Maritime and Logistics Agriculture

Carbon Capture and Storage*

Transportation

Properties

* In development.
10 PETRONAS • Integrated Report 2024

2024 Key Highlights

Financial Performance Core Business

More Energy, Less Emissions

Revenue

RM320.0 Signed 14 Production Sharing Contracts under Malaysia

Bid Round and Malaysia Bid Round Plus, the highest

billion number in over a decade.

2023: RM343.6 billion

Achieved first hydrocarbon production for 21 projects,
final investment decisions for 17 projects and 19
exploration discoveries.

Profit After Tax Reached a milestone record of 2 million barrels of oil

equivalent per day, marking a significant achievement in

RM55.1 Malaysia’s oil and gas production.

billion Expanded Upstream oil and gas portfolio

in Indonesia, Papua New Guinea and the United Arab
2023: RM80.7 billion Emirates - Abu Dhabi.

Delivered 35.7 metric tonnes (548 cargoes) in total

LNG sales volume, including 398 from PETRONAS LNG
Cash Flows from Operations Complex (PLC) and 36 cargoes from our 2 floating LNG
units, PFLNG SATU and PFLNG DUA.

RM102.5 Delivered average sales gas in Peninsular Malaysia of

billion 2,315 million standard cubic feet per day (MMscfd).

2023: RM114.2 billion

Operated a fleet of 102 vessels, including LNG carriers,
petroleum and product tankers, with 24 newbuilds,
comprising eco-efficient LNG carriers and dual-fuel
petroleum tankers.
Total Assets
Owned 12 offshore floating solutions in Malaysia,

RM766.7 Thailand, Vietnam and Brazil.

billion Recorded 21.1 billion litres in total petroleum product

sales volume.
2023: RM773.3 billion

Increased chemical product sales volume to

10.1 million metric tonnes.
1 We Are Passionate About Progress 11

New Business Net Zero Carbon Emissions

Capturing New Growth Opportunities Pathway to Net Zero

Perstorp inaugurated a state-of-the-art specialty Accelerated the electrification of PETRONAS’

chemicals plant in Bharuch, India, supplying assets through rooftop and ground-mounted solar
pentaerythritol and calcium formate to Asia Pacific. installations, enabling the transition from grid-based
electricity to on-site renewable energy.

PETRONAS, Enilive S.p.A. and Euglena Co., Ltd. reached

final investment decision for a biorefinery at Pengerang Recorded greenhouse gas emissions of
Integrated Complex. 46.55 million tonnes of carbon dioxide equivalent
(CO2e) for core business operations in Malaysia,
excluding Maritime, Corporate and Others
Progressed carbon capture and storage in (KLCC Group of Companies), within the target of not
Malaysia via land acquisition for Southern hub and exceeding 49.50 million tonnes CO2e by the end
commencement of Front-End Engineering Design for of 2024.
Eastern hub.

62 per cent reduction in methane emissions from

Secured 8 gigawatts of cumulative global PETRONAS Groupwide natural gas value chain, 2019
renewable energy capacity, including both installed baseline, exceeding our 2025 target of 50 per cent.
and under construction.

Expanded utility-scale renewables with hybrid projects

involving wind with solar and solar with battery Established the PETRONAS Energy and Loss
energy storage systems in India and Australia, and Management System 3.0 and strengthened disclosure
strengthened our commercial and industrial capabilities on Groupwide energy consumption.
across Asia Pacific.

Matured 175 kilo tonnes per annum of hydrogen

opportunities, formalised a partnership with SEDC
Energy Sdn Bhd for a hydrogen hub in Sarawak and
reached final investment decision for a green ammonia
project in India.

Established a network of 1,060 charging points

across Malaysia, Indonesia and Thailand, and deployed
a combined fleet of 3,486 electric vehicles through
Vehicle-as-a-Service across Malaysia, Indonesia and
India.
12 PETRONAS • Integrated Report 2024

Awards and Recognitions

PETRONAS has been Branding

recognised for its
Asia Pacific Energy Capital
contributions to the Assembly (APAC) 2024 Awards
industry through
National Oil Company of the Year
innovation and (PETRONAS)
sustainability. These PETRONAS was named National Oil
Company of the Year for the second
accolades reinforce our consecutive year, a recognition of
ongoing passion to build excellence in the Asia Pacific energy
sector. Evaluated by 28 industry
long-term value. experts, the award highlights our
innovation, leadership in energy
transition and commitment
to achieving net zero carbon
Scan the QR code to emissions by 2050.
view our awards. National Oil Company of the Year award at the Energy
Council’s APAC Awards 2024.

Sustainability

Brand Finance ASEAN 500 Report Asian Downstream Summit Awards

ASEAN Brand with the Highest Sustainability Perceptions Value Sustainable Plant of the Year 2024
We received recognition in the Brand Finance ASEAN 500 report, PETRONAS’ Pengerang Cogeneration Plant was named Sustainable
under the 2024 Sustainability Perceptions Index, which ranked Plant of the Year for successfully implementing an innovative,
PETRONAS highest among ASEAN brands in sustainability analytics-driven energy efficiency project designed to enhance
perceptions value. According to findings from Brand Finance’s operational efficiency, reduce carbon emissions and ensure plant
global consumer research, the study highlights public trust in our reliability.
commitment to sustainability.

Thought International Petroleum Offshore Technology Conference CERAWeek 2024,

Technology Conference (IPTC) Asia (OTCA) 2024, Malaysia United States of America
Leadership 2024, Saudi Arabia
12 – 14 February 27 February – 1 March 18 – 22 March
PETRONAS
continues to
lead dialogues
and discussions
around energy
security and the
energy transition
through
exhibitions and We showcased integrated energy PETRONAS hosted OTCA 2024 in PETRONAS highlighted our
conference solutions, reinforcing our commitment Kuala Lumpur. Themed ‘Excellence advancements in carbon capture and
to sustainability, digitalisation and in Asia: Energising Now and for the storage, hydrogen and renewables,
speaking
operational excellence. A talent Future,’ the event featured technology while sharing our progress in the
opportunities, roadshow was also held to engage showcases, discussions on the energy energy industry over the last 50 years
promoting potential recruits and strengthen the transition, and initiatives focused on and reinforcing the message of the
collaboration, PETRONAS brand. talent development, investments and importance of a just energy transition
innovation and financing, highlighting the industry’s for Asia.
sustainable commitment to responsible growth
growth. towards a low-carbon energy future.
 1 We Are Passionate About Progress 13

Energy Transition Company of the 2024 Golden Flag Award

Year (Gentari) • The Golden Award for Corporate Public Relations Communication
Gentari Sdn Bhd (Gentari) was • The Golden Award for Communication of ‘To B’ Industry (To Business)
named Energy Transition Company • The Golden Award for Corporate Social Responsibility
of the Year, reaffirming its position
among leading clean energy The 20th China Golden Awards for Excellence in Public Relations
companies. The recognition • The Golden Award for Corporate Social Responsibility
underscores excellence in delivering • The Silver Award for Corporate Brand Communication
emissions reduction solutions
for a cleaner energy future, while
PETRONAS Beijing Representative Office
reflecting rapid growth and
strategic collaborations, including PETRONAS Beijing Representative Office won several prestigious awards in China for public
partnerships with Northland Power relations and brand communication efforts. These accolades were driven by two key projects, the
for offshore wind and ReNew for ‘PETRONAS 50th anniversary and PETRONAS China 20th anniversary: Continuing a legacy together
5 gigawatts of renewable energy for our future’ and ‘Student Voices 2024’. PETRONAS China, in collaboration with partners,
assets, to advance the energy showcased shared success and innovation while strengthening brand influence.
transition.

Technology and Innovation

Asian Oil and Gas Awards 2024

• Digital Transformation Initiative of the Year – Malaysia
• ESG Initiative of the Year – Malaysia

Upstream
PETRONAS secured two industry wins for innovation and
sustainability efforts. The award-winning UP+ platform
centralises critical operational data to improve decision-
making and efficiency, while the Upstream GHG Digital
Platform consolidates and streamlines GHG data across
Malaysia operations to support emissions management and The PETRONAS team accepting the ESG Initiative of the Year - Malaysia award at the
reporting. Asian Oil & Gas Award 2024.

Energy Asia Multi-Stakeholder International Greentech & Eco Products Abu Dhabi International Petroleum
Dialogue, Malaysia Exhibition and Conference Malaysia (IGEM) Exhibition and Conference (ADIPEC) 2024,
2024, Malaysia United Arab Emirates
24 August 9 – 11 October 4 – 7 November

Energy Asia by PETRONAS hosted a series of PETRONAS’ commitment to accelerate the PETRONAS took part in ADIPEC 2024 to
dialogues to align priorities and perspectives, energy transition was highlighted at IGEM showcase our global upstream capabilities,
gain insights from key sectors as well as 2024, featuring key initiatives in renewable emissions reduction efforts and technology-
support each other towards establishing energy, circular economy and sustainable driven innovations. High-level discussions
just and responsible pathways in realising a mobility. The event enabled PETRONAS to were held to explore strategic collaborations
lower carbon future. The dialogue saw 22 engage with policymakers, innovators and and investment opportunities to support a
C-Suites from across the energy, finance, stakeholders in advancing Malaysia’s low resilient and sustainable energy future.
professional services and government-linked carbon economy agenda.
sectors convened under the theme ‘Powering
Economic Prosperity through Equitable
Transition’.
14 PETRONAS • Integrated Report 2024

Chairman’s Letter

Dear Stakeholders,

Against a backdrop of persistent volatility that defined 2024, the PETRONAS Group remained steadfast
in delivering our purpose. Across the world, intensifying geopolitical risks and ongoing conflicts further
amplified the urgent need to reinforce energy systems and ensure security of supply. For PETRONAS,
our Energy Transition Strategy remains a clear guide for the Group as we work to fulfil expectations of
our stakeholders.

On behalf of the Board, I am proud

to recognise the achievements of our
people, whose invaluable dedication and
commitment have delivered a strong
performance for the year in review,
strengthening our foundations to create
long-term sustainable value for our
stakeholders.

50 Years of Nation-Building

PETRONAS commemorated its 50th

anniversary in 2024. The milestone
coincided with a period of uncertainty
in the global operating environment.
Despite the challenges, the PETRONAS
Board and Executive Leadership
Team continued to steer the
organisation towards its purpose to
be a progressive energy and solutions
partner. In doing so, our efforts were
channelled towards ensuring security
of supply and generating profitable
long-term growth.

For the year in review, PETRONAS

made the scheduled dividend payment
of RM32 billion to the Government of
Malaysia. As the sole contributor to the
National Trust Fund, PETRONAS also
continued to make its contribution
of RM500 million in the same period,
Tan Sri Dato’ Seri Mohd Bakke Salleh resulting in a cumulative RM13.5 billion
Chairman contribution to the Fund as of 2024.
2 Key Messages 15

Since its establishment in 1974, PETRONAS has contributed RM1.5 trillion to the nation’s economy, in the form of dividends,
taxes, cash payments and others.

Even as we contend with the intensifying pressures in the industry, I am also pleased to note that PETRONAS, as a key driver
of Malaysia’s National Energy Transition Roadmap, has stood resolute in delivering the targets under the Net Zero Carbon
Emissions by 2050 Pathway, having successfully achieved our short-term emissions reduction target in 2024.

In that same vein, the Group also continued to uphold its commitment to pursue strengthened governance and compliance to
meet the expectations of global stakeholders.

Making Impactful Progress

Powering Knowledge: Empowering STEM teachers through a comprehensive 24-month programme to boost student interest and
competence in STEM subjects, while enhancing their higher-order thinking skills.

PETRONAS believes that true progress is achieved when organisations and communities grow together. Since inception,
PETRONAS has collaborated with stakeholders and communities wherever we operate to deliver meaningful impact where
it is most needed. For 50 years, the Group has remained closely attuned to societal development, tailoring our signature
programmes to the demands of the era. In 2024, PETRONAS contributed RM700 million to more than 400 social impact
programmes.

In the nascent years of Malaysia’s oil and gas industry, we focused on nurturing talent through education by introducing the
PETRONAS Education Sponsorship Programme (PESP), which has benefitted 39,000 students since 1975. We also established
the Institut Teknologi PETRONAS (INSTEP) and Universiti Teknologi PETRONAS (UTP), which has been recognised as the
Number One university in Malaysia by the Times Higher Education World University Rankings.
16 PETRONAS • Integrated Report 2024

Chairman’s Letter

Later, PETRONAS expanded its focus to uplifting societies through our Memampankan Ekonomi Asas Rakyat programme,
providing access to necessities like water and electricity through the ‘Water for Life’ initiative and the installation of solar panels
in rural areas. As our operations grew across borders, these initiatives were replicated and further customised to the needs of
global communities.

In recent years, PETRONAS has introduced several environmental and social programmes, such as Rigs-to-Reef, mangrove
conservation, the Imbak Canyon Conservation project, COVID-19 aid and flood relief. These efforts have had a lasting positive
impact on Malaysians and local communities where PETRONAS operates.

Planting Tomorrow: Helping to rehabilitate vital mangrove forests and river reserve areas in Malaysia through community-based tree
planting initiative.

Strengthening Foundations for Future Growth

PETRONAS has played a crucial role in shaping Malaysia’s Meanwhile, the PETRONAS Supplier Support Programme
oil and gas landscape. As a regulator, we nurtured a (PSSP) which was launched in 2024, aims to equip SMEs with
competitive ecosystem by introducing balanced fiscal sustainability capabilities and access to transition financing
terms in Production Sharing Contracts to grow the value necessary to remain competitive in a low-carbon future.
pie. We also dutifully managed Petroleum Arrangement In the year under review, 417 vendors have enrolled in the
Contractors, and Oil and Gas Services and Equipment programme.
(OGSE) players to ensure compliance with high standards
and governance. At PETRONAS, we believe that sustainable growth is only
possible when all industry players grow in tandem. With
Through the Vendor Development Programme (VDP) and increased complexity in the macro environment putting
VDPx, PETRONAS has supported 171 small and medium downward pressure on margins, innovation and efficiency are
enterprise (SME) vendors since 1993, where 20 have foreseen to be key factors in project feasibility and profitability.
successfully expanded their businesses into international
markets. On the vendor financing front, 357 vendors have Moving forward, it will be more pivotal than ever that
benefitted from RM2.2 billion in funding to expand their Petroleum Arrangement Contractors, OGSE players and
operations since the Vendor Finance Programme (VFP) was technology providers strike mutually beneficial partnerships to
introduced in 2018. jointly contribute to a progressive sector in Malaysia.
2 Key Messages 17

The Year Ahead

As we look ahead to 2025, we anticipate unrelenting I would also like to extend a warm welcome to our new Board
volatility to persist with geopolitical shifts continuing to members namely, Datuk Dr Shahrazat Haji Ahmad and Datuk
redefine the trade landscape and realign priorities in the Seri Abdul Rasheed Ghaffour. Their vast experience and diverse
energy transition. The industry is already responding to perspectives will be invaluable in steering PETRONAS forward.
these shifts with sharpened focus on portfolio resilience,
prudent financial management and strategic industry On behalf of the Board, I would like to record my heartfelt
partnerships. In this regard, PETRONAS has put in place a appreciation to Tan Sri Tengku Muhammad Taufik, President
series of transformative measures that will best position and Group CEO of PETRONAS, and his Executive Leadership
us to continue executing our Energy Transition Strategy, Team for steering the Group towards delivering business
deliver long-term value to our stakeholders, and fulfil our strategies with agility and integrity. My deep appreciation
purpose as a progressive energy and solutions partner. also goes out to all employees for their sheer dedication and
upholding of our Shared Values in discharging their duties.
With Malaysia assuming the chair of ASEAN in 2025,
PETRONAS also looks forward to playing a part in Finally, I am grateful to our valued stakeholders, including
strengthening regional collaboration to shape the future of the Federal and State Governments of Malaysia, our host
energy for this region. countries, partners and customers for their continued trust and
support. As we set forth in this next chapter, PETRONAS looks
In closing, I would like to take this opportunity to thank forward to building on these enduring partnerships to continue
Datuk Johan Mahmood Merican, Dato Haji Ibrahim Haji enriching lives in the next 50 years and beyond.
Baki and Datuk KY Mustafa for their exemplary leadership
and contributions as members of the PETRONAS Board
of Directors. I wish them every success in their future
endeavours.

The Angsi platform in the waters off Terengganu, Malaysia.

18 PETRONAS • Integrated Report 2024

President and
Group Chief Executive Officer’s Letter

Dear Stakeholders,

The year 2024 was beset by wave upon wave of political change and technological disruptions that
reshaped global markets, trade policies and the operating landscape at large. The radical shifts and the
volatility in their wake have reinforced emphasis on energy security and affordability among countries
around the world against the backdrop of a still-fragile global economy.

As PETRONAS crossed its 50-year mark in

2024, we remained steadfast in executing
our Energy Transition Strategy with the
aim of ensuring we would continue being
able to deliver more value to shareholders
and stakeholders reliably, responsibly and
sustainably.

Alhamdullilah, we continued to grow

our diverse portfolio through a relentless
focus on operational and commercial
excellence, strategically positioning the
Group in order to remain resilient and
dynamic in the ongoing energy transition.

Safety at the Forefront

The safety and well-being of our

people remain our paramount priority.

In 2024, PETRONAS worked to

reinforce safety culture and measures
to create a safer working environment,
recording zero major fire incidents and
a 13 per cent reduction in Loss Time
Injury.

Despite our best efforts, we regrettably

recorded two tragic incidents that
resulted in the loss of lives. We are
deeply saddened by the loss suffered
by their friends and families. The
Group is now even more determined
Tan Sri Tengku Muhammad Taufik to do better towards delivering the
President and Group Chief Executive Officer only acceptable target in this regard –
zero fatalities and injuries.
2 Key Messages 19

Delivering Value Reliably and Responsibly

Amid persistent uncertainty in the global landscape, PETRONAS made steady progress in our Energy Transition Strategy, which
remains a clear and pertinent guide in the pursuit of long-term growth.

I am pleased to report that PETRONAS managed to deliver steady financial performance in 2024, with a Profit After Tax (PAT)
of RM55.1 billion on the back of RM320.0 billion in revenue. Earnings Before Interest, Taxes, Depreciation and Amortisation
(EBITDA) stood at RM114.1 billion for the year under review.

The Group remained steadfast in its philosophy of practicing prudent financial management and disciplined capital allocation in
an increasingly complex ecosystem. This ensured that we continued to drive long-term value, even as we reduced emissions as
set out in the PETRONAS Net Zero Carbon Emissions (NZCE) by 2050 Pathway.

The milestone accomplishments in 2024 include:

1 Expanded global portfolio through 20-year 6 Reached FID to construct a biorefinery in the
extension for the Ketapang Production Sharing Pengerang Integrated Complex in Malaysia with
Contract (PSC) and a multi-year contract for the partners Enilive and Euglena, expected to be
Bobara Working Area in Indonesia, acquisition operational by 2028.
of 50 per cent share of the Papua New Guinea
7 Signed a Memorandum of Cooperation to
Prospecting License and third concession of
advance ASEAN grid interconnectivity with the
Onshore Block 2 in Abu Dhabi, United
export of renewable energy from Vietnam to
Arab Emirates.
Malaysia and Singapore.

2 Produced a record-breaking 2,000 thousand 8 Expanded renewables portfolio in India with

barrels of oil equivalent (kboe) per day from a 200MW co-located solar-wind turbine
Malaysia operations. project, 400MW interstate transmission system-
connected wind-solar hybrid project, and
3 Awarded 14 PSCs in the Malaysia Bid Round 2024 delivery of 650MW renewable energy for the
to 12 unique contractors. country’s first renewable energy-green hydrogen
production.
4 Reached final investment decision (FID) for a
9 Entered a joint venture to develop a global
100MW power plant in Malaysia while making
scale hydrogen production hub in Malaysia with
good progress towards first cargo from LNG
SEDC Energy.
Canada in 2025 and bringing onstream our third
floating LNG facility by 2027. 10 Progressed towards large-scale carbon
capture and storage (CCS) deployment with 11
5 Expanded maritime solutions on offer with seven agreements and Memoranda of Understanding to
contracts for vessel newbuilds and entered a carbon dioxide storage solutions, infrastructure
joint venture to procure liquified carbon dioxide and value chain development, as well as
(LCO2) carriers, adding to the current fleet of 102 regulatory compliance and certification.
LNG, petroleum and product vessels, as well as
11 Achieved the short-term GHG emissions target
12 Floating Production, Storage and Offloading
by limiting emissions from Malaysia operations
(FPSO) and Floating Storage and Offloading
to 46.55 million tones of CO2 equivalent, below
(FSO) vessels.
the target limit of 49.50 million tonnes of CO2e,
as laid out in our Net Zero Carbon Emissions by
2050 Pathway.
20 PETRONAS • Integrated Report 2024

President and Group Chief Executive Officer’s Letter

Transformation for Long-Term Resilience

As the oil, gas and energy industry weathered a tumultuous The Group is confident that this undertaking, as challenging as
year of mounting market pressures, continued margin it may be, will place PETRONAS in an even more competitive
erosions and intensified geopolitical risks, it also became and resilient position to grow our international portfolio and
glaringly evident that reindustrialisation, deglobalisation secure market positions with focused agility.
and the artificial intelligence (AI) revolution are now set
to collectively contribute to a surge in worldwide energy Importantly, the measures will ensure that we can continue to
demands. discharge our Amanah or duty of trust as Malaysia’s national oil
company – providing energy security, generating economic
These contrasting complexities occurred as PETRONAS growth and contributing towards the nation’s sustainability
reached its remarkable 50-year milestone. Even as we ambitions.
celebrate in the achievements brought forth by steadfast
focus on our strategy – strengthening Core Business, It is vital to also highlight that amid this transformation,
pursuing opportunities in New Businesses and responsibly PETRONAS will remain unwavering in our commitment to
managing emissions – the Group has now set in motion deliver on our decarbonisation targets as set out in our NZCE
a transformative exercise to strengthen our long-term by 2050 Pathway. In this regard, PETRONAS can register that
resilience against the current backdrop. we have made continued progress since its introduction in
2020, and we continue to contribute to Malaysia’s
Measures in this regard are already being undertaken in an National Energy Transition Roadmap as well as its Nationally
objective, transparent and respectful manner, including: Determined Contributions.

1
Increasingly prudent capital allocation and
targeted reinvestment, with sharper focus
on value accretive and revenue-generating
businesses.

2
Pursuit of strategic partnerships and novel
collaborative models, such as satellite models,
equity partnerships and joint ventures to pursue
returns even as risks multiply in the operating
environment.

3
Transformation of our workforce by creating a
fit-for-purpose structure, aligning process with
purpose.

4
Reallocating resources and amplifying efforts to
eliminate inefficiencies.
PETRONAS’ New Energy Technical Service Centre in Pinghu,
Jiaxing, China.
2 Key Messages 21

Moving Forward with Purpose

In our first 50 years, PETRONAS has evolved significantly. In this opportunity, permit me to record my gratitude for
From our humble beginnings as the regulator of the dedicated service of PETRONAS’ global workforce,
Malaysia’s oil and gas resources, we have evolved into an the exemplary leadership and support of the Executive
integrated and dynamic global energy company. We have Leadership Team, and the strong support of governments,
contributed towards developing a thriving local oil and authorities, stakeholders and partners, whose valued
gas sector and fortified our reputation as a trusted energy contributions have made the Group’s accomplishments
and solutions partner, contributing to societies wherever possible.
we operate.
I would also like to extend my appreciation to our Chairman,
Together with our growing global footprint, PETRONAS Tan Sri Dato’ Seri Mohd Bakke Salleh, and the PETRONAS
has also built a strong reputation as a regional voice Board of Directors for their trust and valuable counsel
advocating for a just and equitable energy transition with through a period of immeasurable uncertainty.
collaboration as its cornerstone. With Malaysia taking up
the mantle as chair of ASEAN and as PETRONAS once As the amazing employees tirelessly strive to strengthen
again partners with CERAWeek by S&P Global to organise PETRONAS’ foundations for its next 50 years and beyond,
the second edition of Energy Asia in 2025. The coming I look forward to the progress we will continue to make
year is shaping up to be one of accelerated action together in delivering a sustainable future for all.
towards the energy future of our collective vision.

The Twin Torches, reunited on 17 August in celebration of PETRONAS’ 50th anniversary. Brought by teams from across Malaysia, the torches
serve to symbolise unity, camaraderie and resilience.
22 PETRONAS • Integrated Report 2024

Executive Vice President and

Group Chief Financial Officer’s Letter

Dear Stakeholders,

PETRONAS’ financial strategy is built on striking the right balance in reinforcing financial resilience
while driving growth, securing Malaysia’s energy needs while advancing sustainability, and optimising
performance while ensuring commercial viability. Rather than pursuing short-term gains, we ensure
that every investment is value-accretive for us to continue moving forward, especially as the world is
evolving at an accelerated pace.

Global economic instability in 2024

presented challenges across industries,
and the energy sector was no exception.
Sluggish economic activity, particularly
in China and Europe, coupled with
uncertainties over oil demand and global
recovery, contributed to market volatility.
Oil prices remained under pressure due
to fears of a recession in the United
States and easing supply concerns. At the
same time, the call for energy transition
remained strong and continued to
compound the industry’s complexity.

In navigating this complex landscape,

PETRONAS remained guided by its core
financial principles of strategic agility,
sound risk management and value-driven
decision-making. We have always applied
rigour to our financial management,
ensuring that every decision supports both
our resilience and long-term growth. This
means balancing three critical priorities:
sustaining our Core Business, scaling up
new growth opportunities under New
Business and responsibly managing our
emissions reduction journey under our
Net Zero Carbon Emissions by 2050
Pathway. These priorities underpin
PETRONAS’ long-term vision allowing us
to continue delivering secure, affordable
Liza Mustapha and responsible energy for Malaysia and
Executive Vice President and Group Chief Financial Officer
our global customers.
2 Key Messages 23

Financial Performance Capital Allocation and Investment Strategy

In 2024, PETRONAS recorded revenue of RM320.0 billion, PETRONAS applies a sharp and disciplined approach
lower than the previous year by 7 per cent due to softer to its capital allocation framework to ensure financial
average realised prices, particularly in LNG. Nevertheless, strength while delivering shareholder value and funding
increased sales volume provided a cushion against the future growth. Every investment decision is based on a
decline. Revenue was also impacted by the divestment of careful balance between strengthening our Core Business,
Engen Limited and its subsidiaries (Engen Group), a South
expanding into new opportunities and advancing emissions
African-based downstream petroleum company in which
reduction efforts, with all three receiving equal focus to
PETRONAS had held a majority stake since 1998. Following
secure PETRONAS’ resilience and long-term viability.
the completion of the divestment in May 2024, only five
months of Engen Group’s financial results were included in
PETRONAS’ revenue for the year. Our approach is not about pursuing short-term gains at
the expense of long-term resilience but ensuring that every
Profit After Tax stood at RM55.1 billion, reflecting the investment is value-accretive and aligned with our financial
impact of lower prices and the absence of favourable tax parameters to maintain a strong balance sheet.
adjustments recorded in 2023, which were mainly related
to the recognition of deferred tax assets. The realisation In 2024, our capital expenditure stood at RM54.2 billion,
of foreign currency translation reserves from the Engen primarily directed towards Upstream and Gas projects.
Group divestment also contributed to the lower Profit More than 60 per cent of capital expenditure in 2024 was
After Tax. The Group’s Earnings Before Interest, Tax,
invested in Malaysian projects, a 27 per cent increase from
Depreciation and Amortisation was RM114.1 billion, in line
the previous year, reinforcing PETRONAS’ role in supporting
with the decline in profits.
Malaysia’s Oil and Gas Services and Equipment ecosystem
Despite these market headwinds, PETRONAS maintained a to strengthen energy supply and build future capabilities.
strong financial position, ending the year with total assets Key projects included the PETRONAS Shore-based Floating
of RM766.7 billion, slightly lower by 1 per cent than 2023. LNG project in Sabah, which expanded LNG production
Shareholders’ equity increased to RM451.2 billion, mainly capacity; and the Integrated Bekok Oil project in Peninsular
due to profit recorded during the year. Cash Flows from Malaysia, which sustained upstream production.
Operations remained robust at RM102.5 billion, providing
sufficient liquidity to support business operations, capital Effective liquidity management underpins our capital
expenditure, growth commitments, debt obligations and allocation strategy, providing funding flexibility to
dividend payments to shareholders. meet obligations, support growth and navigate market
uncertainties. PETRONAS maintains access to multiple
financing levers, a structured cash management strategy
Revenue and a strong credit rating, which supports continued access
2023: to capital markets.
RM320.0 billion RM343.6 billion
Over the next five years, PETRONAS plans to maintain an
average capital expenditure of circa RM50 billion annually,
Profit After Tax with 20 per cent allocated towards New Business and
2023: emissions reduction initiatives.
RM55.1 billion RM80.7 billion

Total Assets
2023:
RM766.7 billion RM773.3 billion
24 PETRONAS • Integrated Report 2024

Executive Vice President and Group Chief Financial Officer’s Letter

Energy Transition and Growth Strategy Sustaining Economic Growth through Financial Contributions

Globally, energy transition commitments and In 2024, PETRONAS contributed RM72.4 billion in dividend, taxes, cash
efforts continue to unfold in complex and payments and other financial commitments to the Government of
uneven ways. Some companies that moved Malaysia. This included RM32.0 billion in dividend to the Government,
aggressively into renewables are now pulling declared after full consideration of the Group’s current and future
back, while others are recalibrating their commitments as well as growth plans. We also paid RM26.8 billion in
ambitions in response to market realities. taxes, including petroleum income tax, corporate income tax, state
PETRONAS has remained steady and sales tax, export duties and other statutory payments. Cash payments of
consistent in its approach to ensure that our RM13.1 billion were made to Federal and State Governments for the value
transition is well-paced, financially sound, of hydrocarbon resources monetised by PETRONAS and contractors.
measured and sustainable for the long term. PETRONAS also remains the sole contributor to the National Trust Fund,
with RM0.5 billion contributed during the year.
Our Core Business remains the anchor
of our financial strength. It continues to These payments result from our strategic financial approach, where
generate steady cash flow, which enables economic value is not only retained to fund operations, investments and
us to invest in emissions reduction efforts the energy transition, but also distributed responsibly to sustain Malaysia’s
and support the growth of our New Business fiscal strength, empower state-level development and build national
ventures. Rather than making abrupt shifts, economic resilience. To date, PETRONAS has cumulatively contributed
we have been strengthening our oil and more than RM1.5 trillion to the nation in the form of such payments.
gas operations to be more efficient and
responsible by integrating carbon capture, Beyond direct payments, PETRONAS’ financial footprint creates broader
methane abatement and energy efficiency economic value through its supply chain, workforce and industry
measures to reduce emissions while partnerships. In 2024, the Group invested more than RM700 million in
maintaining reliability and competitiveness. social impact initiatives globally, generating indirect economic benefits
by improving access to education, skills development, clean energy and
We will continue to focus on gas as a climate resilience in underserved communities.
transition fuel and prioritise emissions
Contributions to the Federal and State Governments of Malaysia,
abatement over offsets by reducing
and the National Trust Fund (RM billion)
emissions at source, as much as we can.

We aim to capture value-accretive growth

32.0
opportunities to enhance business resilience
and future-proof our portfolio. Our
21.1
diversification strategy is designed to ensure
that each new venture delivers long-term
13.1
value, has the potential to achieve scale and
incorporates differentiated risk management.
4.9
By focusing on opportunities that align with
our capabilities, we are expanding beyond
0.8
our Core Business in a way that is both
strategic and financially disciplined.
0.5

PETRONAS invested close to RM2 billion in

emissions reduction activities and cleaner Dividend to Government State Sales Tax
energy solutions under Net Zero Carbon Taxes Export Duty
Emissions by 2050 Pathway efforts in 2024.
Petroleum Cash Payments National Trust Fund
2 Key Messages 25

Governance and Risk Management We continue to make good progress on our sustainability
disclosures, and aim to fully adopt international frameworks
PETRONAS operates in an increasingly complex and such as the IFRS Sustainability Disclosure Standards (IFRS
dynamic environment where financial discipline, S1 and S2) and Malaysia’s National Sustainability Reporting
governance and risk management are essential to secure Framework (NSRF). This alignment enhances transparency,
long-term value. In 2024, we enhanced our internal control supports accountability and reinforces our commitment to
framework to further strengthen financial compliance long-term value creation. We welcome the convergence
and risk oversight across our global operations. These of sustainability disclosures and reporting frameworks as a
improvements include tighter financial reporting standards, step towards more structured and consistent reporting.
strengthened risk governance structures and enhanced due
diligence measures for investment decisions. Strengthening Financial Resilience for Future Growth

Compliance and ethical considerations have long been part As PETRONAS advances into the future, balancing national
of our decision-making processes. These foundations are energy security with commercial agility will be critical.
continuously strengthened through ongoing refinement Continued portfolio rationalisation will shape a leaner and
of our enterprise risk management frameworks, improved more efficient organisation. This deliberate and structured
financial transparency and deeper integration of climate- approach provides PETRONAS with the agility to adapt to
related financial disclosures in line with evolving industry market shifts while maintaining stability, reinforcing its role
standards. as a trusted energy partner for today and the future.

Our financial strategy for 2025 will be shaped by key

risks, including commodity price volatility, economic
uncertainties, regulatory shifts and the ongoing energy
transition, all of which require a structured and forward-
looking approach to financial planning.

One of the top financial risks PETRONAS faces is commodity

price fluctuations, which have become more volatile in
recent years. To mitigate exposure, we apply a structured
hedging strategy that protects against extreme price swings
while maintaining financial flexibility. Our price assumptions
for planning purposes are based on supply and demand
fundamentals, ensuring robust investments.

Our investment decisions are guided by a strict risk-reward

framework, prioritising financially viable, long-term projects.
We take a highly selective approach, choosing projects that
can withstand market volatility while actively managing
commodity price risks.

Liquidity risk is also carefully managed through diverse

funding strategies, including access to capital markets,
securing trade finance facilities and revolving credit
arrangements. By maintaining a conservative balance
sheet, strong credit ratings and a disciplined approach to
debt management, PETRONAS ensures sufficient financial
strength to support ongoing business commitments and
Bekok C Platform.
future investments.
26 PETRONAS • Integrated Report 2024

Vice President and

Group Chief Sustainability Officer’s Letter

Dear Stakeholders,

For over 50 years, PETRONAS has been a nation-builder, maximising Malaysia’s hydrocarbon resources
to contribute to the nation’s economic growth and social progress. Today, we continue this ethos with
a refreshed approach to sustainability, shaping the future energy system and leading the next chapter of
sustainable energy transformation for long-term success.

In 2024, multilateral negotiations on

climate change, biodiversity, and plastics
were inconclusive, adding further
fragmentation and inconsistency in
frameworks and regulations across the
world. Despite this, expectations for
the energy sector to lead the charge on
delivering energy security and cleaner
energy remain high.

Our commitment to sustainability with

a focus on ‘Delivering Net Zero, Thriving
with Nature and Fostering a Just Transition’
remains steadfast. In practice, this means
reducing the environmental impact of
our operations, developing solutions
to meet customers’ energy needs, and
collaborating across sectors to address
significant sustainability challenges.

We continue to make progress in various

aspects of sustainability performance.
To enhance transparency, we have
strengthened our disclosures by expanding
the scope of independent assurance. We
were also delighted to be recognised as
the top brand in the 2024 Brand Finance
ASEAN Sustainability Perceptions Index.

Charlotte Wolff-Bye
Vice President and Group Chief Sustainability Officer
2 Key Messages 27

Delivering Net Zero We also established a Groupwide energy management

system in preparation to meet Malaysia’s Energy Efficiency
A functioning modern society relies on a stable and and Conservation Act 2024 and enable continuous
affordable supply of energy. Today, energy accounts improvement consistent with industry best practices.
for approximately three-quarters of global manmade
greenhouse gas emissions. PETRONAS is committed to Our Net Zero Carbon Emissions by 2050 Pathway is not
achieving better emissions performance from our oil only about reducing our carbon footprint but also creating
and gas operations and creating new value-accretive new opportunities for growth and resilience in a rapidly
opportunities by pursuing renewable energy and low- changing global market.
carbon solutions.
We are advancing commercial carbon capture and storage
Technology development and strategic partnerships
services to support high-emissions sectors such as steel,
remain central to this transformation. PETRONAS leverages
power, chemicals and cement.
innovation through advanced research and development,
digitalisation and artificial intelligence to deliver tailored
Gentari Sdn Bhd (Gentari), our clean energy solutions
emissions reduction solutions and drive sustainability
entity, has secured 8 gigawatts of cumulative renewable
across our operations. Our efforts support national
energy capacity, including both installed and under
decarbonisation ambitions across markets where we have
industrial operations. construction, and has installed over 1,000 electric vehicle
charging points globally.
In 2024, PETRONAS’ Malaysia operations successfully
met our short-term target by limiting operational-control Thriving with Nature
emissions to below 49.50 million tonnes of carbon dioxide
We recognise the intrinsic connection between natural
equivalent (CO2e), amounting to 46.55 million tonnes
ecosystems and the resilience of our business and society.
CO2e, which is an almost 3 per cent increase from the
To address nature and biodiversity loss, we concentrate
previous year. Our Groupwide equity share emissions
on responsible resource use, circularity practices and
were 48.32 million tonnes CO2e, up by around 4 per cent.
ecosystem restoration, protection and conservation. This
Both increases were due to higher production levels, and
approach applies across all our operations, with emphasis
strengthened accounting and monitoring accuracy. Overall,
on Malaysia, one of the world’s most significant areas for
since launching our initial carbon commitments in 2012,
ecological biodiversity.
we have reduced annual emissions significantly by over 21
million tonnes CO2e.
In 2024, we established governance mechanisms to
proscribe new project development in UNESCO World
We are making steady progress toward our 2030 target
of reducing our Groupwide emissions by 25 per cent. Heritage sites, with a commitment to help protect
Our efforts are focused on energy efficiency, eliminating culturally and naturally significant locations. We continued
routine flaring and venting, and electrification. Additionally, biodiversity and ecosystem services risk assessments
we have laid the groundwork to deploy carbon capture and and improved our internal capabilities in how to engage
Indigenous Peoples meaningfully and to help ensure our
storage technologies.
industrial activities are in better harmony with nature.

A notable achievement is a 62 per cent reduction in

PETRONAS participated in Bursa Malaysia’s auction of
methane emissions from Groupwide operations, exceeding
Malaysian nature-based carbon credits, marking an
our 2025 target of a 50 per cent reduction from a 2019
important step forward for the voluntary carbon market
baseline ahead of schedule. Our 2030 target of a 70 per
in Southeast Asia. We also formed a partnership with
cent reduction is now within reach. Accelerating methane
the Sarawak Forestry Corporation to develop Nature-
emissions is important, given methane’s potent impact on
based Solution projects. Carbon credits from such future
global warming.
projects will offset residual and hard-to-abate emissions,
complementing our broader carbon reduction efforts.
28 PETRONAS • Integrated Report 2024

Vice President and Group Chief Sustainability Officer’s Letter

Our environmental performance showed mixed results Scaling Up Activity through Collaborations and
in 2024. Freshwater withdrawal increased by 4 per cent Partnerships
to 82.6 million cubic metres, primarily due to additional
requirements from the start-up operations. Hazardous Cross-sectoral partnerships are vital to enforce meaningful
waste generated rose by 23 per cent to 187,294 metric change, and PETRONAS has consistently taken a leading role
tonnes, reflecting the impact of expanded operational in fostering such collaborations through regional outreach
activities. However, other environmental indicators in Southeast Asia.
improved: Nitrogen Oxide (NOx) emissions decreased by
10 per cent, while Sulphur Oxide (SOx) emissions fell A key milestone in 2024 was the launch of the ASEAN
by 8 per cent. Energy Sector Methane Leadership Programme 2.0 with
our partners. We also announced plans to establish the
Fostering a Just Transition Southeast Asia Methane Emissions Technology Evaluation
Centre in collaboration with the Japan Organization for
We are dedicated to contributing to an energy transition Metals and Energy Security.
that respects human rights, and promotes inclusive
development and prosperity. We call this effort ‘Fostering a At the climate summit COP29 in Baku, PETRONAS, together
Just Transition’. In 2024, we published our updated Human with other Southeast Asian partners, published a joint
Rights Policy, which is currently being implemented. communiqué committing to a progressive approach to
decarbonisation and methane emissions management in the
A successful energy transformation depends on a skilled, region.
adaptable workforce. In 2024, PETRONAS continued
strengthening talent development through our learning Sustainability as a Driver for Resilience and
institutions. Value Creation

Universiti Teknologi PETRONAS (UTP) expanded its PETRONAS’ approach remains rooted in strategic
academic programmes and launched the first-of-its-kind pragmatism, centering on energy security, affordability
Bachelor of Integrated Engineering, combining mechanical, and sustainability.
electrical and chemical disciplines under one curriculum to
meet evolving industry demands. We continue advancing our sustainability ambitions
to remain strong amid changing geopolitics, market
Institut Teknologi Petroleum PETRONAS (INSTEP) enhanced conditions and national policies. With robust governance,
technical competency development for emissions continued investment in technological solutions, skills and
reduction and carbon accounting, while the PETRONAS collaboration across the ecosystem, we are confident in our
Leadership Centre developed new programmes to advance ability to bolster organisational resilience and creating
sustainability leadership among talent, leadership, Board of long-term sustainable value.
Directors and external stakeholders.

Beyond talent development, we also launched our

PETRONAS Supplier Support Programme, engaging over
1,000 vendors since August 2024. This free programme
strengthens industry sustainability capabilities, and helps
businesses in Malaysia serve emerging lower-carbon energy
value chains.
 3 How We Create Value 29

PETRONAS Energy Transition Strategy

As the energy landscape continues to evolve, we remain steadfast in our commitment to a responsible and progressive energy
transition. Our strategy is designed to balance energy security, affordability and sustainability to support Malaysia’s long-term
development, while responding to the world’s growing energy demand. This strategy is anchored on three core pillars: generating
value from our Core Business while reducing emissions, expanding cleaner energy solutions through New Business and advancing
our Pathway to Net Zero.

Core Business New Business Net Zero Carbon Emissions

More Energy, Capturing New Growth Pathway to Net Zero

Less Emissions Opportunities
We take a strategic and responsible
We play a key role in oil We pursue New Business to approach to emissions reduction,
and gas industry to help strengthen the robustness of balancing technological constraints
meet growing energy our long-term portfolio. Each and evolving policies while ensuring
demand, generate cash business will move at its own long-term business resilience.
flow and deliver returns to pace and trajectory, depending
shareholders. on technological advancement Key abatement levers have been
and market environment. identified to reduce greenhouse gas
emissions, with focus on delivering
near- and medium-term targets.

Focus Areas Key Abatement Levers

Upstream Specialty Chemicals Zero Routine Flaring and Venting

Advance exploration and development Strengthen portfolio through innovation, Systematically eliminate routine flaring and
to address global energy demand, profitability and access to new capabilities, venting in existing and new production
sustain vibrancy of Malaysia’s oil and markets and geographies. sites.
gas ecosystem, while high-grading our
portfolio, to deliver lower-carbon fuels in Bio-based Value Chain Energy Efficiency
a cost-efficient manner. Scale up bio-based products and Optimise energy use across operations,
offerings aligned with evolving customer through operational excellence, digital
Gas and Maritime preferences, leveraging strategic solutions, process and equipment
Maintain market leadership in the partnerships. optimisation.
liquefied natural gas sector by sustaining
reliable production, optimising value Carbon Capture and Storage Electrification
from existing assets, and intensifying Mature carbon capture and storage (CCS) Electrify PETRONAS operations through
portfolio integration. Continue to explore solutions and position Malaysia as a leading asset modification, infrastructure
new supply opportunities to strengthen regional hub. development and sourcing for renewable
global presence as a key differentiator in energy, where feasible.
delivering reliable, competitive suite of Renewable Energy
energy solutions. Carbon Capture and Storage
Scale core market projects, emphasise
renewable energy-hydrogen synergies and Mature CCS deployment to reduce carbon
Downstream
leverage long-duration energy storage emissions at identified assets.
Optimise margin through continuous value.
operational and commercial excellence,
while extending value across the chain Hydrogen
through enhanced offerings to respond
to changing customer requirements and Advance green hydrogen and ammonia
better capture market opportunities. projects, secure offtake agreements
to underpin those projects, boost cost
competitiveness and strengthen market
position via partnerships and technologies.

Green Mobility
Expand electric vehicle charging points,
and scale Vehicle-as-a-Service across Asia
Pacific.

Please refer to Strategic Review on pages 60 to 81.

30 PETRONAS • Integrated Report 2024

Value Creation Model

PETRONAS Our Capitals Inputs

Energy Supply and Generation
Transition Financial • RM766.7 billion in
FC total assets
Strategy Capital
Capital available to the
Group to finance our Liquefaction Processing
operations, activities
and investments in
other growth areas.

Manufactured • RM327.4 billion in

MC property, plant and
Core Business Capital
More Energy, equipment
Assets and
Less Emissions infrastructure that
underpin our business.

Human • RM339.2 million

HC investment in
Capital
training and
Our skilled workforce
development
that drive and deliver
our strategy and long-
term value. Sustainability Approach
New Business
Capturing • RM562.2 million
Intellectual
New Growth IC in technology
Capital
Opportunities investments Creating Sustainable
Our proprietary Value through
technologies, solutions Responsible Governance
and organisational
systems that deliver
value and growth.

Natural • Over RM7 billion on

NC emissions reduction
Capital
Net Zero projects and cleaner
We depend on
Carbon energy solutions,
environmental resources Delivering Net Zero
Emissions specifically on
across our operations and
Pathway to renewable energy,
manage impacts on land,
Net Zero hydrogen, and carbon
water, air and biodiversity
capture and storage
through responsible
projects Please refer to Our Approach to Sustainability on
use, waste management pages 48 to 49 and Material Topics on pages 50 to 53.
• 8.64 billion barrels of
and greenhouse gas
oil equivalent (boe)
reduction.
2P Reserve*
Note:
* 2P Denotes the best Operating Landscape
estimate of Reserves.
The sum of Proved plus • Geopolitics and Macroeconomics
Probable Reserves. • Global Trade and Supply Chain Resilience
• Energy Market and Capital Discipline
Social and Relationship • Contributed more • Energy Transition
SRC than RM700 million • Sustainability including Climate Change
Capital
worldwide on social Commitments
Our engagements
impact programmes
and relationships with
stakeholders, including
government agencies,
local communities and
customers.
Please refer to Operating Landscape on
pages 32 to 33.
 3 How We Create Value 31

Outputs and Outcomes Trade-offs Stakeholders

Sustaining profitability and growth to meet • Investments in

FC Malaysia’s current and future energy needs Manufactured,
through reinvestment, emissions reduction Natural and
Renewable efforts and dividends. Intellectual
Refining • RM55.1 billion profit after tax Capitals, ranging
Energy
• RM32.0 billion dividend to the from emissions
Government reduction
technologies to
capability building,
Managing a resilient asset and require significant
MC infrastructure portfolio aligned with Financial Capital.
strategic goals for long-term productivity. While this may
• 35.7 million metric tonnes LNG sales create short-term
• 11.2 million metric tonnes chemical financial pressure,
production volume these trade-offs
• 247.8 million barrels of petroleum are necessary to
products sales volume secure future value
and long-term
Strengthening a skilled talent and resilience.
HC succession pipeline.
• 56.9 hours of average training per • Strengthening
employee Intellectual and
Human Capitals
through talent
Strengthening long-term resilience by development,
IC investing in research and development, innovation and
technology and new businesses with knowledge-sharing
Thriving with Nature
lower-carbon emissions. may constrain
• 20 per cent of planned annual Financial Capital
capital expenditure allocated to New in the short term.
Business and emissions reduction However, these
over the next five years investments
• 31 patents secured build future
• 2 proprietary formulations talent capabilities
that enhance
Fostering a Just operational
Responsible resource use and ecosystem
Transition NC effectiveness,
management to ensure operational
innovation and
continuity, compliance and long-term
competitiveness
value.
while contributing
• 2,451 thousand barrels of oil
to Malaysia’s
equivalent (boe) per day crude
socio-economic
oil, condensates and natural gas
progress.
production
• 1.3 million tonnes carbon dioxide
• Building trust with
equivalent per year of greenhouse
Key Risks communities,
gas emissions reduced through
partners and
emissions reduction projects
• Market stakeholders
• 47,620 tonnes total hazardous waste
• Financial Liquidity strengthens Social
reused, recycled or recovered
• Legal and Regulatory and Relationship
• More than 20,000 mangroves and
• Sustainability Capital, which
other trees planted to restore and
• Health, Safety, Security and Environmental reduces
enhance local ecosystems
• Geopolitical reputational and
• Hydrocarbon Reserves and Resources regulatory risks.
• Technology Supporting social progress through This, in turn, can
• Execution SRC community projects. put pressure on
• Human Capital • 400 programmes globally across our Financial
education, environment, and Capital but in the
Please refer to Risks Linked to Creating Value on community well-being and long run, protects
pages 34 to 47. development our other Capitals.
32 PETRONAS • Integrated Report 2024

Operating
Landscape
The 2024 election supercycle saw about three billion voters across more than 60 countries head to the polls at a time of
heightened geopolitical tensions and increased market volatility. Political transitions in key economies have shifted focus
toward policies that prioritise domestic interests, with governments increasingly supporting the growth of local industries to
strengthen employment and build resilient supply chains. While cross-border cooperation remains crucial, the increased focus
on national priorities and new trade requirements has further complicated supply chain dynamics and affected economic
collaboration, including in the energy transition. The move towards inward-looking policies, particularly by major economies,
presents additional challenges to global business operations, limiting market access and posing risks to project deliveries.

The oil and gas sector navigated a challenging landscape marked by OPEC+ intervention, geopolitical tensions and energy
transition pressures. Nevertheless, it remained resilient, with crude oil prices averaging above USD80 per barrel. Global gas
demand reached a record high, driven by population growth and economic expansion in emerging markets. The upstream
sector embraced capital discipline, focusing on shareholder returns, while the services sector pursued mergers and acquisitions
to enhance competitiveness. Although upstream investment growth moderated to 4 per cent following previous double-digit
gains, earnings remained strong due to cost management and relatively stable oil prices.

The chemical sector faced headwinds from weak consumption and oversupply, while the liquefied natural gas (LNG) market
softened due to subdued global demand. Shifting political landscapes following the elections triggered widespread policy
reviews, contributing to investment uncertainty and profitability pressures in the renewable energy and green mobility sectors.

The global climate summit COP29, held in Azerbaijan in November 2024, delivered incremental progress. A new framework for
carbon markets was agreed upon, enabling international carbon credit trading. Developed countries pledged to triple climate
finance to at least USD300 billion annually by 2035, with combined public and private financing targets reaching USD1.3 trillion
per year.
 3 How We Create Value 33

Outlook
The global outlook for 2025 remains uncertain amid escalating trade disputes and increased geopolitical tensions.
Trade disruptions, driven by higher tariffs and policy volatility, pose risks to global growth and international cooperation.
Strained relations may lead to retaliatory measures, further dampening economic activity.

Heightened geopolitical instability, particularly in the Middle East and Europe, and the continued targeting of vessels in the Red
Sea have disrupted global trade flows. These tensions have affected critical chokepoints such as the Suez and Panama Canals,
the Straits of Malacca and the South China Sea, which together account for around half of global maritime commerce.
The resulting rise in shipping rates is intensifying inflationary pressures and threatening supply chain stability. With no imminent
resolution in sight, disruptions are expected to persist, particularly in the Red Sea, where attacks are forcing vessels to divert via
the Cape of Good Hope. However, a de-escalation in trade conflicts could provide an upside to global growth as businesses gain
clarity in policies and strategic direction.

The oil market is expected to remain volatile in 2025 due to sustained geopolitical instability and economic uncertainty.
Production growth may lead to a surplus, although conflict-driven supply shocks could result in temporary price spikes.
In the chemical sector, growing capacity and subdued demand could limit price gains, while in the LNG sector, prospects for
growth may be dimmed by trade restrictions and policy uncertainties.

The energy transition is set to progress but will remain uneven due to regional disparities and the geopolitical climate. The
2025 update to Nationally Determined Contributions aims to prompt countries to raise their climate ambitions. However, rising
defence spending and reduced international cooperation could hinder climate financing, even as advances in clean energy
technologies and grid infrastructure enhance long-term prospects.

PETRONAS views the current environment as an opportunity to diversify market exposure through new alliances. We uphold
strict capital discipline by adopting a value-over-volume strategy, focusing on capital-efficient, shorter-cycle projects that
deliver quicker returns while safeguarding energy supply and advancing emissions reduction efforts. We remain committed to
our Net Zero Carbon Emissions by 2050 Pathway while continuing to strengthen governance, due diligence, human capital
practices and community engagement, and embedding sustainability more deeply across our value chain.
Please refer to PETRONAS Energy Transition Strategy on page 29, Risks Linked to Creating Value on pages 34 to 47, Strategic Review on pages 60 to 81 and
Sustainability Performance Review on pages 84 to 175.
34 PETRONAS • Integrated Report 2024

Risks Linked to Creating Value

Navigating volatile market conditions, technological disruptions and the complexities of the energy transition demands a robust
and adaptive risk management approach. Recognising this, PETRONAS focuses on identifying, assessing and mitigating risks that
could derail business ambitions and strategic objectives. By embedding risk considerations into decision-making processes, we
safeguard our assets, ensure operational resilience and align with stakeholders’ expectations. This approach enables us to drive
strategic progress while reinforcing our commitment to contribute positively to the global energy landscape.

Strengthening Resilience through Risk Management

We implement a robust risk management and internal control system across PETRONAS and its subsidiaries (the Group), which is
designed to manage exposures and leverage opportunities that drive sustainable value creation. The system provides reasonable
assurance against material misstatements or losses.

Oversight of the system’s adequacy and effectiveness rests with the PETRONAS Board, supported by the Risk Committee (RC),
Audit Committee (AC) and Executive Leadership Team (ELT). Specific to the risk management system, a Risk Management
Committee (RMC) and risk management functions support the implementation by ensuring an integrated approach when
addressing risks and safeguarding organisational resilience.

Roles and Responsibilities

PETRONAS Board
Responsible for overseeing and ensuring a sound system of risk management and internal control across the Group.

RC AC
Risk Committee Audit Committee

Responsible for reviewing principal risks in the PETRONAS Responsible for oversight functions in relation to
Corporate Risk Profile, as well as overseeing the adequacy the Group’s internal controls.
and effectiveness of the risk management system for
the Group.

ELT
Executive Leadership Team

Responsible for reviewing and reporting key risk management matters to RC and the Board.

The above risk oversight structure shall be read together with Corporate Governance at PETRONAS on pages 186 to 205.

RMC
Risk Management Committee Risk Management Functions
RMC serves as a central platform to support PETRONAS’ Risk management functions exist within the Group to
Management and the Board in managing risks and drive risk management implementation, and provide risk
maintaining acceptable levels of risks, as well as providing reporting and assurance to PETRONAS Management and
guidance and advisory on the Group’s risk management the Board that risks are effectively being managed across
system and its implementation. the Group.
 3 How We Create Value 35

How We Manage Risks

The PETRONAS Risk Policy underpins the Group’s approach to risk management, driving the adoption of best practices and
integrating risk-based decision-making into the processes of value protection and creation. By ensuring a balanced view of
exposures, this approach aligns with our commitment to achieving business objectives while strengthening organisational
resilience.

Supporting this policy is the PETRONAS Resiliency Model, which offers a cohesive framework for managing risks effectively across
the organisation. It emphasises three core pillars of resilience: Enterprise Risk Management, Crisis Management and Business
Continuity Management.

PETRONAS Risk Policy and PETRONAS Resiliency Model

PETRONAS Risk Policy PETRONAS Resiliency Model

PETRONAS is committed to becoming a Enterprise Risk Management

risk resilient organisation. Structured and holistic approach to identify, assess, manage
and monitor risks. The aim is to REDUCE the likelihood
PETRONAS shall continuously strive to and impact of identified risks to enhance the organisation’s
implement: ability to achieve its strategic objectives.

• Risk management best practices to protect

and create value within the set boundaries. Crisis Management
• Risk-based decision-making by providing a Comprehensive set of processes that aims to prepare the
balanced and holistic view of exposures to organisation to RESPOND and manage crises to protect
achieve business objectives.
people, environment, assets and reputation.

Managing risk is everyone’s Business Continuity Management

responsibility.
Holistic management process that aims to build the
capability of an organisation to RECOVER and continue
delivering products or services at acceptable predefined
levels following a prolonged disruptive incident.
36 PETRONAS • Integrated Report 2024

Risks Linked to Creating Value

Enterprise Risk Management

Enterprise Risk Management (ERM), governed by the PETRONAS ERM Framework, is a systematic process of identifying, assessing,
treating, monitoring and reviewing of risks. It supports our ability to reduce the likelihood and/or mitigate risks that may impact our
business objectives through the implementation of mitigation measures, and monitoring of risk profile and risk appetite.

In intensifying our efforts to be a risk-resilient organisation, the risk profile and the corresponding risk mitigations and key risk
indicators are monitored at both corporate and respective business levels across the Group.

Our risk appetite guides strategic decisions, reflecting our position, propensity and willingness to accept and manage risks within
tolerable limits in strategic, financial, operational and reputational areas while complying with legal and regulatory standards.
The risk appetite for each area is determined by its respective tolerance and threshold levels.

At the corporate level, the PETRONAS Corporate Risk Profile and Risk Appetite are monitored and reported quarterly to the Risk
Management Committee, Executive Leadership Team, Risk Committee and the Board.

We also conduct risk assessments at key decision points to:

• Ensure that decisions impacting our business operations and strategies are made with careful consideration of risk-reward
trade-offs.
• Create risk-reward conversations at respective decision platforms and/or approving authority.

ERM Framework

Context Risk Risk Risk Monitoring Continuous

Governance Treatment
Setting Assessment and Review Improvement

• Risk Policy • External • Risk • Risk • Risk • Management

• Organisation Context Identification Treatment Reporting System
and Structure • Internal • Risk Analysis Strategy and Review
• Roles and Context • Risk Evaluation • Risk Monitoring • Risk
Responsibilities • Risk Appetite Treatment • Risk Assurance
• Risk Criteria Plan Information • ERM
System Capability
Building
 3 How We Create Value 37

Crisis Management and Business Continuity Management

Crisis Management and Business Continuity Management are integrated processes, each governed by its respective PETRONAS
Crisis Management Framework and Business Continuity Management Framework. These frameworks aim to prepare our domestic
and international operations to effectively respond to crises and recover from any business disruptions.

For Crisis Management, we adopt a three-tiered response protocol that clearly defines roles and responsibilities at every level:
emergency site management, operating unit management and corporate, while ensuring collaboration with internal and external
response agencies and/or authorities. This structured approach enables us to respond effectively to crises that significantly impact
the organisation’s normal operations, particularly in terms of people, environment, assets and reputation, which could lead to
substantial business disruption.

Meanwhile, Business Continuity Management focuses on strengthening our capabilities to recover and restore critical business
functions to ensure the continuous delivery of products or services at predefined acceptable levels. This includes recovering
effectively from prolonged crises that severely deteriorate and disrupt business operations and services and enabling a swift return
to acceptable business operations with minimal disruption to stakeholders.

To drive continuous improvement and enhance capabilities, we periodically conduct testing and exercises by simulating crisis and
business disruption scenarios identified in the respective crisis and business continuity plans. These exercises aim to ensure that the
response and recovery strategies remain robust and effective.

Crisis Management and Business Continuity Management Frameworks

Crisis and Response

Business and Testing and Continuous
Governance
Continuity Recovery Exercising Improvement
Assessment Strategy

• Risk Oversight • Identification of: • Establishment of • Conduct testing • Management

Structure – Crisis and respective crisis and and exercises System Review
• Roles and business business continuity • Risk Assurance
Responsibilities disruption plan • Crisis and Business
scenario Continuity
– Crisis threshold Capability Building
and critical
business
function
38 PETRONAS • Integrated Report 2024

Risks Linked to Creating Value

Risk Management in 2024

In 2024, we continued to address and manage material risks that are critical to our business and the nature of our operations. These risks,
outlined below, have the potential to significantly impact the execution of our strategy and the continuity of our business operations, either
directly or indirectly. Our proactive approach to risk management ensures we remain resilient and adaptive in an evolving landscape.
Material Topics Stakeholders Capitals

CE CC EC IT LCT SC C SIC GIP CN IO FC MC IC NC

Market Risk MR

What It Means
The Group’s performance is influenced by factors beyond our control. This includes market factors such as fluctuation in global and regional
supply and demand for crude oil, gas and related products, competition from alternative energy sources, geopolitical tensions and
macroeconomic headwinds. These factors can directly impact supply and demand, potentially leading to prolonged downturns or instability in
crude oil, oil and gas product prices. Shifts in government policies and consumer preference toward cleaner and renewable energy sources as
well as products could heighten the competition for conventional oil and gas products, requiring PETRONAS to diversify our core business.

Impact on Value Mitigation Strategies

• Optimise resource allocation and ensure adaptability to market
• Price and Demand: Geopolitical tensions, uneven growth across changes by undertaking regular strategic reviews and resource
regions and slowdown in economic activities in key economies prioritisation.
have contributed to weaker-than-expected demand for crude oil • Drive proactive and timely interventions through continuous
and related oil and gas products, limiting price growth, impacting monitoring and reviewing of portfolio composition and
our financial performance and shareholder returns. counterparty performance.
• Currency Fluctuations: PETRONAS’ revenue and costs are • Protect value, margin and cash flow against adverse crude oil
denominated in United States dollars. Movements in major and related oil and gas product price fluctuations and foreign
currencies, particularly the dollar against the Malaysian Ringgit exchange movements by undertaking hedging activities.
significantly impacts our revenue, operational costs and capital • Implement prudent financial risk management in accordance
investments. with principles stated in the PETRONAS Financial Policy and
• Changes in Market Preference: A growing focus on climate PETRONAS Financial Standards.
change mitigation and adaptation, and increasing pressure to • Assess potential foreign exchange risk exposure for major capital
transition to a lower-carbon economy will continue to shape projects at the investment decision phase to determine an
customer preferences, intensify competition in the energy appropriate risk management strategy.
market and affect returns for conventional oil and gas businesses, • Advocate and raise awareness on business strategies by engaging
impacting our value chain. with stakeholders, including governments, banks, financiers and
• Fulfilment of Contractual Obligations: Changes in market investors to obtain support.
dynamics will affect revenue, operational costs and counterparties’
ability to fulfil contractual obligations as our commercial Tactical Opportunities
agreements are pegged to commodity prices. This could impede • The volatile commodity market presents opportunities for
our growth prospects and ability to sustain our business. PETRONAS to capitalise on trading opportunities and unlock
additional value by leveraging favourable price volatility.
Impact on Capital
Growing awareness of climate change enables the inclusion of
• Financial Capital: Changes in market environment can disrupt environmental, social and governance (ESG)-linked products
steady returns and challenge the Group’s future growth and into hedging and trading activities in line with the market’s shift
business sustainability. towards sustainable practices.
• Manufactured Capital: Changes in market conditions and • Shifts in consumer preferences allow PETRONAS to diversify into
increased market volatility can lead to fluctuations in the value of new markets, including venturing into renewables and cleaner
manufactured capital. energy solutions and offering other ESG-related products.
• Intellectual Capital: Rapid technological and market shifts can • Geopolitical uncertainties may create new market avenues,
render existing intellectual capital redundant. supply bases and partnerships.
• Natural Capital: Shifting market environment and outlook may • Accelerating the use of digital and cost management tools and
render prospective oil and gas investments and asset life extension technology to mitigate the impact of price volatility provides an
efforts uneconomical. opportunity for PETRONAS to generate value.

Risk Movements
In 2024, persistent geopolitical tensions, particularly in the Middle East and Europe, alongside sustained price volatility and a prolonged
elevated interest rate environment, continue to shape the global landscape. These ongoing concerns have heightened uncertainties in
the value chain and global supply as well as demand for our products. If worsened, they will have a direct impact on our business. We will
continue to manage these risks through the approved mechanisms, such as periodic strategic review of portfolio composition and hedging
programmes, and monitor key signposts for early intervention.
 3 How We Create Value 39

Material Topics Stakeholders Capitals

CC CG EC GHG IT LCT NB SC FG SG HG C SIC IO FC

Financial Liquidity Risk FLR

What It Means
Our business activities require significant capital investments, sufficient operating cash flows and/or external financing for operational and
growth projects in a timely manner. Influencing factors include unfavourable market conditions, any global and regional financial crisis such
as the 2008 global financial crisis and 2023 US regional banking crisis, change in ESG and climate change-related regulations, and shifting
operational and stakeholder requirements.

Impact on Value Mitigation Strategies

• Strengthen execution and implement prudent financial risk
• Affordability and Capital Availability: Our inability to management in line with the PETRONAS Financial Policy and
maintain optimum liquidity position can reduce income, PETRONAS Financial Standards to attain financial resiliency.
which can affect business agility and limit capital investment • Fortify management oversight on overall liquidity management
for future growth, as well as our ability to meet shareholders’ strategies to achieve financial objectives and support the Group’s
expectations. business growth, including asset and liability management
• Credit Rating and Borrowing: Lower income may lead to strategies through the established oversight platforms.
credit rating downgrades. Coupled with non-compliance with • Drive timely interventions to address liquidity gaps through regular
ESG and climate change requirements, this could increase our monitoring and reviewing of our liquidity position against our risk
borrowing costs and limit our access to capital markets. appetite on liquidity and indebtedness levels.
• CAPEX Concentration: Higher capital allocation towards new • Protect value and margins against adverse price movements by
business and emissions reduction may impact our business undertaking hedging activities and utilisation of approved financial
portfolio and revenue stream due to delays in return realisation, derivatives such as forwards and swap contracts to provide greater
resulting from lower yields compared to conventional oil and predictability of financial results and to mitigate the downside risks.
gas, challenges in securing the right talent and the timely • Improve PETRONAS’ response in safeguarding the Group’s financial
deployment of technology. sustainability by implementing liquidity crisis management and
business continuity measures aligned with the established Liquidity
Impact on Capital
Risk Contingency Protocol.
Financial Capital: Regulatory changes, market conditions, • Ensure readiness for external funding and borrowing through
stakeholder demands and business challenges can impact our timely and comprehensive reporting and continuous engagements
financial and liquidity position, affecting our ability to maintain with stakeholders, including governments, banks, financiers and
cash flow, gain access to financing and safeguard long-term investors.
value creation for stakeholders.

Risk Movements
Financial liquidity risk indicators remain elevated even with the implementation of controls and mitigations, including strict capital discipline
and robust portfolio management amid the market’s volatility, varying stakeholder demands, changes in regulatory requirements and business
challenges. However, supplementary measures such as liquidity buffers and internal borrowings are in place to address gaps and ensure
financial stability, if needed.
40 PETRONAS • Integrated Report 2024

Risks Linked to Creating Value

Material Topics Stakeholders Capitals

CC CG CDP EM EI HR FG SG HG C SIC GIP IO FC HC SRC

Legal and Regulatory Risk LR

What It Means
PETRONAS operates within a complex legal and regulatory landscape, adhering to critical laws with enterprise risk and extra-territorial
effects such as ethics, anti-bribery, corruption, sanctions, competition and data privacy. Our business also requires adherence to a multitude
of existing, evolving and emerging regulatory requirements at the operational level. We are also exposed to claims and legal proceedings
involving human rights, tax, workforce non-compliance and others, which impact the broader organisation, including financials and
reputation.

Impact on Value Mitigation Strategies

• Strengthen legal and regulatory governance by implementing
• Litigation Uncertainties: Adverse litigation and commercial frameworks such as the PETRONAS Code of Conduct and Business
disputes can negatively affect our operations, financial Ethics, PETRONAS Legal Compliance Framework and PETRONAS
condition and reputation. Contractors Code of Conduct on Human Rights.
• Emerging Regulations: The accelerated pace of the energy • Establish Whistleblowing/Centralised Complaint Management
transition and evolution of regulatory requirements in other System to foster accountability and ethical behaviour as part of
areas such as human rights exposes us to the need to adapt ethics and integrity management. The system offers a secure
and comply with emerging regulations and policies, which platform for employees to express their views openly and to take
could increase compliance costs and impact our licence to decisive actions towards progress.
operate. • Increase awareness and competency of our workforce through
• Policy Uncertainties: Changes in the business landscape, regular training and communication on applicable laws.
including political and socio-economic landscape where we • Drive proactive interventions through regular monitoring and
operate may expose PETRONAS to policy uncertainties and reviewing of our legal, regulatory and anti-corruption compliance
regulatory changes, which may impact the running of our against our risk appetite.
businesses. • Implement identified action plans with specific short-, medium- and
long-term targets to achieve net zero carbon emissions by 2050
Impact on Capital
and manage other sustainability-related regulatory impacts.
• Financial Capital: Legal and regulatory breaches and inability
to meet regulatory requirements can lead to financial penalties,
reduce our access to external financing and increase our cost
of doing business.
• Social and Relationship Capital: Legal and regulatory
breaches can damage relationships with key stakeholders and
erode trust and confidence.
• Human Capital: Non-compliance with legal requirements
could undermine our reputation as a preferred employer,
leading to potential talent loss.

Risk Movements
Legal and regulatory risk is elevated especially in the areas of critical laws and the sustainability space. Key contributing factors are persistent
geopolitical tensions, national elections and fragmented alliances that heighten our exposure to sanction laws. Another factor impacting our
business is the accelerated pace of emerging regulatory requirements. The impact to our business is managed through the implementation of
the PETRONAS legal and integrity frameworks, as well as a dedicated sustainability regulatory oversight function. This ensures we continue to
adhere to evolving and emerging laws and regulations, while also playing an advocacy role to shape the regulatory ecosystem.
 3 How We Create Value 41

Material Topics Stakeholders Capitals

CE CC EC EM GHG HW FG SG HG C E SIC M GIP CN IO FC MC HC NC SRC

HR IT LCT NB SM SC

Sustainability Risk SR

What It Means
PETRONAS acknowledges the scientific consensus on climate change and inconsistent stakeholder expectations for a lower-carbon
economy. We are committed to our Net Zero Carbon Emissions by 2050 Pathway and continue to integrate sustainability into our strategy
and operations. Adapting to evolving regulations and mandatory disclosure standards necessitates a further strengthening of efforts. In doing
so, PETRONAS remains equally focused on compliance, reinforcing responsible operations and contributing towards a just and equitable
transition that fosters greater social progress.

Impact on Value Mitigation Strategies

• Pace the implementation of our action plans to
• Capital Market Access: The inability to meet ESG requirements of financial realise our Net Zero Carbon Emissions by 2050
institutions and investors may limit and constrain our access to capital, affecting Pathway with specific short-, medium- and
our overall growth. long-term targets, while closely monitoring
• Competitive Standing: Ineffective management of our sustainability-related our emissions reduction performance, evolving
risks and opportunities will impact our ability to retain preferred-partner status volatility in stakeholder expectations and customer
and capture opportunities in the energy transition in a timely manner. This may sentiments.
diminish our competitive edge in the energy industry and have an adverse effect • Invest in training, formal vocational and tertiary
on our long-term earnings, cash flows and financial condition. education to ensure skillsets match business
• Energy Transition Challenges: The inability to offer competitive needs.
low-carbon energy solutions may impact our contribution to Malaysia’s national • Systematically elevate our business activities
energy transition efforts. If the market for cleaner energy projects weakens, according to international standards for human
or if PETRONAS is unable to meet expectations due to regulatory or technical rights through the establishment of a Human
challenges, adverse weather, or the inability to secure offtake agreements for Rights Policy and associated implementation.
energy generated from cleaner energy projects at economically viable terms, • Maintain a disciplined approach to funding our
our revenue, liquidity and financial standing may be adversely affected. emissions reduction projects and activities, and
advancing lower-carbon energy solutions.
Impact on Capital
• Operationalise the PETRONAS Nature and
• Financial Capital: Delivering our commitments on emissions reduction and Biodiversity Position to conserve, protect and
developing lower-carbon solutions exposes us to higher capital and additional restore nature in Malaysia and in countries where
operating costs, as these technologies are new and may be less effective we operate, in support of our commitment to Net
or more expensive than anticipated in the short term to achieve long-term Zero Carbon Emissions by 2050 Pathway.
benefits. • Deepen the understanding of how climate change
• Manufactured Capital: Physical impacts of climate change may cause damage affects the resilience of our assets and value chains
to our assets, disrupt operations and adversely impact our value chains. A global to ensure we remain adaptive and future-ready in
transition to lower-carbon energy sources could reduce demand for many of a rapidly evolving risk landscape.
PETRONAS’ products, leading to lower revenue and potential asset impairment Tactical Opportunities
as they are no longer economically viable for development or operation.
• Social and Relationship Capital: If not well understood by the broader public, • Capture new growth opportunities in areas,
our energy transition strategy and efforts to shift towards a lower-carbon including biofuels, specialty chemicals, circular
business may lead to a disconnect in expectations, potentially damaging our economy, renewable energy and hydrogen value
brand and reputation, eroding trust and confidence, and affecting our ability to chains.
secure resources and attract talent. Any erosion of PETRONAS’ reputation may • Deployment of emissions reduction and lower-
impede our strategic objectives and affect our overall financial performance. carbon solutions presents opportunities for new
• Human Capital: Transitioning to a lower-carbon business will require partnerships, collaborations and investment
specialised skills that need to be acquired as part of our talent acquisition opportunities.
and development strategy. The inability to advance towards a just transition • Explore new revenue streams in carbon capture
that respects human rights is detrimental to our operations and enterprise and storage, and energy efficiency solutions.
reputation. • Implement capacity-building programmes
• Natural Capital: The inability to mitigate our impact on nature and biodiversity to support suppliers in strengthening their
could affect our reputation and long-term survivability. understanding of human rights and aligning with
applicable legislation and PETRONAS standards.

Risk Movements
Inconsistent expectations from investors, customers and regulators continue to create expectation gaps, leading to intensified scrutiny
on energy companies’ ability to contribute towards energy security, deliver measurable emissions reductions and transform their business
models. In this regard, we actively share our energy transition progress while implementing targeted greenhouse gas reduction projects to
meet short- and medium-term goals. We are growing our cleaner energy solutions business through our subsidiary, Gentari Sdn Bhd (Gentari),
while strengthening internal governance and sustainability capacity, including rolling out the PETRONAS Carbon Commitment, PETRONAS
Position on Nature and Biodiversity, and PETRONAS Human Rights Policy across our business entities.
42 PETRONAS • Integrated Report 2024

Risks Linked to Creating Value

Material Topics Stakeholders Capitals

CE CG CDP EC EAR EM HW HR IT NB SM SC FG HG C E GIP CN IO FC MC HC NC SRC

Health, Safety, Security and Environmental Risk HSR

What It Means
Given the nature of the industry in which PETRONAS operates, health, safety, security and environmental (HSSE) risks may arise from our
operations and project execution-related activities. There are also risks associated with regulatory compliance, operational challenges and
threats from physical attacks or civil unrest in some of the countries where PETRONAS has investments. We also face emerging risks from
technological advancements, including cyber-physical threats. Evolving regulations on product safety and environmental impact have further
added to our operational complexities. Managing these risks requires vigilant oversight of our operations, as well as our stakeholders, assets
and natural resources.

Impact on Value Mitigation Strategies

• Sustain HSSE governance with dedicated health, safety and
• Operational Incidents: Any HSSE incident that results in injuries, environmental (HSE) and security management systems,
loss of life or damage to assets and the environment can disrupt our supported by the HSE Mandatory Control Framework and
operations, impact our reputation and increase cost of doing business. PETRONAS Security Standards.
• Security Threats: Security threats, particularly in high-risk countries, • Enhance the competency of our employees, contractors
require thorough, disciplined and frequent internal assessments to and partners, leveraging digital solutions and technology for
safeguard our personnel, business operations and assets. operational discipline through training programmes for HSSE
• Stringent Regulations: Evolving and more stringent regulatory business leads and practitioners.
requirements may increase cost of compliance and cause delay or • Enhance the culture of accountability by reinforcing positive
failure to obtain regulatory approvals, impacting PETRONAS’ business, behaviours and promoting collective commitment to HSSE
financial position, operations and reputation. excellence.
• Optimise HSSE readiness through continuous digital
Impact on Capital
monitoring and use of predictive analysis platforms.
• Financial Capital: HSSE incidents can result in penalties, • Strengthen organisational resilience through the
compensation, asset damage and operational disruptions, impacting implementation and periodic reviews and simulation
our financial position. exercises of HSSE crisis and business continuity plans.
• Social and Relationship Capital: HSSE incidents can erode
stakeholders’ trust and damage our reputation.
• Natural Capital: The inability to contain HSSE incidents can damage
the environment and threaten our commitment to be a responsible
steward of natural resources.
• Human Capital: HSSE incidents can result in personnel injuries, loss
of life and cause reputational damage to our status as a favourable
employer.
• Manufactured Capital: HSSE incidents can damage and impact the
security of our assets.

Risk Movements
While HSE risk remains inherent, the security risk landscape has elevated particularly for our operations in the Middle East. We manage these
risks by continuously improving our processes and mitigation strategies. We focus on preventing major incidents, ensuring legal compliance
and addressing evolving security threats to protect our people, environment, assets and reputation. Our efforts include strengthening the
Accountability and Behaviour Reinforcement programme, conducting periodic HSSE crisis and business disruption simulation exercises and
enhancing management oversight through management site visits to foster a strong Generative HSE Culture.
 3 How We Create Value 43

Material Topics Stakeholders Capitals

CG CDP EC EAR EI SC FG SG HG C SIC IO FC MC HC SRC

Geopolitical Risk GR

What It Means
Our global footprint exposes our business activities to various political, legal and fiscal developments. This includes regulations and directives,
which in turn, could limit development plans, production volumes, export limits, pricing and trade policies, local content prioritisation,
environmental protection controls, commercial agreements sanctity, possible nationalisation of assets, expropriation and cancellation of
rights. Additionally, the risk of armed conflicts and civil unrests will trigger asset and manpower reviews and reprioritisation. Developments in
these areas have the potential to directly or indirectly impact our commercial and operational strategies, as well as our financial position.

Impact on Value Mitigation Strategies

• Execute effective and robust country risk management by
• Operational Disruption and Contractual Changes: Dynamic establishing a dedicated and robust stakeholder management
political and legal environments, coupled with geopolitical function in identified countries where we operate, to ensure
crises, can lead to disruption in supply chain and business effective implementation of legal and regulatory requirements and
operations, as well as changes in contractual terms and for intelligence gathering to identify emerging geopolitical risks in
agreements that would impact our financial stability and the respective countries.
growth potential. • Conduct risk assessments and due diligence in supporting
international investment decisions during all phases of the business
Impact on Capital
value chain including but not limited to acquisition of assets phase,
• Financial Capital: Unfavourable geopolitical developments pre-entry, in-country, exit management and crisis management
may subject our business to penalties and litigations, disrupt covering all phases of the business value chain. This includes
business operations and growth, impacting cash flows and continuous review of supply chain and sourcing strategies, contract
financial position. renegotiations and identification of alternative sources.
• Manufactured Capital: Escalation of geopolitical incidents • Drive proactive exposure management through periodic monitoring
may cause disruptions to the supply chain and impact our and review of our investment portfolio against our risk appetite.
assets in the affected locations. • Improve the quality of life and socio-economic outcomes for
• Human Capital: Escalation of geopolitical incidents may communities where we operate through continuous social
compromise the safety and security of our employees in the programmes.
affected locations. Tactical Opportunities
• Social and Relationship Capital: The inability to manage
key relationships in areas where we operate may damage our • Seize opportunities in non-traditional markets to bridge
reputation, erode stakeholder trust and affect our licence to supply-demand gaps and enhance energy security.
operate.

Risk Movements
Geopolitical risk is becoming more complex amid an increasingly dynamic and volatile geopolitical landscape, affecting oil and gas-producing
nations. In 2024, the Middle East conflict and attacks on vessels in the Red Sea, and the South China Sea situation resulted in soaring global
shipping rates, heightening our exposure, underscoring the need to safeguard our people and operations. We manage this risk by closely
monitoring key developments, strengthening security measures and implementing targeted intervention plans. These efforts enable us to
navigate uncertainties and ensure business resilience.
44 PETRONAS • Integrated Report 2024

Risks Linked to Creating Value

Material Topics Stakeholders Capitals

CE EM EI GHG LCT SC FG SG HG C GIP IO FC MC IC

Hydrocarbon Reserves and Resources Risk HR

What It Means
Our ability to produce and supply oil and gas is linked to successful discovery and effective development of such reserves and resources to
fulfil our commitments. This involves exploration success, project maturation, reservoir performance, asset acquisition or reprioritisation,
and commercial arrangements. Given the nature of the business, exploration activities are exposed to technical challenges and limited
information, while production activities have to contend with issues relating to declining pressure, and equipment integrity and reliability.
Changes in policies can also affect the valuation of our assets.

Impact on Value Mitigation Strategies

• Strengthen resource path to monetisation through execution of
• Supply Shortfalls: Insufficient supply can lead to third-party area development plan, acceleration of resource maturity and
sourcing at a premium or otherwise failure to meet customer increase reserves base according to the established plans.
demands, resulting in contract non-performance, loss of trust, • Improve reservoir and field performance through execution of
market share erosion and lower profitability. robust operational excellence programmes to manage asset
• Impairment Impact: A downward revision of reserves can integrity and reliability issues, and adopt value improvement
happen due to poor exploration results or technical challenges. practices for field development, leveraging technology and
This, in turn, will impact future cash flows and potentially result digitalisation.
in the need to impair. • Drive production sustainability efforts, including leveraging carbon
capture and storage technology development for high carbon
Impact on Capital dioxide fields.
• Establish robust petroleum resource management by conducting
• Financial Capital: Inability to monetise resources, including the Annual Review of Petroleum Resources, as per the reserves and
a viable commercial arrangement, can jeopardise the Group’s resources management system requirement to ensure stringent
operations and financial stability. monitoring.
• Intellectual Capital: Challenges in developing discovered
Tactical Opportunities
resources and failure to integrate new technologies and
innovations can erode project value and weaken asset • Technical challenges have prompted the deployment of the Right
performance. Asset, Right Player strategy to align suitable assets with capable
• Manufactured Capital: Internal and external challenges such partners supported by progressive fiscal terms to ensure equitable
as technical, high contaminant fields may impact reserves and returns for PETRONAS and partners.
resources, reduce asset efficiency and disrupt operations. • Leverage fit-for-purpose technologies to address technical
challenges and enhance project and asset efficiency, value and
investment appeal.

Risk Movements
Hydrocarbon reserve and resource indicators remain uncertain due to project deferments that can result in negative movements in the
reserves and resources valuation. Nonetheless, targeted interventions are in place to manage reserves and resources, ensuring we meet our
contractual commitments.
 3 How We Create Value 45

Material Topics Stakeholders Capitals

CE CG CDP EC EM GHG IT SC C E SIC FC MC IC SRC

Technology Risk TR

What It Means
Our expanding digital footprint unlocks new opportunities and enhances business processes but it invariably increases our vulnerability to
cyber threats. Sophisticated attacks targeting vulnerabilities in inherent digital infrastructure pose risks to data and systems confidentiality,
integrity and availability. Identity theft and unauthorised access further heighten our security concerns. Aside from cyber security risks, rapid
technological advancements and digital shifts present risks of obsolescence, challenging our long-term competitiveness.

Impact on Value Mitigation Strategies

• Maintain robust digital, and information and communication technology
• Cyber Security Threats: Undetected cyberattacks governance through continued focus on cyber security, enterprise
have the potential to disrupt our operations, architecture, enterprise data and digital project delivery, including enforcing
compromise the safety of our employees, and result Enterprise Cyber Security Governance Framework, PETRONAS Cyber
in legal and regulatory penalties, thereby damaging Security Incident Response Procedure and Cyber Security Ransomware Crisis
our reputation. Management.
• Technological Obsolescence: Ineffective • Enhance organisational resilience through implementation and periodic
development and deployment of technology review of the relevant information and communication technology, and
can materially impact our strategic delivery and cyber security crisis management and business continuity measures that are
operational credibility. supported by the established security operations centre and related cyber
security monitoring, threat hunting and incident management capabilities.
Impact on Capital • Increase competitive advantage by executing in-house research and
innovation solutions, leveraging PETRONAS Technology Management System.
• Manufactured Capital: Failure to innovate and • Establish an artificial intelligence Centre of Excellence to govern and scale
adapt to technological advancements and digital artificial intelligence capabilities effectively, strengthen implementation
shifts in a timely manner can lead to operational oversight and promote responsible use.
disruptions and technological obsolesence. • Foster innovation culture by establishing platforms for employees to develop
• Intellectual Capital: Ineffective innovation and innovative ideas and incorporating technology considerations into investment
adaptation to technological advancements and strategies and decisions, particularly for new businesses.
digital shifts can result in the obsolescence and • Protect innovation and Intellectual Property through establishment and
inability to create value from our intellectual assets. periodic review of policies at the enterprise level.
• Financial Capital: Inability to innovate and adopt • Ensure availability of capable resources to develop and deploy technology by
new technologies and digital shifts may impact our recruiting experts for research and development, and continuously upskilling
competitiveness and financial returns. our researchers.
• Social and Relationship Capital: Inadequate • Advocate for and implement the Cyber Security Act 2024 for the oil and gas
implementation of cyber defence measures industry in Malaysia.
can harm our reputation and erode stakeholder
Tactical Opportunities
confidence.
• Innovative practices and new technology, including advancement and
deployment of artificial intelligence, will foster an ecosystem that creates
value for the organisation, accelerates growth efforts and supports emissions
reduction initiatives.
• Rapid technological advancements present opportunities for monetisation
through matured technologies and innovative solutions.

Risk Movements
Technology risk continues to evolve amid a rapidly changing operating landscape. In 2024, the growing prominence of artificial intelligence
has further heightened exposure to technological and cyber security threats. As these risks become more sophisticated, we are strengthening
technology management, cyber resilience, responsible artificial intelligence usage and information security. We also implement innovative
measures, including adopting the latest technologies and leveraging artificial intelligence-driven solutions to stay ahead of emerging threats
and drive continuous improvement.
46 PETRONAS • Integrated Report 2024

Risks Linked to Creating Value

Material Topics Stakeholders Capitals

CE CC CG CDP EC EM EI HW HR IT SM SC FG SG HG E SIC GIP IO FC MC IC SRC

Execution Risk ER

What It Means
Our business is dependent on the successful delivery of complex, long-term and capital-intensive projects, and maintaining high levels
of asset integrity, in providing value-added solutions for our customers. The challenges faced include technical issues and supply chain
disruptions which could impact the ability to achieve the target schedule, budget and scope.

Impact on Value Mitigation Strategies

• Dedicate adequate time and resources during the
• Project Delivery Delays and Cost Escalations: Delays in the execution and
Front-End Loading phase, project execution and
cost overruns of capital-intensive projects can adversely impact our business
operational activities, to ensure strict gatekeeping
strategy, operations and financial condition.
and adherence to compliance frameworks such as
• Supply Chain Disruptions: Disruptions in the supply chain can lead to delays
the PETRONAS Group Project Management System,
in delivery and cost escalations for critical goods, jeopardising production
PETRONAS Asset Management System, PETRONAS
continuity and the ability to meet customer demands while weakening
Procurement Standard, and Plant and Facility Risk
competitive market positioning.
Management Guideline.
• Capital Investment Gap: Insufficient capital investment can compromise
• Strengthen organisational resilience through
project viability, hindering production targets, competitiveness and
implementation and periodic review of the relevant
sustainability goals in an evolving market.
crisis management and business continuity
measures, including re-evaluation of sourcing
Impact on Capital
strategies, contract renegotiations and identification
• Financial Capital: Poor planning, ineffective execution of projects, of alternative sources.
disruptions in supply chain as well as lack of skilled manpower, can lead to • Foster innovative partnerships with Malaysian
project and operational disruptions. If these exposures are not well managed, financiers for vendor financing and nurture local
they can significantly impact our financial standing, future earnings, cash flow vendors through the identified vendor development
and operations flow. programmes.
• Intellectual Capital: Lack of innovation in our execution may lead to • Enhance the competency of employees through
outdated intellectual property and improper technology application, resulting capability development programmes and
in economic loss. collaboration with contractors, peers and partners.
• Social and Relationship Capital: Operational disruptions, product quality • Ensure efficient delivery of planned projects through
reliability issues, disruptions in the supply chain, including challenges established line-of-sight platforms, targeted
from our vendors and partners, may damage our reputation and erode discussions, identified quick wins and implemented
stakeholders’ confidence. structural changes to facilitate early intervention.
• Manufactured Capital: Poor project execution and improper management Tactical Opportunities
of assets can weaken operational performance and damage our assets and
facilities. • Amid an increasingly complex environment,
achieving project and operational excellence
presents an opportunity to strategise on ensuring
long-term security of supply at competitive prices
and maintaining competitive advantage through
strategic partnerships with key suppliers.

Risk Movements
Execution risk continues to evolve mainly due to volatility and disruptions in the supply chain as a result of regulatory changes, demand
fluctuations and raw material shortages. Taking cue from the escalation of prices and a heated market, the industry’s ability to adapt and
innovate in response to rising cost is vital to ensure resilience and long-term growth. We manage this risk through the implementation
of proactive and strategic supply-demand planning, robust asset management and procurement strategy, as well as business continuity
measures that are periodically reviewed and tested to ensure our adaptability to the volatile environment.
 3 How We Create Value 47

Material Topics Stakeholders Capitals

CE CG EC EAR EI HW IT LCT SM FG SG HG E SIC GIP CN IO FC MC HC IC SRC

Human Capital Risk HCR

What It Means
Our people are vital to PETRONAS’ pursuit of business goals and the successful execution of the PETRONAS Energy Transition Strategy and our
Net Zero Carbon Emissions by 2050 Pathway. Attracting the right talent, retaining critical skills and fostering continuous talent development
remain key challenges as we build a continuously strong workforce in the face of a rapidly evolving industry landscape, heightened
competition and technological advancements.

Impact on Value Mitigation Strategies

• Implement strategic workforce planning through
• Talent Pipeline: The inability to attract and retain skilled talent can weaken analytical tools to improve talent fulfilment.
our talent pipeline and ability to remain competitive. • Keep our workforce competitive and agile by
• Strategy Delivery: The inability to create and have the right mix of capable developing programmes with reputable learning
workforce with the right culture and mindset that aligns with the company’s institutions and intensifying upskilling and reskilling
goals may affect timely execution of our strategies and aspirations, leading to efforts in key business areas.
potential opportunity loss and impact our long-term goals and sustainability. • Strengthen and ensure a sustainable pipeline of
talent through education sponsorship programmes,
Impact on Capital
partnerships and on-the-job training.
• Human Capital: Failure to retain our standing as a preferred employer may • Foster a high-performance culture through the
impact our ability to attract and retain talent. implementation of various programmes and activities
• Social and Relationship Capital: Failure to retain our position as an employer anchored on the PETRONAS Cultural Beliefs, Shared
of choice may impact our reputation, eroding stakeholder confidence. Values, and diversity and inclusion initiatives.
• Intellectual Capital: Failure to recruit, develop and align talent aspiration • Enhance leadership capabilities through structured
with business priorities may impact our capacity to sustain and innovate assessments and development programmes.
solutions. Tactical Opportunities
• Manufactured Capital: Failure to recruit, develop and align talent
requirement with business priorities can lead to ineffective strategy execution • Heightened competition for talents creates
and operational disruptions. opportunities for us to establish long-term
• Financial Capital: Failure of PETRONAS employees to adapt to the right work partnerships with government agencies and learning
culture and mindset, can impede the successful execution and realisation of institutions for better access to resources and
PETRONAS’ strategy and can have adverse impact on earnings, cash flows and research and development.
financial standing. • Technological advancements provide opportunities
to enhance how we work through automation,
upskilling, reskilling and more efficient use of data to
meet evolving workforce needs.

Risk Movements
Human capital risk remains amid evolving workforce expectations, technology advancements and ongoing challenges in acquiring, retaining
and developing talent. These dynamics are relevant across both core and emerging business areas in line with the pace of the energy
transition. In response to this, we continuously refine our approach to strategic workforce planning, anchoring on meritocracy, inclusivity and
continuous growth to ensure a resilient workforce.
48 PETRONAS • Integrated Report 2024

Our Approach to Sustainability

The refreshed PETRONAS Sustainability Approach provides a unified approach to navigate

Creating
and support the delivery of the PETRONAS Energy Transition Strategy, while grounded in Sustainable
responsible governance. Value through
Responsible
This approach marks a new step in our sustainability journey, moving us from ambition to action Governance
to create an enduring positive impact.

It is designed to seamlessly integrate climate change, nature and social considerations into our
practices and processes, making sustainability a value driver to our Core and New Business
functions.

By thoroughly embedding sustainability across the organisation, we aim to strengthen

resilience, drive results and create desired impact wherever we operate.

Delivering
Net Zero

Thriving with
Nature

Fostering a Just
Transition

Scan the QR code to access PETRONAS’ Sustainability

Governance Structure.
 3 How We Create Value 49

Material Topics Align with UN SDGs

With our purpose guiding our efforts to be CG Corporate Governance

a progressive energy and solutions partner,
we believe that creating sustainable value CDP Cyber Security and Data Protection
and practising responsible governance are
essential for organisational resilience. This EC Economic Contribution
approach supports our PETRONAS Energy
Transition Strategy, including our ambitions EI Ethics and Integrity
of achieving net zero carbon emissions,
thriving with nature and fostering a just IT Innovation and Technology
transition. Lower-Carbon and Energy Transition
LCT
Business

SM Safety Management

The evolving energy landscape requires CC Climate Change

urgent action to respond to the expanding
challenge of climate change. To deliver GHG Greenhouse Gas Emissions
on our Net Zero Carbon Emissions by
2050 Pathway, we will reduce emissions
across our core operations while also
investing in lower-carbon business
growth opportunities, and deepen our
understanding of how climate change
affects the resilience of our assets and value
chains to ensure we remain adaptive and
future-ready.

Nature and biodiversity are essential for CE Circular Economy

sustaining life on Earth and we recognise
our operations’ impact on them and our EM Environmental Management
dependency on healthy ecosystems. We
are committed to using natural resources NB Nature and Biodiversity
responsibly, promoting circular practices
and, where possible, addressing the loss
of nature and biodiversity. We engage in
practices that restore, protect and conserve
ecosystems in Malaysia and the countries
where we operate.

While energy transition will vary from EAR

Employee Attraction, Retention and
country to country, it must always be Development
inclusive and drive broader societal HW Health and Well-being
progress. We are committed to advancing
a just transition that upholds human rights HR Human Rights
and support our employees, contractors,
suppliers, partners and communities to SC Sustainable Supply Chain
have access to equitable opportunities for
socio-economic growth.
50 PETRONAS • Integrated Report 2024

Material Topics

Identifying and managing material topics enable us to focus on the issues Impact Materiality
that have the greatest impact on our long-term business performance and
are most important to our stakeholders. This ensures our strategy remains Evaluated from both positive and negative
aligned with both external expectations and operational priorities.
aspects, covering actual and potential impacts
from our own operation on society and
In 2024, our sustainability priorities remain anchored to the material topics
identified through our materiality assessment. We continue to strengthen environment, and business relationships in the
our materiality assessment process in line with the latest developments upstream and downstream value chain.
in sustainability reporting. This includes new regulatory and disclosure
requirements, such as the European Sustainability Reporting Standards (ESRS)
and Malaysia’s National Sustainability Reporting Framework (NSRF), which are Financial Materiality
aligned with the IFRS Sustainability Disclosure Standards.
Evaluated in terms of negative consequences
Since 2022, we have applied a double materiality approach to assess the from reputational, financial or commercial
impacts of material topics to the external environment (impact materiality) risks associated with the material topics, as
and the financial implications of the material topics to our business well as positive upside risks or opportunities.
(financial materiality).

Our materiality assessment identifies 16 key topics that are material to PETRONAS, guiding the management of sustainability efforts.
This assessment highlights the significance of perceived impacts and trends compared to the previous year.

Sustainability Material Topics Descriptions

Approach
Corporate Governance is crucial for ensuring accountability, performance and transparency within
PETRONAS. Strong governance can enhance business resilience and attract investors, fostering
Corporate trust among stakeholders and promoting long-term sustainability.
Governance

Cyber Security and Data Protection is vital as PETRONAS increasingly employs digital solutions.
Creating A strong cyber security framework and investment in advanced protective measures ensure
Sustainable business continuity and safeguard stakeholder information, maintaining trust and operational
Value through Cyber Security and
integrity, in an environment where cyber attacks pose greater security threats.
Responsible Data Protection
Governance
Our ability to drive long-term business growth goes hand-in-hand with the prosperity of the
markets and communities in which we operate. We contribute to development that benefits
Economic multiple segments of society through the generation of economic value from our products and
services, capital payouts, payments to government, compensation to employees and vendors, as
Contribution
well as financial contribution towards social and environmental causes.

Ethics and Integrity are fundamental to maintaining PETRONAS’ reputation and enabling
responsible business practices. Fostering strong ethical practices can enhance stakeholder
Ethics and Integrity relationships, operational integrity, and a culture of high ethical standards and trust.

Innovation and Technology drive PETRONAS’ ability to adapt to industry shifts and deliver
sustainable energy solutions. Investing in technologies presents an opportunity to position
Innovation and PETRONAS as a leader in the energy transition, with positive impacts including enhanced
operational efficiency and sustainable practice.
Technology

Lower-Carbon and Energy Transition Business presents opportunities for PETRONAS in renewables
and lower-carbon energy solutions. Our PETRONAS Energy Transition Strategy directs our efforts
Lower-Carbon and to invest in promising new energy value chain reduce emissions and better meet stakeholder
expectations while contributing towards global climate goals in a financially prudent manner.
Energy Transition
Business

Safety Management is essential for ensuring the safety of our employees, contractors and
communities. Implementing strong safety practices can mitigate risks and improve operational
Safety efficiency.
Management
 3 How We Create Value 51

After two revalidation cycles of our material topics in 2022 and 2023, we completed a comprehensive assessment in 2024.
Our double materiality assessment process in 2024 included an overview of our value chain, and alignment of impact thresholds
with risk thresholds, as per our Risk Quantification Guideline. We also considered the impact of our material topics and the
associated risks and opportunities over the short-, medium- and long-term.
Our Materiality Assessment Process
Identification Stakeholder Engagement Prioritisation Endorsement
We identified potential We gathered stakeholder Topics were further The materiality assessment
material topics by views through external prioritised in response results were endorsed
considering regulatory surveys and through to Board and Executive by the PETRONAS
requirements on reporting internal workshops. Guided Leadership Team insights, Sustainability Committee
and disclosure standards, by the PETRONAS Risk and recalibrated in and approved as per
stakeholder perspectives, Quantification Guideline, consultation with company internal
peer-benchmarking and these inputs were used Group strategy and risk governance.
media insights. to assess the impact and management teams to align
financial materiality of the with our strategic priorities
various topics. and risk profile.

Legend: Material More Material Most Material Increase In Impact No Changes In Impact Decrease In Impact

Impact Materiality Financial Materiality Our Response

Significance Trend Compared Significance Trend Compared
to 2023 to 2023
Please refer to Corporate
Governance at PETRONAS
on pages 186 to 205.

Please refer to Cyber Security

and Data Protection
on pages 90 to 91.

Please refer to Key Messages

on pages 14 to 28.

Please refer to Commitment

to Governance on pages 176
to 205.

Please refer to Strategic

Review on pages 60 to 81.

Please refer to Strategic

Review on pages 60 to 81 and
Delivering Net Zero on pages
92 to 111.

Please refer to Safety

Management on pages 85
to 89.
52 PETRONAS • Integrated Report 2024

Material Topics

Sustainability Material Topics Descriptions

Approach
Climate change presents both challenges and opportunities for PETRONAS. This include
potential physical risks to PETRONAS’ assets and value chain, as well as transition risks that
Climate encompass regulatory and market challenges associated with climate change. Proactive climate
Change risk management offers the opportunity to protect assets, enhance business continuity, ensure
resilience and build stakeholder confidence. However, failing to manage these risks may pose
significant threats to assets in the form of extreme weather events reducing demand for our
Delivering products and disrupt operations, potentially leading to financial losses, regulatory non-compliance
and reputational damage.
Net Zero
Managing our Greenhouse Gas (GHG) Emissions is critical for PETRONAS to achieve our
commitment to net zero carbon emissions by 2050. Our emissions reduction efforts are carried out
Greenhouse Gas through four key abatement levers to attain our emissions reduction targets. Failure to address our
Emissions emissions could lead to financial losses and reputational damage.

Circular Economy practices promote resource efficiency and waste reduction. Creating value from
waste presents new business opportunities, enhances regulatory compliance and strengthens
Circular Economy stakeholder trust.

Our Environmental Management is guided by responsible resource utilisation, pollution prevention

and sustainable practices. Our internal standards steer our operations in managing air emissions,
Thriving with wastewater, waste, water use and oil spill prevention, ensuring regulatory compliance and
Environmental
Nature protecting natural resources.
Management

With climate change being a significant driver of biodiversity loss and the risk of irreversible
damage to ecosystems, PETRONAS is committed to deepening our understanding of both our
Nature and impacts on and dependencies upon Nature and Biodiversity. Our ability to address our impacts
Biodiversity responsibly is essential to maintaining our social licence to operate, avoiding fines, operational
disruptions, financial losses, and ensuring long-term business resilience.

Employee Attraction, Retention and Development is vital for cultivating an agile, skilled and
motivated workforce. Investing in employee development helps build a future-ready workforce,
Employee driving business success and ensuring continuity in delivering our strategy. Retaining and
Attraction, developing existing talent can strengthen business sustainability and resilience in the long run.
Retention and
Development
Fostering
a Just The Health and Well-being of employees is important to PETRONAS to ensure a productive and
Transition healthy working environment. Proactive measures to foster a sound work culture negate the risks
Health and of employees feeling undervalued, experiencing low morale or facing reduced productivity.
Well-being

Respecting Human Rights across our operations and supply chains is fundamental to ethical and
sustainable business practices at PETRONAS. Upholding human rights practices fosters trust,
Human strengthens stakeholder relationships and promotes fair labour practices. Failure to address human
Rights rights risks can lead to human rights abuses, legal consequences, financial losses and reputational
harm, ultimately impacting business resilience and long-term success.

Sustainable Supply Chain management promotes ethical sourcing while minimising environmental and
social impacts across the value chain. It ensures that products are safe, sustainable and responsibly
Sustainable managed. These initiatives also drive cost efficiencies, foster innovation in sustainable materials
Supply Chain and processes, and strengthen brand reputation, ultimately creating value for both the business
and our stakeholders.
 3 How We Create Value 53

Legend: Material More Material Most Material Increase In Impact No Changes In Impact Decrease In Impact

Impact Materiality Financial Materiality Our Response

Significance Trend Compared Significance Trend Compared
to 2023 to 2023

Please refer to Delivering Net

Zero on pages 92 to 111.

Please refer to Delivering Net

Zero on pages 92 to 111.

Please refer to Circular

Economy on pages 124
to 129.

Please refer to Environmental

Management on pages 118
to 123.

Please refer to Nature and

Biodiversity on pages 113
to 117.

Please refer to Employee

Attraction, Retention and
Development on pages 147
to 158.

Please refer to Health and

Well-being on pages 159
to 162.

Please refer to Human Rights

on pages 132 to 144.

Please refer to Sustainable

Supply Chain on pages 145
to 146.
54 PETRONAS • Integrated Report 2024

Engaging with Stakeholders

Celebrating our 50th anniversary with national badminton players, and local youth and children.

Creating Value in the Pursuit of Progress and Prosperity Frequency

O Ongoing
PETRONAS’ growth over the past 50 years was built on the trust of our stakeholders, which
paved the way for enduring collaborations, leveraging each other’s strengths and capabilities
Q Quarterly
to further mutual objectives. These shared experiences have strengthened our relationships
and built resilience. We strive to forge meaningful partnerships and engage closely with our
stakeholders. Their support is critical to every PETRONAS achievement and venture, and will A Annually

continue to be key in shaping a more agile, value-centric and resilient PETRONAS.

AR As Required

President and Group Chief Executive Officer of PETRONAS, Tan Sri Tengku
Chairman of PETRONAS, Tan Sri Dato’ Seri Mohd Muhammad Taufik, and President and Chief Executive Officer of Mitsubishi
Bakke Salleh, celebrating Hari Raya with employees Corporation, Katsuya Nakanishi, at the signing of a Memorandum of Understanding
and their families. (MoU) ceremony in September 2024.
 3 How We Create Value 55

Frequency
O Ongoing Q Quarterly A Annually AR As Required

Federal Government FG

Why They Matter to Us

A strong, trust-based relationship with the Federal Government of Malaysia, key ministries, regulators and agencies ensure smooth business
operations while reinforcing our commitment to national development.

Common Areas of Interest

• Nation-building agenda • Socio-economic and industry development
• Compliance with laws and regulations • Environment and climate change
• Ethical business practices • Sustainable development
• Health and safety

Our Response Meaningful Outcomes

• Actively participated in national policy discussions to support • Continuous nation-building through economic contribution.
Malaysia’s energy security, energy transition and carbon • Human capital and industry upliftment.
management efforts. • Credible thought-partner in shaping energy policies that support
• Strengthened alignment with the Government’s net zero and Malaysia’s energy transition aspirations.
sustainability goals through consultation on transition plans and
implementation of responsible operational practices. Engagement Mode and Frequency
• Collaborated with government agencies and regulators to
strengthen energy industry standards, prioritise safety and In-person engagements O
enhance environmental compliance.
• Partnered with federal agencies to drive community-based Statutory reporting, meetings and briefings O
sustainability initiatives and strengthened environmental
stewardship. Participation in government-related initiatives O

Please refer to Key Messages on pages 14 to 28, Strategic Review on pages Periodical performance briefings Q
60 to 81, Creating Sustainable Value through Responsible Governance
on pages 84 to 91, Delivering Net Zero on pages 92 to 111, Thriving with
Roundtable discussions A

Nature on pages 112 to 129 and Fostering a Just Transition on pages 130
to 162.

State Governments SG

Why They Matter to Us

Strong relationships with State Governments foster productive collaborations that create valuable opportunities for local industries and
empower communities. These efforts directly contribute to both state and ultimately national economic growth. By maintaining continuous
and close engagement, we minimise potential disruptions and ensure smooth, safe operations within the regulatory frameworks set by state
authorities. We are committed to uphold operational excellence and safety where we operate.

Common Areas of Interest

• State economic growth and reliable energy supply • Social development
• Local participation and industry development • Biodiversity conservation
• New energy and sustainability opportunities

Our Response Meaningful Outcomes

• Collaborated with State Governments through formal platforms • Uplifted lives and communities.
and joint committees to align on shared development goals and • Business opportunities for local industries.
economic priorities. • Progressed energy transition ambitions through state-level
collaborative initiatives.
• Engaged in strategic dialogues with state leadership to explore
business opportunities and strengthen energy access and
resilience.
Engagement Mode and Frequency
• Supported local socio-economic development through
community-focused partnerships through Yayasan PETRONAS. In-person engagements O

• Contributed to disaster preparedness and climate adaptation Joint Coordination Committee and Joint Working Committee Q
through coordinated state-level responses. meetings
Please refer to Strategic Review on pages 60 to 81, Creating Sustainable Participation in State Government programmes Q
Value through Responsible Governance on pages 84 to 91, Delivering Net
Zero on pages 92 to 111, Thriving with Nature on pages 112 to 129 and Strategic dialogues A
Fostering a Just Transition on pages 130 to 162. Site visits A

Engagements with various state agencies AR

56 PETRONAS • Integrated Report 2024

Engaging with Stakeholders

Frequency
O Ongoing Q Quarterly A Annually AR As Required

Host Governments HG

Why They Matter to Us

Proactive engagement with Host Governments where we operate outside of Malaysia fosters favourable diplomatic relations and strategic
partnership. This helps us to effectively navigate geopolitical risks and support sustainable growth in an ever-evolving global business
landscape. Regular interaction with Host Governments helps us understand complex regulatory and legal frameworks, ensuring compliance
and preserving our licence to operate. This is to ensure our presence is welcomed by Host Governments, thereby minimising disruptions to our
international activities.

Common Areas of Interest

• Economic contribution • Health and safety
• Operational efficiencies • Human rights
• Compliance with laws and regulations • Community development
• Ethical business practices • Greenhouse gas emissions

Our Response Meaningful Outcomes

• Fostered strong and continuous engagement with Host • Economic growth in host countries.
Governments, authorities and embassies. • Socio-economic and community development for the local
• Collaborated with key ministries and stakeholders to align communities.
on national energy priorities, human rights, investment • Good bilateral and multilateral relations between Malaysia and
opportunities and resource development. host countries.
• Participated in global and bilateral dialogues to advance energy
transition goals and strengthen PETRONAS’ international Engagement Mode and Frequency
positioning.
• Supported government-to-government and business-to- In-person and virtual engagements O
government ties through regular engagements to safeguard our
licence to operate and strengthen relationships. Meetings and briefings Q
• Implemented social impact initiatives tailored to the needs of
local communities in host countries. Participation in Host Government-related initiatives A

Please refer to Strategic Review on pages 60 to 81, Creating Sustainable Site visits A
Value through Responsible Governance on pages 84 to 91, Delivering Net
Zero on pages 92 to 111, Thriving with Nature on pages 112 to 129 and
Fostering a Just Transition on pages 130 to 162.

Customers C

Why They Matter to Us

Our valued customers are essential to our business. Their insightful feedback drives continuous improvement of our energy solutions,
products and services, including reliable after-sales support and timely delivery. This customer-centric approach addresses evolving needs and
environmental concerns, ensuring our business continues to grow.

Common Areas of Interest

• Product pricing, availability, safety and quality • Brand reputation and advocacy
• Innovative products, solutions and services • Strategic networking opportunities
• Retail loyalty programme privileges and benefits • Seamless customer experience
• Product management optimisation • Sustainability initiatives

Our Response Meaningful Outcomes

• Delivered safe, sustainable and high-performance hydrocarbon • Strengthened customer loyalty and brand equity by consistently
products to our business customers, supported by continuous delivering safe, reliable and innovative products and services.
innovation and strategic partnerships. • Deepened long-term partnerships and enabled customer-
• Enhanced customer satisfaction and engagement through centric solutions through continuous engagement and feedback
tailored experiences and ongoing relationship-building efforts. integration.
• Maintained consistent communication and collaboration with • Development of new products and service offerings by responding
customers across local and international markets. to customers feedback.
• Incorporated customer insights to drive product development
and service improvements. Engagement Mode and Frequency
Please refer to Strategic Review on pages 60 to 81 and Creating
Sustainable Value through Responsible Governance on pages 84 to 91. In-person meetings O Online customer surveys O

Social media O Customer appreciation Q

engagements programmes
Customer feedback O Events, dialogues, Q
system roadshows and
Marketing activities and engagements
O
outreach programmes
 3 How We Create Value 57

Frequency
O Ongoing Q Quarterly A Annually AR As Required

Employees E

Why They Matter to Us

The collective expertise and commitment of employees shape operational excellence, fostering growth and enabling our organisation to
navigate challenges and seize opportunities. We are committed to nurturing a respectful and supportive work environment that prioritises
employee well-being.

Common Areas of Interest

• Safe and healthy work environment • Work culture rooted in Shared Values
• Learning and development opportunities • Ethical and sustainable business practices
• Career progression • Flexible working arrangements
• Diversity and inclusion

Our Response Meaningful Outcomes

• Reinforced a safe, healthy and supportive work environment • Fostered a safe, inclusive and supportive workplace culture.
across operations, anchored in a strong culture of ethics, • Enabled continuous development through upskilling, wellness
compliance and generative safety practices. support and engagement initiatives, strengthening both
• Provided learning, development and upskilling opportunities to professional and personal well-being.
maximise employee potential. • Established the Culture Professionals Network to drive a positive
• Promoted diversity, inclusion and employee well-being and high-performance organisational culture.
by strengthening wellness programmes, creating inclusive
workspaces and fostering a culture of openness. Engagement Mode and Frequency
• Strengthened governance and transparency through structured
initiatives on ethics, integrity and compliance. Internal communications O
• Recognised employee contributions and supported engagement
initiatives. Knowledge-sharing engagements and forums O

Please refer to Creating Sustainable Value through Responsible Townhalls A

Governance on pages 84 to 91 and Fostering a Just Transition on
pages 130 to 162. Organisational culture survey A

Upskilling sessions (in-person, virtual, hybrid) AR

Shareholders, Investors and Credit Rating Agencies SIC

Why They Matter to Us

Clear and consistent communication on financial and strategic information builds trust and confidence, enabling business growth through
improved access to capital and reduced borrowing costs. Through regular engagements, we gain market insights to adapt to financial and
capital market trends, contributing to our long-term strategic goals.

Common Areas of Interest

• Business and industry outlook • Energy transition initiatives
• Progress and deliverables of projects • Sustainable value creation
• Financial position and shareholder returns • Environmental, social and governance performance

Our Response Meaningful Outcomes

• Maintained transparent and timely communication through • Ensured consistent access to accurate financial, strategic and
regular reporting, financial disclosures and performance sustainability information to support investment decisions and
updates. credit assessments.
• Demonstrated financial resilience and strategic alignment,
• Demonstrated financial resilience and strengthened confidence contributing to stable investor relations and credit ratings.
by delivering robust fundamentals and clear strategic guidance.
• Enhanced sustainability disclosures in line with international Engagement Mode and Frequency
standards to provide greater transparency on PETRONAS’
long-term commitments and Net Zero Carbon Emissions by
In-person and virtual engagements O
2050 Pathway.
Please refer to Key Messages on pages 14 to 28, How We Create Value
Meetings and briefings O

on pages 29 to 59, Strategic Review on pages 60 to 81, Sustainability Financial results announcements Q
Performance Review on pages 82 to 175, Commitment to Governance on
pages 176 to 205, and Financial Review and Other Information on pages Analyst briefing Q
206 to 218.
Annual General Meetings A

Announcements and disclosures via corporate websites AR

58 PETRONAS • Integrated Report 2024

Engaging with Stakeholders

Frequency
O Ongoing Q Quarterly A Annually AR As Required

Media M

Why They Matter to Us

Ongoing media engagement strengthens PETRONAS’ visibility and shapes perceptions among target audiences, including industry observers
and the general public. By sharing impactful content, we build brand strength, safeguard reputation, enhance media rapport and foster strong,
accessible relationship with the media.

Common Areas of Interest

• Business and strategy • Governance
• Financial performance • Products and services
• Leadership • Environmental and sustainability efforts

Our Response Meaningful Outcomes

• Implemented robust media strategies to ensure timely, accurate • Strengthened PETRONAS’ reputation as a credible and responsible
and transparent communication. organisation through timely and transparent media engagement.
• Fostered open and constructive engagement with media • Enhanced public understanding of PETRONAS’ business strategies,
partners to strengthen relationships and support shared sustainability commitments and innovation efforts.
initiatives. • Improved issue mitigation capabilities.
• Supported media causes and recognising excellence in
journalism through sponsorships and awards, while fostering Engagement Mode and Frequency
strong relationships with the media.
In-person and virtual engagements O

Meetings and briefings O

Digital updates through websites and social media O

Press conferences, press releases and interviews AR

Responses to media queries and maintained open AR

communication channels

Government-linked Companies and Industry Partners GIP

Why They Matter to Us

Collaboration with industry partners is vital to operations, elevating standards and advancing sustainable energy technologies. Partnerships with
Malaysia Government-linked Companies and other key industry partners ensure alignment with national objectives while fulfilling PETRONAS’
energy security, revenue-generation, environmental and social commitments. These collaborations enable collective contributions to advance
economic progress, energy transition, the development of innovative solutions and the promotion of sustainable business practices.

Common Areas of Interest

• Governance and integrity • Health, safety and environment
• Industry requirements, regulation and policies • Business opportunities and participation in the industry
• Business continuity and energy transition relevance • Industry partner capability development

Our Response Meaningful Outcomes

• Strengthened strategic partnerships with Government-linked • Enhanced industry standards and regulations.
Companies and industry partners to drive business and • Contributed to the resilience and competitiveness of the oil and
sustainable energy initiatives. gas services and equipment sector.
• Facilitated sector capability and market access by aligning partner
• Engaged through structured forums, formal agreements efforts with national energy transition goals and sustainable
and thought leadership platforms to unlock exploration practices.
opportunities and support partners.
• Expanded vendor communication and development Engagement Mode and Frequency
programmes to raise industry standards and promote
sustainability in the oil, gas, services and equipment sector. In-person and virtual engagements O
• Facilitated collaborative industry initiatives and events that
enhance digital expertise, competitive and resilient market Meetings and briefings O
practices.
Forums, conference and exhibitions Q
Please refer to Strategic Review on pages 60 to 81, Creating Sustainable
Value through Responsible Governance on pages 84 to 91 and Fostering a Company events AR
Just Transition on pages 130 to 162.
Familiarisation visits AR
 3 How We Create Value 59

Frequency
O Ongoing Q Quarterly A Annually AR As Required

Communities and Non-Governmental Organisations CN

Why They Matter to Us

Collaborating with communities and non-governmental organisations (NGOs) helps address social and environmental concerns. These
engagements uplift the well-being of communities, support environmental stewardship and build public trust, which are essential for long-term
success.

Common Areas of Interest

• Human rights • Health, safety and environment
• Education • Compliance with relevant legislation
• Community well-being and development • Sustainability
• Governance and integrity • Ethical practices

Our Response Meaningful Outcomes

• Collaborated with NGOs, academic institutions and local • Improved community resilience and socio-economic well-being
partners to promote environmental protection, conservation and through inclusive, needs-based interventions.
sustainable development. • Strengthened environmental stewardship and local capabilities
• Facilitated open and transparent engagement with communities through collaborative partnerships.
and NGOs, including providing platforms for dialogue and
grievance resolution. Engagement Mode and Frequency
• Contributed to education and skills development through
funding, training and industry-focused programmes aimed at Meetings and briefings O
long-term socio-economic growth.
• Supported communities through targeted relief, livelihood PETRONAS‘ signature social impact programmes: O
improvement and capacity-building initiatives, especially in Powering Knowledge, Uplifting Lives and Planting Tomorrow
underserved areas. Engagements with local communities AR
Please refer to Creating Sustainable Value through Responsible
Governance on pages 84 to 91, Delivering Net Zero on pages 92 to 111,
Thriving with Nature on pages 112 to 129 and Fostering a Just Transition
on pages 130 to 162.

International Organisations IO

Why They Matter to Us

Fostering long-term partnerships with international organisations based on shared objectives enable inclusive participation, meaningful
discussions and coordinated actions towards a just energy transition. These strategic engagements strengthen PETRONAS’ global presence and
enhance our capacity to navigate the complexities of the dynamic energy industry.

Common Areas of Interest

• Opportunities and barriers to a just energy transition • Sharing of global best practices, frameworks and standards
• Capacity and capability building

Our Response
• Built strategic partnerships and facilitated knowledge exchange Meaningful Outcomes
to advance climate, nature and energy transition actions at • Strengthened PETRONAS’ role in shaping inclusive and
regional and global levels. collaborative approaches to the energy transition and climate
• Collaborated with international organisations and industry action.
• Enabled knowledge sharing and solution development across
groups to co-develop solutions for decarbonisation and borders in areas such as decarbonisation, biodiversity and market-
methane emissions reduction. based climate mechanisms.
• Contributed to global dialogues and publications on
sustainability, climate policy and carbon markets. Engagement Mode and Frequency
• Invested in internal capacity-building by engaging global experts
to enhance sustainability leadership and awareness. Meetings and briefings O
Please refer to Key Messages on pages 14 to 28, Strategic Review on pages
60 to 81, Creating Sustainable Value through Responsible Governance
Dialogues, panels and roundtable discussions Q

on pages 84 to 91, Delivering Net Zero on pages 92 to 111, Thriving with In-person and virtual engagements AR
Nature on pages 112 to 129 and Fostering a Just Transition on pages 130
to 162.
60 PETRONAS • Integrated Report 2024

Core Business
More Energy, Less Emissions

Focus Areas
Core Business remains an important and substantial pillar in our portfolio, serving as a primary source of cash generation,
funding present commitments and future investments in New Business, to support energy security. PETRONAS’ Core Business
encompasses of Upstream, Gas and Maritime, and Downstream, through which, we aim to serve the growing global needs for
energy and solutions. Our Core Business also supports the vibrancy of Malaysia’s oil and gas value chain. We strive to execute our
Core Business safely, reliably and sustainably.

Upstream Gas and Maritime

Our focus is to increase Malaysia’s oil and We are leveraging our strong gas position, which accounts for two-thirds of
gas production by replenishing resources PETRONAS’ hydrocarbon portfolio, to support rising energy demand while
and accelerating the monetisation of progressing the energy transition. Our focus is growing liquefied natural gas
discovered fields. To support this, we actively (LNG) sales volume, particularly in Asia by maximising the value of our existing
promote investment opportunities, prioritise assets, pursuing new opportunities to secure long-term contracts, diversifying
commercial viability, and maximise value our portfolio, integrating our gas operations and strengthening maritime
from existing assets to ensure long-term capabilities as a key differentiator in delivering reliable and competitive solutions.
supply security.
Downstream
Internationally, we continue to optimise our
Upstream portfolio and pursue selective We are strengthening our Downstream assets to capitalise on favourable
growth opportunities to generate competitive commodities outlook, enhance operational and commercial excellence, and
returns. expand product offerings and solutions to meet evolving customer preferences.

Upstream
Activating Exploration
Malaysia Bid Round Sets Record with 14 New Across Five Frontier
Production Sharing Contracts Basins
We are activating exploration
Malaysia continues to be a top-tier destination for upstream investment, across five frontier basins in
offering extensive opportunities for industry players to expand their portfolios. Malaysia with an annual investment
The 14 PSCs awarded under MBR 2024 and MBR+ reinforces Malaysia’s of RM500 million, expanding 3D
competitive edge and reflects strong investor confidence in the country as a seismic coverage from under
leading Advantaged Energy hub. 15 per cent to 50 per cent by 2030.
Datuk Ir. Bacho Pilong This is equivalent to mapping
Senior Vice President Malaysia Petroleum Management 50,000 sq km of unexplored
terrain. This deeper data coverage
Malaysia’s upstream sector continues to gain momentum, reinforcing our role as a will reduce exploration risks and
reliable energy hub. Through the Malaysia Bid Round 2024, including Malaysia Bid provide valuable insights for
Round Plus, 14 new Production Sharing Contracts were signed, the highest in the smarter investment decisions.
past decade. These were awarded to 12 operators, encompassing 11 Discovered
Resource Opportunities and three exploration blocks. The effort is already gaining
traction with the new approach of
With energy demand rising, exploration and development activity remained active. Technical Evaluation Agreements
In 2024, 80 exploration and development wells were drilled, over 600 million barrels signed for the Langkasuka Basin
of oil equivalent (boe) resources were discovered and 17 projects achieved first
hydrocarbon, supporting domestic needs and long-term industry growth. in the Straits of Malacca and the
Layang-Layang Basin off the coast
Point of Interest of Sabah. These agreements have
attracted new entrants such as bp
Malaysia reached a new production milestone, achieving 2 million barrels of oil and Eni, and enabled partners to
equivalent per day. conduct detailed studies leveraging
Scan the QR code to read more about Malaysia Bid Round Plus, which PETRONAS’ 2D seismic data and
complements the annual Malaysia Bid Round licensing, providing an additional future 3D seismic acquisitions, both
avenue for investors to participate in Discovered Resource Opportunities and
Late Life Assets in Malaysia.
fully funded by Malaysia Petroleum
Management.
 4 Strategic Review 61

We are strengthening our global Upstream operations through targeted exploration achievements and collaborative
ventures, diversifying our resource base across conventional and unconventional plays alongside sustainable
development initiatives.

Mohd Jukris Abdul Wahab

Executive Vice President and Chief Executive Officer, Upstream

Unlocking New Resources

We achieved major exploration successes in Malaysia and Suriname. In Peninsular Malaysia, the Bekok Deep-1 discovery
revealed a previously unexplored oil and gas play, with strong hydrocarbon flow rates confirming significant untapped potential
and making it the most promising find in this mature basin in over a decade.

Internationally, we attained a series of exploration successes with three consecutive discoveries in Block 52 offshore
Suriname. The Sloanea-2 appraisal well validated earlier finds and demonstrated potential for a Floating Liquefied Natural Gas
development, while the Fusaea-1 well confirmed our third hydrocarbon discovery. Building on insights from Roystonea-1
and Sloanea-1, we are now evaluating an integrated development strategy that could unlock the block’s full potential. These
successes demonstrate PETRONAS’ unique capability to uncover new resources across both established and emerging basins.

A Double Upstream Boost Hidayah Field Development

We are expanding Upstream’s global footprint
with new exploration concessions in Abu Dhabi,
Indonesia and Papua New Guinea, strengthening
our presence in key energy markets. In Abu
Dhabi, we secured 100 per cent equity and
operatorship in Onshore Block 2, further
enhancing our portfolio in the Al Dhafra region
alongside Unconventional Blocks 5 and 1. In
Indonesia, we acquired the Bobara Working Area PETRONAS reached a final investment decision for the Hidayah field in
as part of our expansion into Eastern Indonesia. East Java, advancing our Upstream growth strategy in Indonesia. The
development includes oil production wells, an unmanned wellhead, a
Meanwhile, we made a new entry into Papua central processing platform and a Floating Storage and Offloading unit
New Guinea by acquiring a 50 per cent share of to support efficient and reliable operations.
the Papua New Guinea Petroleum Prospecting
License. This project builds on our 2021 oil discovery in the North Madura II
Contract Area and reflects our commitment to responsible resource
Point of Interest development. Indonesia serves as an integrated growth market for
PETRONAS, where we continue to strengthen our activities in Upstream,
PETRONAS’ acquisition of the Bobara Working LNG and lubricants to deliver long-term value and support the country’s
Area is our first-ever operated deepwater block energy aspirations.
in Indonesia, creating new opportunities in one
of the country’s most promising offshore basins. The Hidayah field represents strategic asset development, leveraging
innovative technology to maximise resource potential and strengthen
PETRONAS’ position in the Indonesian energy market.
62 PETRONAS • Integrated Report 2024

Core Business
More Energy, Less Emissions

On-Target Delivery through Key Project Highlights

Innovation-led Execution
Kasawari Gas Development Project
PETRONAS’ Project Delivery and Technology team ensures • Heaviest offshore structure platform built in Malaysia, with
capital projects are executed safely, efficiently and on gas processing capacity of 900 million standard cubic feet
schedule. In 2024, we managed 444 projects with an annual per day (MMscf/d)
capital expenditure of RM13.3 billion, achieving 38.13 million • Features the largest acid gas removal system on a topside
hours worked across operations. Key milestones include • Achieved Ready for Start-Up on 17 May 2024
first gas from Kasawari Gas Development Project and Gansar • First gas exported via Trunk Line 1 to PETRONAS LNG
Gas Field Development, and progress on PETRONAS’ Shore- Complex on 12 August 2024
based Floating LNG project.
Gansar Gas Field Development
• Developed to unlock 22.94 million boe recoverable
resources for Upstream
• Achieved First Gas on 7 October 2024
• Ensures continuous gas supply to meet Peninsular demand

ZLNG Project
• Construction of the Shore-based Floating Liquefied Natural
Gas plant strengthens our gas extraction capabilities
• Achieved steel-cutting milestone on 16 February 2024

PROTEAN: Revolutionising Equipment Reliability

PETRONAS’ Predictive Rotating Equipment Analytics (PROTEAN) digital solution is now deployed across Upstream operations
covering Malaysia and international assets, including Turkmenistan, Indonesia, and Canada. It is also applied in Gas and Maritime
business assets, including both floating liquefied natural gas facilities and PETRONAS LNG Complex.

Designed to enhance rotating equipment reliability through predictive analytics covering more than 500 critical rotating equipment,
PROTEAN has issued 1,800 alerts to date, helping to prevent RM250 million in potential unplanned production deferment losses
and major maintenance cost avoidance. With its adoption across the entire fleet, this solution is poised to drive rotating and
equipment operational excellence throughout PETRONAS’ assets.
 4 Strategic Review 63

AI-Driven Precision towards Operational Efficiency

PETRONAS’ Enhanced Resource Monetisation Artificial Intelligence (ERMAI) is revolutionising petrophysical analysis. The ERMAI
Real-Time Petrophysics suite was built upon hundreds of well logging data, both raw and interpreted petrophysical analysis, to
generate objective and robust automated interpretation.

Its web-based machine learning platform delivers lithology, porosity, permeability and fluid saturation interpretations in real-time,
reducing drilling and completion costs while ensuring objective petrophysical analysis imbued with artificial intelligence or machine
learning.

In 2024, ERMAI saved 82 rig hours in Baram and Kumang Cemumar platforms, and added 2.07 million boe to Besar Project
reserves. This technology helps accelerate optimal decision-making and drives value creation from additional reserves and
resources addition.

Well Intervention Fluid Innovation Membrane Contactor Technology

Solving Industry Challenges Reaches Maturity
A successful pilot deployment of Well Intervention In March 2024, PETRONAS successfully tested the multi-
Fluid-Friction Modifier at the Baram platform in Sarawak cartridge membrane contactor system for natural gas at
enabled a gas lift valve change in a highly deviated well. Terengganu Gas Terminal, advancing this technology to
This intervention extended the well’s depth by 2,470 feet, enhance the CCS value chain. Building on this success, we
supporting the gas lift deepening programme. A similar expanded its potential for post-combustion carbon dioxide
deployment at the Temana production facility further capture through a demonstration plant at PETRONAS Energy
enabled us to unlock 400 barrels of oil per day. Canada Ltd, supporting our efforts to decarbonise operations.

Key Highlights

• Increased oil production by 190 barrels per day

• Generated about RM7.3 million in additional value
64 PETRONAS • Integrated Report 2024

Core Business
More Energy, Less Emissions

Gas and Maritime

Strengthening Global Supply Security for LNG
PETRONAS has signed a 15-year agreement with Abu Dhabi National Oil Company for the Ruwais LNG project, securing
the supply of 1 million tonnes per annum (MTPA) of LNG. This strategic partnership enhances our global LNG portfolio,
strengthening security of supply for our customers, as well as fostering deeper government-to-government collaboration. The
project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi reflects our expanding presence in the
growing LNG market. Deliveries are set to begin in 2028.

Securing reliable, long-term LNG supply through strategic partnerships position us to better serve our customers while
reinforcing our role in supporting energy security through a diversified and competitive portfolio.

Datuk Adif Zulkifli

Executive Vice President and Chief Executive Officer, Gas and Maritime Business

Expanding Maritime’s South American Footprint Enhancing Malaysia’s

Energy Security
We have reached a final
investment decision for a 100
megawatt power plant in Kimanis,
Sabah, strengthening the state’s
energy security aligned with the
Sabah Energy Roadmap and
Master Plan 2040. Developed
in collaboration with Yayasan
Sabah Group, this RM700 million
project enhances energy security
Under Maritime, we achieved first oil for the Marechal Duque de Caxias Floating in Malaysia and represents a
Production Storage and Offloading (FPSO), which is a significant milestone in our significant milestone in our
deepwater operations. This accomplishment showcases our ability to deliver complex expansion into adjacent gas value
deepwater offshore projects. It highlights our technical expertise and strengthens our pools.
position in the global deepwater FPSO market. Now fully operational in the Santos
Basin, the FPSO expands our offshore presence in Brazil.

Point of Interest

FPSO Marechal Duque de Caxias is engineered to operate in water depths of

approximately 2,000 metres. It boasts a production capacity of 180,000 barrels of oil
per day, a storage capacity of 1.4 million barrels and a total gas handling capacity of 440
million standard cubic feet per day (MMscfd).

The facility is equipped with Water Alternating Gas reinjection technology, as well as
efficient stripping and reinjection of carbon dioxide from fuel gas production. It has the
capacity to compress up to 48 MMscfd of carbon dioxide, minimising impact to the
environment.
 4 Strategic Review 65

Downstream
Sustainable Performance
Melaka’s Energy Evolution Unleashed
PETRONAS Lubricants International (PLI) and
Stellantis N.V. introduced Selenia SUSTAINera,
a high-performance engine oil designed with
sustainability in mind and formulated using
premium recycled base oils. It delivers top-tier
engine protection while reducing environmental
impact. The packaging is fully recyclable and made
with 50 per cent recycled plastics.

Using 30 per cent recycled base oils, Selenia

SUSTAINera offers the same exceptional engine
protection as lubricants made with virgin base
oils. This innovation demonstrates that high-
performance lubricants can be both powerful and
more sustainable.

Stronger Operations,
The rebranding of the Melaka Refinery Complex to Melaka Energy Smarter Petrochemicals Growth
Park signals a bold transformation. The energy park will focus on
further expanding capabilities to fulfil the needs for cleaner and more PETRONAS Chemicals Group Berhad demonstrated
efficient energy. This will fuel industries across borders, from aviation operational excellence with plant utilisation
to manufacturing, and strengthen our role in shaping the future of improvements for both its olefins and derivatives
energy with scale, adaptability and innovation. segments, as well as fertilisers and methanol
segments, reflecting heightened reliability and
reduction in unplanned shutdowns.
Expanding Global Footprint
PETRONAS Chemicals Group Berhad’s operational
strength was further supported by increased
Revving Up in Brazil
sales volume in both segments, underpinned by
We are making our mark in South America through our first brand operational efficiency efforts and its highest-ever
licensing initiative in Brazil. Partnering with SIM Distribuidora, it strategic sourcing volume to date.
is rolling out three pilot fuel retail stations, bringing PETRONAS
Primax™ fuel and further extending PETRONAS Syntium™ In meeting evolving customer needs, PETRONAS
lubricants availability to drivers in Brazil. Chemicals Group Berhad introduced a new olefins
and derivatives product, HL701, a high Renewable
Carbon Index surfactant, aligning with the industry’s
Powering Precision in China shift towards sustainable solutions.
With the launch of the PETRONAS New Energy Technical Service
Centre in Jiaxing, China, PETRONAS Lubricants International is
deepening its commitment to the Chinese market. The centre
delivers customised technical services to Original Equipment
Manufacturers and auto parts suppliers, ensuring innovative
solutions that drive sustained growth and innovation in the
region.
66 PETRONAS • Integrated Report 2024

Core Business
More Energy, Less Emissions

Performance in 2024
Upstream

Governance and Disclosure (Reserves and Resources)

As of 1 January 2025, our total petroleum 2P2 net entitlement Reserves stood at 8.64 billion barrels of oil equivalent (boe), a
decrease of 8 per cent compared to 2023. For our Contingent Resources, the total net entitlement 2C5 stood at 15.08 billion boe,
a decrease of 7 per cent from 2023. This signifies a challenging Upstream performance, but with a focus on value enhancement
through project deferments. We expect the negative movements will be reversed upon the sanctioning of new projects.

(i) Annual Review of Petroleum Resources 1 January 2025 Reserves and Contingent Resources

Reserves (Unit: Bboe) Contingent Resources (Unit: Bboe)

7.57 13.05

5.17
9.02
4.54 8.06
3.23 3.46 6.06
2.74 5.87
4.50

1P1 2P2 3P3 1C4 2C5 3C6

Domestic International Domestic International

9.20 17.08

6.66 12.35
4.62
8.68
1.89 3.09
0.84 1.24 1.01 1.27 2.10
0.50 0.73 0.42 0.62 0.94

1P1 2P2 3P3 1C4 2C5 3C6

Oil Gas Condensate Oil Gas Condensate

Note:
Totals may not add up due to the rounding of figures.

(ii) Reserves and Resources Performance Indicators

3-Year average Reserves 3-Year average Reserves 3-Year average Overall

Replacement Ratio Life Index Resource Life Index
(1P1), ratio (1P1), years (2P2+2C5), years

10.9
41.2
1.6 10.6
40.5

0.8

1.1.2024 1.1.2025 1.1.2024 1.1.2025 1.1.2024 1.1.2025

Notes:
1. 1P Denotes low estimate of Reserves (i.e. Proved Reserves). Equal to P1. 4. 1C Denotes low estimate of Contingent Resources.
2. 2P Denotes the best estimate of Reserves. The sum of Proved plus Probable Reserves. 5. 2C Denotes best estimate of Contingent Resources.
3. 3P Denotes high estimate of Reserves. The sum of Proved plus Probable plus Possible Reserves. 6. 3C Denotes high estimate of Contingent Resources.
 4 Strategic Review 67

Gas and Maritime

Gas and Maritime recorded an Overall Equipment Effectiveness of 92.6 per cent. Despite a lower Overall Equipment Effectiveness
compared to 2023, we achieved a higher sales volume of 35.7 million metric tonnes in 2024, reflecting an 8.5 per cent increase.
This growth was driven by sustained production, improved trading and optimisation opportunities, as well as stronger customer
demand.

We delivered LNG globally, with significant volumes from the PETRONAS LNG Complex in Bintulu and floating LNG facilities,
PFLNG SATU and PFLNG DUA, while sustaining steady sales gas supply in Peninsular Malaysia. Our Maritime fleet was further
expanded with new charter contracts, complementing the existing diverse portfolio of LNG, petroleum and product vessels, as well
as offshore floating production systems.

Gross LNG Sales (million metric tonnes) Gas Overall Equipment Effectiveness (%)

35.7
96.6
95.1
34.2

32.9 92.6

2022 2023 2024 2022 2023 2024

Downstream

Downstream delivered a strong performance in 2024 with improved Overall Equipment Effectiveness and higher sales volumes
across our businesses. The petrochemicals segment saw increased production, contributing to overall sales growth, while the
lower Overall Marketing Sales Volume was the result of the divestment of Engen Limited and its subsidiaries (Engen Group), a
South African-based downstream petroleum company in which we had held a majority stake since 1998. Meanwhile, PETRONAS
Dagangan Berhad achieved its highest-ever annual sales volume.

Downstream Overall Equipment Petrochemicals Plant Overall Marketing Sales Volume

Effectiveness (%) Utilisation (Nexant) (%) (billion litres)

91.2 90.6 26.3

89.0 24.9
21.1
87.2 84.8
85.9

2022 2023 2024 2022 2023 2024 2022 2023 2024

68 PETRONAS • Integrated Report 2024

Core Business
More Energy, Less Emissions

Challenges, Mitigation and Opportunities

We continue to face fluctuating material prices and inflationary pressures. To navigate rising industry costs and supply chain
complexities, we will leverage advanced analytics and strategic forecasting, optimise resources and strengthen project execution.

Malaysia’s undiscovered oil reserves in deepwater areas require advanced technology and strategic investment to unlock their full
potential. We are addressing this by expanding exploration efforts and leveraging the Malaysia Bid Round to attract global expertise.
These efforts aim to strengthen Malaysia’s position as a competitive energy investment hub, while securing the nation’s long-term
production capacity.

Safety and environmental excellence is essential to our operations. We strive to foster a proactive safety culture, empowering
frontline teams through relevant programmes, real-time surveillance and best-in-class health, safety and environment practices. By
embedding a safety-first mindset across our workforce, we continue to strengthen operational integrity.

Outlook and Priorities

Upstream

Short-term

Our focus remains on resource replenishment and integrated value chain optimisation to meet Malaysia’s growing energy
demand. This includes accelerating exploration and development activities to ensure long-term supply security.

To enhance value and support Malaysia’s decarbonisation agenda, we aim to reduce emissions across Malaysian exploration
and production operations while strengthening overall asset performance.

Internationally, we will high-grade our Upstream portfolio by monetising high-value and low-carbon intensity resources and
expanding our unconventional gas presence in Canada and Abu Dhabi. These efforts are aimed at reinforcing long-term value
creation and energy resilience.

Commitment to sustaining production continues, with a focus on high-value, lower-carbon barrels and maintaining
cost-efficient operations across our portfolio.

Medium- to long-term

We continue to create and maximise value for our shareholders while emphasising emissions reduction efforts across our value
chain. This includes deploying innovative technology with industry partners in Malaysia and abroad.

In strengthening our Upstream business, the focus remains on delivering operational excellence and driving continuous
emissions reduction to ensure safe, cost-efficient and lower-emissions operations.
 4 Strategic Review 69

Gas and Maritime

Short-term

We are expanding our LNG supply portfolio with a focus on identified growth projects in Canada and Malaysia, while
maximising value from existing assets.

Under our Maritime segment, efforts will centre on strengthening core operations, expanding into new energy solutions and
enhancing our emissions reduction efforts. This includes rejuvenating our fleet with more efficient vessels, such as LNG and
ammonia dual-fuel vessels, and expanding into carbon, offshore wind and future fuels value chains.

Medium- to long-term

Over the medium to long term, as global demand continues to grow, we remain focused on maintaining LNG market
leadership while offering a suite of energy solutions tailored to customer needs.

In the Maritime business, our strategic priorities include identifying new opportunities to expand our business and asset
portfolio, capitalising on the global energy transition as the world evolves towards a circular economy.

Downstream

Short-term

We are enhancing operational efficiency and reliability to capitalise on the recovery in the global petroleum market and to
ensure resiliency in an uncertain petrochemical industry. Despite volatile markets, we work to enhance our competitiveness
by focusing our efforts on optimising production, improving supply chain resilience and expanding product offerings to meet
evolving customer needs.

Medium- to long-term

We are committed to strengthening operational and commercial excellence of our refineries and petrochemical plants to
deliver safe and reliable operations. In ensuring a more diversified and resilient energy mix, investments in advanced processing
technologies and infrastructure growth will support the transition towards future energy solutions, enabling PETRONAS to
adapt to changing market dynamics while securing leadership in the downstream sector.
70 PETRONAS • Integrated Report 2024

New Business
Capturing New Growth Opportunities

Focus Areas

PETRONAS’ New Business strategy focuses on pursuing new businesses to future-proof our portfolio while addressing evolving
customer needs and delivering cleaner, more affordable energy solutions. To deliver sustainable results for New Business, we
pursue both organic and inorganic growth. We seek collaborations with partners, deploy new technologies and synergies within
the Group, leverage existing expertise as well as develop new capabilities to manage new ventures.

Specialty Chemicals Renewable Energy

We continue to expand our footprint in specialty chemicals We aim to capitalise on the large and fast-growing market,
to reduce exposure to industry cycles of the broader driven by the rising share of renewables in the global energy
petrochemical industry. Our focus is on expanding the value mix, seizing opportunities to operate at scale while enabling
chain to unlock new capabilities and markets, support long- integrated solutions, including hydrogen.
term growth and strengthen our existing product portfolio.
Hydrogen
Bio-based Value Chain
We are expanding into emerging lower-carbon solutions by
We are positioning PETRONAS firmly in the sustainability leveraging our core capabilities and existing value chain to
space to meet the growing demand for bio-based products support the decarbonisation of hard-to-abate sectors.
and offerings. Our efforts in this regard are accelerated by
leveraging integration with our existing assets. Green Mobility
We capture opportunities in the accelerated growth of
Carbon Capture and Storage electric vehicle adoption by offering integrated cleaner energy
Carbon capture and storage (CCS) is a key lever to reduce solutions, including electric vehicle charging infrastructure,
emissions from PETRONAS’ portfolio. It is designed to meet Vehicle-as-a-Service and digital platforms that support
regional demand and position Malaysia as a leading CCS hub lower-carbon transport.
by leveraging our technological strengths, strategic location
and skilled talent.

Specialty Chemicals
Perstorp Opens New
Penta Plant in India
PETRONAS Chemicals Group Berhad, through
its subsidiary Perstorp, has inaugurated a state-
of-the-art pentaerythritol plant in Bharuch,
India. The plant produces pentaerythritol,
calcium formate and International
Sustainability and Carbon Certification PLUS-
certified VoxtarTM M40, catering to the growing
demand in Asia Pacific.

Point of Interest

The pentaerythritol produced at Perstorp’s

new plant is a component of everyday
products such as high-performance alkyd-
based coatings, hot-melt adhesives and
synthetic lubricants.
 4 Strategic Review 71

Bio-based Value Chain

Advancing
PETRONAS in Partnership with Enilive and Euglena to Build Bio-based Innovation
First Biorefinery A bio-based emollient
co-developed by PETRONAS
Research Sdn Bhd and
This collaboration brings together the strengths of three industry leaders to
accelerate the production of sustainable fuels in the region. With this biorefinery, PETRONAS Chemicals Group
we are solidifying our standing in the biofuels value chain beyond trading, paving Berhad, and marketed by BRB
the way for the establishment of a bio-based ecosystem in Malaysia and beyond. International B.V., Emfinity®
CGSA 200B offers superior
product benefits and texture,
Datuk Sazali Hamzah making it ideal for skincare,
Executive Vice President and Chief Executive Officer, Downstream
suncare, and makeup
applications. The product was
PETRONAS, Enilive S.p.A. and Euglena Co., Ltd. have established a joint venture company pre-launched at the premier
and reached a final investment decision to construct our first biorefinery at PETRONAS’ ‘in-cosmetics Global’ exhibition
Pengerang Integrated Complex in Johor, Malaysia. The joint venture, Pengerang in Paris, France, where it
Biorefinery Sdn Bhd, with PETRONAS Mobility Lestari Sdn Bhd and Enilive S.p.A. as received strong engagement
majority shareholders, will develop the biorefinery, which is set to begin operations in the from industry leaders,
second half of 2028. Designed to process 650,000 tonnes of raw materials annually, the generating significant interest
biorefinery will produce Sustainable Aviation Fuel, Hydrogenated Vegetable Oil and in sampling and incorporating
bio-naphtha, supporting the rising global demand for low-carbon aviation and Emfinity® CGSA 200B into their
transportation fuels. formulations.

Carbon Capture and Storage

Progressing CCS Hub in
Global Partnerships for
Peninsular Malaysia
Advancing CCS
PETRONAS CCS Solutions Sdn Bhd signed a land rental
agreement with Kuantan Port Consortium Sdn Bhd to
advance its Southern CCS hub in Pahang, Malaysia. The
hub, expected to begin its first injection by 2029, will
help reduce emissions for hard-to-abate industries in
Malaysia and internationally while creating new economic
opportunities.

PETRONAS and DNV Partner to

In 2024, PETRONAS signed 11 agreements and Memoranda of
Certify Carbon Dioxide Storage Sites
Understanding with key players, including Abu Dhabi National for CCS Projects in Malaysia
Oil Company, Storegga Limited and JERA Co., Inc, to advance PETRONAS CCS Ventures Sdn Bhd and DNV have signed a
carbon dioxide storage solutions, infrastructure, value chain Master Price Agreement to certify carbon dioxide storage
development and regulatory compliance. These partnerships sites and associated facilities for CCS projects in Malaysia.
strengthen our operational capacity and lay the foundation for This certification will ensure the emerging Malaysian CCS
large-scale CCS deployment. industry meets international standards and best practices.
72 PETRONAS • Integrated Report 2024

New Business
Capturing New Growth Opportunities

Renewable Energy
Unlocking Hydropower Synergies with Floating Solar

Our partnership with Masdar and Sarawak Energy unites leading global stakeholders in a shared vision to drive progress
in clean energy adoption, optimising technological advancements to more effectively integrate renewables into our
energy systems.

Sushil Purohit
Chief Executive Officer, Gentari

Gentari Renewables Sdn Bhd, a wholly-owned

subsidiary of Gentari Sdn Bhd (Gentari) signed a
Joint Study Agreement with SEB Power Sdn Bhd
and Abu Dhabi Future Energy Company PJSC
(Masdar) to explore a groundbreaking 1,000
megawatts floating solar project at the Murum
Hydroelectric Plant. This large-scale initiative
has significant potential to expand Sarawak’s
renewable energy capacity while contributing
to Malaysia’s low-carbon ambitions. Floating
solar solutions optimise land use, reduce water
evaporation and offer potential synergies with
existing hydroelectric infrastructure.

Innovative Pathway to a
PETRONAS and Connecting India’s
Renewable Future with CEFORE
Petrovietnam to Renewable Energy to
Advance Cross- Demand Centres PETRONAS, supported by Universiti Malaysia
border Renewable Terengganu as well as Arema Energies,
Gentari through its subsidiary, Amplus
Energy Energy Solutions Pte. Ltd., or Amplus,
Schneider Electric, Citaglobal and Honeywell,
is establishing the Centre for Offshore
PETRONAS and Vietnam successfully commissioned its first
Renewable Energy (CEFORE) in Terengganu,
National Industry - Energy Interstate Transmission System-
connected solar project in India, with Malaysia. CEFORE aims to provide clean,
Group (Petrovietnam)
a total capacity of approximately reliable and continuous power by leveraging
signed a Memorandum of
363 megawatts. The Interstate a mix of offshore and onshore renewable
Cooperation on renewable
Transmission System is a national grid energy sources, such as solar, wind and wave,
energy to strengthen regional
energy connectivity. The in India that links power generation with on-site energy storage and management
agreement facilitates the sources across state boundaries, systems. CEFORE also supports edu-tourism,
export of renewable energy enabling efficient transmission of infrastructure development, and economic
from Vietnam to Malaysia and electricity from surplus regions to opportunities for local communities, including
Singapore, contributing to areas with higher demand and is local fishing communities, which can benefit
ASEAN’s goal of an integrated crucial for transmitting renewable
from renewable energy-powered cold storage
power grid and a more energy from remote wind and solar
and ice-making equipment provided at no cost.
resilient, lower-carbon energy parks to consumption centres.
In 2024, CEFORE completed the Floating Lidar
future. Photovoltaic assembly.
 4 Strategic Review 73

Hydrogen
Sarawak Hydrogen Hub with SEDC Energy: Scaling Up Driving Clean Ammonia
Clean Energy in Malaysia Solutions
Gentari, through its wholly-owned subsidiary, Gentari Hydrogen Sdn Bhd is Gentari, through its wholly-owned
developing the Sarawak Hydrogen Hub in partnership with SEDC Energy Sdn subsidiary, Gentari Hydrogen Sdn Bhd
Bhd. The Hub is designed as a modular, plug-and-play solution that makes and MISC Berhad are collaborating to
large-scale hydrogen production more efficient and investment-ready. This explore the development of integrated
milestone initiative aligns with Sarawak’s vision of becoming a commercial shipping and floating solutions for clean
hydrogen powerhouse by 2027, driving the region’s transition towards ammonia with the aim of delivering end-
cleaner energy. to-end solutions that streamline the clean
ammonia value chain.

Point of Interest

Ammonia has long been used in fertiliser

production and refrigeration, with
established global logistics infrastructure
- making clean ammonia a viable energy
* Image is for illustration purposes only. carrier in the energy transition.

Partnering with AM Green to Deliver Global Green Ammonia

Gentari International Renewables Pte. Ltd., a wholly owned subsidiary of Gentari and AM Green BV, have joined forces to drive
large-scale green hydrogen production, unlocking new possibilities for global energy supply. Their joint investment into AM
Green Ammonia Holdings BV (AM Green Ammonia), a green ammonia platform, aims to produce up to 5 million tonnes per
annum of green ammonia by 2030, by leveraging round-the-clock renewable energy to deliver hydrogen in its most stable and
transportable form. AM Green Ammonia has achieved the final investment decision for its first million-tonne green ammonia
project in India.

From left: Sushil Purohit, Chief Executive Officer of Gentari; Michèle Azalbert, Chief Hydrogen Officer of Gentari; Mahesh Kolli, Founder of Greenko Group
and AM Green; M Shahrulikraam M Yassin, Head of Commercial, Gentari India; and Low Kian Min, Chief Renewables Officer of Gentari, following the signing
of a Power Purchase Agreement between Gentari (via its subsidiary Gentari Renewables India Castor One Private Limited) and AM Green Ammonia India
Private Limited.
74 PETRONAS • Integrated Report 2024

New Business
Capturing New Growth Opportunities

Generating Turquoise Hydrogen

Powering Singapore’s Without Carbon Dioxide Emissions
Hydrogen Future
PETRONAS Research Sdn Bhd advanced its hydrogen
Gentari’s wholly owned subsidiary, Gentari Hydrogen Sdn Bhd ambitions by successfully producing turquoise hydrogen,
and Senoko Energy Pte. Ltd. are exploring the importation of a low-carbon solution derived from natural gas without
hydrogen gas from Malaysia to Singapore. This partnership carbon dioxide emissions. By leveraging methane pyrolysis
aims to boost efficiency while significantly cutting emissions combined with proprietary molten catalytic technology,
by integrating hydrogen into Senoko Energy’s existing and the process generates hydrogen and converts carbon
new combined cycle gas turbine assets. In its first phase alone, into solid form, preventing greenhouse gas emissions. A
this initiative could reduce 18,000 tonnes of carbon dioxide milestone was reached with the first successful production
equivalent (CO2e), which is equivalent to removing 4,000 cars of hydrogen gas on 17 December 2024.
from the roads.

Green Mobility
Gentari Go: Turning Cleaner Energy into Everyday Rewards
Gentari, through its subsidiary Gentari Green Mobility Sdn Bhd, has launched Gentari Go - a digital platform that simplifies the
transition to more sustainable choices across Asia Pacific. Whether it is electric vehicle charging or green mobility services,
Gentari Go users can adopt sustainable solutions while earning incentives. Businesses, including fleet operators, charging point
providers and automotive companies, can also leverage the platform to enhance their offerings and drive the shift toward a
clean energy future.
 4 Strategic Review 75

Paving the Way for Electric Vehicle Adoption and Charging in Sabah
Gentari Green Mobility Sdn Bhd, a wholly-owned subsidiary of Gentari and EV Connection Sdn Bhd have made history as the
first charging point operators in Sabah to receive licences for public installation of electric vehicle charging systems from the
Energy Commission of Sabah. This milestone not only expands Sabah’s electric vehicle infrastructure but also ensures that
every installation meets strict safety standards.

Strategic MoUs with Financial Institutions and Insurance Companies to Expand

Green Mobility
Gentari Green Mobility Sdn Bhd, a wholly-owned subsidiary of Gentari, is accelerating green mobility through key partnerships
with financial institutions and insurance companies including CIMB Group Holdings Bhd, Mastercard, Malayan Banking Berhad
(Maybank) and Zurich Malaysia.

CIMB Partnership Mastercard Partnership

Facilitating electric vehicle adoption with value-added Driving electric vehicle adoption in public transportation
services and financing solutions. through marketing, promotions and secure digital payments.

Maybank Partnership Zurich Malaysia Partnership

Facilitating easier access to green mobility and renewable Promoting electric vehicle adoption via installation of electric
energy solutions, starting with the installation of charging vehicle charging infrastructure and value-added services at its
points at select Maybank branches in Malaysia. premises and public locations.
76 PETRONAS • Integrated Report 2024

New Business
Capturing New Growth Opportunities

Performance in 2024

Specialty Chemicals Renewable Energy

Sales Volume (kilometric tonnes) Total Capacity (Installed and Under Construction) (gigawatt)
897

8.0
841

2.9
1.6

2023 2024 2022 2023 2024

Hydrogen Green Mobility 3,486

Matured Hydrogen Opportunities Achieved
(kilo-tonnes per annum) ≈2,500

175
1,060
570
312***
0

2022 2023 2024

Charging Points Globally *
Vehicle-as-a-Service**
Notes:
0 0 * Gentari’s growing global network of charging points is now available in
Malaysia, Thailand and India.
** Vehicle-as-a-Service is now available in Malaysia, Indonesia and India.
2022 2023 2024 *** Comprising 151 charging points in Malaysia and 161 in India.

Our specialty chemicals business recorded a notable rise in sales volume compared to 2023, supported by stronger market demand
and improved cost competitiveness from lower raw material prices.

Meanwhile, our subsidiary, Gentari, continued to scale its operations across its three core pillars in 2024, securing a total of 8 gigawatts
in installed and under-construction renewable energy capacity. This growth was supported by its entry into utility-scale projects in
India and the expansion of commercial and industrial solutions in key markets.

The business matured 175 kilo-tonnes per annum of hydrogen opportunities and progressed several collaborations across the region.
In Green Mobility, Gentari expanded its reach with 1,060 electric vehicle charging points and a fleet of 3,486 electric vehicles deployed
across Malaysia, Indonesia and India, as it continues to build the foundations for long-term growth in Asia Pacific.

Challenges, Mitigation and Opportunities

Volatile market conditions, geopolitical tensions and inflationary pressures continue to impact the specialty chemicals market,
affecting product demand. PETRONAS remains agile by focusing on portfolio diversification, cost optimisation and strategic
partnerships to strengthen our market position.

Scaling electric mobility, renewable energy and hydrogen requires overcoming challenges such as consumer adoption, land
scarcity and the need for competitively priced solutions. Simplifying the electric vehicle charging and payment experiences,
developing innovative and space-efficient infrastructure, and fostering industry collaboration are key to accelerating the transition.
We are addressing these barriers by enhancing accessibility, refining cost structures, forging industry alliances and advancing
scalable business models for sustainable energy. With growing demand for longer-duration power solutions to address industrial
decarbonisation needs, including from data centres, electric vehicle manufacturers and other hard-to-abate sectors, we are
strengthening our cleaner energy value chain and are well-positioned to capitalise on these emerging opportunities.
 4 Strategic Review 77

Outlook and Priorities

Specialty Chemicals Bio-based Value Chain Carbon Capture and Storage

Short-term Short-term Short-term

PETRONAS will focus on strengthening the We are set to accelerate the development We will enhance our CCS business by
specialty chemicals portfolio by maximising of our bio-based ecosystem, focusing on advancing domestic projects and engaging
value from BRB and Perstorp, identifying key strategic partnerships to secure feedstock with potential emitters. The focus will
growth areas and innovating new products and establish market channels ahead of the be on establishing a solid commercial
to meet evolving market demands. completion of PETRONAS’ first biorefinery. and regulatory investment foundation as
We strengthen our presence in key markets PETRONAS plans to provide cost-effective
to meet the increasing demand for CCS solutions to industrial emitters in
lower-carbon fuels, particularly in aviation the Asia Pacific region. By leveraging
and transportation that are subject to our storage capacity and infrastructure,
emission standards or controls. we aim to be a regional decarbonisation
partner, assisting neighbouring countries
in achieving climate goals through reliable
carbon storage in Malaysia.

Medium- to long-term Medium- to long-term

We aim to expand beyond our current To support a scalable CCS value chain,
footprint through strategic acquisitions, we will expand our portfolio. This will
delivering key growth projects and include international ventures, strategic
implementing targeted market expansion partnerships and technology integration.
to enhance our competitive edge and Our efforts aim to improve storage
drive sustainable growth in the specialty efficiency and lower costs per tonne of
chemicals sector. sequestered carbon dioxide. Developing
reliable and multi-user CCS hubs is key to
building long-term customer trust. These
initiatives will create new business models,
diversify revenue streams and speed up
decarbonisation in hard-to-abate sectors in
Malaysia, the region and beyond.

Renewable Energy Hydrogen Green Mobility

Short-term Short-, medium- to long-term Short-, medium- to long-term

Gentari will continue expanding its Gentari will drive the development of green Gentari will continue advancing the
renewable energy portfolio across core hydrogen and ammonia projects, focusing green mobility transition by expanding
markets, with a focus on integrating on securing early offtake agreements and electric vehicle charging networks,
renewable power with hydrogen delivering cost-competitive solutions. scaling Vehicle-as-a-Service solutions and
production to enhance efficiency and Strategic partnerships and breakthrough enhancing cross-border roaming across
scalability. Gentari aims to create a more technologies will play a key role in Asia Pacific. These efforts will strengthen
flexible and transportable energy supply by strengthening Gentari’s market position and infrastructure, improve accessibility
leveraging solar and wind energy for green accelerating the adoption of hydrogen as a and support the region’s shift towards
hydrogen production. viable lower-carbon energy source. sustainable transportation growth.

Medium- to long-term

Moving forward, energy storage

technologies will be a key enabler, ensuring
longer-duration value, and strengthening
the resilience of the renewable energy
ecosystem to support the growing demand
for lower-carbon solutions.
78 PETRONAS • Integrated Report 2024

Net Zero Carbon Emissions

Pathway to Net Zero

Focus Areas

We continue to advance four main abatement levers, focusing on practical and scalable solutions to reduce emissions and enhance
long-term operational resilience.

Zero Routine Flaring and Venting Electrification

This measure will systematically eliminate routine flaring and We invest in and develop renewable energy infrastructure to
venting in existing and new production sites. We aim to avoid electrify our operations. This encompasses asset
routine flaring in new field developments and seek solutions to modification, infrastructure development and sourcing, where
end routine flaring at existing production sites by 2030. feasible.

Energy Efficiency Carbon Capture and Storage

We optimise energy use across operations, including We are advancing carbon capture and storage deployment to
operational excellence, digital solutions, process and reduce carbon emissions at identified assets.
equipment optimisation.
The following pages provide a snapshot of our efforts. For a detailed breakdown of our Net Zero Carbon Emissions by 2050 Pathway and progress, please refer
to pages 92 to 175.

Zero Routine Flaring and Venting

Monetising Flared Gas Cutting Carbon, One
Through cross-division collaboration, we have transformed previously flared and
Project at a Time
combusted hydrocarbons into additional sales gas at the Terengganu Gas Terminal. We deployed 41 emissions reduction
This initiative reduces greenhouse gas emissions by 0.36 million tonnes of carbon projects across our operations in
dioxide equivalent (CO2e) per year mainly from carbon dioxide flaring, while Malaysia, successfully lowering
lowering utility costs by an average of 25 per cent per month. It also approximately 1.3 million tonnes
strengthens our cash flow through reduced operational expenditure and increased CO2e. This has advanced our
sales for Upstream. emissions reduction efforts across
the Group. Key initiatives include
reducing acid gas at the Terengganu
Gas Terminal, curbing flaring at Erb
West and minimising venting at Miri
Crude Oil Terminal.

Terengganu Gas Terminal.

 4 Strategic Review 79

Energy Efficiency
Driving Energy Efficiency
By taking measures to optimise fuel burning, integrating renewable electricity and enhancing energy efficiency, we have
successfully reduced Scope 1 and Scope 2 greenhouse gas emissions across our activities. The K30 compressor replacement in
PFLNG SATU alone has helped reduce over 10,000 tonnes of CO₂e in 2024.

Notes:
Scope 1: Direct emissions from company-owned or controlled facilities and operations.
Scope 2: Indirect emissions from energy we purchase.

PETRONAS Floating LNG.

Point of Interest
Floating LNG (FLNG) plants eliminate the need for long pipelines. This means every efficiency upgrade, such as the K30
compressor replacement, has a multiplier effect on emissions reduction.

Electrification
Enterprise Electrification
We are accelerating our electrification strategy through the installation of rooftop and ground-mounted solar panels at
PETRONAS’ assets. This initiative allows our facilities to transition from grid-based electricity to on-site renewable
energy solutions.

Installing rooftop solar panels at Universiti Teknologi PETRONAS.

80 PETRONAS • Integrated Report 2024

Leveraging Innovative Solutions

As one of our material topics, Innovation and Technology is central to improving operational performance, driving cost efficiency
and reducing emissions. Our approach is anchored on four focus areas that collectively enhance performance and resilience:
delivering projects with excellence, operating smarter, advancing sustainable energy solutions and powering progress through
strong partnerships.

In 2024, we invested RM562.2 million in technology, compared to RM644 million in 2023. This investment was channeled to 166
research and development initiatives, and 39 technology pilot projects. A significant portion of this investment was directed toward
technologies to advance the PETRONAS Energy Transition Strategy and support our commitment to deliver net zero carbon
emissions by 2050. This includes allocations to seven focus areas: carbon capture, utilisation and storage, specialty chemicals,
hydrogen, renewable oil, fluid technology solutions, renewable energy, advanced materials and subsea technologies.

Several targeted programmes are being implemented, which includes our research and development in carbon capture, utilisation
and storage aimed at developing technology solutions to reduce Groupwide greenhouse gas emissions. Our hydrogen and
renewable energy initiatives aim to lower the levelised cost of energy, enabling more cost-efficient operations. Additionally,
through our work in advanced materials and subsea technologies, we deliver complete subsea solutions and extend the life of
facilities and fields to support operational excellence. The streamlined allocation reflects greater delivery efficiency and a continued
emphasis on solutions with clear value potential.

Innovation with Impact

At our state-of-the-art research centre in Bangi, PETRONAS Research Sdn Bhd is advancing technologies that solve operational
challenges while shaping the Group’s long-term competitiveness.

Anchored by the PETRONAS Technology Agenda, the research centre focuses on translating research into practical solutions
that support PETRONAS’ core business and create pathways for growth in new areas, while aligning with our net zero carbon
emissions by 2050 commitment. PETRONAS strategically advanced multiple innovative technologies, progressing them
towards market readiness and delivering business impact.

The multi-cartridge membrane-based contactor system for natural gas, successfully tested at the Terengganu Gas Terminal,
is now poised for broader applications, including post-combustion carbon dioxide capture. Further development is underway
to support emissions reduction efforts at PETRONAS Energy Canada Ltd.

In the specialty chemicals space, PETRONAS introduced Emfinity® CGSA 200B, a patented, bio-based emollient developed
from renewable, biodegradable sources. It offers hydration and protective features for skin, as well as enhances shine for hair,
and can be easily incorporated into various types of personal care formulations.

Complementing these commercialisation milestones, we also delivered immediate business impact through targeted
technology deployments. The Well Intervention Fluid-Friction Modifier increased production at key Upstream assets.
Meanwhile, the application of Well-to-Seismic Data Reconstruction (RESEIS), using deep learning, redefined field potential by
generating high fidelity subsurface insights and uncovering previously untapped opportunities within existing fields in Malaysia.

PETRONAS Iona Tera, a liquid coolant designed specifically for data centres to accelerate efficiency across the
high-performance computing industry, was launched to explore opportunities in the growing immersive cooling market.

In addition, the practical application of functionalised graphene oxide (F-GO) as a rust converter paint achieved notable cost
avoidance. These efforts demonstrate our commitment to translating technological advancements directly into operational
excellence and sustained value creation.
 4 Strategic Review 81

Next-Generation Project Management for Faster Decision-Making

The PETRONAS Project Command Centre is transforming project management with real-time data, artificial intelligence and digital
tools. This central hub enhances visibility, transparency and efficiency for faster decision-making. Piloted at selected key projects,
it streamlines our operations, ensuring proactive solutions and seamless execution.

Enhancing Asset Reliability and Integrity to Unlock Value

We ensure regulatory compliance, safety and asset continuity through risk-based approaches. In collaboration with the Department
of Occupational Safety and Health, the Risk-Based Certificate of Fitness enables us to strengthen operational efficiency and safety
across PETRONAS’ assets.

Fit-for-Purpose Technical Standards to Unlock Value

To ensure consistency and efficiency, the Portfolio Based Technical Requirements streamline PETRONAS Technical Standards with
the International Association of Oil & Gas Producers’ Joint Industry Programme 33 specifications and international standards.
We have delivered RM35.3 million in savings for pipeline projects by implementing the Portfolio Based Technical Requirements 4.0
Pipeline and Riser in 14 projects.

Powering Progress through Partnerships

Collaborating for a
At PETRONAS, we harness the power of innovation and technology to achieve Smarter, Lower-carbon
marked progress through seamless project delivery and smarter operations, while
ensuring a resilient energy future. We are steadfast in pursuing these towards Future
meeting evolving energy demands under a concerted effort, especially through
building purposeful partnerships. We are deepening our collaborations
with Telekom Malaysia Berhad (TM)
and CelcomDigi Berhad to accelerate
digitalisation and enable lower-
carbon solutions across sectors.
Ir. Mohd Yusri Mohamed Yusof
Senior Vice President, Project Delivery and Technology Through a partnership with TM, we
are working to strengthen data centre
infrastructure, scale advanced cloud
PETRONAS and Powering Exploration with capabilities and enhance connectivity
to support Malaysia’s digital growth.
Sinopec Driving Intelligence and Innovation The collaboration also explores
Innovation We continued to push the boundaries of digital innovation
the integration of cleaner energy
solutions, with Gentari Renewables
PETRONAS and in Upstream activities through strategic collaborations
Sdn Bhd, a wholly-owned subsidiary
China Petrochemical and cutting-edge technology. In partnership with Earth
of Gentari, deploying solar power
Corporation (Sinopec) Science Analytics and Amazon Web Services,
and electric vehicle charging
joined forces to drive we integrated artificial intelligence and machine learning
stations at TM facilities. Meanwhile,
innovation, growth and into PETRONAS’ myPROdata platform to accelerate
emissions reduction PETRONAS and CelcomDigi Berhad
exploration in the Malay Basin and deliver advanced,
across the energy are advancing the use of 5G to enable
data-driven insights to users. To further strengthen
value chain. From smarter operations and sustainability-
digital capabilities, PETRONAS signed Memoranda of
specialty chemicals focused enterprise offerings. Building
Understanding with Schlumberger WTA (Malaysia) Sdn
to cleaner energy on the successful rollout of 5G
Bhd, Velesto Drilling Sdn Bhd and NOV Inc. to enhance
solutions, this strategic private network in 2023, PETRONAS
collaboration aims to subsurface data management and introduce drilling
has extended implementation to
reduce carbon footprint automation and robotics. These are key innovations
two additional facilities in 2024,
and enhance industry toward optimising rig operations and expanding the use
reinforcing our drive for efficiency
competitiveness. of advanced technologies across our exploration and
and future-ready operations.
production activities.
82 PETRONAS • Integrated Report 2024

Sustainability Performance Review

PETRONAS takes an integrated approach to sustainability, embedding responsible practices across our operations, decision-making
and value creation processes. We focus on balancing energy security with climate ambitions, while ensuring accountability in how
we manage environmental and social impacts. By aligning with global standards and stakeholder expectations, we aim to build
long-term resilience, support a just transition, and contribute to national and global sustainability goals.

Climate Change CC GHG Greenhouse Gas Emissions

• Site validation for 11 prioritised assets, which • 46.55 million tonnes of carbon
were identified based on desktop assessments dioxide equivalent (CO2e) from
for climate-related physical risks. Scope 1 and Scope 2 emissions for
Please refer to Delivering Net Zero on pages 92 to 111. PETRONAS’ Malaysian operations,
remaining within our 2024 target of
limiting emissions to below
49.50 million tonnes CO₂e.
• Achieved a 62 per cent reduction in
methane emissions from 2019 levels,
exceeding the 2025 target of a
50 per cent reduction for the
Groupwide natural gas value chain.
Economic Contribution EC Please refer to Delivering Net Zero on
pages 92 to 111.
• RM72.4 billion in taxes, dividends, cash
payments and other financial commitments
to the Government.
• More than RM700 million into over 400
social impact programmes globally, including
RM2.4 million for disaster relief efforts.
• RM71 million in research grants to
25 universities for low-carbon and renewable
energy studies through the PETRONAS
Academia Collaboration Dialogue.
Please refer to Key Messages on pages 14 to 28.

LCT
Lower-Carbon and
Energy Transition
Business
Corporate Governance CG Please refer to Strategic
Review on pages 60 to 81
• Three sustainability-related policy-level and Delivering Net Zero
documents developed: the PETRONAS on pages 92 to 111.
Commitment to net zero carbon emissions
by 2050, PETRONAS Position on Nature and
Biodiversity and PETRONAS Human Rights Policy,
to provide consistent direction Groupwide.
Please refer to Corporate Governance at PETRONAS
on pages 186 to 205.

Innovation and Technology IT

• RM562.2 million invested in

technology. Cyber Security and CDP
• Secured 31 patents and Data Protection
2 proprietary chemical formulations
through research and development, • No major incident since 2022.
strengthening long-term resilience. • Phishing test click rate of under
4 per cent since 2022.
Please refer to Strategic Review
on pages 60 to 81. Please refer to Cyber Security
and Data Protection on pages 90 to 91.
 5 Sustainability Performance Review 83

CE Circular Economy
• The MTBE and Propane
NB Nature and Biodiversity Dehydrogenation plants at
PETRONAS Chemicals MTBE
• 273 potential new projects screened to achieved recycling rates of
ensure no new operations are located
93 per cent and 87 per cent for
within UNESCO World Heritage Sites
and to identify overlaps with Protected hazardous waste, respectively.
Areas and Key Biodiversity Areas. Please refer to Circular Economy on
• Signed Memorandum of Understanding pages 124 to 129.
between PETRONAS and Sarawak
Forestry Corporation to explore and
develop Nature-based Solutions (NbS).
Please refer to Nature and Biodiversity on
pages 113 to 117.
Environmental Management EM
HR Human Rights
• 7.9 per cent reduction
of Nitrogen Oxide (NOx) • Launched PETRONAS Human Rights Policy
emissions compared to 2023. in 2024.
• 121,809 tonnes of hazardous • 28,000 employees completed the human
waste disposed. rights e-learning training.
• 82.6 million m3 of freshwater • 66 per cent of auxiliary police officers
withdrawn. completed human rights awareness training
in Malaysia.
Please refer to Environmental
Management on pages 118 to 123. Please refer to Human Rights on pages 132 to 144.

HW Health and Well-being

• Extended the Employee Assistance
Programme to family members of employees,
subject to evaluation and recommendation.
• Increased utilisation of Preventive Health
Screening from 7.5 per cent in the first
quarter to 46 per cent in the fourth quarter
through promotion and deployment of on-
site mobile clinics.
EI Ethics and Integrity Please refer to Health and Well-being on pages 159
to 162.
• 806 integrity and training sessions
conducted to enhance employee SC Sustainable Supply Chain
awareness.
• 81 per cent of targeted internal stakeholders completed training
Please refer to Commitment to
Governance on pages 176 to 205.
on sustainable supply chain management.
• 417 PETRONAS vendors registered with PETRONAS Supplier
Support Programme to equip licensed and registered vendors
SM Safety Management with sustainability tools and training.
• Reduced Lost Time Injury Please refer to Sustainable Supply Chain on pages 145 to 146.
Frequency (LTIF) by 9 per cent
from 2023.
• Reduced Total Recordable EAR Employee Attraction, Retention and Development
Occupational Illness Frequency
(TROIF) by 66 per cent from 2023. • Upskilled more than 23,220 PETRONAS employees and 13,612
• Recorded 2 fatalities. industry technical talents.
• Scored 3.85 out of 5 in the agile awareness survey.
Please refer to Safety Management on
pages 85 to 89. Please refer to Employee Attraction, Retention and Development on pages 147 to 158.
84 PETRONAS • Integrated Report 2024

Creating Sustainable Value through

Responsible Governance

The global energy transition is an urgent and

complex challenge that requires business,
government and society to work together to
achieve a lower-carbon future. This transition calls
for a transformation in how we produce, transport
and consume energy, along with investments
in infrastructure on a scale not seen for several
decades. With significant changes on the horizon,
it is essential to ensure that the energy transition
strengthens society and creates better prospects Safety is our priority.
for more people, thereby uplifting communities. A
just transition considers the social and economic Our Material Topics
impact of shifting to cleaner energy, particularly
on the workforce, the supply chain and the
communities who are directly impacted.

For PETRONAS, a just transition means upholding

human rights, safeguarding the well-being
of employees, equipping our people with the
necessary skills for the future and ensuring that
our supply chain evolves responsibly, while
maintaining a strong commitment to safety and Safety Management 85

ethical business practices. Cyber Security and Data Protection 90

 5 Sustainability Performance Review 85

SM Safety Management

Why This Is Important to Us Our Approach

We operate in the energy industry, where exposure to hazardous PETRONAS is committed to Health, Safety and
conditions poses significant risks. We strive to embed a strong safety Environment (HSE) excellence in all our activities,
mindset across our operations to create a workplace where everyone wherever we operate, as outlined in our HSE Policy.
returns home safely each day. By upholding the highest safety We align our HSE Management System and HSE
standards and strengthening our safety culture, we minimise risks, Mandatory Control Framework with the International
enhance operational reliability and safeguard lives. This commitment Organisation of Standardisation’s (ISO) 14001:2015 and
reinforces trust among our stakeholders and supports the long-term ISO 45001:2018. This system and framework applies to
sustainability of our business. all operations under our operational control.

Our Safety Management Approach

Compliance Culture Competency

• Drive compliance and operating • Strengthen implementation of the • Intensify human, asset and
discipline to manage risks and Generative HSE Culture programme system capabilities, and HSE
safeguard our licence to operate. at all levels. competency in delivering
• Leverage self-regulation to • Instil leadership and accountability sustainable HSE performance.
reinforce safety compliance. through the HSE Accountability • Use of technology and digital
and Behaviour Reinforcement tools to drive HSE excellence,
programme. derive performance insights,
trends and emerging risks to
enable proactive interventions.

Performance in 2024 Reduced Total Recordable Cases (TRC)

by 6 per cent in 2024 vs 2023
Lost Time Injury (LTI) Lost Time Injury Frequency (LTIF)
Recorded zero Major Fires and a
13% 2024: 27 2023: 31 9% 2024: 0.10 2023: 0.11 reduction in Minor Fires

Increase in Major Loss of Primary

Total Recordable Occupational Total Recordable Occupational
Containment (LOPC) cases to 6 in
Illness (TROI) - Illness Frequency (TROIF) -
Employees Employees 2024 from 4 in 2023

64% 2024: 31 2023: 86 66% 2024: 0.22 2023: 0.66 Recorded 2 fatalities

Our continuous efforts to cultivate a Generative HSE Culture, enhance contractor management and leverage digital solutions
have contributed to key improvements across our operations. We acknowledge that safety is a journey, and while we have seen
progress, we also recognise the areas where we must do better.

We deeply regret the loss of two lives in our operations in 2024. Every life matters and we remain steadfast in our commitment to
strengthening our safety culture, learning from these incidents and ensuring that safety remains our top priority. Every incident is
one too many and we will continue strengthening our safety systems, processes and mindset to ensure that every worker goes
home safely. We extend our heartfelt condolences to the families, colleagues and communities affected.

We also observed an increase in Major Loss of Primary Containment (LOPC) cases from four in 2023 to six in 2024, despite our
ongoing efforts to enhance process safety and risk management. This rise underscores the need for continued focus on vigilance,
stricter controls and strengthened safety protocols.
86 PETRONAS • Integrated Report 2024

Creating Sustainable Value through Responsible Governance

Compliance

We remain steadfast in our commitment to maintain the highest standards of safety compliance across PETRONAS operations,
ensuring full adherence to both national and international safety regulations. We continue to drive improvements in operational
safety and governance by implementing strategic initiatives across the organisation.

Operational Safety Self-Regulation

Ensuring safety in daily operations is critical to maintaining We continue to strengthen self-regulation by enhancing
compliance, mitigating risks and enhancing workforce governance, ensuring the readiness of occupiers, which are
capability. Through standard processes, digital solutions and PETRONAS-owned assets, for Special Scheme of Inspection
strengthened contractor governance, we foster a safety-first Class B certification and implementing structured assurance
culture across all activities. activities. Through the development of supplementary
documentation, readiness assessments and comprehensive
The Digital Permit to Work system has been standardised to audits, we reinforced compliance and operational excellence
further eliminate risks associated with backdating, enhancing across all our operations.
traceability and ensuring full compliance with joint site
visit requirements. The system covers over 70 per cent of Through our efforts, eight occupiers achieved readiness for the
PETRONAS’ target assets and maintains high customer Special Scheme of Inspection Class B certification, ensuring
satisfaction. It significantly contributes to safety and compliance compliance with regulatory requirements. We also completed
while delivering substantial cost savings. planned assurance activities in nine occupiers, encompassing
Adequacy Audit, Document Review Audit and Readiness Audit,
In line with Malaysia’s Occupational Safety and Health ensuring compliance and operational readiness.
(Amendment) Act 2022, we redefined our contractor
management practices through a clearer demarcation of roles HSE Digital and Technology
and responsibilities. We also conducted site verifications to
identify potential risks early, ensuring compliance with safety PETRONAS is advancing HSE digital and technology by
protocols. leveraging data-driven solutions, automation and predictive
analytics to enhance safety, improve efficiency and strengthen
Process Safety risk management across operations.

We continued our efforts in enhancing process safety by Since 2018, our in-house Artificial Intelligence Incident and
focusing on risk management, digital solutions, and inter- Risk Analytics (AIIRA) has been fully operationalised into Project
departmental collaboration and knowledge-sharing sessions for Delivery and Technology division-managed projects and
continuous improvement. facilities, enhancing data-driven HSE risk management. This
division applies a risk-based approach to balance corporate
Integrated Process Safety System and HSE Integrated Risk and operational risks, ensuring safety and compliance. AIIRA’s
Assessment Module on Process Safety have been enhanced, predictive analytics enables prioritisation of critical activities and
especially on Pre-Activity Safety Review for commissioning high-risk projects, aligning assurance efforts with actual risk
activities. The integrated Pre-Activity Safety Review system landscapes.
now connects with multiple enterprise systems, enabling fully
traceable, evidence-based reviews at the source level. The implementation of risk-based assurance intervention by
the Project Delivery and Technology division reduced assurance
We sustained our Process Safety performance via the Brilliant fatigue and improved focus and effectiveness. As a result, our
at Basics Programme to strengthen compliance with Bolted first line assurance achieved more than 90 per cent schedule
Flange and Joint Integrity, alarm management, operational compliance with no overdue actions and observed a 38 per
integrity and corrosion management to complement Process cent reduction in planned assurance by eliminating redundant
Safety LOPC Reduction, and Fire Prevention and Mitigation activities.
Framework implementation. Key outcomes include:
In 2024, AIIRA was extended to the Downstream and Upstream
• Trained Joint Integrity Team assessors and verifiers, businesses, further reinforcing enterprise-wide HSE risk
strengthening on-site Bolted Flange and Joint Integrity management. We also introduced Smart Risk Analytics, which
implementation. automates and enhances proactive risk management by
• Fully deployed Digital Flange Integrity Tools to prevent joint delivering near real-time insights on HSE risks, critical activities,
leaks and improve process compliance. hazards and peak incident periods. Smart Risk Analytics marks a
major advancement in proactive HSE risk management across
PETRONAS. More operations are expected to onboard AIIRA,
accelerating the uptake of artificial intelligence in
the organisation.
 5 Sustainability Performance Review 87

Culture

Since 2017, PETRONAS has adopted a Generative HSE Culture, where safety is embedded in the organisation’s mindset, shaping
behaviours and decision-making at all levels. Rooted in the principle of care, PETRONAS defines Generative HSE Culture as ‘Doing
the right things right, even when no one is watching’. This culture is built on five core Generative HSE Culture Behaviours that guide
actions and decision-making across all levels.

o l o g ic a l s
ps yc h afe
ild ty
Bu

I Role model H SE:

is good business
and good for me

Co
nsc s
io u s nes
r is k a w ar e

I Role model HSE: is good business and good for me I Feedback Truthfully

Treat HSE as a core value by role modelling HSE as an Speak up when something does not seem right and pay
integral component of business operations, strategic attention to others who raise concerns.
decisions and personal well-being.
I Act Interdependently
I Engage Authentically
Work collaboratively with others to achieve consistent HSE
Show genuine care in co-workers’ safety, role model safe and business goals.
behaviours and find solutions to problems.
I Empower through Capability
The Generative HSE Culture Model, Generative HSE Culture Behaviours, and
Generative HSE Culture Leadership Programmes are intellectual properties
of PETRONAS.
Build capability to ensure everyone can perform tasks
safely and effectively.

HSE Leadership is the key lever in driving this culture, supported by our proprietary suite of targeted Generative HSE Culture
leadership programmes. Since 2017, we have trained 2,927 leaders and 3,820 frontliners to demonstrate the five Generative HSE
Culture Behaviours and reinforce consistent safety messaging through daily actions and moments of influence. By doing so, we
create an immersive experience that shapes Generative HSE Culture, supported by ongoing communication, targeted engagement
programmes, roadshows and business-led initiatives.
88 PETRONAS • Integrated Report 2024

Creating Sustainable Value through Responsible Governance

Top Leaders
We designed and rolled Since 2017, 2,927 leaders
out targeted Generative and 3,820 frontliners have Generative Culture for
Culture Leadership been trained and upskilled Top Leaders
via our Generative Culture 781 leaders trained
Programmes to suit leaders
Leadership Programmes
at all levels.
Middle Managers Generative Culture for
Middle Managers
2,146 leaders trained

Frontliners Rakan HSE

(employees and partners) (Friends of HSE)
3,820 frontliners
trained

Strengthening Generative HSE Culture through HSE Accountability and Behaviour Reinforcement Programme

The HSE Accountability and Behaviour Reinforcement framework strengthens our Generative HSE Culture by fostering
accountability and reinforcing safety behaviours at all levels. It outlines principles for Positive Reinforcement to recognise and
reward employees who comply with HSE requirements. Our investigation teams review major incidents and non-compliance
cases and identify behavioural factors with structured reinforcement measures determined by each business’ HSE Accountability
and Behaviour Reinforcement Committee. Integrated into our Generative HSE Culture Leadership Programme and various HSE
campaigns, the framework ensures continuous reinforcement of accountability and proactive safety behaviours across the
organisation.

Competency

We place strong emphasis on developing and enhancing the competency of our workforce in safety leadership and technical
expertise. Through targeted training and development programmes, we ensure that our leaders and frontline personnel possess the
necessary skills and knowledge to uphold safety standards and drive operational excellence.

Operational Safety

We strengthened site leadership by standardising the selection and assessment process for our supervisors. Competency and
selection criteria were established to ensure merit-based hiring, outlining minimum experience requirements and relevant technical
trade expertise needed for effective supervision.

In 2024, more than 1,000 supervisors were assessed for competency, ensuring that only qualified and capable individuals oversee
critical operations. Training sessions were conducted using standardised training and assessment modules, enabling all operations
to follow a standard framework and maintain consistent site compliance.

Crisis Management

Effective crisis management is crucial for a rapid, coordinated and resilient emergency response, protecting people, assets and
operations. We adopt a structured and proactive approach to enhance preparedness and response effectiveness.
 5 Sustainability Performance Review 89

We enhanced crisis management Health, Safety and Environmental Capability

efficiency and capability by
incorporating technology solutions We continue to strengthen our HSE capabilities by equipping our workforce with the
into our in-house developed Crisis right skills and structured development programmes, utilising digital solutions and
Management Information System. emerging technologies to drive HSE Operational Excellence.
Key outcomes include:
Our portfolio of Technology Inventories and Rulers was updated to align with
• Completed proof-of-concept in the evolving priorities in HSE technology, sustainability and digitalisation. Additionally, we
integration of identified technologies established three new HSE sub-disciplines to respond to the shift in global demands.
such as drones, Internet Protocol To strengthen governance, we also implemented a structured talent management
cameras and wearables, with the approach to ensure strategic oversight of HSE talents through the execution of the
Crisis Management Information HSE Staff Development Committee.
System.
• Mandatory implementation of the We enhanced our HSE learning and talent databases by incorporating immersive
Crisis Management Information virtual reality experiences, HSE e-Learning modules and digital dashboards. A key
System across all our operations highlight was the development of the ‘Working at Height– Scaffolding’ virtual reality
beginning 2025. module, uniquely designed using actual PETRONAS assets. Unlike generic off-the-
shelf modules, this approach offers greater realism and reinforces safer, site-specific
To strengthen disaster preparedness work practices.
and response in our operations, we
enhanced the capabilities of the Natural
Disaster Management Committee by
conducting engagement sessions,
workshops and tabletop exercises
across six regions in Malaysia - Central,
Northern, East Coast, Southern, Sabah
and Sarawak.

Incident Management

As part of our efforts to strengthen safety

via continuous learning, we established
PETRONAS Working at Height: Scaffolding virtual reality module, uniquely designed using actual
a structured, closed-loop process PETRONAS assets.
and governance to institutionalise
Organisational Learning From Incidents Contractor capability was strengthened through collaboration with industry
that includes incident investigation, stakeholders and regulators, including the Malaysian Oil, Gas & Energy Services
analysis, sharing of incident learnings, as Council and the National Institute of Occupational Safety and Health by advocating
well as conducting Site Verification and safety practices and providing a platform for the exchange of HSE knowledge and
Attestation exercises. ideas.

Our centralised Organisational Learning

From Incidents portal achieved a Moving forward, safety management will continue to evolve with a stronger emphasis
29 per cent increase in engagement on proactive risk mitigation, digital integration and industry collaboration. Embedding
compared to 2023, reflecting a Generative HSE Culture remains our priority. We will focus on enhancing HSE
strengthened organisational emphasis capability development through structured training, leadership engagements and
on HSE-related learning. We also upskilling programmes to build a highly competent workforce with a safety-first
conducted 12 Site Verification mindset. Strengthening partnerships with regulatory bodies, contractors and business
and Attestation exercises ensuring stakeholders will drive higher safety standards across the industry. By advancing
accountability and driving continuous innovation, refining governance frameworks and reinforcing accountability, we will
improvement in HSE practices. ensure safety excellence remains our key priority to ensure a resilient and secure
operating environment for all.
90 PETRONAS • Integrated Report 2024

Creating Sustainable Value through Responsible Governance

CDP Cyber Security and Data Protection

Why This Is Important to Us Our Approach

We integrate digital solutions across our operations to enable smarter As cyber threats become increasingly
systems and interconnected networks. However, this rapid digital adoption sophisticated, PETRONAS recognises the need
also heightens cyber security risks, making robust cyber resilience critical for a holistic approach in strengthening cyber
to safeguarding operations, protecting sensitive data and ensuring business resilience. Our strategy centres on a risk-based
continuity. approach and is supported by robust governance,
which ensures compliance with laws and
PETRONAS’ risk-based Enterprise Cyber Security Governance Framework is directives. Governance plays a critical role in
designed to drive robust risk management processes and protect sensitive protecting our assets, managing risks and staying
information. This approach helps us safeguard the resilience of both our compliant with regulations.
physical and digital assets, and maintain international standards for cyber
security and data privacy in a constantly evolving threat environment.

Frameworks The Enterprise Cyber Security Governance Framework ensures that the right people and processes
and Standards are in place to safeguard our systems, assets, data and operations. This framework includes:

The Control Framework and The Cyber Security

The Control Standard Risk Management Guideline
• Developed based on the United States • Aligns with PETRONAS’ Enterprise Risk
National Institute of Standards and Management Framework.
Technology (NIST) Framework for cyber • Integrates PETRONAS’ Risk Policy.
security. • Outlines the approach for managing
• Provides clear guidelines for managing cyber security risk and accountability,
cyber security through the five core providing a standardised method to assess,
functions of Identify, Protect, Detect, respond to, and monitor these risks across
Respond and Recover. PETRONAS.

Compliance with We continuously monitor and adapt to evolving regulatory requirements to ensure compliance
Regulations with cyber security laws and directives across our operations.

Regulatory Compliance Updates in 2024

• Reviewed the Network and Information • Assessing local regulations, including the
Systems Directive 2’s requirements to Malaysia Cyber Security Act 2024 and
ensure our cyber security controls meet updates to the Personal Data Protection
regulatory requirements for our European Act 2010, with enhancements to be
operations. implemented to strengthen compliance.

Measuring We adhere to the PETRONAS Integrated Assurance framework to ensure Groupwide cyber security
Assurance compliance. A centralised assurance platform monitors Information Technology and Operational
Technology functional checklists across PETRONAS’ businesses.

Measuring Cyber Resilience in 2024

• We continue efforts to establish methods to measure cyber security resilience. Having
established strong fundamentals across key cyber security functions, our focus now is on
sustaining and enhancing resilience guided by recommendations on effective metrics from
the World Economic Forum (WEF) and other industry players.
 5 Sustainability Performance Review 91

Data Privacy We integrate data privacy requirements into our Cyber Security Control Standards and conduct
and Protection Data Protection Impact Assessments on our systems handling personal data to ensure compliance
with digital data processing laws.

Enhanced Data Protection Measures in 2024

• Strengthened controls by incorporating a General Data Protection Regulation aligned breach
notification process into the Crisis and Incident Response Plan, ensuring consistency with
Malaysia’s Personal Data Protection Act.

Our Action Plan

PETRONAS’ expanding digital presence, driven by advancements in information and operational technology, increases our
vulnerability to sophisticated cyber threats. These threats exploit not only vulnerabilities in the internal digital infrastructure but also
in the broader business value chain.

To mitigate these risks, we adhere to the PETRONAS Enterprise Cyber Security Governance Framework and prioritise employee
education, as they often form the first line of defence. By raising cyber awareness and fostering a cyber-safe culture, we aim to
protect our systems, data and intellectual property from malicious attacks.

Focus Areas Initiatives in 2024

Strengthening We strengthened core cyber capabilities by reinforcing controls at application and device levels, and
Core Capability participated in a government cyber drill on critical infrastructure at the national level in Malaysia. We
developed an internal Cyber Security Academy, designed to centralise general training for our employees,
as well as role-based training for topics ranging from cyber governance, third-party risk management to
cyber security for operational technology.
Optimisation and We continued to optimise our cyber security performance by maximising the value of existing tools,
Efficiency processes and capabilities. Through strategic cyber security portfolio streamlining, we improved
operational efficiency, strengthened continuous monitoring and enhanced our ability to manage growing
threat volumes effectively.
Enabling Capable We strengthened our cyber resilience by empowering our people to become active defenders in the digital
Personnel space. The 2024 Global Cyber Security Month, themed Cyber Defenders Carnival, engaged employees
through interactive events and learning opportunities designed to deepen awareness and promote
behavioural change. Ongoing initiatives such as monthly tips, video series, virtual forums and targeted
sessions kept cyber security front-of-mind throughout the year. Our annual ‘Cyber Security & You’
assessment recorded a 92 per cent completion rate, reflecting strong engagement and commitment to
strengthening our cyber security posture across the organisation.
Driving Strategic We enhanced our security response capabilities through close collaborations with enforcement agencies
Growth through and business partners. During the year, we participated in industry forums and cyber security crisis
Partnerships management exercises to share insights on safeguarding critical infrastructure. We also engaged third-
party vendors and partners to raise awareness, assess their cyber readiness, address gaps and improve
overall supply chain security.

As cyber threats grow more sophisticated, PETRONAS remains committed to safeguarding business integrity and continuity
through a robust, risk-based approach to cyber security. As an appointed Sector Lead for Malaysia’s National Critical Information
Infrastructure, we take our responsibility to establish and uphold robust security standards across our operations and value chain
with a deep sense of duty. In 2025 and beyond, we will continue strengthening internal defences, enhancing third-party readiness,
and promoting a culture of cyber awareness to ensure a secure and resilient digital environment for Malaysia’s energy future.
92 PETRONAS • Integrated Report 2024

Delivering Net Zero

PETRONAS Leadership Centre incorporates green building principles.

Our Material Topics

The escalating risks of climate change demand

a structured and urgent response. We are
committed to reducing greenhouse gas (GHG)
emissions across our core operations while
strengthening our resilience towards climate-
related physical risks, in an evolving regulatory and Climate Change 93

market landscape. Greenhouse Gas (GHG) Emissions 93

 5 Sustainability Performance Review 93

Why This Is Important to Us In support of climate goals, there is an increasing demand from
stakeholders for enhanced transparency around economy-
The urgency of climate change and the shifting energy wide emissions. Businesses are expected to advance corporate
landscape demand decisive action. As the world moves GHG emissions disclosures to encompass Scope 1, Scope 2
towards a lower-carbon future, PETRONAS is committed to and Scope 3.
delivering net zero, ensuring that sustainability and business
growth go hand-in-hand. - Scope 1: Direct emissions from company-owned or
controlled facilities and operations.
The PETRONAS Net Zero Carbon Emissions by 2050 Pathway - Scope 2: Indirect emissions from energy we purchase.
reflects this commitment and guides our efforts to reduce - Scope 3: Other indirect emissions that are a consequence
emissions across our operations while investing in new of our activities but occur from sources not owned or
lower-carbon business opportunities. controlled by PETRONAS.

Through our Net Zero Carbon Emissions by 2050 Pathway, PETRONAS quantifies emissions based on both Operational
we are taking proactive steps to cut emissions, collaborate with Control and Equity Share approaches. This includes material
partners across the value chain, and invest in solutions that Scope 3 categories' emissions. The Equity Share approach
support a more sustainable energy mix. Achieving this ambition reflects the company's economic interest, which is defined as
strengthens PETRONAS’ resilience, mitigates environmental the extent of rights the company has to the risks and rewards
risks, and positions us to thrive in a low carbon economy. associated with an operation.

Our Approach Equity Share emissions are now incorporated into PETRONAS’
reporting for both core and non-core businesses.
PETRONAS is committed to achieving net zero carbon
emissions by 2050, guided by our PETRONAS Energy Transition In 2024, we achieved our short-term target of limiting Scope 1
Strategy and driven by our Statement of Purpose: A progressive and Scope 2 emissions from Malaysia operations below
energy and solutions partner, enriching lives for a sustainable 49.50 million tonnes of carbon dioxide equivalent (CO2e).
future. Furthermore, we are making good progress in achieving our
medium- and long-term targets. Our approach is shaped
by our business context, national policies, international
frameworks and the scientific consensus on climate change.

Our Net Zero Carbon Emissions by 2050 Pathway Targets (Scope 1 and Scope 2)

2024 and 2025 2030 2050

Short-term Targets Mid-term Targets Long-term Target

49.50 million Achieve 25 per cent reduction

tonnes CO2e against 2019 baseline in PETRONAS Groupwide
Cap emissions at 49.50 million emissions, including:
tonnes CO2e from PETRONAS’
Malaysia operations by 2024. Net zero

70 per cent reduction carbon emissions.

50 per cent reduction in methane emissions from PETRONAS

Groupwide natural gas value chain.
in methane emissions from
PETRONAS Groupwide natural gas
value chain by 2025.
50 per cent reduction
in methane emissions from Malaysia’s
natural gas value chain.

Achieved
94 PETRONAS • Integrated Report 2024

Delivering Net Zero

Guided by International Principles, Frameworks and Standards

PETRONAS' net zero efforts are guided by internationally recognised principles, frameworks and standards to ensure transparency,
consistency and alignment with global best practices. These references shape our approach to greenhouse gas (GHG)
quantification, reporting and emissions reduction, strengthening the accuracy and comparability of our climate-related disclosures.
This practice also supports progress towards key United Nations Sustainable Development Goals (SDGs), particularly those related
to climate action, clean energy, and responsible consumption and production.

Scan the QR code to view the full list of references and guidelines we adhere to.
 5 Sustainability Performance Review 95

Transparency in Climate Action

We adhere to international standards in assessing and quantifying our GHG emissions by integrating them into operational
practices, which are guided by internal governance frameworks and the PETRONAS Carbon Commitments that ensure
accountability in delivering our Net Zero Carbon Emissions by 2050 Pathway across the Group. We continuously refine our
reporting practices to enhance transparency, aligning with internationally recognised frameworks. Since 2022, we have reported
publicly through the CDP (formerly the Carbon Disclosure Project) disclosure platform.

IFRS Sustainability Disclosure Standards

Our strategic approach to climate risk management aligns with internationally recognised disclosure frameworks, including the
recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). This enables us to effectively manage
climate-related risks and opportunities as we work towards delivering our Net Zero Carbon Emissions by 2050 Pathway. As
global reporting standards evolve, we are progressing towards adopting the International Financial Reporting Standards (IFRS)
Sustainability Disclosure Standards S1: General Requirements for Disclosure of Sustainability-related Financial Information
and S2: Climate-related Disclosure Standards, collectively known as the International Sustainability Standards Board (ISSB)
Standards, which fully incorporate TCFD recommendations, ensuring enhanced transparency and accountability in climate-
related disclosures.

Governance

The PETRONAS Board actively shapes and oversees the Group’s strategy on climate-related risks and opportunities, ensuring
consistent implementation across the organisation. Recognising climate change as a material business issue, the Board integrates
climate considerations into decision-making to guide PETRONAS’ long-term strategic direction. As the Group accelerates efforts
to reduce GHG emissions and pursue lower-carbon business opportunities, the Board remains central in steering the direction that
enhances resilience and sustainability.
Please refer to Corporate Governance at PETRONAS for the role of the Board in climate-related matters on page 186.

Strategy

The PETRONAS Energy Transition Strategy focuses on strengthening our Core Business, capturing new growth opportunities for
New Business and responsibly managing carbon emissions to accomplish the goals of our Net Zero Carbon Emissions by 2050
Pathway. At its core, the Pathway guides the realisation of our strategy. It outlines our aspirations for strategic growth areas and
defines key emissions reduction targets, supported by four main abatement levers which are Zero Routine Flaring and Venting,
Energy Efficiency, Electrification, and Carbon Capture and Storage (CCS).
Please refer to PETRONAS Energy Transition Strategy on page 29.

Quantification of Climate-related Risks and Opportunities

We continue to utilise previously established quantification methods for assessing the risks and opportunities impacting our
business. We employ three distinct scenarios from the International Energy Agency (IEA): the Stated Policies Scenario (STEPS),
the Announced Pledges Scenario (APS) and the Net Zero Emissions by 2050 Scenario (NZE). These scenarios were chosen for
their thorough consideration of global energy compositions and carbon dioxide emissions levels. They offer three unique climate
pathways, with projections of temperature increases ranging from below 2°C to 2.7°C by 2100, alongside detailed regional data
analyses.

The time horizons considered include short-, medium- and long-term. Among other opportunities, we have identified renewable
energy, hydrogen and green mobility based on their impact on our Earnings Before Interest, Taxes, Depreciation and Amortisation
(EBITDA) for PETRONAS' New Business by 2030.
96 PETRONAS • Integrated Report 2024

Delivering Net Zero

Risks

We apply a Groupwide approach to risk management through the PETRONAS Risk Policy, described on page 35, complemented by
the PETRONAS Resiliency Model, which is part of our Enterprise Risk Management Framework, described on pages 35 to 36. The
Policy and Framework provide an integrated and holistic view of the overall system for effective risk management. Our Enterprise
Risk Management Framework includes the tools and processes involved in systematically assessing, managing and monitoring
various types of risks, including climate-related risks.

Climate-related Transition Risk

a) Climate-related Market Risk

What This Means

Our asset portfolio is exposed to volatile commodity prices and fluctuations in demand, driven by an accelerated energy
transition towards a lower-carbon future. Key drivers for price and demand fluctuations are regulatory changes, shifts in
customer preferences, availability of alternative energy sources and technological advancements that directly influence market
and operating conditions as well as investor sentiment.

Potential Material Impact

Diminished revenue, cash generation and return realisation

Accelerated energy transition spurred by concerns over climate change will impact oil and gas margins as consumer
preferences shift and renewable energy sources gain more prominence. Furthermore, the energy transition may drive market
sentiments against oil and gas, which may, in the long term, impact the future prices of these commodities. This would, in turn,
affect the value of our property, plant and equipment.

b) Climate-related Compliance Risk

What This Means

As the energy transition evolves, PETRONAS is exposed to various challenges and scrutiny, including adapting and complying
with emerging regulations and policies.

Potential Material Impact

Impact on business/strategy/financial planning

Climate-related regulatory requirements, such as carbon pricing through taxes or emissions trading schemes, emissions
caps and targets, combined with incentives for research and development, and the application of alternative energy sources
and technological solutions, will serve as additional factors in strategy development, investment evaluations and operations
planning. These factors will impact cost allocation and risk-reward trade-off considerations.

Compliance complexity

Operating in diverse and constantly evolving regulatory environments may lead to compliance gaps, fines and litigation.

Cost Increase

Government policies introducing limits or costs to fossil fuel extraction, production and consumption, as well as emissions of
such activities, may increase operational and capital costs and establish additional needs for capital expenditure. These impacts
may be further amplified by changes in financiers appetite for providing funding and terms to fund oil and gas activities.
 5 Sustainability Performance Review 97

c) Climate-related Reputational Risk

What This Means

The PETRONAS Net Zero Carbon Emissions by 2050 Pathway demonstrates our commitment to sustainability. It directs the
organisation towards the necessary shifts and changes that are needed for the long term. The Pathway, performance and
associated disclosures are subject to scrutiny by stakeholders.

Potential Material Impact

Damage in Reputation

Inadequacy of efforts to communicate and educate stakeholders on the Group's strategy and investment plans may negatively
impact reputation and erode trust among stakeholders.

Erosion of Trust in Delivery Capability

Inability to undertake necessary investments and execute project delivery to meet stated targets may affect overall confidence
in our capability to deliver on the PETRONAS Energy Transition Strategy.

Resilience to Transition Risk

We continuously monitor the risks inherent to our business, and adapt progressively to the evolving changes in energy demand and
requirements to maintain resilience.

Climate-related Physical Risk

Physical risks resulting from climate change can manifest in the form of acute or chronic risks due to climate events such as
extreme precipitation, droughts, rising sea levels and increasing global temperature. With operations presence in more than
100 countries, our physical assets and ongoing projects are directly or indirectly exposed to the impact of these climate-related
physical risks.

Past incidents across our global operations highlight the real impacts of climate-related physical risks, reinforcing the need for
proactive risk management. These have included flooding affecting our asset in Miri, Malaysia; wildfires disrupting operations in
Canada and heat waves exposure impacting personnel in Iraq. We continue to implement mitigation measures in response to such
events.

We continue to enhance our understanding and efforts to manage the physical impact of climate change through dedicated
climate-related physical risk assessments of our assets. The outcomes of these assessments inform our climate change mitigation
efforts and support the resilience of our assets and value chains to climate-related physical risks, thereby helping us to remain
adaptive and future-ready in a rapidly evolving risk landscape.
98 PETRONAS • Integrated Report 2024

Delivering Net Zero

Impact Assessments

In 2023, we commenced risk assessments on the physical impacts of climate change on our global portfolio of assets. The Shared
Socio-economic Pathway (SSP) 2-4.5 climate scenario, as defined in the Intergovernmental Panel on Climate Change (IPCC) Sixth
Assessment Report, was chosen as the most plausible path as an intermediary GHG scenario.

Based on assessments conducted on 1,309 assets under operational control globally, seven key climate hazards were identified
that may, by 2050, pose High, Very High and Extreme risk. These hazards include extreme precipitation, lightning, droughts, heat
waves, storm surges and fluvial and pluvial floods. The results revealed that most of the high-risk sites are located in Malaysia. A
prioritisation approach was established to identify critical assets, followed by site validation to confirm the hazards and conduct
deeper vulnerability assessment to inform adaptation plans.

In 2024, we conducted site validation of 11 prioritised assets, confirming the outcomes of desktop risk assessments by evaluating
the current and potential future impact of climate hazards. This process also included an assessment of the existing mitigation
measures and asset design to ensure their adequacy in addressing climate-related physical risks. For instance, to mitigate lightning
impact, assets have enhanced their lightning protection systems and installed dome roofs for hydrocarbon storage tanks as part of
their existing mitigation measures. Where necessary, identified assets were recommended to adopt adaptation plans.

To further understand the impact of climate-related physical risks to our value chains, PETRONAS is developing a financial
quantification methodology for business interruption. This methodology will assess the potential impact of such risks on our
material value chains. We conducted a benchmarking exercise with industry peers, risk underwriters, consultants and regulators
to establish materiality criteria aligned with industry best practices. This approach enables us to prioritise high-risk areas with most
significant financial and operational impact to ensure targeted and effective climate adaptation plans.

Resilience to Physical Risk

Efforts are ongoing to enhance our capability to manage climate-related physical risks. This includes strengthening systems and
processes, and developing human resource capability on climate-related physical risks to inform comprehensive assessments of
the financial impact of these risks to our organisation.

In 2024, we developed a procedure to identify, assess and manage climate-related physical risk that impact our assets. This process
is integrated with our Health, Safety and Environment Management System, under the Hazards and Effects Management Process
and aligned with the Enterprise Risk Management Framework approach and processes, to ensure the risks are captured and
managed effectively. Existing climate hazards such as flooding, lightning, droughts and storm surges are already being monitored in
the affected areas.

We continue conducting capability development programmes at every level to create awareness on climate-related physical risks.

Metrics and Targets

Overall Emissions Performance Against Net Zero Carbon Emissions by 2050 Pathway Targets

We track the performance of all assets under PETRONAS' control, with clear accountability and influence to manage short-term
and mid-term emissions reduction. The PETRONAS Net Zero Carbon Emissions by 2050 Pathway's mid- and long-term targets are
based on the Equity Share approach to reflect the portfolio view of the company. This approach supports our Energy Transition
Strategy by enabling the monitoring of our long-term climate actions and portfolio shifts. It also ensures PETRONAS' future
investments are in line with our Net Zero Carbon Emissions by 2050 Pathway.

To achieve our stated targets, we are allocating 20 per cent of our capital expenditure to emissions reduction initiatives and the
development of cleaner energy solutions from 2022 to 2026. We are also expediting advancements in technology and innovation
to balance growth in our Core Business and New Business, while striving to reduce GHG emissions.
 5 Sustainability Performance Review 99

GHG Emissions from PETRONAS' Malaysian Core Business Operations, Operational Control

In 2024, we successfully achieved our short-term GHG target by limiting emissions below 49.50 million tonnes CO2e for our
Malaysian operations, excluding Maritime, Corporate and Others, recording 46.55 million tonnes CO₂e, which is 3 per cent higher
than the previous year, and 6 per cent lower than the target announced in 2020. The higher emissions numbers were due to
enhanced GHG accounting to improve accuracy. These enhancements provide PETRONAS with a better understanding to track
and manage emissions more effectively. Achieving the short-term target reflects the ongoing emissions reduction efforts across
PETRONAS’ assets since the establishment of the PETRONAS Carbon Commitments in 2013 focusing, to date, mainly on vent-to-
flare conversion, flare and vent reduction, as well as energy efficiency improvements.

GHG Emissions from PETRONAS' Malaysian Core Businesses Operations, Operational Control
(million tonnes CO2e)
Cap at 49.50 million tonnes CO2e

48.15

46.09 46.55
45.38
44.63

2020 2021 2022 2023 2024

Note:
GHG Protocol defines that a company has operational control over an operation if the company or one of its subsidiaries has the full authority to introduce and
implement its operating policies at the operations.
Boundary: GHG Emissions from PETRONAS Malaysia Core Business Operations under Operational Control (excluding Maritime, Corporate and Others).

GHG Emissions from PETRONAS Groupwide, Equity Share

PETRONAS is progressively reducing equity share emissions by implementing comprehensive measures that align with our
commitment to achieving net zero carbon emissions by 2050. This includes collaboration with partners to further reduce GHG
emissions across all equity-held assets. In 2024, PETRONAS recorded 48.32 million tonnes CO₂e in Groupwide (Equity Share)
emissions, which was 4 per cent higher than the previous year (2023: 46.41 million tonnes CO2e) and lower by 8 per cent than the
2019 baseline, demonstrating progress towards 25 per cent emissions reduction by 2030. The annual increase in emissions was
due to higher emissions from our Malaysian operations, while international operations recorded a 9 per cent reduction.

GHG Emissions from PETRONAS Groupwide, Equity Share

(million tonnes CO2e)
Percentage reduction from base year 2019

10% 16% 11% 12% 8%

2019 2020 2021 2022 2023 2024

Note:
PETRONAS Groupwide GHG emissions based on Equity Share approach Scope 1 and Scope 2 for 2019 (baseline year) was readjusted post external verification
from 54.25 million tonnes CO2e to 52.67 million tonnes CO2e.
Boundary: GHG Emissions from PETRONAS Groupwide based on Equity Share approach.
Reduction percentage is against baseline year of 2019.
100 PETRONAS • Integrated Report 2024

Delivering Net Zero

Methane Emissions from PETRONAS Groupwide Natural Gas Value Chain

Methane emissions are a significant contributor to global warming. Since the extraction of hydrocarbons can be a source
for methane emissions, reducing methane emissions remain a critical priority for the oil and gas sector, and a component of
PETRONAS' Net Zero Carbon Emissions by 2050 Pathway.

Our efforts in methane emissions reduction have led to a 62 per cent reduction in methane emissions from the Groupwide natural
gas value chain in 2024, surpassing our 2025 target of a 50 per cent reduction from 2019 levels. This progress was driven by the
effective implementation of flaring and venting reduction projects across both Upstream and Gas businesses.

We are on track to achieve our mid-term target, which is 70 per cent methane emissions reduction from 2019 baseline by 2030.

Methane Emissions Reduction from PETRONAS Groupwide Natural Gas Value Chain

Percentage reduction from base year 2019

14% 45% 51% 54% 62%

2019 2020 2021 2022 2023 2024

Boundary: PETRONAS Groupwide natural gas value chain, covering Upstream and Gas businesses.
Reduction percentage is against baseline year 2019.

Methane Emissions from Malaysia's Natural

Methane Emissions from Malaysia’s Natural Gas Value Chain
Gas Value Chain
Percentage reduction from base year 2019
To support Malaysia's commitment to the
18% 47% 43% 48% 61%
Global Methane Pledge, PETRONAS has taken
an active role through Malaysia Petroleum
Management as the oil and gas regulator,
in driving methane emissions reductions. In
2024, we recorded a 61 per cent reduction
in methane emissions compared to the 2019
baseline, surpassing our target of 50 per cent
reduction for Malaysia's natural gas value chain
by 2030. This significant progress is largely
due to the elimination of venting sources
through vent-to-flare projects as well as
vent reduction achieved through membrane
improvements in acid gas removal units across
Malaysia's Upstream operations, including 2019 2020 2021 2022 2023 2024
assets operated by our joint-venture partners.
Boundary: PETRONAS Malaysia's natural gas value chain covering Upstream and Gas businesses.
Additionally, there were improvements in
Reduction percentage is against baseline year 2019.
methane emissions quantification.
 5 Sustainability Performance Review 101

Methane Emissions Intensity from PETRONAS Groupwide Natural Gas Value Chain

PETRONAS Methane Emissions Intensity

0.90%

0.55%
0.46%
0.42%
0.32%

2020 2021 2022 2023 2024

Boundary: PETRONAS Groupwide natural gas value chain, covering Upstream and Gas businesses.
Methane emissions intensity calculation is aligned with the Oil and Gas Climate Initiative (OGCI), i.e. methane emissions (m3) / total gas sold (m3).

Our undertaking to reducing methane emissions is also driven by our commitments to the Oil and Gas Decarbonisation Charter,
which includes the goal of achieving near-zero methane emissions* by 2030. As of 2024, we remain on track to meet this target,
having attained a methane emissions intensity of 0.32 per cent for PETRONAS-operated assets. We intend to further reduce
methane emissions through the implementation of GHG abatement projects in both Upstream and Gas businesses.
Note:
* Near-zero methane emissions is defined as below 0.2 per cent methane emissions intensity, as per the formulation by the Oil and Gas Climate
Initiative (OGCI).

Performance by Emissions Key Abatement Levers GHG Emissions Reduction from Projects,
Operational Control
Our pledge to achieve net zero carbon emissions by 2050 (million tonnes CO2e/year)
involves a comprehensive strategy encompassing innovation,
collaboration and responsible resource management. The Cumulative GHG Emissions Reduction

Net Zero Carbon Emissions by 2050 Pathway addresses Annual GHG Emissions Reduction
technological constraints and evolving policies while balancing 21.2
commercial acumen.
13.4 17.5 18.1 19.9
PETRONAS is continuously finding opportunities to reduce
GHG emissions to meet net zero carbon emissions by
2050 by deploying enhanced practices and adopting new
technologies. In 2024, PETRONAS completed 41 projects and
initiatives, including energy efficiency improvements, vent 4.1
and flare reductions, vent-to-flare conversions and renewable
energy adoption across Core Business operations in Malaysia. 1.8
0.6 0.6 1.3
Together, these efforts delivered 1.3 million tonnes CO₂e per
year operational improvement. Since 2013, PETRONAS has
cumulatively reduced 21.2 million tonnes CO2e of annual
emissions from our operations. 2020 2021 2022 2023 2024

Note:
GHG emissions reductions do not reflect the year-on-year GHG emissions
differences.
102 PETRONAS • Integrated Report 2024

Delivering Net Zero

Emissions Reduction Per Year by Key Abatement Levers

Flaring and Venting Energy Efficiency Electrification

Flaring and venting reduction Energy efficiency projects Electrification projects

projects reduced emissions by 1.131 reduced emissions by 0.165 million reduced emissions by 0.001 million
million tonnes CO2e per year. tonnes CO2e per year. tonnes CO2e per year.

Flaring and Venting

Addressing gas flaring and venting is a key priority in reducing emissions, while also ensuring valuable resources are used for
energy and not wasted.

In 2024, PETRONAS implemented several flare gas recovery projects, improvements in compressor capacity, vent-to-flare
conversions, and vent recovery projects.

We made significant strides in reducing routine flaring as part of our commitment to the World Bank’s Zero Routine Flaring
by 2030 initiative and Oil and Gas Decarbonisation Charter, pledging to avoid routine flaring in new oil field developments
and phase out such practices at existing production sites by 2030. These commitments apply to PETRONAS Upstream
operations Groupwide within operational control, and excludes safety and non-routine flaring.

We began disclosing our flaring data to the World Bank for 2022 data (Operational Control). In 2023, we improved our flaring
disclosure by distinguishing between total and routine flaring data, with total flaring volume recorded at 1,562 million standard
cubic meter (sm3) and routine flaring volume at 898 million sm3, following the World Bank's Zero Routine Flaring initiative boundary.
PETRONAS recorded a flaring intensity of 9.89 sm³/boe in 2023.

PETRONAS Upstream has planned to eliminate routine flaring for the remaining oil fields by 2030, while all new and existing
oil field development projects must undergo PETRONAS Carbon Commitments assessments to ensure alignment with the
PETRONAS Net Zero Carbon Emissions by 2050 Pathway.
Note:
A barrel of oil equivalent (boe) is a unit of energy measurement used to standardise and compare the energy content of different energy sources, such as oil,
natural gas and coal, by equating them to the energy contained in one barrel of crude oil. The data above refer specifically to Upstream oil assets, in line with the
World Bank's Zero Routine Flaring initiative boundary.

Erb West Platform, Sabah, Malaysia.

 5 Sustainability Performance Review 103

PETRONAS Groupwide Venting Reduction, Operational Control

(million tonnes CO2e)

8.19

39%

4.98 23%
3.86
36%
2.49
36%
1.60

2020 2021 2022 2023 2024

Routine venting of gas remains a major source of PETRONAS Core Business GHG emissions. The embedment of zero routine
flaring and venting requirements in PETRONAS Carbon Commitments has effectively delivered changes in operating procedures
that have reduced routine venting, as shown above. In line with these commitments, emissions from venting of unwanted gases
from hydrocarbon production have declined by 36 per cent, from 2.49 million tonnes CO2e in 2023 to 1.60 million tonnes CO2e in
2024. Additionally, Upstream had set a target for zero routine venting by 2024, a goal successfully achieved for all of its Malaysia-
operated assets.

Energy Efficiency

Energy efficiency is a key abatement lever. According to the International Energy Agency, energy efficiency is called the ’first fuel‘
in clean energy transitions, as it provides some of the quickest and most cost-effective GHG mitigation options, while lowering
energy costs and strengthening energy security.

The Malaysian Government has acknowledged the importance of energy efficiency by signing the Global Renewables and Energy
Efficiency Pledge at COP28 in 2023, identifying energy efficiency as a key lever in the National Energy Transition Roadmap, and
enacting the Energy Efficiency and Conservation Act (EECA) 2024.

In 2024, recognising the opportunity to further strengthen Groupwide energy governance, the PETRONAS Energy and Loss
Management System 3.0 was introduced to enable continuous improvement and align with industry best practices.

2024 Progress

• Established PETRONAS Groupwide energy management system aligned with ISO 50001.
• Reported 2023 Groupwide energy consumption through the CDP Climate Change 2024 survey.
• Quantified Groupwide total energy consumption and business-specific energy intensity.
• Enhanced human resources capability through Decarbonisation Programme and embedded energy-related competencies
into internal capability evaluation standards.
104 PETRONAS • Integrated Report 2024

Delivering Net Zero

Energy Consumption of PETRONAS Groupwide, Operational Control

In 2024, PETRONAS' energy consumption was 595 petajoules, which is 3 per cent higher than the previous year. The increase in the
annual energy consumption was the result of the increasing trend in production in each business.

Energy Consumption of PETRONAS Groupwide, Operational Control

(petajoules)
595.00

579.93
575.55

545.88
531.34

2020 2021 2022 2023 2024

Note:
The energy consumption includes 3,050 megawatt-hour (MWh) of solar energy generated for self-consumption.

Despite an increase in total energy consumption, there is a decreasing long-term trend in energy intensity across most of the
businesses. Groupwide, energy efficiency has been strengthened through enhancements in operating modes, utilisations of
process automation and improvements in equipment efficiency.

Energy Intensity by Business, Operational Control

(gigajoules per business-specific denominator)

Upstream LNG and Gas Processing

(gigajoules per kilobarrel of oil equivalent) (gigajoules per tonne of production)
223.35 4.80
218.66
4.75

197.73 4.68 4.68

193.81 4.56
191.14

2020 2021 2022 2023 2024 2020 2021 2022 2023 2024

Downstream - Refineries Downstream - Petrochemicals

(gigajoules per barrel of oil) (gigajoules per tonne of production)

0.33 0.33 10.28

0.32 10.09
0.30 9.83
9.65
0.28
9.33

2020 2021 2022 2023 2024 2020 2021 2022 2023 2024
 5 Sustainability Performance Review 105

There is a general downward trend in energy intensity between 2020 and 2024, showcasing improvement in energy efficiency. The
increase in energy intensity in refineries, including a sudden spike from 2021 to 2022, due to the upgrade of the Melaka refinery to
meet EURO V Diesel product specifications, in compliance with the Environmental Quality (Control of Petrol and Diesel Content)
(Amendment) Regulations 2015.

In 2024, energy efficiency was enhanced in multiple ways, including through optimisation of operating modes. In gas processing
plants, scenario modelling allows switching between sales gas and liquid hydrocarbon maximisation based on the prevailing
operating environment. In the Pengerang Integrated Complex, the optimisation of the steam spinning reserve at the co-generation
facility has led to energy consumption reduction of more than 664,000 gigajoules, equivalent to a reduction of around 37,000
tonnes of CO2e per year. In the Upstream business, the optimisation of power generation has led to approximately 29,000
gigajoules of energy reduction, equivalent to around 1,700 tonnes CO2e reduction per year.

Energy efficiency was also enhanced through equipment improvements, such as primary reformer tube upgrades, steam trap
upgrades and rejuvenations in PETRONAS Chemicals Group Berhad assets, in 2024. In Downstream Refineries, the implementation
of innovative maintenance practices, for example dry ice cleaning, and heat integration to further enhance heat recovery, has
resulted in a reduction of approximately 65,400 gigajoules of energy consumed, equivalent to 3,700 tonnes CO2e reduction
per year. In Upstream business, machine efficiency revival has resulted in approximately 503,200 gigajoules of energy reduction,
equivalent to 31,100 tonnes CO2e reduction per year.

The use of real-time optimisers and advanced process control was expanded to further drive energy efficiency. In 2024, Utilities
Gebeng successfully commissioned Utility Real-Time Optimiser, an automated model that optimises energy consumption during
normal plant operations. This resulted in an energy reduction of approximately 51,600 gigajoules, equivalent to about 2,600 tonnes
CO2e with potential to achieve up to 3,800 tonnes CO2e reduction per year.

Energy efficiency initiatives are supported by consistent monitoring of energy performance and timely interventions. This includes
the use of in-house tools and methodologies, as well as enhancements of the energy management systems that provide a
structured framework for systematically driving improvements.

Electrification

PETRONAS continued to advance emissions reduction across our assets by progressing electrification initiatives across our
operations. This included installation of rooftop solar panels at our facilities throughout 2024.
Please refer to Strategic Review on page 79.

Carbon Capture and Storage

PETRONAS, through Malaysia Petroleum Management, is spearheading Carbon Capture and Storage (CCS) projects in Malaysia’s
Upstream sector to enable the monetisation of high carbon dioxide fields while mitigating greenhouse gas emissions.

Once operational, the Kasawari Gas Development project, coupled with CCS, is expected to sequester 3.3 million tonnes CO2e
annually. It will be a stepping-stone for future gas exploration in high carbon dioxide fields, providing a pathway for sustainable
resource development.
106 PETRONAS • Integrated Report 2024

Delivering Net Zero

Strengthening GHG Emissions Management

Improving the accuracy and reliability of GHG emissions data is critical to ensuring credible reporting and enabling emissions
reduction efforts to be based on accurate information.

Our emissions accounting adheres to recognised international standards and frameworks, including the Greenhouse Gas Protocol :
A Corporate Accounting and Reporting Standard, API Compendium of Greenhouse Gas Emissions Methodologies for the Natural Gas
and Oil Industry, Intergovernmental Panel on Climate Change (IPCC) Guidelines for National GHG Inventories. These international
standards and frameworks inform our internal governance and the PETRONAS Carbon Commitments guideline, which was
strengthened in 2024 to support implementation of emissions reduction efforts. We also apply international best practices to improve
emissions tracking, verification and disclosure in line with evolving regulatory and stakeholder expectations.

To enhance data integrity, we established PETRONAS Enterprise GHG Analytics and Solutioning User System (PEGASUS), a centralised
hub for enterprise GHG data for Scope 1 and Scope 2 emissions under Operational Control. The implementation of this dashboard has
facilitated efficient data monitoring and analytics, providing timely management of GHG data and enabling interventions.

We continue our efforts to upskill employees in GHG management to strengthen expertise. The GHG Community of Practice,
launched in August 2024, fosters knowledge-sharing and capability-building across the organisation. As part of the Decarbonisation
Programme training, the Basic GHG Accounting module was introduced to institutionalise key competencies across operating units,
and their technical, operational, and strategic domains.
 5 Sustainability Performance Review 107

Independent GHG Emissions Data Verification

The GHG emissions verification process was conducted independently by LRQA Inspection Malaysia Sdn Bhd. This data verification
provides assurance on PETRONAS‘ emissions data, enhancing reporting reliability and transparency.

PETRONAS has set 2019 as the base year for tracking the progress towards achieving the Net Zero Carbon Emissions by 2050
Pathway targets. As part of our efforts to enhance the reliability of disclosed GHG emissions data, PETRONAS has embarked on
a three-year external verification exercise from 2023 to 2025, based on ISO 14064-3:2018. Independent assurance has been
obtained as follows:

GHG Accounting Level of Data in Boundary GHG Scope

Approach Assurance Years
PETRONAS Core Business Operations
Operational Control Limited 2023 Scope 1 and 2
(Upstream, Gas and Downstream)
PETRONAS Core Business Operations
Operational Control Reasonable 2024 Scope 1 and 2
(Upstream, Gas and Downstream)
Equity Share Limited 2019 - 2023 PETRONAS Groupwide Operations Scope 1 and 2
Scope 3
Operational Control and PETRONAS Core Business and
Limited 2019 - 2023 (Category 11:
Equity Share Groupwide Operations
Use of Sold Products)

As a result of the independent assurance exercise, some historical GHG data have been restated.

Strengthening Methane Emissions Management

We are committed to enhancing transparency, strengthening methane emissions management and building stakeholder trust in
support of our emissions reduction efforts. To align with industry standards, we are a signatory to the following initiatives:

- Methane Guiding Principles (2020)

- World Bank Zero Routine Flaring by 2030 Initiative (2021)
- Oil and Gas Methane Partnership 2.0 (2022)
- Oil and Gas Decarbonisation Charter (2023)
- Joint Statement on Decarbonisation and Methane Emissions Reduction from Organisations in the Southeast Asian Energy
Sector (2024)

Malaysia Petroleum Management plays a crucial role as the host authority in advocating and regulating methane emissions in
Malaysia's Upstream sector, supporting to achieve Malaysia's natural gas value chain methane emissions target.
108 PETRONAS • Integrated Report 2024

Delivering Net Zero

Scan the QR code to read more about the Scan the QR code to read more about the Scan the QR code to read more about the
PETRONAS Oil and Gas Methane Partnership 2.0 PETRONAS Methane Guiding Principles Report PETRONAS Zero Routine Flaring Report related to
Report related to the Signatory Commitments. related to the Signatory Commitments. the Signatory Commitments.

Oil and Gas Methane Partnership 2.0

By implementing standardised methodologies and tools under the Oil and Gas Methane Partnership 2.0 framework, we have
improved the accuracy and consistency of methane emissions reporting across different regions and operations.

Understanding the Oil and Gas Methane Partnership 2.0 Reporting Levels

The Oil and Gas Methane Partnership 2.0 framework for methane emissions reporting consists of five levels, each
offering increasing detail and accuracy. This tiered approach helps companies progressively improve their methane
emissions monitoring and reporting practices.

- Level 1 involves high-level estimation using generic emissions factors.

- Level 2 and 3 apply mass balance methods and specific component factors, respectively.
- Level 4 uses source-level measurements.
- Level 5 is referred to as the Gold Standard, requires reconciling source-level measurements with site-level data to
ensure comprehensive and accurate reporting.

In 2024, PETRONAS completed the Oil and Gas Methane Partnership 2.0 Level 3 methane emissions quantification across all
assets and began phased quantification of Level 4 and Level 5 at identified material assets. To enhance accuracy, we applied direct
measurements for the following sources, where deemed material:

Flare Measure flare volume using flowmeter readings to calculate flare efficiency based on actual site data and
gas composition determined through gas sampling.

Vent Measure vent volume using flowmeter readings and gas composition determined through gas sampling.

Pneumatic Measure emissions from all pneumatic devices in the process line using clamp-on flowmeter, measured at
devices the header.

Compressor Measure emissions at compressor seals using a Quantitative Optical Gas Imaging camera, which is
seal capable of detecting, measuring and quantifying methane emissions from fugitive sources, local vents and
compressor seals.
 5 Sustainability Performance Review 109

We also conducted site-level measurements and Level 5 PETRONAS engaged drone measurement service providers
reconciliation at selected assets, one year ahead of schedule. to conduct site-level methane emissions measurements at
The reconciliation exercise provided valuable insights to further selected material sites. These efforts represent a significant
improve our measurement and reporting practices of methane step forward in advancing methane emissions measurement
emissions. technologies, though challenges remain in measurement
accuracy, data collection methodologies and ensuring
In 2024, we achieved the Oil and Gas Methane Partnership continuous improvement. The maturity and suitability of these
2.0 Gold Standard Pathway for the second consecutive year, technologies across PETRONAS' global operations continue to
reinforcing our commitment to achieve Level 4 and Level 5 be key areas of focus, particularly in challenging geographical
reporting for operated assets by 2025 and non-operated assets locations as some countries have limitations on utilisation of
by 2027. drones or unmanned aerial vehicles.

We attained our methane emissions targets of a 50 per cent Methane Emissions Reduction Advocacy and Collaboration
reduction by 2025 for the Groupwide Natural Gas Value Chain
and a 50 per cent reduction by 2030 for Malaysia’s Natural Gas We continue to play a key advocacy role in accelerating
Value Chain, ahead of schedule. One of the key drivers of this global progress towards reducing methane emissions through
progress is our commitment to the World Bank's Zero Routine collaborative efforts. PETRONAS is championing methane
Flaring by 2030 Initiative, which has been incorporated into our emissions management beyond our own operations, as
internal guideline, the PETRONAS Carbon Commitments. This the original convenor of the ASEAN Energy Sector Methane
has contributed significantly to reducing methane emissions Roundtable, and by driving capacity building across Southeast
from our operations and has strengthened our readiness to Asia in support of the Methane Guiding Principle's Advancing
meet future regulatory requirements. Global Methane Reductions initiative. This commitment is
implemented through the ASEAN Energy Sector Methane
Deployment of Technologies for Enhancement of Methane Leadership Programme, which was first launched in June 2023.
Emissions Measurements and Reporting The second phase, announced in October 2024, is a joint
effort between 18 partners representing oil and gas producers,
We continue to enhance methane emissions management by technology providers, industry associations, international
exploring and piloting innovative measurement technologies organisations, government agencies and non-governmental
across our operations. To complement source-level organisations. The Methane Leadership Programme promotes
measurements, we have been testing site level measurements collaboration in the oil and gas sector among stakeholders
using drones, unmanned aerial vehicles, aircrafts and satellite through masterclasses and workshops focused on methane
technology to identify the most reliable, cost-effective site level emissions reduction plans, targets and financing options.
methane emissions measurement methods.

Through PETRONAS Research Sdn Bhd, we are collaborating

with Universiti Teknologi PETRONAS to develop video
image methane emissions quantification technology for
flare emissions. This artificial intelligence and machine
learning-driven technology, combined with computational
fluid dynamics analysis, will enable methane emissions
quantification based on video imaging from flare monitoring
cameras.
110 PETRONAS • Integrated Report 2024

Delivering Net Zero

Initiative 2024 Progress Update

ASEAN The 6th ASEAN Energy Sector Methane Roundtable was held in Indonesia. The Roundtable gathered
Energy Sector government representatives and programme members from the Philippines, Thailand, Indonesia, Laos and
Methane Cambodia to engage on how to translate methane emissions reduction pledges into action. A Methane
Roundtable Leadership Programme masterclass was held in conjunction with the Roundtable.

The 7th Roundtable was organised in conjunction with the 49th ASEAN Council on Petroleum (ASCOPE)
Council meeting, hosted by PETRONAS in Malaysia. The discussions explored specific strategies for
accelerating methane emissions reduction.

During the COP29 climate summit held in Baku, Azerbaijan, eight of the roundtable organisations issued the
’Joint Statement on Decarbonisation and Methane Emissions Reduction from Organisations in the Southeast
Asian Energy Sector‘. This statement outlines their ambition and commitment to support global priorities on
climate change and establish a regional methane emissions baseline.

Upstream Organised by PETRONAS through Malaysia Petroleum Management, a dedicated dialogue brought together
Asset 20 leaders from 16 Petroleum Arrangement Contractors and service providers across Malaysia, to discuss and
Management identify tangible opportunities for methane emissions reduction efforts across the oil and gas value chain.
Summit 2024

Global PETRONAS prominently promoted collaboration for methane emissions reduction through multiple
Advocacy international events, including the Advancing Global Methane Reductions Impact Conference at Baku Climate
on Methane Action Week, the Oil and Gas Methane Partnership 2.0 Forum, and the Oil and Gas Decarbonisation Charter
Emissions CEO gathering, held during the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC),
Management as well as at Malaysian events and dialogue forums.

Methane The first iteration of the Methane Leadership Programme concluded successfully, leading to the launch of
Leadership Methane Leadership Programme 2.0, in October 2024, that focuses on strengthening emissions reduction
Programme targets and enhancing coordination between business and government. The programme has expanded its
membership from 13 to 18, with PETRONAS obtaining Oil and Gas Methane Partnership 2.0 Gold Standard
Pathway for two consecutive years, while PTT Exploration and Production (PTTEP) and Pertamina have also
become signatories to Oil and Gas Methane Partnership 2.0, reflecting significant progress in regional methane
emissions management collaboration.

Southeast Under the Methane Leadership Programme 2.0, PETRONAS is collaborating with the Japan Organization for
Asia Methane Metals and Energy Security (JOGMEC) to establish the first Southeast Asia Methane Emissions Technology
Emissions Evaluation Centre (METEC). The centre will support regional methane emissions measurement, monitoring,
Technology reporting and verification efforts while driving research and development initiatives. It will be located at
Evaluation Institut Teknologi Petroleum PETRONAS (INSTEP) in Terengganu and Universiti Teknologi PETRONAS in Perak,
Centre Malaysia.
 5 Sustainability Performance Review 111

Maturing Scope 3 Emissions Quantification PETRONAS is taking progressive steps to further our
understanding of value chain emissions and their quantification.
PETRONAS recognises the importance of measuring and We are identifying areas for improvement and engaging with
reporting Scope 3 emissions in the oil and gas industry, as our stakeholders in the value chain to foster transparency and
well as in other businesses we operate in, to inform emissions develop effective strategies to reduce our Scope 3 emissions.
reduction efforts across value chains. According to the GHG
Protocol, Scope 3 emissions are indirect emissions that are In 2024, we launched the PETRONAS Supplier Support
emitted as a consequence of our activities, but occur from Programme to improve suppliers’ maturity in sustainability,
sources that are not owned or controlled by PETRONAS. including emissions disclosure. We support value chain
emissions reporting through the Bursa Malaysia Centralised
Guided by the document 'Estimating Petroleum Industry Sustainability Intelligence (CSI) Solution, which promotes the
Value Chain (Scope 3) Greenhouse Gas Emissions' by Ipieca, disclosure of carbon emissions and other indicators across
a global oil and gas association for advancing environmental the Malaysian industry. Additionally, we continue to explore
and social performance across the energy transition, the use targeted emissions reduction opportunities, where possible.
of sold products is typically the most significant contributor Current efforts include battery swap services for two-wheelers
to emissions for fuel-producing companies and accounts for in India and electric vehicle charging services across Southeast
more than 80 per cent of total Scope 3 emissions. Asia. We are also undertaking a co-combustion ammonia
test with Tenaga Nasional Berhad, a leading Malaysian utility
To strengthen our understanding of PETRONAS' Scope 3 company with international operations, and examining
emissions, we conducted a quantification study across all 15 Carbon Capture and Storage (CCS) with third-party customer
Scope 3 categories to assess their materiality within our value organisations.
chain in accordance with the GHG Protocol, Ipieca and peer
benchmarking. Through the materiality assessment, PETRONAS Growing Lower-Carbon Energy Solutions
identified two material Scope 3 categories: Category 11 (Use
of Sold Products) and Category 1 (Purchased Goods and PETRONAS is advancing lower-carbon energy solutions
Services). In 2024, PETRONAS Groupwide quantified emissions through a diverse portfolio. We are leveraging strategic
from Category 11 was 298.16 million tonnes CO2e (Operational partnerships, technological innovation and large-scale projects
Control approach) and 292 million tonnes CO2e (Equity Share to deliver on our Energy Transition Strategy. Currently, six
approach). Meanwhile, Category 1 was 23.88 million tonnes New Business growth areas are being pursued to strengthen
CO2e (Operational Control approach). and diversify the portfolio, which include renewable energy,
hydrogen, green mobility, CCS, biofuels and specialty
Addressing Scope 3 emissions is a complex and challenging chemicals. Through disciplined investments and effective
task. It involves emissions that are not within the direct control project management, both internally and through new
of the energy producer, originating from various sources, partnerships, we aim to strategically scale our presence in
including suppliers and consumers. These emissions can be these areas to meet the evolving demands of the energy
difficult to quantify due to limited data availability and lack of landscape.
transparency across value chains.

Cumulative Renewable Energy Installed Capacity

(megawatts)

Malaysia International Total

2,790

2,704
1,621
1,086
851
644 1,543
1,005
822
625

19 29 81 78 86

2020 2021 2022 2023 2024

Please refer to Strategic Review: New Business on pages 70 to 77.

112 PETRONAS • Integrated Report 2024

Thriving with Nature

Nature and biodiversity are fundamental to

sustaining life and ensuring the resilience
Imbak Canyon Conservation Area in the heart of Sabah, Malaysia is home
of ecosystems that support communities, to a variety of flora, fauna and unique landscapes.
economies and industries, including the
energy sector. As a responsible energy Our Material Topics
business, PETRONAS recognises that our
operations depend and have an impact on
natural ecosystems, and we are committed to
addressing our environmental footprint.

Through sound environmental management

practices, we strive to use natural resources
responsibly, integrate biodiversity considerations
Nature and Biodiversity 113
into our operations, and promote circular
economy principles to reduce waste and Environmental Management 118

maximise resource efficiency. Circular Economy 124

 5 Sustainability Performance Review 113

NB Nature and Biodiversity

Why This Is Important to Us Our Approach

Biodiversity is essential for sustaining ecosystems that provide fresh We aim to make a positive impact on nature and
water, food, medicine and climate regulation. The balance of life biodiversity by engaging in practices that restore, protect
on land and in the ocean supports livelihoods, human well-being and conserve nature and biodiversity in Malaysia and the
and economic stability. The loss of biodiversity threatens these countries in which we operate. PETRONAS recognises that
vital services. Furthermore, forests and wetlands absorb carbon, climate and nature are interconnected. Evidence shows
protect coastlines and provide habitats for species. Without them, that robust and healthy ecosystems can aid in combating
the effects of climate change worsen, putting communities, climate change while also building resilience and enabling
economies and industries at risk. us to adapt to climate impacts.

PETRONAS operates in diverse and ecologically sensitive The PETRONAS Position on Nature and Biodiversity
environments. Our ability to responsibly manage our operations in addresses environmental concerns and expresses our
relation to nature is essential to maintaining our social licence to intent to integrate biodiversity considerations into
operate, mitigating environmental risks, and ensuring long-term our business practices. This policy document aims to
business resilience. strengthen oversight of our nature and biodiversity
footprint, and support the delivery of our Net Zero Carbon
Biodiversity loss and ecosystem degradation can directly impact Emissions by 2050 Pathway. Our approach is informed by
our operations, supply chains and surrounding communities, as international agreements, global frameworks and national
a healthy, natural environment is essential not only for sustaining policies, and is delivered through five key areas of action.
ecosystems but also for supporting economic development. We are also scaling up our participation in the voluntary
carbon markets.

PETRONAS Position on Nature and Biodiversity

1 2 3 4 5

Promoting nature
Supporting public Promoting high-
Establishing Managing nature and biodiversity
policy that aims quality nature-
voluntary and biodiversity through
to protect nature based climate
exclusion zones risks partnerships and
and biodiversity solutions
collaborations
114 PETRONAS • Integrated Report 2024

Thriving with Nature

Our Action Plan

In 2024, guided by the PETRONAS Position on Nature and Biodiversity, we strengthened our commitment by enhancing risk
assessments, embedding governance processes, integrating nature considerations into Groupwide decision-making and deepening
partnerships to support conservation.

PETRONAS Position on Nature and Biodiversity - Five Areas of Action

Establishing As of 2024, we have committed to not starting any new operations or projects within UNESCO
1 World Heritage Sites. During the year, we screened 273 potential new projects to ensure none were
voluntary
exclusion zones located in or overlapped with these sites, Protected Areas or Key Biodiversity Areas. This safeguards
globally significant ecosystems and cultural heritage. The effort reflects our implementation of
Areas of Action 1 and 2 outlined in our Position.

Managing nature We recognise the importance of conserving nature and biodiversity, and strive to ensure no or
2 minimal impact from our existing operations and projects. Starting in 2024, we aim to achieve net
and biodiversity
risks positive impact on biodiversity for new projects in Protected Areas and Key Biodiversity Areas. We
will establish a site-specific inventory of important biodiversity features at our existing locations and
consider additional conservation measures using a risk-based approach.

• In 2024, we completed a Biodiversity and Ecosystem Services Risk Profiling exercise for our
existing international assets by analysing the 'Likelihood' and 'Severity' of operational impacts on
surrounding nature and biodiversity.
• This exercise identified one asset categorised as ‘Very High’ risk and one as ‘High’ risk. We will
evaluate the effectiveness of existing mitigation measures at these sites through the Biodiversity
and Ecosystem Services Risk Assessment.
• A Biodiversity Action Plan will be developed for assets requiring further improvements in risk
mitigation, while best practices will be documented for assets with adequate risk mitigation
already in place.

Promoting PETRONAS promotes nature and biodiversity through partnerships and collaborations, working
3
nature and with the Malaysian Government, global organisations, industry associations, the private sector and
biodiversity communities to drive action in addressing biodiversity loss in countries where we operate.
through
partnerships
and Key Engagements in 2024
collaborations
Ipieca
PETRONAS co-led the oil and gas industry discussions, through the Ipieca Nature Positive
Taskforce, on developing industry-specific metrics and targets for nature and biodiversity.
These discussions are pivotal in strengthening collective industry actions and refining
approaches to integrating Nature Positive principles into business strategies.

WBCSD Nature Action

PETRONAS actively supported and engaged in the World Business Council for Sustainable
Development (WBCSD) Nature Action working group, by contributing insights and collaborating
with industry peers.
 5 Sustainability Performance Review 115

Supporting We support the Kunming-Montreal Global Biodiversity Framework and Malaysia's National Policy
4 public policy on Biological Diversity. We also recognise the nature and biodiversity policies and ambitions of the
that aims to countries in which we operate.
protect nature
and biodiversity
Key Engagements in 2024

Nature and Biodiversity Dialogue for Business

PETRONAS organised, in collaboration with the Malaysian Ministry of Natural Resources and
Environmental Sustainability, a Malaysian private-sector dialogue session to gather input ahead
of the 16th meeting of the Conference of Parties (COP16) to the Convention on Biological
Diversity, held in Colombia. The discussion provided valuable insights on adopting a nature-
positive approach to business development.

ASEAN Business and Biodiversity Forum

PETRONAS hosted the ASEAN Business and Biodiversity Forum, organised in partnership
with the ASEAN Centre for Biodiversity and the Malaysian Ministry of Natural Resources and
Environmental Sustainability. The forum brought together governments, private sectors,
non-governmental organisations and the academia to share their experiences in addressing
climate change, biodiversity loss and pollution, through proactive investments and activities.

Malaysia Platform for Business and Biodiversity

PETRONAS provided key inputs on opportunities for the private sector in addressing biodiversity
loss, as part of our contribution to the Business and Biodiversity Strategic Roadmap and
Action Plan for Malaysia. This Roadmap aims to establish a coherent policy direction, enabling
businesses across Malaysia to take a unified and collective approach to nature and biodiversity.
It also seeks to mainstream biodiversity by translating global ambitions into national policies.

Promoting As part of our aspiration to achieve our Net Zero Carbon Emissions by 2050 Pathway, protecting
5 high-quality nature and biodiversity is an integral part of supporting nature-based solutions. We actively explore
nature-based opportunities to invest in high-quality nature-based solutions that apply internationally recognised
climate certification standards.
solutions
PETRONAS signed a Memorandum of Understanding with the Sarawak Forestry Corporation to
explore and develop Nature-based Solutions (NbS).
116 PETRONAS • Integrated Report 2024

Thriving with Nature

PETRONAS Canada Leading Sustainable Operations in Biodiversity and

Resource Management

Site visit as part of the Biodiversity and Ecosystem Services Risk Assessment exercise for PETRONAS operations in Canada.

Since adopting the PETRONAS Position on Nature and Biodiversity in 2022, we have worked actively to integrate biodiversity
protection into our operations, acknowledging that nature-related issues are location-specific, and require localised assessments
and responses.

In 2024, a Biodiversity and Ecosystem Services Risk Profiling exercise was carried out for PETRONAS’ operations in Canada to
evaluate potential inherent nature and biodiversity risks. As the assessment did not factor in existing mitigation measures, the
Group’s Upstream asset in Canada was initially categorised as ‘Very High’ risk, primarily due to the biodiversity sensitivities around
the asset, including the presence of the woodland caribou, a species at risk.

Following a review of PETRONAS Energy Canada Ltd. (PETRONAS Canada) internal frameworks, management plans, processes
and partnerships with competent advisors and First Nations communities to incorporate nature and biodiversity considerations
into daily operations, the risk rating was lowered to ‘Medium’.

Best practices implemented at the site include improving water use efficiency in response to historical water stress in the
operating area. PETRONAS Canada also developed a system capable of achieving a 99 per cent recycling rate of produced water.
The recycled water not only meets operational needs but is also shared with other producers, at no cost.

PETRONAS Canada’s approach to biodiversity restoration goes beyond compliance, guided by a ‘construct with the end in mind’
philosophy. PETRONAS Canada aims to restore the land by prioritising ecosystem function and cultural priorities, rather than just
vegetation regrowth. Old sumps are used as experimental plots to determine the most effective restoration methods, including
seeding, mounding and varying degrees of coarse woody debris. Monitoring plays a key role in evaluating the effectiveness of
these restoration initiatives.

To further strengthen land stewardship efforts, PETRONAS Canada is also developing a mechanism to establish an environmental
offset bank, supporting broader conservation goals and long-term ecological resilience.
 5 Sustainability Performance Review 117

PETRONAS and Sarawak ForestryPETRONAS

Corporation
Planting
collaborate
Tomorrow
on
Nature-based Solutions
PETRONAS and the Sarawak Forestry Corporation signed a Memorandum of
Understanding to identify potential sites in Sarawak for developing Nature-
based Solutions (NbS) projects aimed at conserving and restoring natural
ecosystems to remove greenhouse gas emissions, and providing benefits
for local communities and biodiversity. These projects must also meet high-
quality, internationally recognised certification standards to ensure integrity and
effectiveness.

The effort reflects the importance of collaboration on NbS to sequester carbon

emissions and support forest conservation. The partnership with Sarawak
Forestry Corporation will allow PETRONAS to unlock the potential of NbS while
benefiting the environment and local communities.

Carbon credits generated through NbS play a vital role in PETRONAS' strategy
to offset residual and hard-to-abate emissions, supporting our Net Zero Carbon
Scan the QR code for link
Emissions by 2050 Pathway. PETRONAS follows a carbon mitigation hierarchy
to the media release. that prioritises avoiding and reducing emissions before offsetting them.

PETRONAS Planting Tomorrow

Nurturing Ecosystems and Empowering Communities

The Planting Tomorrow programme integrates biodiversity conservation, community resilience and sustainable development.

Through collaboration with government agencies, local communities and non-governmental organisations, we strive to target
initiatives on waste management, terrestrial ecosystem restoration and disaster preparedness. These efforts are designed to
address environmental challenges on the ground while delivering measurable outcomes.

One example is the nature-based climate adaptation framework funded by Yayasan PETRONAS to empower local authorities
and communities in Batu Pahat, Johor, Malaysia. The initiative not only offers insights into the development of future climate
adaptation strategies, but also improves community preparedness for extreme weather events and long-term climate risks.

In China, we engaged around 945 students in environmental awareness through a speech competition on sustainability solutions.

In support of reforestation, we planted more than 10,000 trees at the Sabah Kungkular Forest Reserve and more than 980
mangroves at the Selangor Banjar Forest Reserve, both in Malaysia, and an additional 10,000 mangroves in Gresik, Indonesia.

We also deployed 50 cheeseblock artificial reef structures in collaboration with the Malaysian Department of Fisheries at the
Redang Island Marine Park, Terengganu, Malaysia, to enhance marine biodiversity, boost ecotourism and drive economic growth
for coastal communities.

Yayasan PETRONAS' strategic partnerships with the Department of Fisheries and Sabah Biodiversity Centre promote and advance
seagrass mapping and conservation in Peninsular Malaysia and Sabah. Through these partnerships, we engage in educational and
awareness initiatives for local communities, highlighting the significance of seagrass ecosystems and strengthening community
resilience against future climate challenges.

PETRONAS will continue to strengthen our commitment to environmental stewardship and aim to make a positive impact by
restoring, protecting and conserving nature and biodiversity, where possible. This includes enhancing risk assessment practices,
integrating biodiversity considerations into decision-making and embedding them into our business strategies. We will also expand
our efforts in NbS to help unlock Malaysia’s potential in carbon markets.
118 PETRONAS • Integrated Report 2024

Thriving with Nature

EM Environmental Management

Why This Is Important to Us Our Approach

Environmental management is critical to PETRONAS applies a structured approach to environmental management,

PETRONAS because it directly impacts our ensuring our assets adhere to relevant regulatory and industry standards for
ability to operate responsibly, safeguard air emissions, wastewater, waste, water use and spill prevention. We integrate
ecosystems and maintain long-term pollution prevention and resource conservation measures into our facility design,
business resilience. reinforcing our commitment to minimising environmental impact from
the outset.
We focus on resource use and management
of waste, air emissions, water and oil spill Advancements in sensor technology and process controls enhance our ability to
prevention to reduce the environmental monitor pollution, comply with regulations and improve efficiency. We leverage
impacts across our operations and support online sensors that provide real-time data on air emissions and wastewater
long-term ecological balance. We are discharges to enable proactive intervention. We also track key environmental
committed to ensuring that our products performance indicators and leverage digital tools to monitor hazardous waste
comply with all relevant regulations and are generation, treatment and disposal. Our site-specific environmental management
developed, transported, used and disposed of plans ensure that our operations and projects prioritise environmental safeguards.
safely and responsibly.
We work closely with authorities, suppliers and other stakeholders to drive
responsible practices across our value chains. By fostering a strong culture of
compliance and sustainability, we encourage the adoption of practices that
reduce environmental impact while strengthening long-term
operational resilience.

Guided by International Principles, Guidelines and Standards

Our environmental management approach aligns with internationally recognised principles, guidelines and standards to ensure
best practices across our operations, as follows:

World Bank/ Host Country

Guidelines from Ipieca Standards for the Global Reporting
International Finance
and International Corporation Group Design and Operation Initiative 2021
Association of Oil & Environmental, Health of Pollution Prevention Standards
Gas Producers and Safety Guidelines and Control Equipment

Maximising Waste Value through Circular Economy

PETRONAS integrates circular economy principles to minimise waste, extend material life cycles and optimise resource use.
We actively support efforts to reduce, reuse and recycle plastics while applying the same approach to industrial waste and
decommissioned assets to reduce landfill disposal and maximise resource recovery. Through waste valorisation and waste-to-
products initiatives, we convert by-products into valuable raw materials, reducing pollution at the source. By closing resource loops
within our operations and supply chain, we lower our overall environmental impact.
Please refer to Circular Economy on pages 124 to 129.
 5 Sustainability Performance Review 119

Our Performance

Waste Management

Our waste management strategies are structured based on the specific type, volume and frequency of generation to ensure its
proper handling, treatment and disposal are in line with country requirements and industry best practices.

Waste 2022 2023 2024

Total Hazardous Waste Generated (tonnes)
Malaysia 82,051 66,444 80,116
International 62,569 85,593 107,178
Total 144,620 152,037 187,294

Total Hazardous Waste Reused, Recycled and Recovered (3R) (tonnes)

Malaysia 63,133 52,147 55,707
International 10,510 5,277 2,876
Total 73,643 57,424 58,583

Total Hazardous Waste Disposed (tonnes)

Malaysia 24,449 20,023 17,562
International 52,036 76,287 104,247
Total 76,485 96,310 121,809

A total of 121,809 tonnes of hazardous waste was disposed in 2024 compared with 96,310 tonnes in 2023. The increase in waste
disposal is mainly attributed to limited waste recycling options.

Air Emissions

PETRONAS strives to reduce air emissions across our operations, where possible, through monitoring, control measures and
technological advancements. We ensure compliance with regulatory requirements while continuously improving our approach to
emissions management.

We use an online monitoring platform to track air emissions 24/7, assess risks and detect rising emissions trends early. Our
approach includes periodic sampling of Sulphur Oxides (SOx) and Nitrogen Oxides (NOx) to ensure compliance with regulatory
requirements and minimise environmental impact.
120 PETRONAS • Integrated Report 2024

Thriving with Nature

Beyond monitoring, we implement emissions reduction strategies such as optimising combustion efficiency, adopting new
technologies and reducing gas flaring and venting activities.

Air Emissions Enhancing Air Emissions Management

101,695
through Secure and Efficient
92,017 Monitoring
In 2024, we enhanced the PETRONAS Continuous
Emissions Monitoring System, a centralised platform
62,790 that connects all continuous emissions units across our
60,116 60,212
operations. This live dashboard displays the status of air
59,400
emissions by equipment, allowing for remote monitoring
and early intervention. Several measures have been
incorporated in the system including access control,
authentication, encryption, authorisation and surveillance
to avoid cyber security breaches and strengthen security
measures across all operations, helping to reduce the risk
2022 2023 2024 of operational disruptions.

Total Sulphur Oxides Emissions (tonnes)

Please refer to our efforts on reducing flaring and venting, and methane
Total Nitrogen Oxides Emissions (tonnes) emissions reduction activities on pages 102 to 103.

Nitrogen Oxides emissions decreased to 92,017 tonnes in 2024

from 101,695 tonnes in 2023 mainly due to lower fuel gas
consumption from our maritime operations.

Water Management

We prioritise water accounting, availability assessment and efficient utilisation to ensure responsible freshwater management. Our
policies, standards and practices are designed to optimise freshwater use while promoting water circularity. All of the freshwater
utilised in our operations is sourced from rivers, where 77 per cent is withdrawn from non-water stressed regions.

Phosphate Elimination for Enhanced Water Efficiency

In 2024, we improved our water management by implementing a non-phosphate programme under the Phosphate Elimination
at Cooling Water Environment initiative, which was piloted at a refinery in Malaysia. This initiative removes phosphate from the
cooling water, reducing the risk of calcium phosphate deposition and optimising the reusability of water with lower scaling
or chemical deposition. This minimises the need for turnaround cleaning. As a result, we achieved freshwater savings of up
to 3,000 cubic metres per month in 2024. Moving forward, we plan to expand this programme to all cooling water systems,
ensuring continuous improvements in water efficiency.
 5 Sustainability Performance Review 121

Water

Freshwater Withdrawal (million cubic metres per year)

By Business

1.4 3.2
2024 66.5 11.4 82.6

1.3 3.3
2023 63.4 11.3 79.2

1.3 2.2
2022 63.3 11.2 77.9

Upstream Downstream Gas and Maritime Corporate and Others

By Geography

81.4 81.4
76.8

1.1 1.1 1.2

2022 2023 2024

Malaysia International

Our freshwater withdrawal increased by 4 per cent to 82.6 million m3 due to additional requirements from the start-up operations.
122 PETRONAS • Integrated Report 2024

Thriving with Nature

Oil Spill Prevention

Our oil spill response management, including the Oil Spill Response Capability Assessment, Spill Impact Mitigation Assessment,
Oil Spill Response Plan and Oiled Wildlife Response, strengthens our preparedness and response capabilities. We prioritise
prevention and effective recovery by maintaining asset integrity, adherence to the PETRONAS Technical Guideline for Standard
Operating Procedure, and equipping our personnel with technical capabilities as per international standards, such as those issued
by the International Maritime Organization.

Hydrocarbon Spills Over One Barrel

Spillage

2022 2

2023 5

2024 10

In 2024, we recorded an increase in the number of hydrocarbon spills over one barrel due to factors such as operational handling,
connection failures and breaches in secondary containment. To prevent recurrence, we have intensified site supervision, introduced
upskilling programmes for frontliners, and undertaken more rigorous inspections of secondary containment systems to strengthen
spill prevention.

PETRONAS will continue to enhance environmental management, particularly in hazardous waste reduction, freshwater withdrawal
optimisation and air emissions control.

Our PETRONAS Continuous Emissions Monitoring System will also undergo further improvements to ensure seamless compliance
reporting and enhanced air emissions monitoring. To further strengthen oil spill response preparedness, we will continue to
enhance capability-building programmes, industry benchmarking, and structured assessments to improve response capabilities and
operational readiness.
 5 Sustainability Performance Review 123

Product Stewardship In 2024, the PETRONAS Toxicology Laboratory achieved a

major milestone by establishing five non-animal test methods,
We reinforce product stewardship practices that align with validated by the Organisation for Economic Co-operation and
global industry benchmarks and embed such principles Development's (OECD) Guidelines for the Testing of Chemicals,
aimed at meeting, and where feasible, exceeding, regulatory covering toxicity endpoints for chromosomal damage, eye
and industry expectations. This includes integrating safety, damage, skin sensitisation and ecotoxicity endpoint for
environmental responsibility and ethical governance into our Daphnia immobilisation. With this addition, the laboratory now
product life cycle management. For instance, PETRONAS’ offers a total of 12 non-animal OECD-validated test methods
fertiliser product was certified under the International Fertilizer for assessing human health and ecological hazards of products
Association's Protect & Sustain programme, scoring above under research and development, strengthening its capabilities
95 per cent and exceeding the Product Stewardship Excellence in advancing safer, more sustainable innovation.
rating requirement of 80 per cent. This certification involves
comprehensive assessments that encompass management
system, product development and planning, sourcing and
contractor management, manufacturing techniques, supply
chain, marketing, sales and application. Our approach aims
to ensure that every product we develop, manufacture and
distribute adheres to stringent safety protocols, environmental
standards and responsible business practices.

PETRONAS MG3DF

We prioritise product safety and regulatory compliance to

ensure our solutions meet the highest environmental and
health standards. In 2024, we conducted ecotoxicity tests on
our products, including MG3DF, a synthetic drilling base fluid
Ceremony marking the inauguration of PETRONAS Toxicology Laboratory.
derived from Low Sulphur Waxy Residue feedstock.

Product Sustainability
The results of the ecotoxicity testing confirmed that
MG3DF exhibits low toxicity to both aquatic and sediment-
Product sustainability addresses the environmental and social
dwelling organisms. The product also demonstrated ready
impacts of products throughout their life cycle, ensuring
biodegradability in marine environments, advancing our
they are more sustainable, circular and resource efficient. It
responsible environmental stewardship in product use.
is operationalised through five key focus areas comprising
In 2025, we aim to register MG3DF under the Offshore
environmental footprint, circular economy, sustainable supply
Chemical Notification Scheme, which is a key step in ensuring
chain, product disclosure, and declaration and carbon tax
international regulatory compliance and maintaining market
regulation.
competitiveness.

Life Cycle Assessment is a science-based approach used to

Toxicology
assess the environmental impacts of a product throughout
its life cycle, guided by ISO 14040/44 and ISO 14067.
PETRONAS regularly conducts product data reviews to ensure
PETRONAS is establishing a life cycle assessment baseline of
all product hazards are accurately profiled in accordance with
its product portfolio to systematically assess its environmental
relevant regulations in markets where our products are sold.
performance. In 2024, we completed life cycle assessments
Toxicological and eco toxicological tests are performed to
for 47 products and finalised the life cycle assessment baseline
close data gaps. The newly-established PETRONAS Toxicology
for our gas processing plants in Malaysia and a series of base
Laboratory facilitates toxicity and ecotoxicity assessments
oils. Notably, PETRONAS piloted the life cycle assessment for
at the early stages of research and development to identify
Sustainable Aviation Fuel and introduced governance structures
potential human health and ecological hazards of candidate
within the New Product Development framework to ensure
chemicals.
that sustainability principles are embedded into every stage of
our product innovation.
124 PETRONAS • Integrated Report 2024

Thriving with Nature

CE Circular Economy

Why This Is Important to Us

PETRONAS recognises the need to move away from the linear 'take-make-waste' model and adopt a more sustainable approach
to resource stewardship. We aim to mitigate our environmental impact while safeguarding natural resources by promoting the
sustainable use of finite materials through bio-based chemicals, low-carbon and carbon dioxide utilisation, and circular economy
solutions. Circular economy practices, such as repurposing, repairing, reusing and recycling, extend material life cycles, minimises
waste and reduces dependency on raw materials.

Our commitment to circularity also supports carbon footprint reduction through circular carbon systems that prioritise reducing,
reusing, recycling as well as removing GHG emissions. These efforts contribute to our sustainability objectives by promoting
cleaner and more efficient operations. In addition to environmental benefits, circularity stimulates innovation and business
opportunities by fostering new technologies, business models and circular supply chains. Converting waste into valuable
products presents an opportunity to create new revenue streams for the Group while conserving resources and reducing costs.
Collaborations and partnerships can further optimise resource use by distributing risks and pooling investments.

Our Approach

A holistic approach to the circular economy is applied through the PETRONAS Five Approaches to Circular Economy, which are
bio solutions, waste to products, circular carbon, repurpose and reuse, and the sharing model. Circular economy projects across
PETRONAS vary in scale and maturity. We also focus on addressing single-use plastics and championing a New Plastics Economy
to minimise environmental impact and unlock new value streams.

According to the Ellen MacArthur Foundation, the New Plastics Economy applies the principles of circular economy and brings
together key stakeholders to rethink and redesign the future of plastics, with a vision that plastics never become waste.

The use of bio-based inputs or products to reduce dependency on finite

Bio Solutions
materials.

Waste to The change of waste to base materials or other products to create

Products new revenue lines.

PETRONAS' Five
Circular Closed loop system involving 4Rs (reduce, reuse, recycle, remove)
Approaches to Carbon to manage GHG emissions.
Circular Economy

Repurpose Life cycle extension of materials or facilities to their original or

and Reuse new purpose to reduce waste.

Optimisation of resources via shared platforms to increase cost efficiency and

Sharing Model
reduce waste.
 5 Sustainability Performance Review 125

Our Action Plan

Bio Solutions

PETRONAS is broadening the biofuels value chain beyond trading to establish a comprehensive bio-based ecosystem in Malaysia. This
initiative aims to enhance sustainable practices, optimise resource utilisation, reduce carbon emissions and promote circular carbon
systems. Some examples include:

i) Biorefinery at the Pengerang Integrated Complex

A new biorefinery at the Pengerang Integrated Complex in Johor, Malaysia, developed in collaboration with Enilive S.p.A, and
Euglena Sustainable Investment Limited, is expected to be operational by the second half of 2028. The biorefinery is targeting a
production of 650,000 tonnes per year of biofuel products, such as Sustainable Aviation Fuel, Hydrogenated Vegetable Oil and
bio-naphtha from waste and residue feedstocks, including used vegetable oils, animal fats, waste from vegetable oil processing
and other biomass. Additionally, we will explore the use of microalgae in the medium term.

The biorefinery will enable PETRONAS to respond to growing biofuel demand and strengthen Malaysia’s role in the global
biofuels market by providing a reliable supply of Sustainable Aviation Fuel and Hydrogenated Vegetable Oil, driving innovation and
economic growth.

ii) Emfinity® CGSA 200B

PETRONAS Chemicals Group Berhad introduced Emfinity® CGSA 200B, a bio-based emollient designed for skincare and
cosmetics applications. This marks our first entry into the bio-based personal care sector.

iii) Used Cooking Oil Collection

Following the successful pilot project on recycling used cooking oil by PETRONAS’ Refining, Marketing and Trading business,
PETRONAS Dagangan Berhad has since expanded the initiative into its Social Impact Flagship Programme, growing from three to
54 stations nationwide as of December 2024.

In collaboration with the Ministry of Plantation and Commodities, PETRONAS Dagangan Berhad aims to increase the volume
of used cooking oil collected while promoting circular economy practices. Communication, education and public awareness
activities were implemented in collaboration with municipal councils and institutions to drive public participation. These included
the Ikhlas Ramadan Bersama Gas PETRONAS 2024 events at five Ramadan bazaars with the Subang Jaya City Council and
Kuala Lumpur City Hall, recycling competitions organised with the Penang Island City Council and awareness programmes with
Universiti Teknologi MARA.

Since its inception, the programme has collected more than 700,000 kilograms of used cooking oil and benefitted over 190,000
individuals across Malaysia.
126 PETRONAS • Integrated Report 2024

Thriving with Nature

Waste to Products

We view waste as a potential resource that can be transformed into new value streams. By converting waste into base materials or
new products, we reduce reliance on raw materials, enhance operational efficiency and create sustainable revenue opportunities.
Some examples of these products include:

i) Used Lead-Acid Batteries to New Automotive Batteries

PETRONAS Chemicals Olefins, Glycols and Derivatives recycles used lead-acid batteries to produce new automotive batteries.
Besides recovering precious metals from used lead-acid batteries for recycling, the initiative has also contributed to profit
generation and cost avoidance related to disposal.

ii) New Plastics Economy

PETRONAS is committed to transitioning to a New Plastics Economy by addressing challenges posed by single-use plastics.
This approach focuses on minimising waste, promoting responsible waste management and reducing reliance on raw materials.
By supporting a circular supply chain, we extend material life cycles through recycling, reuse and recovery mechanisms.

The New Plastics Economy fosters innovation in waste reduction, recovery and recycling technologies, promoting sustainable
practices that minimise waste and address plastic pollution. We continue to actively assess novel recycling methods to further
support our ambitions.

Our efforts in plastic circularity and waste management include eliminating unnecessary single-use plastics in company
operations, developing systemic collection and recycling mechanisms, and participating in global initiatives such as Operation
Clean Sweep® to prevent plastic resin loss.

PETRONAS’ New Plastics Economy Workstreams

Innovation Infrastructure

Partner with technology providers to transform plastic Develop strategic partnerships and collaborations for an
waste into circular polymers, boosting efficiency and effective, sustainable waste recovery system.
reducing impact.

Education Clean-Up

Impart knowledge and education of plastic use and Enhance awareness of caring for the environment through
waste to address misconceptions and promote change in reduce, reuse and recycle (3R) education, social impact
behaviour and culture. activities and green campaigns.
 5 Sustainability Performance Review 127

PETRONAS Planting Tomorrow

Advancing Circular Solutions for Sustainable Communities

In supporting the circular economy, one of our priority areas is to cultivate sustainable waste management practices in the
communities where we operate. Led by our subsidiary PETRONAS Chemicals Group Berhad, the programme involves clean-up
initiatives and aims to educate local communities on the importance of environmental preservation through proper waste and
plastic management. The programme fosters responsible waste management behaviour and helps reduce plastic leakage into
the environment. In 2024, PETRONAS Chemicals Group Berhad expanded its reach by doubling the number of schools engaged
from 50 in 2023 to 100. Additionally, river and beach clean-up initiatives in Thailand and Indonesia promoted collaborative
sustainability efforts between neighbouring countries, diverting more than 20,000 kilograms of plastics from entering the oceans.

We also launched a signature programme on sustainable waste management in Terengganu, Sabah and Sarawak, Malaysia,
focusing on three key activities, which are clean-up drives, upskilling workshops and sustainability education at schools. The
clean-up activities collected a total of 1,657.65 kilograms of waste and we provided upskilling workshops for 280 participants on
managing plastics, textiles and used cooking oil. Of these, 211 participants attended a sustainability awareness workshop, while
191 joined a business and marketing workshop aimed at helping them explore ways to convert waste into useful products such
as coasters, beads, soaps and bags. We also introduced proper waste management practices in 14 Duta Guru schools, engaging
students through hands-on activities using the Plastic, Sustainability and You Education module published by PETRONAS
Chemicals Group Berhad and made publicly accessible on its website.

In another effort, QuinTerra, a social enterprise nurtured through SEEd.Lab, addresses food waste by converting discarded food
into resources for a closed-loop sustainable farming system. Organic waste is repurposed to cultivate fish and vegetables,
creating a sustainable source of fresh produce. In recognition of its impact, QuinTerra was selected to represent Malaysia at the
ASEAN Circular Economy Forum 2024 in Thailand. As of December 2024, the enterprise has benefitted 319 lives and processed
3,092 kilograms of waste, which helped cultivate 874 kilograms of fish and water spinach.

Circular Carbon

PETRONAS has been practising circularity initiatives for over a decade. Boil-off Gas from Liquefied Natural Gas (LNG), which is
generated from LNG tanks and during the loading of LNG ships, is reliquefied at the Boil-off Gas Reliquefication Unit and converted
back into LNG. This method offers not only a more sustainable alternative to gas flaring, it also provides a higher product value for
Boil-off Gas in its liquefied form, as compared to consumption in fuel gas form.

In addition, flaring and venting reduction efforts are helping to lower emissions, with Upstream business advancing towards zero
routine flaring and continuing work on methane emissions management. Flare and vent gas recovery projects at our Upstream
facilities leverage cost effective and operational excellence approaches that maximise gas utilisation in terms of gas export for sales,
and gas reinjection into wells for reservoir pressure maintenance.
Please refer to Delivering Net Zero on pages 92 to 111.
128 PETRONAS • Integrated Report 2024

Thriving with Nature

Repurpose and Reuse

PETRONAS embraces repurposing and reusing by extending the life of materials and facilities, whether through continued use, new
applications or responsible decommissioning.

Decommissioning

Decommissioning is a critical phase in the life cycle of industrial structures, which requires careful planning to minimise
environmental impact and ensure safety. PETRONAS, through Malaysia Petroleum Management, applies a Decommissioning
Options Assessment* for each project to ensure that decommissioning activities are environmentally sound and align with best
practices.
Note:
* Decommissioning Option Assessment is a process used to evaluate and compare different methods for decommissioning facilities, such as full removal and
onshore disposal, reefing at the current offshore location or at an alternative site, or repurposing for other uses. It involves analysing the options identified for
the facilities based on various factors including cost, environmental impact, safety and regulatory requirements to determine the most feasible and efficient
approach for decommissioning.

Rigs-to-Reef

One of the key approaches we have implemented is the Rigs-to-Reef initiative in Malaysia, where decommissioned offshore
structures are repurposed as artificial reefs. This approach not only reduces waste but also supports marine biodiversity by
restoring and enhancing underwater habitats. Scientifically proven to benefit marine ecosystems, the initiative helps sustain fish
populations while contributing to the circular economy.

The Rigs-to-Reef programme began in 2004 with the successful reefing of the storm-damaged Baram-8 platform near the Miri-
Sibuti area in Sarawak. The site has evolved into a haven of biodiversity and as a destination for recreational diving and tourism.
This area has since been gazetted as a Marine National Park in 2007. In 2017, the Kapal platform near Pulau Kapas, Terengganu,
along with D30 and Dana structures off the coast of Sarawak, were also converted into reef habitats.

To date, PETRONAS has successfully completed five Rigs-to-Reef projects and one Tubular-to-Reef project.

The latest Rigs-to-Reef deployment, completed in September 2024, involved the South Angsi-A appurtenances (structural
equipment components) at Pulau Tenggol, Terengganu. Based on monitoring activities in 2021, conducted in collaboration with
the Malaysia Department of Fisheries, fish species at designated reefing areas increased by over 30 per cent. This contributed
to a rise in commercial fish yield by approximately 2,500 kilograms per harvest, boosting fishermen’s income and improving
livelihoods, with an estimated 5 per cent annual growth in the local fisheries economy.

Beyond ecological benefits, the Rigs-to-Reef initiative creates new opportunities for ecotourism and recreational activities,
establishing scuba diving sites and fishing zones. It also aligns with the National Food Security Policy Action Plan, supporting
efforts by the Ministry of Agriculture and Food Security to enhance fishery resources and food security.

To ensure long-term impact, PETRONAS is collaborating with the Department of Fisheries on a 10-year Malaysia Master Reefing
Plan, starting in 2024. This initiative aims to establish multiple reefing villages across Malaysia, enhancing marine conservation
while creating sustainable opportunities for coastal communities.

Tanjong Baram Field

PETRONAS successfully decommissioned the Tanjong Baram field in April 2023, with the objective of repurposing
offshore infrastructure. Approximately 40 per cent of the original Tanjong Baram structure, mainly the topside, which is
the upper structure above sea level, was modified, integrated and safely reinstalled in June 2024 at the South Furious-30
field, located off the coast of Sabah, avoiding 126 metric tonnes of steel waste. The substructure, or the ‘legs’ of the
platform, was transferred to an onshore yard for reuse, where possible, ensuring materials remain in circulation.
 5 Sustainability Performance Review 129

Extending Asset Life Cycles and Repurposing Industrial Waste

PETRONAS applies, where possible, circular economy principles by extending asset life cycles and repurposing industrial waste.
We strive to minimise our environmental impact, reduce landfill dependency and optimise resource efficiency through initiatives
such as decommissioning of offshore facilities, waste-to-resource conversion and others.

i) Recycle, Repurpose and Reuse Hazardous Waste

PETRONAS Chemicals Group Berhad identified several types of hazardous waste which could be recycled, repurposed and
reused. In 2024, the Methyl Tertiary Butyl Ether and Propane Dehydrogenation plants at PETRONAS Chemicals MTBE Sdn Bhd
achieved recycling rates of 93 per cent and 87 per cent for identified hazardous waste, respectively.

Key waste streams include spent catalyst electrical waste, which is processed to recover precious metals; solvent waste oil-
water mixtures, which are reprocessed into higher-grade oil; and spent lube oil, which is converted and reused as lubricant
for heavy machinery. Additionally, spent activated carbon and spent adsorbent are repurposed as raw materials for cement
production, while contaminated containers are cleaned and reused.

Sharing Model

We employ a sharing model that allows multiple users to access common resources to optimise resource use, extend product life
cycles and minimise waste.

i) Resource Efficiency with VISMA

VISMA, or Virtual Integrated Solution for Material, is a cloud-based application that provides visibility of available materials
to enable efficient sharing across the business. It shows near real-time data of project leftover items and spare parts across
PETRONAS’ value chain, supporting smarter and more efficient resource use. By enabling seamless material sharing between
operations, VISMA helps to reduce generated waste, limit unnecessary material purchase and improve business operation cash
flow. Through VISMA, we aim to achieve RM200 million in savings over the next five years.

ii) Vessel Sharing through 'Uberisation' of the Logistics Control Tower

We optimise offshore logistics through the Uberisation of the Logistics Control Tower System by promoting vessel resource
sharing across our Upstream operations. In 2024, this initiative enabled us to eliminate the need to secure 95 additional
common offshore support vessels, from the initial requirement of 325 vessels, therefore improving efficiency and minimising
redundancy.

Through focused fuel management efforts, we also achieved a 35 per cent reduction in vessel fuel consumption, saving
53 million litres of fuel. These results establish a precedence for further infrastructure and resource sharing.

PETRONAS embeds circular economy principles across its operations by improving resource efficiency, minimising waste and
fostering innovation in resource use. We continue to actively advocate circularity by engaging with industrial partners and the
Malaysian Government to strengthen related policies and practices.
130 PETRONAS • Integrated Report 2024

Fostering a Just Transition

The energy transition represents a transformative

shift towards cleaner energy systems on a global
scale. This transition will impact all aspects
of society, including the ways we produce,
distribute and consume energy.

As technology becomes more accessible and

new measures are implemented, the transition
We strive to advance a just transition that ensures our stakeholders have
towards a lower-carbon economy will create access to equitable opportunities.
new jobs and business opportunities, reduce
pollution and atmospheric emissions. However, Our Material Topics
it also has the potential to disrupt existing labour
markets across the entire energy value chain.

Respecting human rights throughout the energy

transition fosters inclusive societies, promotes
equitable social and economic growth, and
Human Rights 132
prevents exploitation and discrimination. Since
our inception, we have steadfastly delivered on Sustainable Supply Chain 145
our mandate for nation-building and broader Employee Attraction, Retention and Development 147
industrial ecosystem development, contributing
Health and Well-being 159
to economic growth and societal progress.
 5 Sustainability Performance Review 131

We understand that the energy transition will vary from country a significant portion of our Malaysian energy supply chain,
to country, but parallel efforts must prevail to support inclusive may lack the necessary awareness and knowledge to address
societal progress. emissions, strengthen environmental performance and
integrate human rights principles into their operations.
We are dedicated to implementing our Energy Transition
Strategy in a manner that promotes a just transition that To support our vendors, suppliers and partners in remaining
respects human rights and considers the needs of energy competitive and resilient in the energy transition, the
sector employees, suppliers and communities. By doing so, PETRONAS Supplier Support Programme, launched in 2024,
we aim to ensure that new investments lead to enhanced provides assistance to PETRONAS suppliers in adopting and
opportunities and improved prospects for stakeholders. disclosing sustainability practices. This support includes tools,
capacity-building training and access to sustainable
Future-proofing the Workforce financing facilities.

The energy transition is reshaping industries, demanding both Supporting Community Resilience
technological advancements and a capable, agile workforce
to drive progress. Innovation alone is not enough. Technology We uphold our commitment to respecting human rights.
and talent must work hand-in-hand. We are committed to We aim to foster inclusive community engagement, consult
building a future-ready workforce by continuously investing in and collaborate with community stakeholders to gain new
education, reskilling and upskilling, and industry collaboration perspectives, and understand the aspirations of those who
while reshaping the organisation to better respond to evolving may be affected by our decisions. Our goal is to contribute
technologies and market dynamics. positively towards societal and economic development in the
areas where we operate. In doing so, we support communities
For several decades, we have steadily invested in nurturing to be more resilient and better able to respond to and benefit
talent, ensuring that our employees are equipped to leverage from the changes brought about by the energy transition.
new technologies. To stay ahead, we are enhancing workforce
planning, strengthening skills and capacity in emerging energy PETRONAS' social impact investment programmes are
fields and fostering agility through lifelong learning and designed with this in mind and prioritises three areas of action:
technical training.
Powering Knowledge: We provide access to education and
We assure that the well-being of the workforce continues to be capability building through sponsorships and upskilling and
reskilling programmes.
our priority and all matters relating to workforce are handled
responsibly, in accordance with our policies and prevailing
Uplifting Lives: We promote sustainable livelihoods
employment laws. We uphold employee rights and engage by providing access to basic needs and fostering social
constructively through dialogue with employees and their entrepreneurship.
representative bodies through dedicated programmes and
strategic efforts. Planting Tomorrow: We support nature and biodiversity
conservation and provide training for communities
Strengthening the Supply Chain to increase their capacity and capability in mitigating
potential risks.
The energy transition can only succeed with the support of an
evolving and thriving supply chain ecosystem. We recognise
that small and medium-sized enterprises, which make up
132 PETRONAS • Integrated Report 2024

Fostering a Just Transition

HR Human Rights

Why This Is Important to Us

We strive to advance a just transition that respects human rights and ensures that stakeholders, especially our employees, suppliers
and communities, have access to equitable opportunities for socio-economic growth. PETRONAS is committed to upholding
internationally recognised human rights to ensure fair treatment, prevent exploitation and foster inclusivity. Failing to uphold
human rights can have far-reaching consequences, including labour rights violations, unsafe working conditions and unethical
supply chain practices, which can undermine the well-being of workers and communities. These risks can also erode trust, damage
stakeholder relationships and jeopardise our social licence to operate. As we make progress on realising our Energy Transition
Strategy, we aim to support development where workers, suppliers and communities benefit from sustainable growth.

Our Approach

PETRONAS takes a structured and principle-based approach to human rights. This approach is built on three core pillars:

Policy Due Diligence Access to Remedy

These principles are embedded into our business practices. Our responsibility extends beyond employees to the communities and
individuals connected to our operations and value chains.

We prioritise four key areas, which are labour and working conditions, supply chain practices, responsible security, and community
well-being. These areas represent PETRONAS’ salient human rights issues, identified through internal assessments and stakeholder
engagements. Climate change, environmental pressures and the ongoing energy transition, influence human rights risks and
responses across our operations and value chain.

Policy

PETRONAS Human Rights Policy The PETRONAS Human Rights Policy applies to all employees
and directors of PETRONAS. Third parties performing work
In 2024, the PETRONAS Human Rights Commitment was or services on our behalf, joint ventures where PETRONAS
elevated to a Human Rights Policy, which reinforces what we does not hold a controlling stake and associate companies are
stand for in respecting and promoting human rights across our encouraged to adopt this Policy or implement similar principles
operations and supply chains. This Policy provides a clear steer and standards to safeguard rights holders.
for ethical and responsible practices, embedding human rights
principles into our business. It also establishes a structured PETRONAS requires contractors and suppliers to adhere to the
approach to addressing human rights risks and ensuring PETRONAS Contractors Code of Conduct on Human Rights,
accountability across operations and the value chain. which sets clear expectations for ethical and responsible
business conduct. This includes addressing critical labour
rights issues and risks such as forced labour, child labour,
Please refer to Human Rights Policy. discrimination, inhumane treatment, restrictions on freedom
of association and violations of labour rights. These principles
are fundamental to ensuring fair, safe and inclusive working
PETRONAS is committed to respecting all internationally
conditions across our supply chain.
recognised human rights as outlined in the International Bill
of Human Rights and the International Labour Organization’s
Please refer to PETRONAS Contractors Code of Conduct
Declaration on Fundamental Principles and Rights at Work. Our Governance and Ethics | PETRONAS Global.
approach is guided by the United Nations Guiding Principles
on Business and Human Rights, and the Organisation for The Human Rights Policy was approved by the Board of
Economic Co-operation and Development (OECD) Guidelines Directors while the Executive Leadership Team oversees
for Multinational Enterprises on Responsible Business Conduct. its implementation and governance. This structure holds
PETRONAS accountable for embedding human rights
considerations into our business practices and decision-making.
 5 Sustainability Performance Review 133

PETRONAS ensures that its Human Rights Policy is not a standalone commitment but is embedded within its broader governance
structure, with existing policies and efforts aligned with its intent.

Our Human Rights Policy is anchored on five key principles that guide our commitment to ethical conduct, accountability and
responsible business practices across our operations:

PETRONAS Human Rights Policy Key Guiding Principles

1 2 3 4 5
Appropriate
Respect and
Risk-based Access to effective governance for Commitment
acknowledgement
approach to grievance human rights to Groupwide
of internationally
human rights due mechanisms and policy and disclosures and
recognised human
diligence. remedies. its processes reporting.
rights.
Groupwide.

Internal and external stakeholders, including employee representatives, national and regional human rights organisations, and
industry peers, were engaged in the development of the PETRONAS Human Rights Policy to help ensure that perspectives and
evolving expectations were considered. Going forward, we will periodically review the Policy to strengthen its alignment with
evolving international standards and responsible business practices.

PETRONAS is committed to avoid causing or contributing to adverse human rights impacts across our operations. We embed
human rights requirements into our processes to help identify actual and potential human rights risks, mitigate them, and
strengthen our human rights implementation and decision-making. In addition to our direct activities, we also collaborate with
partners from various stakeholder groups to prevent or mitigate adverse impacts linked to our operations, products or services.
These efforts are supported by remediation processes that prioritise transparency and accountability.

Raising the Bar: PETRONAS Canada Achieves Higher Rating in ESG Certification
PETRONAS Energy Canada Ltd. (PETRONAS Canada) operates in North America’s highly competitive natural gas market, with
significant resources in the Montney shale basin. Since 2023, PETRONAS Canada has certified its natural gas production under the
Equitable Origin (EO100) Standard for Responsible Energy Development, an internationally recognised Environmental, Social and
Governance (ESG) performance standard for energy companies.

PETRONAS Canada's inaugural EO100 Responsibly Sourced Gas certification assessment in 2023 acknowledged the strong
operational practices and its respect for human rights. However, the absence of a specific, comprehensive human rights policy was
identified as a key area for improvement.

In 2024, PETRONAS Canada addressed this gap by formally adopting the PETRONAS Human Rights Policy. The updated verification
score acknowledged this progress, raising its EO100 rating from B– to B+. The Policy affirms PETRONAS Canada's commitment
to respect all internationally recognised human rights, comply with applicable laws and be guided by the United Nations Guiding
Principles on Business and Human Rights. The Policy clearly states its applicability to every employee, director and officer of
PETRONAS Canada. In addition, human rights principles are now further embedded through integration into core policies such as
the Security Policy and the Contractors Code of Conduct on Human Rights.

The adoption of the Human Rights Policy signals a clear step forward in how PETRONAS Canada integrates respect for people and
the environment across its operations. This progress is reinforced by enhancements to existing policies on Indigenous relations,
reclamation and biodiversity, as well as increased corporate disclosures.

PETRONAS Canada continues to embed human rights as a business priority through strengthened governance, integration into core
policies and clearer internal accountability. This commitment is reflected in how the organisation deepens community partnerships,
raises expectations across the supply chain, and aligns operational decisions with responsible and sustainable practices.
134 PETRONAS • Integrated Report 2024

Fostering a Just Transition

Aligning PETRONAS Policies and Guidelines with Our Human Rights Policy

The PETRONAS Code of Conduct and Business Ethics serves as the foundation for ethical behaviour and decision-making across
the organisation, including business partners and suppliers. It reinforces our commitment to integrity, accountability and respect
for human rights by integrating human rights principles, including:

Embedding key human rights considerations, such as the prohibition of modern slavery and child labour.

Preventing unlawful discrimination, upholding fair labour practices and respecting diversity as core elements of our
organisational culture.

Embedding Human Rights Principles in Core Business Responsible Security

Processes
Security practices, if not properly managed, can lead to human
In 2024, the implementation of the PETRONAS Human rights violations, particularly in high-risk environments or
Rights Policy included the enhancement of human rights when involving third-party security providers. To mitigate
requirements in core business processes, as described below: these risks, PETRONAS promotes responsible security by
aligning operational practices with international human rights
Salient Human Rights Issues standards, and embedding these principles across relevant
functions and contracts.
Labour and Working Conditions
We conduct ongoing training to build awareness of human
We embed human rights principles into our workforce rights, ethical conduct and cultural sensitivity among our
practices by aligning with international standards and security personnel. PETRONAS monitors training compliance
frameworks. PETRONAS promotes diversity, inclusion and for contracted personnel and incorporates responsible
respect for freedom of association as integral parts of our security provisions into new contracts, while progressively
workplace culture. We also provide ongoing human rights updating existing agreements to meet evolving expectations.
training to employees to foster a culture of accountability and Human rights considerations are integrated into security
strengthen awareness of labour rights. risk assessments, and regular training is provided to support
ethical and rights-respecting practices. These efforts include
Supply Chain Management embedding the Voluntary Principles on Security and Human
Rights into contractual arrangements, and strengthening trust
Human rights issues in the supply chain may stem from with local communities and stakeholders, particularly in high-
limited supplier awareness, insufficient capacity to risk locations.
implement responsible practices and a lack of embedded
human rights due diligence processes. These conditions Community Well-being
heighten the risk of forced labour, poor working conditions
and discrimination. PETRONAS addresses these challenges We develop and refine technical standards and guidelines to
by raising awareness, improving supplier compliance and strengthen due diligence processes, including those related
strengthening human rights due diligence throughout the to Indigenous Peoples, cultural heritage, land acquisition,
supply chain. involuntary resettlement and grievance mechanisms. Potential
human rights risks across our operations and project life cycles
We require our contractors and suppliers to respect human are identified, mitigated, tracked and monitored through our
rights, including labour rights, workplace safety and non- Social Risk Assessment process, which takes into account
discrimination, as guided by the PETRONAS Contractors potential impacts on communities. Proactive engagement
Code of Conduct on Human Rights. PETRONAS leverages with rights holders allows us to discuss matters related to land
the Licensing Management System to identify and mitigate use, cultural heritage, Indigenous Peoples and community
risks related to forced labour, child labour and unethical health and safety, ensuring their perspectives are considered
practices. To further strengthen supplier performance, in our activities. We also engage communities by providing
we offer capacity-building programmes to enhance information on hazards, safety and emergency protocols
understanding of human rights and compliance with through public sessions, in line with the Control of Industrial
legislation and PETRONAS standards. Periodic assessments Major Accident Hazards (CIMAH) regulations.
help monitor adherence to human rights-related laws and
identify areas for improvement.
 5 Sustainability Performance Review 135

Due Diligence

We have established a due diligence process to identify, assess and address human rights risks across our operations and value
chains. Our aim is to address potential and actual issues transparently and minimise risks by upholding our commitments. We
continue to integrate key human rights findings into decision-making, monitor the effectiveness of our actions and communicate
our progress openly.

2
1 Integrating
Human Rights
Assessing Risks Into
Impacts Decision-Making
STAKEHO
GE LD
GA
N

ER
E

S
Human Rights
Due Diligence
Process
EN

GA S
GE ER
STAKEHOLD

4 3
Communicating Tracking
Impacts Effectiveness of
Actions

Assessing Impacts

We have identified and assessed human rights risks across our human rights salient issues, as below.

Social Risk Assessment

We evaluate potential human rights risks across key social dimensions to address salient issues that may impact workers, supply
chain partners, security and communities.

Labour and • Forced labour

Working • Child labour
• Discrimination
Conditions • Inhumane treatment
• Restrictions on freedom of association
• Violations of labour rights
• Ineffective grievance mechanisms
Supply Chain • Supplier and contractor involvement in forced and child labour
Management • Failure to uphold labour rights, ensure non-discrimination, allow freedom of association and prohibit
inhumane treatment of workers
• Corruption and bribery
Responsible • Complicity to human rights violation by public security
Security • Misconduct by third-party security
• Inadequate human rights training
Community • Poor land management, including issues with rights of way, compensation and access to natural
Well-being resources
• Violation of Indigenous Peoples' rights
• Violation of cultural rights
• Unsafe community health and safety
• Exploitation and abuse of in-migration workers
• Ineffective grievance mechanisms
136 PETRONAS • Integrated Report 2024

Fostering a Just Transition

The Social Risk Assessment process takes into account the Findings linked to Supply Chain Management accounted for
following considerations: 27 per cent of the total findings. These were largely associated
with contractor performance in upholding labour rights and
• Conduct due diligence to proactively identify, prevent managing grievances effectively. PETRONAS responded by
and mitigate adverse human rights impacts where we continuing its periodic assessments under the PETRONAS Code
operate, through Social Risk Assessments and Third- of Conduct on Human Rights to ensure compliance among
Party Risk Management practices to address potential contractors.
and actual risks.
Community well-being findings made up 18 per cent of
• Take into consideration geographic risk indices to the total findings, with most issues revolving around limited
identify areas and operations prone to human rights awareness of grievance mechanisms. Mitigation actions
risks enabling targeted mitigation strategies. focused on improving both the visibility and effectiveness of
these mechanisms to ensure communities are informed and
• Engage relevant stakeholders through structured
empowered to raise concerns.
assessments, including interviews and consultations, to
identify human rights risks.
The remaining 7 per cent of findings were related to
• Conduct site visits to gather insights on human rights Responsible Security. These findings highlighted opportunities
performance and potential risks. to strengthen grievance management processes within
security functions. PETRONAS continues to drive human rights
awareness among security personnel to reinforce responsible
In 2024, PETRONAS conducted 15 Social Risk Assessment
conduct.
exercises. All identified findings were addressed and
mitigated in a timely manner, with no outstanding Social Risk
Contractor Due Diligence
Assessment actions recorded.
PETRONAS implements a dedicated process to uphold Human
2024 Social Risk Assessment Findings Rights Due Diligence principles across both potential and
existing contractors. These requirements are integrated into
our procurement processes to safeguard human rights and
ensure ethical business conduct across our supply chain.

7%
The screening process begins with upfront due diligence as a
48% prerequisite, which includes:
18%

Completion of the Contractor Code of Conduct on

27% Human Rights Self-Assessment, where contractors
declare their human rights practices.

Attestation of full compliance with PETRONAS’

Contractor Code of Conduct on Human Rights,
including the prohibition of forced and child labour.

Labour and Working Conditions Community Well-being

Data from these assessments are analysed to identify potential
Supply Chain Management Responsible Security
human rights risks. Contractors flagged for concerns are
subject to further evaluation.
The majority of findings, 48 per cent, were related to Labour
and Working Conditions. These primarily stemmed from In addition, prospective suppliers undergo screening
inaccurate interpretations of labour rights among employees through the Know Your Counterparty process and complete
and contractors. To address this, PETRONAS initiated labour questionnaires covering PETRONAS’ key legal focus areas,
rights training and conducted engagement sessions with including Ethics and Integrity, Data Privacy, Sanctions and
contract owners and contractors to reinforce compliance and Export Control.
promote best practices.
 5 Sustainability Performance Review 137

PETRONAS' licensed and registered vendors are required to comply with the PETRONAS Contractors Code of Conduct on Human
Rights as part of the licensing and registration process. These obligations are embedded in contractual agreements. Ongoing
monitoring ensures continued adherence to the PETRONAS Human Rights Policy.

Performance in 2024

• Enhanced the PETRONAS Contractors Code of Conduct on Human Rights to strengthen human rights due diligence across
our supply chain, expanding the depth and coverage of assessments across all supplier tiers.
• Out of 5,456 companies registered in the PETRONAS Licence and Management System, 3,647 have completed the
Contractor Code of Conduct on Human Rights Self-Assessment and attested to full compliance with the PETRONAS Code
of Conduct on Human Rights.
• 63 Contractors Code of Conduct on Human Rights assessments conducted in 2023 which resulted in 135 Corrective
Action Plans issued to address identified areas for improvement. Of these, 109 Corrective Action Plans have been
successfully completed and closed in 2024.
• PETRONAS’ Human Rights Due Diligence approach and Social Risk Assessments were assessed by an independent third-
party and found to be partially aligned with the UN Guiding Principles on Business and Human Rights.
Please refer to Tracking Effectiveness of Actions on page 138.

Security Due Diligence

PETRONAS conducts human rights due diligence on responsible security risks in countries where we operate. In the period under
review, assessments have been completed in Iraq, India, Indonesia, Mexico and Thailand, to determine whether each is classified as
a focus or non-focus country for responsible security.

To build awareness and ensure alignment between PETRONAS' human rights focus areas and the activities of its Business and
Operating Units, communications on human rights governance, expectations, and compliance have been disseminated across
international operations. In Upstream operations, briefing sessions were held with country offices to outline responsible security
objectives. Businesses in Iraq, Turkmenistan, Brunei, Gabon, Suriname, Brazil, Vietnam, Abu Dhabi and Indonesia also conducted
readiness mapping to support adoption of the Human Rights Policy.

Efforts are ongoing to integrate responsible security contractual provisions into new and existing agreements with third-party
security providers.

While risk assessments remain complex due to differing socio-political contexts and perspectives on intervention, we continue to
refine our methodology for more consistent and objective evaluations. Improved compliance is expected to support measurable
improvements in security performance, driven by proactive risk identification and enhanced monitoring. We aim to align our
practices with the Voluntary Principles Initiative, a globally recognised framework that guides companies in maintaining ethical
conduct and upholding human rights in security operations.

Indigenous Peoples Assessment

We conduct the PETRONAS Indigenous Peoples Assessment to understand and address potential impacts on Indigenous
Peoples in relation to new projects and ongoing operations, modifications or expansions of existing facilities, decommissioning
or abandonment of current facilities, and acquisitions of businesses, facilities or equity interests in assets. These assessments
are undertaken when potential risks or impacts to Indigenous Peoples are identified during the early stages of project planning
or evaluation. Free, Prior and Informed Consent practices are required, with the decision to proceed with an assessment made
by subject matter experts based on the nature, location and potential impact of the activity. This process recognises the rights
of Indigenous Peoples to participate in decision-making on matters that affect them, including economic development, natural
resource management and social development.

In 2024, no Indigenous Peoples Assessments were conducted, as no project activities triggered the requirement. Additionally, there
were no reported violations involving Indigenous Peoples’ rights or activities related to land acquisition or involuntary resettlement
during the year.
138 PETRONAS • Integrated Report 2024

Fostering a Just Transition

Land Acquisition and Involuntary Resettlement Assessment

Acquiring land for projects and operations might lead to either voluntary or involuntary resettlement of communities or affect their
livelihood. PETRONAS manages the human rights aspect of land acquisition and involuntary resettlement through a dedicated
team that is responsible for overseeing the process which includes consultation with affected parties prior to the land purchase. In
Malaysia, a Government-led process guides projects and operations to work closely with relevant authorities to minimise adverse
impacts on affected communities and ensure necessary compensation. Stakeholder engagement and communication plans are
developed to keep communities informed and to gather their feedback throughout the project. We are commited to respect the
local and Indigenous Peoples’ land, passage and usage rights on company-controlled land, and engage with local communities
and Indigenous Peoples to understand how to best honour their traditional practices and cultural heritage. No Land Acquisition
Assessments were conducted in 2024, as there were no projects requiring such assessments during the year.

Human Health Risk Assessment

We conduct Human Health Risk Assessments to safeguard the health of communities in areas where we operate. In 2024, we
commissioned an independent verification on PETRONAS' internal standard for Environmental Health Risk Assessment and the
associated Human Health Risk Assessment reports. The verification provided independent assurance that our internal standard and
reporting practices comply with both Malaysian and international requirements, while also identifying opportunities for continuous
improvement.

Integrating Human Rights Risks into Decision-Making

The PETRONAS Technical Standard on Social Risk Assessment requires that identified risks are prioritised based on 'severity' and
'likelihood'. Corresponding interventions must be designed and documented in the Social Performance Plan for leadership endorsement.

Project and operations teams are responsible for implementing mitigation measures, supported by business units, where needed.
Appointed leaders track progress and report status updates to enable process improvement and targeted support.
Please refer to Monitoring and Accountability on page 141.

Tracking Effectiveness of Actions

PETRONAS continues to improve tracking efforts to prevent and address human rights risks across our operations and our supply
chain. This enables us to assess effectiveness, identify areas for improvement and support more informed decision-making over time.

A third-party verification of PETRONAS’ Human Rights Due Diligence process and implementation was conducted based on the
United Nations Guiding Principles on Business and Human Rights. The assessment confirmed that PETRONAS' Human Rights Due
Diligence policies and practices, specifically the Social Risk Assessment, partially aligned with the United Nations Guiding Principles
on Business and Human Rights. PETRONAS received a rating of 6/10 for processes and 5/10 for implementation, indicating
opportunities for further improvements. To further enhance our practices, efforts include the revision of human rights governance
documents, upskilling of social performance practitioners in the implementation of assessments, and the enhancement of the
social risk assessment digital tool in 2025.

PETRONAS’ Human Rights Due Diligence Rating

1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10

PETRONAS' processes are Partially Aligned. PETRONAS' implementation is Partially Aligned.

Communicating Impacts

As part of our human rights due diligence process, we continue to strengthen communication on how human rights risks
are identified and managed across our operations and value chain. We disclose our approach and progress through
sustainability reporting and the PETRONAS corporate website.
 5 Sustainability Performance Review 139

Access to Remedy

PETRONAS recognises the importance of effective grievance mechanisms in addressing human rights concerns and supporting
fair outcomes for all stakeholders. We aim to strengthen transparent and structured processes to address potential adverse human
rights impacts, particularly in situations where PETRONAS may have caused or contributed to them. Our procedures are designed
to enable rights holders, whether acting individually or collectively, to access grievance mechanisms that are impartial, confidential
and free from retaliation.

Grievance Mechanism

PETRONAS aims to maintain a robust grievance management process that ensures fairness and transparency. Governed by internal
procedures, the process involves receiving and acknowledging grievances through designated channels, conducting thorough
assessments and investigations, developing and monitoring corrective actions, and communicating findings and resolutions
to relevant stakeholders. This systematic approach helps ensure accountability and supports continuous improvement in
addressing concerns.

Grievance Management Process

Receive, acknowledge, screen and

register grievance in database

YES Assess grievance validity NO

Investigate

If grievant does not agree with the resolution Channel to relevant

Develop and propose department/
Recourse or appeal authority and update
resolution
database

Monitor, document
Implement solution
and close

Feedback and improvement

Our grievance mechanisms are designed to meet the United Nations Guiding Principles on Business and Human Rights
effectiveness criteria:

A Source of Continuous
Legitimate Predictable Transparent
Learning

Based on Engagement
Accessible Equitable Rights-compatible
and Dialogue

PETRONAS provides various grievance channels for rights holders, including employees, supply chain workers and affected
community members. These mechanisms are designed with the aim to ensure grievances can be easily lodged, received, reviewed
and addressed in a fair, transparent and timely manner.
140 PETRONAS • Integrated Report 2024

Fostering a Just Transition

Employees Communities and Rights Holders

We have established a grievance mechanism tailored The PETRONAS Technical Standard on Grievance Mechanism
for employees, ensuring it is accessible and maintains outlines the provision of operational-level grievance
confidentiality. This provides a formal and safe channel for mechanisms to support external stakeholders, including
employees to raise concerns while protecting their privacy. communities affected by our operations, in raising concerns
Grievance mechanisms are aligned with the PETRONAS Code effectively. These mechanisms are designed to be culturally
of Conduct and Business Ethics, ensuring that concerns are appropriate and accessible both online and in-person.
addressed through appropriate procedures.
In 2024, several sites continued to operate community-
We respect the right of employees to act individually or facing grievance channels, supported by over 120 Groupwide
collectively, including through trade unions, without fear of grievance focals and community liaison officers who facilitated
prejudice or retaliation. To support this, we provide multiple communication and response on the ground. A total of 34
reporting channels including a formal Grievance Form and Health, Safety and Environment (HSE) Grievance Mechanism
confidential whistleblowing platforms to ensure employees procedures have been established across PETRONAS’
have clear and accessible avenues to raise workplace-related Operating Units.
concerns. Issues can also be addressed directly with immediate
supervisors as a first course of action and unresolved matters A dedicated grievance channel is available to address concerns
may be escalated to Group Human Resources Management related to HSE, security and social impacts arising from our
for further review and resolution. On average, grievances are operational activities. Grievances may be raised by individuals,
resolved within seven days. In 2024, there were no records of groups or authorised representatives through various channels,
violations to human rights reported through this mechanism. including direct engagement with Community Liaison Officers
or designated grievance focals, as well as via telephone calls,
Contractors' Grievance Management
text messages, complaint boxes or email.

PETRONAS upholds a robust grievance management process Whistleblowing

to ensure fairness and transparency. This process includes
the receipt and acknowledgement of grievances through The Whistleblowing channel is available for reporting
designated channels, thorough assessment and investigation, misconduct and criminal offences, including those involving
the development and monitoring of corrective actions, human rights-related grievance. Reports can be submitted via:
and the communication of findings and resolutions to
relevant stakeholders.
Email : whistle@petronas.com
This systematic approach ensures accountability and
Website : www.petronas.com/whistleblowing
promotes continuous improvement in addressing concerns.
P.O. Box : No. 11646, Pejabat Pos Besar Kuala Lumpur
Any unresolved grievances are escalated through appropriate
avenues, while confirmed violations are addressed through
internal disciplinary measures. Please refer to the whistleblowing section on page 205.

In alignment with the Contractors Code of Conduct on Human Protection from Retaliation for Raising Complaints
Rights requirements, contractors are required to establish
grievance mechanisms that are accessible to their employees, PETRONAS is committed to protecting individuals who raise
workers, contract personnel and any party involved in concerns by ensuring non-retaliatory procedures are in
delivering works or services to PETRONAS. These mechanisms place. It is essential that employees, contractors and external
must be clearly communicated in languages understood by the stakeholders can report grievances without fear of retaliation.
affected parties and must incorporate appropriate follow-up Awareness campaigns and training sessions are conducted to
measures, while safeguarding the identity of the complainant. ensure widespread understanding.

Grievances are addressed with due process and prioritised PETRONAS provides options for anonymous reporting, further
based on their nature and potential impact. PETRONAS safeguarding individuals who come forward.
remains committed to a timely resolution of grievances and
continuously monitors its processes to ensure their efficiency
and effectiveness.
 5 Sustainability Performance Review 141

Remedying Adverse Impacts

We continue to refine our approach in remedying adverse human rights impacts. While not all grievances received are found to be
valid, we take steps to address those that are substantiated. This reflects our ongoing commitment to support rights-compatible
outcomes and to improve access to remedy for affected individuals and communities.

Performance in 2024

• 83 employee grievances cases recorded • Zero security personnel grievance cases recorded
• 15 supply chain grievance cases recorded • Zero grievance cases of forced and child labour within
• 38 community grievance cases recorded PETRONAS’ operations recorded

Monitoring and Accountability

PETRONAS’ commitment to human rights is embedded at the highest levels of leadership. The Human Rights Command Centre
within the Corporate Sustainability Division continues to strengthen the integration of human rights principles across PETRONAS'
operations, supporting the progressive implementation of our Human Rights Policy.

The PETRONAS Board of Directors plays an active role in overseeing human rights strategies and performance, ensuring alignment
with international standards and best practices. To strengthen decision-making, PETRONAS engages external experts to provide
insights on evolving human rights expectations and emerging global best practices, offering an outside-in perspective to enhance
our approach.

Strategic oversight is further supported by the Sustainability Executive Leadership Team, chaired by the President and Group Chief
Executive Officer of PETRONAS. The team provides strategic direction to ensure human rights are prioritised in operational and
business decisions, that human rights considerations are integrated within PETRONAS' broader governance framework.
Please refer to Corporate Governance at PETRONAS on page 186.

Human Rights Command Centre

PETRONAS has established a dedicated Human Rights Command Centre, whose leader reports directly to the President and Group
Chief Executive Officer, to drive the implementation of human rights policies and processes across all business operations.
The Human Rights Command Centre ensures effective management of human rights practices across the Group ensuring line
of sight through various senior leadership teams and committees, enabling structured governance and alignment at functional
levels. These platforms facilitate cross-functional integration, meaningful dialogues and tracking of progress on key sustainability
priorities.

The Human Rights Command Centre and other key business functions proactively identify and manage human rights risks across
the organisation as part of day-to-day operations, supported by social performance technical professionals.
142 PETRONAS • Integrated Report 2024

Fostering a Just Transition

Resourcing and Capacity Building

PETRONAS allocates adequate financial and human resources to support the effective implementation of our human rights
commitments. We invest in continuous training and capacity-building programmes to enhance understanding and strengthen the
organisation’s ability to manage human rights risks across all levels. These efforts are supported by communication of our Human
Rights Policy to employees, contractors, suppliers, business partners and other relevant stakeholders. Training and engagement
activities reinforce our commitment to embedding human rights principles across the broader PETRONAS ecosystem.

Employees

Following the launch of the PETRONAS Human Rights Policy, employees were engaged through multiple communication channels,
with over 40 physical and virtual sessions conducted to raise awareness, ensure accessibility and enhance accountability across all
levels of the organisation. Communications and outreach were further strengthened by engaging the Health, Safety and Environment
(HSE) fraternity through various platforms, including conferences, programmes and leadership forums.

In 2024, a total of 231 participants took part in various capacity-building sessions, expert sharing forums and targeted trainings to
strengthen understanding of human rights risks and responsibilities. This included participants who completed the Human Rights
for Human Resources training. In addition, personnel from key functions attended a grievance management workshop to enhance
organisational response capability and received training on human rights management, social risk assessment, grievance mechanisms
and engagement with Indigenous Peoples. The sessions also covered modules on Free, Prior and Informed Consent, as well as Social
Impact Assessment.

These targeted efforts are part of our broader commitment to upskilling employees involved in implementing human rights policies
across employee-related functions. To further embed human rights principles into day-to-day business practices, PETRONAS also
conducted expert sharing sessions, interactive discussions and thematic workshops.

To deepen understanding, PETRONAS conducted online and classroom-based training on human rights principles and their
application in daily operations. As of December 2024, about 28,000 employees have completed the human rights e-learning training.

Brown Bag Series: Navigating the Intersection Between Business and Human Rights, held on 10 September 2024.
 5 Sustainability Performance Review 143

Function-Specific Capability Building

We continued to build technical capacity across specialised functions. Technical professionals in Social Performance lead due
diligence efforts by identifying, mitigating, tracking and monitoring risks related to human rights. They are supported by technical
standards and guidelines covering Social Risk Assessment, Indigenous Peoples, cultural heritage, land acquisition, involuntary
resettlement and grievance mechanisms.

To support security-related awareness, 100% of auxiliary police officers in Malaysia operations had completed human rights training
as of December 2024. In Iraq, training was also delivered to relevant business leaders, and a separate engagement plan is being
developed to raise awareness among Iraqi authorities on the limitations and responsibilities of responsible security practices.

Supply Chain

PETRONAS communicated the Contractors Code of Conduct on Human Rights Self-Assessment to 5,456 licensed and registered
vendors via email and the PETRONAS Licensing Management System. Awareness of the Code’s requirements was further reinforced
through engagement with 1,016 vendors under the PETRONAS Supplier Support Programme. The Human Rights Policy and the
Contractors Code of Conduct on Human Rights is also publicly accessible through the PETRONAS corporate website.

To strengthen human rights compliance across the supply chain, PETRONAS provides governance frameworks, training and
resources to support ethical business conduct. We enhanced implementation of the Contractors Code of Conduct on Human
Rights by requiring mandatory compliance for all contractors and promoting broader awareness of sustainability expectations
within the Oil and Gas Services and Equipment ecosystem.
Please refer to Sustainable Supply Chain on pages 145 to 146.

Strengthening Capability in Human Rights on Community Well-being

To enhance organisational capability in managing community-related human rights risks, PETRONAS continued to build awareness
and knowledge across key functions. A total of 466 employees participated in the Social Performance Forum, which facilitated
discussions on human rights implementation and best practices across businesses, operating units, functions and projects. Another
396 employees took part in the Social Performance Masterclass on Indigenous People's Rights and Free, Prior and Informed
Consent, which deepened understanding of engagement with Indigenous communities. In addition, internal audit personnel were
upskilled in Social Risk Assessment and Grievance Mechanism.

Reviewing Human Rights Risks in Human Resources Governing Documents

In 2024, we assessed human rights risks within PETRONAS' internal Human Resource governance by evaluating the alignment
of existing guidelines and processes with Malaysian laws and international standards. Supported by an expert external party, the
exercise aimed to identify and address gaps in relevant governing documents and address them accordingly. The review focused
on stipulations relevant to Malaysian operations to ensure alignment with international human rights frameworks and country-
specific labour regulations. Following the assessment, we finalised updates to internal Human Resource governance documents,
including those guiding policy implementation, procedures and grievance mechanisms.

Monitoring and Continuous Improvement

PETRONAS conducts assessments and audits in accordance with the annual assurance and assessment plan, monitoring
compliance with company policies and international human rights standards. Findings from these assessments, guide continuous
improvement and strategic decision-making. We also monitor legislative developments and compliance related to workers’
rights to ensure alignment with regulatory requirements. Corrective measures are implemented where necessary, with outcomes
reported to senior leadership to reinforce accountability.
144 PETRONAS • Integrated Report 2024

Fostering a Just Transition

PETRONAS Uplifting Lives Additionally, Yayasan PETRONAS collaborated with SIRIM in

Malaysia to train 140 participants in the East Coast Economic
Supporting Pathways for Sustainable Livelihoods Region and 97 participants in the Northern Corridor
Economic Region.
We have various initiatives aimed at improving access to
essential services and economic opportunities for our In East Malaysia, PETRONAS is empowering local farmers
communities, including solar panel installation, clean water in Lawas, near the Sabah-Sarawak Gas Pipeline, by
and learning programmes for the indigenous Orang Asli children commercialising homegrown produce such as Adan
in Malaysia. Rice, Arabica Coffee and Adan Arabica Coffee through
the establishment of a production house equipped with
Through the use of solar energy, the initiative delivered over machineries and specialised tools.
RM2.5 million in energy cost savings, adding 1.24 million
hours of lighting for education, work and daily activities. In addition, through strategic collaborations with Institut
Complementing the programme further, the Orang Asli teachers Kemahiran MARA Bintulu and the District Office, 33 rural
were trained on how to conduct classes and construct learning youths from Lawas secured job placements by completing a
syllabus to suit the needs of students. two-week technical training on scaffolding.

PETRONAS strives to nurture social well-being by ensuring that We also partnered with the Department of Fisheries Malaysia
vulnerable communities have access to care and support during to deploy 40 Fish Aggregating Devices in Sabah over two
festive seasons such as Hari Raya, Chinese New Year, Deepavali, years (2023-2024) and contributed over 300 fish trawls,
Gawai, Kaamatan, as well as Christmas. Yayasan PETRONAS increasing local fishermen’s income by more than
contributed food and essential items to underprivileged 20 per cent and promoting sustainable fishing practices.
communities, enabling them to celebrate with dignity, joy and
a sense of belonging. Yayasan PETRONAS also extended RM2.3 We also support self-sustaining social enterprises nurtured by
million in donations to various healthcare institutions and social SEEd.Lab, such as Sagemaker Asia, that has helped harness
organisations such as Diabetes Malaysia, Jabatan Kesihatan sewing talents among 24 women from underprivileged
Negeri Sabah (Sabah State Health Department) and Yayasan communities, enabling them to create educational 'busy
Sayang Malaysia. books' for children, which generated a cumulative income
of RM23,547 for the beneficiaries. Another SEEd.Lab
PETRONAS in Turkmenistan supports access to basic necessities enterprise, Sejolly has developed a digital tool for Autism
by providing uninterrupted fresh water supply through a Early Intervention, enabling continuous therapy collaboration
joint project with Turkmengaz in the construction of water between therapists and parents to reinforce therapy at home,
supply infrastructure for around 2,000 people in Kiyanly and with 1,233 lives touched since 2022.
Guwlymayak villages, replacing the current reliance on tanker
water supply. Our programmes also extend to Turkmenistan and also
international initiatives that empower housewives through
We continue to strengthen community resilience by promoting micro, small and medium enterprise development within the
social entrepreneurship and skills development, helping to local community in Indonesia. In Manyarsidorukun Village,
foster self-sufficiency and financial stability. In Malaysia, Yayasan East Java, 10 women improved their livelihoods by gaining
PETRONAS has rolled out entrepreneurship training programmes employment and skills in batik production. In Kramat Village,
in Johor, Kelantan, Terengganu, Pahang, Kedah and Perlis, Bungah Subdistrict, 11 out of 14 women from the local
helping lower income households improve their livelihoods community rose above the poverty line through the success
and income streams. These programmes have helped 1,408 of the locally produced Krupy Fish Crackers.
individuals by providing training, tools and mentorship.

PETRONAS remains committed to respecting human rights in all aspects of our operations. We will continue strengthening our
internal processes and procedures, implementing a unified grievance mechanism and developing structured capability programmes
to ensure consistent and effective human rights management across the organisation. We will also enhance communication and
disclosure to foster greater transparency and accountability.
 5 Sustainability Performance Review 145

SC Sustainable Supply Chain

Why This Is Important to Us

Our operations are driven by a resilient and sustainable supply chain that goes beyond procurement and logistics, connecting us
to a broad global network of suppliers within the Oil and Gas Services and Equipment (OGSE) sector. These suppliers deliver a
wide range of products and services that not only propel our business but also contribute to the growth and strength of Malaysia's
energy ecosystem. We are dedicated to maintaining an ethical and sustainable supply chain through responsible business practices.

Our Approach

We integrate environmental, social and governance principles into our operations, upholding ethical business standards and
respect for human rights. We also prioritise supplier growth and resilience, particularly for small and medium-sized enterprises,
through targeted development programmes.

The PETRONAS Sustainable Supply Chain microsite covers our position on four key material topics in supply chain sustainability,
namely integrity; health, safety and environment; human rights; and greenhouse gas emissions. The microsite supports transparency
and alignment with stakeholder expectations. PETRONAS also introduced the Supplier Sustainability Hub, a customised e-learning
platform featuring industry-specific modules, case studies and self-assessment tools. Actively used by vendors under the PETRONAS
Supplier Support Programme, the online resource supports capacity building and promotes responsible business practices across the
value chain.

For more information, please refer to Sustainable Supply Chain.

Our Action Plan

Vendor Development and Recognition Programmes

We empower our suppliers through financing, business development programmes and structured support to enhance their
resilience, efficiency and sustainability. Our initiatives have enabled vendors to scale their operations and compete locally and
internationally.

Access to Financing

The Vendor Financing Programme, launched in 2018, has facilitated RM2.2 billion across 357 applications to date. In 2024 alone,
RM328.3 million was disbursed to 39 applications. We also renewed partnerships with all nine participating financial institutions.

The Special OGSE (SOS) Financing Programme remains an alternative financing option for smaller-scale vendors. Since 2022, it has
facilitated RM73.4 million for 47 applicants, with RM31.9 million disbursed to 20 applications in 2024.

The Road to Bursa programme has coached 34 companies towards listing on the Malaysian stock exchange, with three
successfully listed in 2024.

Vendor Development, Innovation and Technology Programmes

Established in 1993, the Vendor Development Programme aims to foster a competitive local supply chain, promote the
development of small and medium-sized enterprises and integrate Malaysian companies into the global oil and gas value chain.
To date, the programme has supported 171 vendors, enabling over 20 to expand into international markets.

Meanwhile, the Technology Innovation and Adoption (TITAN) programme supports OGSE vendors in adopting technology through
sandbox opportunities that act as a safe space to test new innovations and development grants in partnership with agencies such
as SIRIM, and the National Technology and Innovation Sandbox. Launched in 2023, the programme has, as of 2024, facilitated
access to 20 sandboxes and provided RM5.7 million in development grants to 23 companies.

OGSE Talent Development

Led by the Malaysia Petroleum Resources Corporation, in collaboration with PETRONAS and the Malaysia Oil, Gas and Energy
Services Council, the Industry Talent Framework (InTAF) analyses talent demand and supply in the OGSE sector for the next three
years. Insights from InTAF are expected to be published in 2025 under the National OGSE Industry Blueprint 2021-2030.

The Human Resources Development Corporation, in partnership with the Construction Industry Development Board and
PETRONAS is allocating funds under Program Latihan Madani to support OGSE-specific upskilling programmes. This initiative aims
to equip local graduates with industry-relevant skills for the oil and gas sector.
146 PETRONAS • Integrated Report 2024

Fostering a Just Transition

Strengthening Industry Relations

In 2024, we recognised 47 Sarawak-based vendors who were awarded major contracts for their contributions to regional industry
advancement, as part of our Sarawak Commemoration Day 2024.

Meanwhile, our OGSE Partners Day was held in Sabah, Kuala Lumpur and Terengganu to engage with vendors and stakeholders in
encouraging collaboration and building a sustainable and resilient OGSE ecosystem.

Upholding Sustainable Practices in the Supply Chain

In 2024, we launched the PETRONAS Supplier Support Programme to equip licensed and registered vendors, with tools and
training on environmental, social and governance practices to strengthen their sustainability management. In collaboration with
Bursa Malaysia, the United Nations Global Compact Network Malaysia & Brunei (UNGCMYB) and Bank Negara Malaysia, the
programme provides capacity bulding, access to digital tools like the Centralised Sustainability Intelligence platform for guided
sustainability reporting and financing opportunities to facilitate a just energy transition.

From left: Executive Director, UNGCMYB, Faroze Nadar, Chief Executive Officer, Bursa Malaysia, Datuk Muhamad Umar Swift, Executive Vice
President and Group Chief Financial Officer, PETRONAS, Liza Mustapha, Assistant Governor, Bank Negara Malaysia, Datuk Norhana Endut
and Vice President and Group Chief Sustainability Officer, PETRONAS, Charlotte Wolff-Bye, officiated the launch of the programme together.

Engaged with 1,016 PETRONAS Supplier Support Programme

PETRONAS suppliers through
23 virtual and in-person 4.7 out of 5 satisfaction 96 per cent improved 417 PETRONAS
sessions held across Kuala rating achieved from sustainability knowledge, vendors registered
Lumpur, Terengganu, Johor, the engagement as reported by beginner through the ESG START
Sabah and Sarawak, Malaysia sessions training participants Maturity Assessment

We will continue to drive industry engagements to strengthen supplier resilience, reduce emissions and promote sustainability
across the energy value chain. We aim to shape a future-ready energy sector that thrives in a lower-carbon economy through
strong health, safety and environmental standards, operational excellence and sustainable growth.
 5 Sustainability Performance Review 147

EAR Employee Attraction, Retention and Development

Why This Is Important to Us

The oil and gas industry continues to adapt its workforce in response to changing business needs in this evolving environment.
With the energy transition reshaping workforce requirements, talent strategies focusing on cultivating broad and specialised
capabilities to support productivity and business continuity, while addressing potential skill gaps.

Our Approach

We recognise that a skilled and engaged workforce is essential to supporting our business. Our approach to attracting, retaining
and developing talent is anchored in meritocracy, inclusivity and continuous growth that ensures our employees are equipped to
navigate the evolving energy landscape.

Employee Attraction Employee Retention Employee Development

Building a Competitive Talent Fostering a High-Performance Strengthening Future-Ready

Pipeline Culture Capabilities

We attract talent by offering competitive remuneration, career progression opportunities and a purpose-driven work culture.
Our people strategy foster an inclusive and high-performance environment where employees feel valued, supported and
empowered to contribute meaningfully. To build future-ready capabilities, we invest in structured learning, leadership development
and upskilling initiatives, integrating digitalisation and sustainability-focused competencies into our talent development efforts.

We also believe in nurturing early interest in science, technology, engineering and mathematics (STEM) to help ensure a consistent
pipeline of skilled talent. Our PETRONAS Powering Knowledge initiatives comprise education sponsorships, vocational training
assistance and Discover PETRONAS@Schools programmes.

Our Action Plan

Building a Competitive Talent Pipeline

Our workforce spans diverse regions worldwide, ensuring a stable presence where we operate to support our international
operations. PETRONAS is committed to upholding the highest standards of integrity, ethical behaviour and professionalism,
adhering to all applicable laws in all our operations. We ensure that foreign or migrant employees are fully compliant with the
labour and immigration laws of the host country.

PETRONAS welcomed 2,029 graduates under the Graduate Employability Enhancement Scheme and 2,050 interns in 2024.
The Graduate Employability Enhancement Scheme equips unemployed graduates with essential skills and work experience through
a structured one-year training focused on experiential learning, soft skills, basic entrepreneurial knowledge and technical skills,
facilitating their transition into the job market. Interns, primarily final-year university students, gain practical experience relevant to
their fields of study.

We also nurtured young talent through scholarships and graduate recruitment, with 328 PETRONAS scholars joining the workforce,
representing 89 per cent of all scholars recruited. In addition, 14 scholarships were awarded to non-Malaysians at Universiti
Teknologi PETRONAS.
148 PETRONAS • Integrated Report 2024

Fostering a Just Transition

To foster employee growth, PETRONAS ensured that 100 per cent of eligible employees, 37,928 in total, received regular
performance and development reviews. Initiatives such as the Goal Setting Campaign, Check-In Conversation Campaign,
behavioural nudges and various upskilling and coaching sessions strengthened engagement and supported growth-oriented career
development. These efforts reflect PETRONAS' commitment to building a future-ready, high-performing workforce.

Employee Benefits

PETRONAS upholds remuneration parity principles, ensuring fair and competitive compensation that reflects employees’ roles,
contributions and market standards. Our structured remuneration framework covers both monetary and non-monetary benefits,
fostering inclusivity and employee well-being.

Full-time employees in Malaysia receive a comprehensive benefits package, including salary, leave entitlements, allowances,
medical coverage and talent development opportunities. Contract employees’ benefits vary based on contract type and duration,
with differences in medical coverage, financing options, leave entitlements and development programmes. For employees based
outside Malaysia, benefits are provided in accordance with the terms and conditions applicable in their respective countries.

Our merit-based remuneration policy aims to ensure that all employees receive fair and competitive compensation, regardless
of gender, age, nationality, ethnicity or religion. In Malaysia, the average entry-level salary for PETRONAS employees exceeds the
national minimum wage by 35 per cent.

Shaping the future with purpose.

 5 Sustainability Performance Review 149

Benefits Overview Through structured tracking mechanisms, PETRONAS ensures:

The benefits provided cover approximately 36,000 employees, - Compliance with regulated work hours and mandated rest
including 1,700 temporary employees. Of these temporary periods to prevent fatigue and burnout.
employees, 68 per cent are based in Malaysia. - Monitoring of overtime practices to ensure fair
compensation and prevent excessive workloads.
- Flexible work arrangements, where feasible, to support
Salary, leave entitlements, allowances, work life integration.
General - Regular reviews and engagement with employees to
medical coverage, financing options
Benefits strengthen workforce management practices.
and talent development opportunities.
Please refer to Human Rights on pages 132 to 144.

Contract Vary based on contract type and Fostering Productive Trade Union Engagement
Employee duration; certain benefits may differ
Benefits from those provided to permanent PETRONAS is committed to fostering open communication
employees. and mutual respect between employees and the organisation.
Through active collaboration with trade unions, we ensure
meaningful dialogues, fair employment practices and
workplace harmony.
Include dental and optical coverage,
Permanent
preventive health screening, assistance
Employee We recognise five trade unions representing 8,728 non-
for employees with special needs
Benefits executive employees, which make up approximately
children, Hajj/Umrah and pilgrimage
20 per cent of Malaysia-based employees, all of whom have
leave, home and vehicle financing,
the right to collective bargaining. Five collective agreements
substance misuse rehabilitation
are currently in place, signed every three years upon the
assistance and the Staff Development
conclusion of negotiations. In 2024, we have successfully
Programme.
concluded our collective bargaining with all five trade unions
for the next 3 years. These agreements define employment
Employee Working Hours terms and conditions, which are also extended to non-
executive employees not covered by a collective agreement.
Managing and Monitoring Working Hours For other employee groups, terms are governed by company
policies, guidelines and individual contracts. Any modifications
Managing working hours effectively is essential for maintaining to a collective agreement requires negotiation and agreement
a productive and healthy work environment. PETRONAS by both parties.
monitors and regulates working hours in line with national
labour laws and international human rights standards to ensure Our engagement includes regular trade union dialogues,
compliance while promoting employee well-being. structured grievance mechanisms and capability-building
initiatives to enhance transparency, strengthen industrial
The average working hours for shift and regular offshore harmony and improve employee satisfaction.
employees are 42 hours per week, while other employees
work 39 hours per week. Non-executive employees required to As part of our broader sustainability agenda and as an
work on their rest or off days are compensated based on rates expression of respecting human rights, PETRONAS upholds
agreed in the collective agreement. social dialogues and constructive stakeholder engagement on
different aspects of the energy transition, ensuring fair labour
PETRONAS provides two rest days per week to eligible practices amid workforce transformations.
employee groups. This entitlement applies across various work
arrangements, including standard office hours and shift-based In 2024, a total of 45 engagement sessions were held
schedules. All employees are entitled to at least one rest day with trade union representatives. By fostering constructive
per week, as stipulated under the Malaysian Employment Act. collaboration, we empower our employees and uphold our
An exemption has been granted by the Ministry of Human long-term commitment to workplace excellence.
Resources for 1,983 offshore employees, given the nature of
their work.
150 PETRONAS • Integrated Report 2024

Fostering a Just Transition

Notice of Operational Changes

In PETRONAS, the notice period and provisions for consultation and negotiation are specified in collective agreements as per the
following details:

- The collective agreement's term is three years. If a new agreement has not been agreed upon before the expiry date, the
current agreement continues to be valid until superseded by a new one.
- Either party may serve a three-month written notice to negotiate a new agreement before the expiry of the current one, unless
both parties agree to commence negotiations earlier.
- During the term of the collective agreement, both parties may seek to vary, alter, modify, annul or add to any of the provisions
by jointly submitting an agreement to the Industrial Court.

Collective agreements also set out provisions for consultation and negotiation, including fixed agreement terms, procedures for
renewal or renegotiation through written notice, and processes for amending terms by mutual consent during the agreement
period.

Transition Assistance Programmes

PETRONAS provides comprehensive support to employees navigating employment transitions, ensuring their continued
employability through structured assistance programmes. These programmes, facilitated by a third-party consultant, include a
range of services that can help employees transition effectively. Key components of the transition assistance programme includes:

Resume and Interview Preparation

Outplacement Support
Assistance is provided with preparing resume and
Impacted employees receive outplacement support to
practicing interview techniques to enhance
help them transition to new employment opportunities.
employability.

Career Coaching and Training

Job Search Assistance
Personalised career coaching and training sessions are
Impacted employees benefit from support in searching
provided to help employees identify their career
for job opportunities, including access to job listings
aspirations and develop the necessary skills to achieve
and networking resources.
their goals.

The programme takes a holistic approach, offering support from career counseling to job search assistance, ensuring that
employees are well-prepared for their next career steps. It has a high success rate, with a notable percentage of employees
successfully finding new job opportunities through the services provided.

Fostering a High-Performance Culture

We strive to create an inclusive environment where employees feel valued, empowered and motivated to contribute. PETRONAS
continues to drive cultural transformation by fostering collaboration and knowledge-sharing internally and externally. We
encourage continuous learning and innovation to enable a productive and positive work environment.

Diversity and Inclusion

Diversity and inclusion are fundamental to human rights, ensuring all individuals, regardless of gender, nationality, age or
background, are treated with fairness, respect and dignity. Our approach to Diversity and Inclusion aligns with the PETRONAS
Human Rights Policy, by promoting equitable opportunities and strengthening inclusivity across the organisation. In 2024,
PETRONAS continued to prioritise gender representation, multinational workforce, age inclusivity and cultural behavioural shift for
employees.
 5 Sustainability Performance Review 151

We strengthened accountability for Diversity and Inclusion by embedding performance measurement into the top management
long-term incentive plan. Inclusive practices were formalised through metrics and performance indicators that drive performance.

The Diversity and Inclusion Committee continued to guide progress and steer the overall delivery of targeted outcomes.

Drivers Key Indicators Achievements

Institutionalise Measuring progress for the areas of: • Gender (Women) in Senior Leadership Roles - 29 per cent
Diversity and gender, multinational, age and culture, (target exceeded).
Inclusion and stewardship of the Diversity and • Multinationals in Senior Leadership Roles – 14 per cent
accountability Inclusion Committee, ensuring progress (target exceeded).
through in advancing equitable representation, • Young talents in Corporate and Business priorities –
strengthened diverse talent inclusion and culture shift. 26 per cent (target exceeded).
commitments • Diversity and Inclusion Culture measured at Quartile 3,
Progressing level (target met).
Implement measurement for top • Approved performance measurement for top
management, focusing on education and management roles to embed inclusion in culture and
engagement to advocate and role-model practices.
inclusive practices.

Our approach to strengthening inclusivity focuses on raising awareness among employees and enhancing leadership capabilities
and decision-making touchpoints involved in talent development and progression. Key programmes implemented during the
year included Conscious Inclusion for People Development Committee leaders, Disability Equality Training for targeted roles, and
Diversity and Inclusion awareness modules for employees.

To advance inclusion for neurodivergent talents, we implemented a range of awareness and support programmes aimed at
educating line managers, leaders and employees. These initiatives were complemented by cross-industry knowledge sharing
through a practitioner-led community of practice, which contributed to the continuous refinement of our talent management
approaches.

Training and coaching efforts supported inclusive hiring, which included targeted recruitment of Persons with Disabilities and
neurodivergent talents.

Drivers Approach Achievements

Strengthen Conscious Inclusion Programme for • Conducted 58 regional sessions, equipping 339 leaders
awareness Leadership teams, and Diversity and with tools.
and capability Inclusion training modules • Train-the-Trainer Bootcamp for 47 internal and external
in inclusive facilitators to embed Conscious Inclusion.
leadership • Diversity and Inclusion awareness modules to fast-track
through expanded awareness and understanding, reaching 1,115 employees.
training and
Disability Equality Training and Awareness • 8 Disability Equality Training sessions delivered to
awareness
programme on Neurodiversity Diversity and Inclusion Committee members, upskilling
programmes to
176 leaders on Persons with Disabilities inclusion,
foster deeper
training extended to project teams and hiring managers
understanding of
to mainstream disability inclusion into recruitment and
practices
workplace practices.
• Neurodiversity awareness sessions reached 1,600
employees.
• Conducted Training for Line Managers on performance
management and understanding neurodivergent talents,
supported by three certified job coaches from the
Department of Social Welfare.
Integrate inclusive hiring into talents • Persons with Disabilities were recruited at PETRONAS
strategy, ensuring equitable opportunities Dagangan Berhad, mainly at PETRONAS service stations,
for People with Disabilities, including while neurodiverse individuals were recruited at
neurodivergent talents PETRONAS Digital Sdn Bhd.
152 PETRONAS • Integrated Report 2024

Fostering a Just Transition

Guided by PETRONAS’ Shared Values and the PETRONAS Cultural Beliefs, we are committed to cultivating an empowered
workforce and an inclusive work environment, where every employee is heard, valued and empowered to contribute their unique
perspectives and creativity.

PETRONAS conducts an annual Groupwide survey to monitor employee engagement, sentiment and emerging trends. The
PETRONAS Organisational Culture Survey provides valuable insights for management, helping to identify areas for improvement,
strengthening retention and promoting a supportive and engaging workplace.

The 2024 survey focused on four areas which relate to engagement, psychological safety, diversity and inclusion, and change
readiness. Within the Diversity and Inclusion dimension, seven key elements were assessed, namely a larger purpose, inclusive
leadership, discrimination, challenging the status quo, intentional inclusivity, speaking up and managing difficult conversations.
These elements were designed to deepen the understanding of employee perceptions around workplace culture and inform
targeted actions.

To strengthen internal engagement, we launched the Spokesperson and Advocates Programme, appointing management leaders
and line managers across the business and human resource functions. These advocates serve as connectors to leadership teams
and support the implementation of Diversity and Inclusion initiatives. Their role also includes enabling engagement and embedding
inclusivity throughout the talent practices.

We exchange information and raise awareness on topics such as gender diversity, women in technical role and neurodiversity.
These efforts contribute to a more inclusive and informed industry dialogue.

We will continue collaborating with leading organisations to advocate Diversity and Inclusion, share best practices and foster
continuous enrichment among industry leaders. At the same time, we will reinforce internal practices in alignment with our Human
Rights Policy.

Drivers Approach Achievements

Culture and Foster an inclusive workplace that • Improved Inclusive Leader score in the PETRONAS
Engagement reinforces shared responsibility for role- Organisational Culture Survey from 72 in 2023 to 73 in
Strengthen internal modelling culture 2024.
practices and • Diversity and Inclusion Spokesperson and Advocates
steer industry- Programme - Appointment of five leaders and 22
wide Diversity and line managers across Business and Human Resource
Inclusion progress, functions to drive progress on Diversity and Inclusion
advocating initiatives.
for equitable
Position PETRONAS as a Diversity and • Co-developed the Diversity, Equity and Inclusion (DEI)
workplace
Inclusion advocate in driving industry- Implementation Guide for Malaysia with the CEO Action
practices at
wide awareness and best practices across Network, launched in May 2024.
industry and
the Asia Pacific region, with a focus on • Co-sponsored the APAC-DEI Summit 2024 in
regional platforms
women, women in technical roles and collaboration with LeadWomen, contributing to the
neurodiversity orchestration and curation of Diversity and Inclusion-
focused dialogues.
• Held two Neurodiversity roundtables and a co-creation
workshop to build an inclusive ecosystem for future
workforce.
• Shared insights at events including the Offshore
Technology Conference Asia, Leaders Conversation
(JP Morgan and Khazanah Nasional), Malaysia’s National
Training Week 2024, and 2024 World Women Economic
and Business Summit.
 5 Sustainability Performance Review 153

PETRONAS Lean Six Sigma Facilitation of process improvement projects led to the
optimisation of 186 initiatives, generating RM2.31 billion in
PETRONAS deployed the Lean Six Sigma approach in value and saving more than 270,000 hours worked. Average
2016 at the enterprise level to equip employees with cycle efficiency reached 64 per cent. In terms of capability
globally recognised and structured process improvement development, 732 employees were trained in Yellow Belt, 248
methodologies. Accredited by the International Association in Green Belt, and 37 in Black Belt. A total of 121 employees
were certified as Green Belts and eight as Black Belts.
for Six Sigma Certification and The Council for Six Sigma
Certification, the programme standardises the business process
Agile Capability and Awareness
improvement facilitation across the organisation.
We integrate agility into our talent development strategy
The programme received international recognition as a finalist by embedding agile practices across the organisation.
at the Business Transformation and Operational Excellence Agile capability focuses on equipping leaders, coaches and
Summit Awards 2024, in the United States. Fully driven by practitioners with the necessary skills, while agile awareness
in-house specialists with global recognition, the programme broadens understanding of agile principles at all levels.
integrates continuous improvement into daily operations,
fosters cross-functional collaboration and delivers measurable In collaboration with the PETRONAS Leadership Centre, Agile
value. It also strengthens talent development while enhancing Enterprise designs learning experiences to foster adaptability,
continuous improvement and alignment with industry best
overall business performance.
practices, ensuring the workforce is resilient and responsive to
business challenges.
In 2024, we enhanced our Lean Six Sigma programme by
establishing the Yellow Belt as a prerequisite for Green Belt Our initiatives are to build a sustainable ecosystem for
certification, thereby streamlining learning pathways to practitioners to exchange knowledge, collaborate and drive
improve project execution. The Kaizen Squadron was activated agile maturity across business units and across industries.
as a platform for certified practitioners to exchange insights In 2024, these included excursions to Telekom Malaysia,
and support ongoing process improvement. To broaden AIA and Maybank, which provided opportunities for cross-
access, the Yellow Belt e-learning was rolled out via the online organisational learning, enabling participants to exchange
portal myLearningX to all employees, reducing training time to experiences, skills and best practices, including innovative
five hours from the previous 1.5 days. facilitation techniques such as LEGO SERIOUSPLAY, for
improved effectiveness.

Agile Capability

In 2024, Beginner’s Introduction to Professional Professional Agile

we Guide to Agile Agile Scrum Scrum Product Coach
Master Owner Enablement
upskilled:
1,041 944 218 76 69

Agile Awareness Survey Total online

(Pulse Check) >14.6k engagement
Gre
2024: Score of 3.85/5.0 od
(2023: Score of 3.45/5.0)
Go
(30-
at
72
29) 7 Roadshows and Engagements
(1- 0)

>900 Employees
t

Total additional agile engaged

(-10 men

Ex
Impr eds

employee bench strength

cel
)

(71
0- 0
ove

Net Promoter
lent
Ne

1,421
100)

Score*

Note:
* Net Promoter Score is a method that uses a single survey question to gauge employee satisfaction by measuring how likely employees are to recommend agile
programmes or activities. The Net Promoter Scores are based on total average.
154 PETRONAS • Integrated Report 2024

Fostering a Just Transition

Driving Talent Growth through Coaching with the remainder expected by June 2025. We developed
and optimised career paths for 11 technical skill groups
The 2024 Coaching Campaign set out to embed coaching and completed a General Technology Inventory and Ruler,
as a catalyst for talent growth, business success and team embedding sustainability elements across each group.
excellence. The goal was to inspire leaders to embrace and
role-model a coaching culture, strengthening PETRONAS' The Talent Reshaping Framework and Tactical Strategy for
foundation for future-ready leadership. technical junior executives to general managers, set the
foundation for development across technical levels. The Talent
The campaign focused on building essential coaching skills. Reshaping Playbook was published on the internal web portal
Participants engaged in real-time learning, developed coaching to support consistent implementation.
habits, explored regional demands and tackled challenges in
fostering a coaching culture. This interactive approach not only Looking ahead, we plan to expand the Talent Reshaping
strengthened skills but also empowered participants to view Programme to junior executives, introduce technical tools
coaching as an everyday leadership tool. for senior talent and transition existing professionals from
specialised roles to broader skill-based groups.
The campaign results surpassed expectations, attracting 1,848
unique visitors or 134 per cent above the initial target of 1,380. Institut Teknologi Petroleum PETRONAS
Development opportunities were above projections, at 2,792,
a more than threefold increase. Key to this success was the As the technical training arm of PETRONAS, Institut Teknologi
contribution of 30 internal PETRONAS coaches, who served Petroleum PETRONAS (INSTEP) provides a comprehensive
as facilitators, panelists and moderators, exceeding the initial competency-based learning experience through hands-on
target of 12. exposure to projects on campus grounds. Aligned with our
goal of enriching the energy workforce for a sustainable future,
Strengthening Future-Ready Capabilities INSTEP offers structured development programmes such as
Executive Technical Solutions and Non-Executive Technical
We focus on upskilling and reskilling our people to deliver Solutions for engineers and technicians, along with Technical
on our business strategies in the new energy landscape. This Certification Solutions, which deliver competency-based
means heavily investing in our people to become a highly- training for employees at all levels.
skilled, innovative and agile workforce, in critical areas, such as
leadership, innovation and core skills. In 2024, INSTEP achieved 36,832 development opportunities
through 2,186 training sessions, reflecting its strong role in
A transition-specific Skills Gap Assessment is conducted advancing technical capabilities. These efforts upskilled more
annually, focusing on carbon management, renewables and than 23,220 PETRONAS employees and 13,612 external industry
digitalisation. The findings guide curriculum design at Universiti technical talents.
Teknologi PETRONAS, INSTEP and internal learning pathways,
ensuring alignment with PETRONAS’ Energy Transition Strategy. Strengthening Leadership Development

Talent Reshaping Programme Our leadership development strategy is executed through two
distinct initiatives, Leadership EDGE and behavioural science
This programme aims to cultivate system-thinkers and broad- in leadership programme, both aimed at building adaptable,
based technical professionals equipped with digital skills, forward-thinking leaders.
business acumen and adaptability. The programme supports
alignment with our organisational priorities, provides structured In 2024, PETRONAS expanded the Leadership EDGE
onboarding for new hires and strengthens collaboration across programme to include executive secretaries and auxiliary
technical functions. police, supporting our competency-driven talent development
approach. These upskilling sessions equipped 310 employees
In 2024, we enrolled more than 500 junior technical with a deeper understanding of EDGE, its sub-competencies
executives from four business units into the programme, and their practical applications. Additionally, 557 employees
representing more than 60 per cent of the targeted group, undertook the Leadership Competency Assessment, where
the results guided progression decisions. This initiative
strengthened decision-making, teamwork and continuous
learning, fostering a more adaptable workforce.
 5 Sustainability Performance Review 155

To further enhance leadership effectiveness, we integrated behavioural science principles into leadership programmes. Workshops
such as Change the Conversation, Elevating Careers for Top Talents and Conscious Inclusion guided leaders in overcoming
ingrained behaviours and hesitation to adopt new approaches, improving decision-making and adaptability. The approach
encourages habit formation and alignment with PETRONAS' cultural goals, with data insights supporting personal growth.

PETRONAS plans to expand behavioural science integration to mid and entry-level leadership programmes, collaborate with
academic institutions for advanced research and implement continuous feedback loops to refine interventions dynamically.

Fostering Innovation and Entrepreneurship through PING

The PETRONAS Innovation Garage (PING) programme aims to nurture entrepreneurial thinking and become the catalyst for
transformative ideas and impactful ventures within the Group. To date, PING has received 185 ideas from employees, with 21
venture ideas incubated from the first two cohorts.

PING’s success extends beyond programme participation. In 2024, five of the venture teams launched their solutions as
independent start-ups while four other teams were transferred internally within PETRONAS to advance solutions that address
operational challenges.

Within just a year of incubation, PING’s ventures have delivered impressive outcomes, such as:

• Securing investment for growth - JAZRO Technology Robotics Sdn Bhd (JAZRO) programmes attracted significant
investment from venture capital firm Gobi Partners Sdn Bhd through Malaysia sovereign wealth fund Khazanah Nasional
Berhad-backed Gobi Dana Impak Ventures (GDIV) fund, enabling further expansion.

• Developing cutting-edge solutions - Tigasfera Sdn Bhd, a material conversion technology and service provider, successfully
built and deployed a waste-to-energy machine, while V Cred Sdn Bhd (V-Cred) (now known as Rosary Labs), a team of data
enthusiasts, engineers, and innovators and AIngineer Sdn Bhd (AIngineer) launched artificial intelligence-powered solutions
that have gained traction through multiple Proof of Concepts both internally and externally.

• Creating social impact - JAZRO’s robotics programmes have reached about 70,000 students, including autistic children,
fostering inclusive education through technology.

• Achieving industry recognition - V-Cred and AIngineer emerged among seven winners of the Cradle MyHackathon
programme by Cradle Fund Sdn Bhd, competing against over 500 groups nationwide. AIngineer went on to reach the finals of
the International Talent Entrepreneurship SEA 2024 competition.
156 PETRONAS • Integrated Report 2024

Fostering a Just Transition

Advancing Sustainability Capabilities Sustainability in Higher Education

PETRONAS offers a range of internal and external programmes As part of our ongoing efforts to strengthen sustainability
that empower our employees and other stakeholders to competencies, PETRONAS collaborates with Universiti
become sustainability champions. This approach equips them Teknologi PETRONAS to deliver structured learning through
with the knowledge and tools to incorporate sustainability the Centre for Advanced and Professional Education. Designed
practices into their daily work routine, which will support the for PETRONAS employees, these programmes integrate
Group in achieving its business goals. sustainability into talent development pathways, ranging from
undergraduate specialisation courses in Environmental and
Sustainability Capability Programmes Sustainable Engineering, Renewable Energy and Sustainability,
to postgraduate programmes such as the Master of Science
PETRONAS has rolled out a series of learning programmes in Industrial Environmental Engineering and the Master of
tailored to different leadership and operational levels in Business Administration in Energy Management programmes.
sustainability. These include the Sustainability Excellence The university also offers 57 professional short courses that
Programme for general managers, the Sustainability build capabilities in sustainability-related areas.
Masterclass for executives to senior managers, and
Sustainability Explained sessions for non-executives. These Sustainability in Leadership
programmes aim to raise awareness of PETRONAS’ Net Zero
Carbon Emissions by 2050 Pathway, PETRONAS Position on As part of PETRONAS’ commitment to developing
Nature and Biodiversity, and PETRONAS Human Rights Policy, sustainability-focused leaders, two top talents strengthened
while equipping participants with knowledge and skills to their capabilities in leadership styles, communication and
incorporate sustainability considerations into their roles and decision-making through the World Business Council for
decision-making. The Sustainability Excellence Programme Sustainable Development Leadership Programme, conducted
has also been extended to external participants through the in collaboration with Yale University and the Institute for
Sustainability Excellence Programme for Professionals. In Management Development, Switzerland.
addition to the above, it features real-world case studies,
which contributes to the nation’s path towards environmental In addition, another top talent took part in the World Business
and socio-economic balance. It also fosters unique cross- Council for Sustainable Development LEAP Programme,
sector collaboration by bringing together leaders from both developed with Yale University and ESADE, which supports
government and industry to enhance synergy in developing women in progressing to senior leadership roles while
and executing initiatives aligned with Malaysia’s National embedding sustainability into corporate strategy.
Energy Transition Roadmap. In 2024, a total of 721 individuals,
including PETRONAS employees, government representatives To build internal expertise, PETRONAS supported 109
and supplier representatives, participated in these programmes. employees in completing executive education programmes on
sustainability from leading institutions including the Yale School
To strengthen technical capabilities in emissions reduction, of Management, the Cambridge Institute for Sustainability
PETRONAS rolled out a Decarbonisation Programme for Leadership and the Massachusetts Institute of Technology.
designated roles in the organisation. The programme provided In addition, two employees participated in specialised
practical knowledge on key emissions reduction levers, training programmes, including the Prince of Wales Business
greenhouse gas accounting and forecasting, carbon pricing & Sustainability Programme by the Cambridge Institute for
and project economics to support the development of asset- Sustainability Leadership and the Sustainability and Climate Risk
level emissions reduction plans. A total of 87 participants Certificate by the Global Association of Risk Professionals.
completed the programme across five cohorts.
PETRONAS has also embedded sustainability content into its
Foundational Leadership programme to cultivate awareness
among executives. A total of 350 participants completed the
enhanced programme across six cohorts, supporting early-
stage leadership development with a focus on sustainability
business practices.
 5 Sustainability Performance Review 157

Sustainability Engagement and Advocacy

To strengthen internal advocacy, PETRONAS

has appointed around 200 Sustainability
Network Change Agents across the
organisation. In 2024, six engagement
sessions were conducted, including a
sustainability townhall, sustainability
workshops, knowledge sharing by
international renowned leaders, and sharing
of best practices from various businesses.

As part of our efforts to raise sustainability

awareness among future talents, PETRONAS
conducted two sessions for 95 Universiti
Teknologi PETRONAS students to build
understanding of climate change,
environmental degradation and inequality,
and to explore actions they can take to Vice President and Group Chief Sustainability Officer, Charlotte Wolff-Bye engaging with
employees on sustainability.
foster positive impact.

PETRONAS Powering Knowledge Education Sponsorships

We believe education unlocks individual potential and drives national progress. RM345.56 million
PETRONAS champions accessible, high-quality education through sustained sponsorship investment allocated
investments in Science, Technology, Engineering and Mathematics (STEM) and Technical for 984 students, including
and Vocational Education and Training (TVET). These efforts aim to empower individuals RM319.4 million for 596
and build a future-ready workforce.
top 2023 Sijil Pelajaran Malaysia*
students to pursue studies at
One flagship initiative trained 411 teachers in Cohort 4 as Duta Guru or Teacher
Universiti Teknologi PETRONAS
Ambassadors, equipping them with the skills to cultivate deeper STEM appreciation
among secondary school students. This support was extended with the launch of three and other leading local and
STEM hubs and the announcement of Duta Guru funding. international institutions

Note:
Our efforts in STEM education continue through the provision of leadership capacity * Malaysia High School Certificate.
building for 57 officers from District Education Offices to drive change in STEM
education, and the empowerment of 40 teachers across 20 primary schools in Kulim in 92 per cent of scholars from
Kedah and Taiping in Perak to ignite early interest in science and technology. lower-income households

We also support TVET institutions through the Vocational Institution Sponsorship and Fields of Study
Training Assistance (VISTA) programme by providing training resources, enhancing
syllabus and developing skills to produce industry-ready technical talents. Since its 55 per cent pursuing engineering
inception in 1992, the programme has positively impacted 14,674 students, including disciplines
854 in 2024 alone.

In addition, PETRONAS upskilled 496 undergraduates across five cohorts through a

18 per cent in digital fields
focused two-week programme centered on digital literacy, design thinking, career
fundamentals and digital entrepreneurship. Since its launch in 2022, this programme has 27 per cent in business studies
facilitated 276 job matches through over 90 hiring partners.
158 PETRONAS • Integrated Report 2024

Fostering a Just Transition

Expanding STEM Learning through Petrosains

PETRONAS supports learning reinforcement and enrichment through Petrosains, The Discovery Centre, and Petrosains
PlaySmart™, providing physical and digital platforms where students and the public can strengthen their STEM knowledge,
explore PETRONAS’ sustainability journey and better understand the transition to a lower-carbon energy future.

In 2024, Petrosains transformed and enhanced its gallery space into an interactive learning hub, featuring immersive STEM
exhibitions and creative spaces such as Maker Studio, which offers engaging experiences in coding, prototyping and robotics.

Petrosains also organised a science drama competition, engaging 1,047 participants from primary and secondary schools across
Malaysia to spark interest in STEM and raise sustainability awareness, while promoting the 4Cs of critical thinking, creativity,
communication and collaboration. In addition, Petrosains introduced a programme to empower Indigenous students with vital
skills in robotics, coding and programming. In 2024, the programme benefitted 376 students through workshops conducted
across nine states in Malaysia, culminating in a major achievement when students from Pekan, Pahang won the 26th International
Robot Olympiad in Busan, Korea.

605,219 visitors 14,548 individuals 128.14 million people reached 645,751 visitors engaged
welcomed at the Discovery benefitted from the through digital platform, enhanced at Petrosains PlaySmartTM
Centre programmes brand visibility centres

Empowering a Skilled Workforce for a Sustainable Energy Future

As the energy landscape evolves, investing in the future of workforce remains essential to ensure resilience, foster innovation,
and drive sustainable growth.

PETRONAS supports this through its state-of-the-art training institution, Institut Teknologi Petroleum PETRONAS (INSTEP).
INSTEP pioneers initiatives such as the Technical Energy Enrichment Programme, which integrates on-the-job training at
PETRONAS' Floating LNG facilities to enhance practical learning and competencies.

Expanding its commitment to inclusive education, INSTEP partnered with Yayasan Pendidikan MAIDAM (MAIDAM Education
Foundation) for the 2024-2025 Oil and Gas Wakalah TVET Programme*, providing underprivileged individuals in Terengganu with
industry-relevant skills to boost their employability in the oil and gas sector.
Note:
* The programme utilises wakalah fund received from zakat center.

RM30.3 million invested 36 students trained in collaboration 75 asnaf** students from Terengganu provided
in training for 273 students with Hibiscus Petroleum and Sarawak with three-month industry training
Shell
Note:
** Recipients who are eligible for Islamic tithe (zakat).
 5 Sustainability Performance Review 159

HW Health and Well-being

Why This Is Important to Us

PETRONAS recognises workforce health and well-being as essential to sustaining a resilient, high-performing organisation. We
strive to provide an environment where every employee can thrive both professionally and personally. A healthy workforce is not
only more productive, engaged and innovative, but also critical to achieving long-term, sustainable business success.

Occupational health plays a key role in protecting and supporting our workforce. Its main functions include preventing
work-related illnesses, managing health risks in the workplace and ensuring that job roles align with employee’s physical and
psychological capabilities. As the nature of work evolves, occupational health has also expanded to encompass mental, emotional
and social well-being. By integrating health promotion into occupational safety and health (OSH) management systems, we
continue to strengthen preventive practices that safeguard our people and contribute to long-term organisational resilience.

Our Approach

PETRONAS adopts a comprehensive and proactive approach to employee well-being, anchored in fostering a safe, healthy and
inclusive workplace culture.

Our commitment to diversity and inclusion ensures equitable access to opportunities and resources for all employees, regardless
of gender, background, age or ability. This is supported by targeted programmes and guided by the Wellness Steering Committee,
which drives our strategic health and well-being agenda across the organisation.

Guided by PETRONAS’ Shared Values and the PETRONAS Cultural Beliefs, we are committed to inculcating an empowered
workforce.

Industrial Hygiene

We strive to uphold workers’ rights to a safe working environment by strengthening the management of hazardous chemicals,
improving ventilation and gas testing practices in confined spaces, reducing noise risks through engineering controls and utilising
digital systems for industrial hygiene risk assessments.

In 2024, through our in-house hazardous chemical management system, we achieved 100 per cent compliance in chemical
registers and chemical labelling, and improved the availability of Safety Data Sheets in both local and English languages. We also
recorded successful noise reduction ranging from 3-34 A-weighted decibels (dB(A)), achieved from preventive and corrective
maintenance of high noise equipment and implementation of corresponding engineering controls.

Providing Support through Employee Assistance Programme 2.0

PETRONAS strengthened mental health support through the Employee Assistance Programme 2.0 delivered via myFriends, a
confidential platform offering counselling and wellness services to employees and their family members, subject to evaluation
and recommendation. In 2024, 464 employees received support through 1,577 sessions, totaling 1,740 hours of counselling.
Comparatively, in 2023, 338 employees received support, amounting to around 1,036 hours of counselling. To further raise
awareness, five wellness webinars were held throughout the year, engaging 6,209 participants across virtual and in-person formats.
160 PETRONAS • Integrated Report 2024

Fostering a Just Transition

Driving a Culture of Inclusion

PETRONAS is committed to fostering a workplace where employees feel safe, respected and valued. Guided by our Shared Values
and Cultural Beliefs, we promote open communication through regular check-ins, team-building activities and employee surveys
to understand workplace sentiment and performance. We also prioritise Diversity and Inclusion by creating an accessible and
supportive environments for all employees.

PETRONAS Cultural Beliefs

Customer Focused Innovate Now Be Enterprising Speak Up Courage to Act

I deliver solutions I challenge norms I seek opportunities I express my views I take action to
from the customer and push boundaries and make them openly progress with pace
lens happen

PETRONAS Organisational Culture Survey

PETRONAS conducts an annual Groupwide survey to monitor employee engagement, sentiment and emerging trends, as part of
ongoing efforts to stay connected with the workforce. The PETRONAS Organisational Culture Survey provides valuable insights for
management to identify areas for improvement, strengthen retention and promote a supportive and engaging work environment
that supports mental, emotional and physical well-being.

As part of the Group’s 50th anniversary in 2024, employees were invited to share their vision for PETRONAS’ future. This initiative
generated more than 100,000 suggestions on how to improve operations and drive progress for the next 50 years. The survey
achieved a 96 per cent response rate, significantly above the global top 25 per cent benchmark of 75 per cent, reflecting strong
engagement across the organisation.

MESTIFit4Health

PETRONAS’ flagship health and wellness programme strives to reduce personal health risks and promote healthy behaviour and
lifestyle. The aim of this programme is to ultimately ensure optimal health for employees, where they are fit to work, free from
work-related illnesses, resilient and committed to maintaining a healthy lifestyle.
 5 Sustainability Performance Review 161

Move Right
Encouraging an active lifestyle and overall physical well-being

PETRONAS’ Walking Challenge promoted an active lifestyle among employees globally through digital engagement, supporting the
Move Right element as a preventive approach to non-communicable diseases. The Walk4Trees 2.0 Challenge (June 2023-June 2024)
engaged 13,060 employees and recorded 15.5 billion steps, with the pledge to plant one tree for every 500,000 steps. As a result, Yayasan
PETRONAS will plant a total of 31,046 trees, surpassing the number of trees planted from the previous year’s challenge. The tree planting
will be carried out in phases, beginning at the Kungkular Forest Reserve in Sabah, Malaysia in 2024, and continuing at other identified
locations in 2025. To mark PETRONAS’ 50th anniversary, the 'P50 Years Homecoming Steps Challenge' recorded 7.9 billion steps, with an
average of 1.04 million steps per participant.

Eat Right
Ensuring food and water safety through stringent hygiene standards

The Eat Right programme helped manage the risk of foodborne illnesses during multiple festive events across PETRONAS locations. In
collaboration with the Ministry of Health Malaysia, Kuala Lumpur Convention Centre Urusharta and Koperasi Kakitangan PETRONAS
(Employees' Cooperative), food safety audits were conducted on hundreds of approved external caterers to ensure compliance with
hygiene standards. An internal directive also reinforced preventive measures, including mandatory use of approved caterers, prohibition
of potluck-style food contributions, accountability of event organisers and limitations on food menu selections. The effectiveness of
these proactive measures was reflected in the zero reported cases of food poisoning during the 2024 Hari Raya Aidilfitri (Eid al-Fitr)
celebrations.

Sleep Right
Strengthening and expanding our Fatigue Management System to reduce fatigue-related incidents

The Sleep Right programme strengthens fatigue management to prevent workplace incidents. This is supported by revised technical
standards that include enhanced requirements on Project Hours of Service Limit, stringent fatigue deviation process and the inclusion of
additional high-risk groups such as plant maintenance, and Health, Safety and Environment personnel during critical operations.

Think Right
Supporting employees’ mental well-being through a holistic wellness model that addresses psychosocial risk factors

The Think Right programme fosters a psychologically safe workplace through leadership interventions, mental health first aid, resilience-
building and mental health literacy. In 2024, 148 senior management leaders were upskilled, and 292 new MIND-A-CARE Ambassadors
were trained, bringing the total number of ambassadors to 806. This moves us closer to our 2027 targets of 1,000 ambassadors,
equivalent to one ambassador for every 50 employees. A total of 442 employees completed resilience training, with 65 per cent showing
improved scores. Mental health advocacy efforts, including the Leaders Reach Out Programme, mental health awareness sessions,
onboarding and ongoing promotion via the Health and Well-being one-stop centre, helped stabilise new mental illness cases at 0.76 per
cent, below the 0.91 per cent threshold. These efforts also contributed to a 27 per cent reduction in medical boarding out cases, with
eight recorded in 2024 compared to 11 in 2023. A major milestone was achieved when the MIND-A-CARE Ambassadors programme,
developed in collaboration with INSTEP, won the Gold Medal at the 2024 Brandon Hall Excellence Awards for Best Certification Training
Programme.

Individual Right
Empowering employees to make informed health decisions and prevent substance misuse

In 2024, Preventive Health Screening utilisation rose from 7.5 per cent in the first quarter to 46 per cent by year-end, driven by intensive
promotion and on-site mobile clinics. Substance misuse prevention was strengthened through integrated awareness in wellness
programmes, compliance-driven random testing, centralised reporting for real-time data analysis, certified auxiliary police drug testers
and firm actions against non-compliance. PETRONAS also collaborated with Malaysia's National Anti-Drug Agency to support advocacy
efforts. These measures resulted in zero substance-related incidents, contributing to a safer and healthier workplace.
162 PETRONAS • Integrated Report 2024

Fostering a Just Transition

Progressing to build an inclusive and productive workplace.

PETRONAS is making progress to foster an inclusive and more productive workplace that prioritises employee health and well-
being. We have actively implemented strategies that acknowledge diverse needs and promote open communication, provide
flexible work arrangements and encourage mental health awareness, among others.
 5 Sustainability Performance Review 163

Sustainability Key Performance Data

PETRONAS has set 2019 as the base year for tracking our progress towards achieving the targets of our Net Zero Carbon Emissions
by 2050 Pathway. PETRONAS’ greenhouse gas (GHG) emissions quantification covers both Operational Control and Equity Share
approach for Scope 1 and Scope 2. As part of PETRONAS’ efforts to increase confidence in our disclosed GHG emissions data,
PETRONAS has embarked on a three-year external GHG verification exercise based on ISO 14064-3:2019.

Greenhouse Gas (GHG) Emissions – Operational Control

PETRONAS Groupwide GHG Emissions Breakdown by Business, Operational Control

(Includes Corporate and Others)

Unit 2020 2021 2022 2023 2024

Total GHG Emissions (Scope 1 and 2) 1

PETRONAS million tonnes CO2e 55.11 51.58 54.10 54.24 55.71

By Business
Upstream million tonnes CO2e 16.36 13.89 13.62 12.88 13.91
Gas and Maritime million tonnes CO2e 26.03 26.15 28.01 28.03 27.80
Downstream 2
million tonnes CO2e 12.48 11.28 12.19 13.04 13.69
Corporate and Others 3
million tonnes CO2e 0.24 0.26 0.28 0.29 0.31

GHG emissions data are calculated based on the American Petroleum Institute (API) Compendium (2009) and the
Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report as quantification references. PETRONAS aims
to enhance its quantification methods to better align with national reporting requirements, taking into account the significant
emissions within the region.
Notes:
1. Covers both Malaysia and international operations.
2. PETRONAS acquired BRB International B.V. and Perstorp Holding AB in 2022. Their GHG accounting systems are currently undergoing an alignment process
with PETRONAS' GHG accounting and reporting requirements. The figures above do not include emissions from BRB and Perstorp, which was 0.39 million
tonnes CO2e for 2024.
3. Corporate and Others include KLCC Group of Companies.
164 PETRONAS • Integrated Report 2024

Sustainability Key Performance Data

PETRONAS Core Business GHG Emissions Detailed Breakdown, Operational Control

(Excludes Maritime, Corporate and Others)

PETRONAS Core Business refers to Upstream, Gas and Downstream, excluding Maritime and Corporate & Others (KLCC Group of
Companies).

In 2024, PETRONAS Core Business operations reported 51.55 million tonnes of carbon dioxide equivalent (CO2e), which is a
4 per cent increase compared to 2023. This growth is primarily attributed to strengthened GHG accounting and monitoring
accuracy at downstream petrochemical plants. These enhancements have allowed PETRONAS to better track and manage
emissions.

Upstream, Gas and Downstream businesses have shown an increasing trend in production and energy generation due to the higher
demand in each business. Scope 1 GHG emissions from PETRONAS Core Business recorded 51.04 million tonnes CO2e which is
higher by 4 per cent compared to 2023, mainly as a result of stationary combustion, fugitive emissions and flaring. There were
some changes in Scope 2 emissions for both Malaysia and international Core Business operations in which, international operations
recorded a reduction of 95 per cent in Scope 2 emissions in 2024 compared to 2023, due to the divestment of Engen. Engen is
an South Africa-based energy group focused on the marketing of petroleum, lubricants and functional fluids, chemicals and retail
convenience services. It was a subsidiary of PETRONAS acquired in 1998 and eventually divested in 2024.

Unit 2020 2021 2022 2023 2024

Total GHG Emissions (Scope 1 and 2)
PETRONAS Core Business million tonnes CO2e 50.67 47.13 49.57 49.78 51.55
By Region
Malaysia million tonnes CO2e 48.15 44.63 46.09 45.38 46.55
International million tonnes CO2e 2.51 2.50 3.48 4.40 5.00
By Scope
Scope 1 million tonnes CO2e 49.76 46.42 48.88 49.09 51.04
Scope 2 million tonnes CO2e 0.91 0.71 0.69 0.69 0.51

Scope 1
Scope 1 million tonnes CO2e 49.76 46.42 48.88 49.09 51.04
By Region
Malaysia million tonnes CO2e 47.64 44.16 45.60 44.89 46.04
International million tonnes CO2e 2.11 2.26 3.28 4.20 5.00
By GHG Type
Carbon Dioxide million tonnes CO2 40.34 40.29 43.33 43.76 46.59
Methane thousand tonnes CH4 369.36 238.42 214.86 204.51 169.45
Nitrous Oxide thousand tonnes N2O 0.64 0.62 0.69 0.73 0.72
 5 Sustainability Performance Review 165

PETRONAS Core Business GHG Emissions Detailed Breakdown, Operational Control

(Excludes Maritime, Corporate and Others) (continued)

Unit 2020 2021 2022 2023 2024

Scope 1
By Sources
Combustion million tonnes CO2e 32.10 32.05 33.97 29.17 31.52
Carbon Dioxide million tonnes CO2 31.91 31.86 33.76 28.86 31.19
Methane thousand tonnes CH4 2.03 2.36 2.26 6.24 7.15
Nitrous Oxide thousand tonnes N2O 0.46 0.46 0.50 0.50 0.51
Flaring million tonnes CO2e 6.65 7.11 7.87 8.49 9.31
Carbon Dioxide million tonnes CO2 6.02 6.49 7.18 7.73 8.54
Methane thousand tonnes CH4 24.15 23.82 27.20 28.91 28.80
Nitrous Oxide thousand tonnes N2O 0.11 0.12 0.13 0.15 0.15
Venting million tonnes CO2e 8.19 4.98 3.86 2.49 1.60
Carbon Dioxide million tonnes CO2 1.51 1.31 1.07 0.89 0.79
Methane thousand tonnes CH4 267.23 147.04 111.68 64.05 32.27
Nitrous Oxide thousand tonnes N2O - - - - -
Fugitive Emissions million tonnes CO2e 1.84 1.63 1.81 2.39 2.35
Carbon Dioxide million tonnes CO2 0.02 0.02 0.02 0.02 0.02
Methane thousand tonnes CH4 72.88 64.14 71.55 94.62 93.39
Nitrous Oxide thousand tonnes N2O - - - - -
Others 1
million tonnes CO2e 0.98 0.65 1.37 6.55 6.26
Carbon Dioxide million tonnes CO2 0.88 0.61 1.30 6.26 6.05
Methane thousand tonnes CH4 3.07 1.06 2.17 10.69 7.84
Nitrous Oxide thousand tonnes N2O 0.07 0.05 0.07 0.08 0.06

Scope 2
Scope 2 million tonnes CO2e 0.91 0.71 0.69 0.69 0.51
By Region
Malaysia million tonnes CO2e 0.51 0.47 0.49 0.49 0.50
International million tonnes CO2e 0.40 0.24 0.20 0.20 0.01

Note:
1. Other GHG sources include emissions from activities such as acid gas removal, glycol dehydrator, mobile and transportation, refrigerant and others.
Scope 1: Direct emissions from company-owned or controlled facilities and operations.
Scope 2: Indirect emissions from energy we purchase.
Detailed breakdown may not add up to total due to rounding.
166 PETRONAS • Integrated Report 2024

Sustainability Key Performance Data

PETRONAS Core Business GHG Emissions Intensity, Operational Control

Unit 2020 2021 2022 2023 2024

GHG Intensity by Business1
Upstream tonnes CO2e per kboe 51.51 44.71 36.11 33.80 34.91
Malaysia assets tonnes CO2e per kboe 61.04 50.14 42.77 37.27 38.62
International assets tonnes CO2e per kboe 20.06 28.23 24.11 28.31 29.79
Gas and Maritime
LNG (PLC and PFLNG) tonnes CO2e per tonnes 0.68 0.65 0.64 0.75 0.64
Downstream2
Refineries tonnes CO2e per barrel 0.018 0.018 0.021 0.019 0.020
Petrochemicals tonnes CO2e per tonnes 0.62 0.60 0.57 0.62 0.66
Notes:
1. Numerator for GHG intensity is a summation of Scope 1 and Scope 2 GHG emissions under the operational control approach. All GHG intensity figures
include carbon dioxide, methane and nitrous oxide emissions expressed in total tonnes CO2e.
2. Boundary for Downstream GHG Intensity is Malaysia operations only.

A barrel of oil equivalent (BOE) is a unit of energy measurement used to standardise and compare the energy content of different energy sources, such as oil,
natural gas and coal, by equating them to the energy contained in one barrel of crude oil.

In 2024, PETRONAS recorded a greenhouse gas (GHG) intensity of 34.91 tonnes CO2e per kboe for our Upstream operations,
which is an increase of 3 per cent compared to 2023, primarily contributed by a ramp up of production in Canada, Iraq, and
Kasawari field in Malaysia.

PETRONAS Core Business Methane Emissions Breakdown by Source, Operational Control

(Excludes Maritime, Corporate and Others)

Unit 2020 2021 2022 2023 2024

Methane Emissions
PETRONAS Core Business thousand tonnes CH4 369.36 238.42 214.86 204.51 169.45
Combustion thousand tonnes CH4 2.03 2.36 2.26 6.24 7.15
Flare thousand tonnes CH4 24.14 23.82 27.20 28.91 28.80
Vent thousand tonnes CH4 267.23 147.04 111.68 64.05 32.27
Fugitive Emissions thousand tonnes CH4 72.88 64.14 71.55 94.62 93.39
Others thousand tonnes CH4 3.07 1.06 2.17 10.69 7.84

Methane emissions from PETRONAS Core Business reduced by 17 per cent compared to 2023. This improvement was achieved
mainly through flaring and venting reduction, as well as vent-to-flare conversion efforts in Upstream operations.
 5 Sustainability Performance Review 167

Greenhouse Gas (GHG) Emissions – Equity Share

PETRONAS Groupwide GHG Emissions Breakdown by Business, Equity Share

(Includes Corporate and Others)

Unit 2020 2021 2022 2023 2024

Total GHG Emissions (Scope 1 and 2)
PETRONAS million tonnes CO2e 47.52 44.05 46.78 46.41 48.32
By Business
Upstream million tonnes CO2e 17.96 15.09 15.55 13.77 15.61
Gas and Maritime million tonnes CO2e 19.30 19.68 21.03 21.66 21.42
Downstream million tonnes CO2e 10.04 9.04 9.93 10.70 11.01
Corporate and Others million tonnes CO2e 0.21 0.24 0.27 0.28 0.28
Note:
PETRONAS Groupwide GHG emissions based on Equity Share approach Scope 1 and Scope 2 for 2019 (baseline year) was readjusted post external verification
from 54.25 million tonnes CO2e to 52.67 million tonnes CO2e.

Total GHG emissions from Scope 1 and 2 for PETRONAS Groupwide operations based on Equity Share approach recorded 48.32
million tonnes CO2e, which is 4 per cent higher compared to 2023, with Gas and Maritime being the highest contributor with 44
per cent, followed by Upstream with 32 per cent and Downstream contributed 23 per cent.

PETRONAS Core Business GHG Emissions Detailed Breakdown, Equity Share

(Excludes Maritime, Corporate and Others)

Unit 2020 2021 2022 2023 2024

Total GHG Emissions (Scope 1 and 2)
PETRONAS Core Business million tonnes CO2e 45.19 41.68 44.35 44.01 46.09
By Region
Malaysia million tonnes CO2e 40.56 37.11 39.76 39.63 42.09
International million tonnes CO2e 4.63 4.58 4.59 4.38 3.99
By Scope
Scope 1 million tonnes CO2e 44.22 40.90 43.57 43.20 45.42
Scope 2 million tonnes CO2e 0.97 0.78 0.78 0.81 0.67

Scope 1
By Region
Malaysia million tonnes CO2e 40.05 36.67 39.29 39.13 41.65
International million tonnes CO2e 4.16 4.23 4.28 4.08 3.77

Scope 2
By Region
Malaysia million tonnes CO2e 0.50 0.43 0.47 0.51 0.45
International million tonnes CO2e 0.46 0.35 0.31 0.30 0.22

PETRONAS Core Business makes up 95 per cent of total Groupwide GHG emissions Scope 1 and 2 based on Equity Share
approach, where Malaysia operations contribute to 91 per cent and International operations contribute to 9 per cent of the
emissions.
Note:
PETRONAS Groupwide GHG emissions, for Equity Share approach Scope 1 and Scope 2 for 2019 (baseline year), was readjusted post external verification from
54.25 million tonnes CO2e to 52.67 million tonnes CO2e.
168 PETRONAS • Integrated Report 2024

Sustainability Key Performance Data

Energy - Operational Control

PETRONAS Groupwide Energy Consumption Breakdown by Business, Operational Control

(Includes Corporate and Others)

Unit 2020 2021 2022 2023 2024

Total Energy Consumption1
PETRONAS petajoules 545.88 531.34 575.55 579.93 595.00
By Business
Upstream petajoules 72.49 73.53 75.97 74.60 80.01
Gas and Maritime petajoules 264.01 269.21 289.28 284.60 286.85
Downstream2 petajoules 204.87 183.96 205.21 215.46 222.52
Corporate & Others 3
petajoules 4.51 4.65 5.09 5.28 5.61

Notes:
1. Covers both Malaysia and international operations.
2. PETRONAS acquired BRB and Perstorp in 2022. Their energy accounting systems are currently undergoing an alignment process with PETRONAS' energy
accounting and reporting requirements. The figures above exclude energy consumption from BRB and Perstorp.
3. Corporate and Others include KLCC Group of Companies. The energy consumption for KLCC Group of Companies does not account for inter-company
transfers of chilled water.

PETRONAS Core Business Energy Intensity, Operational Control

Unit 2020 2021 2022 2023 2024

Energy Intensity by Business
1

Upstream
Total gigajoules per kilobarrel of oil equivalent 223.35 218.66 197.73 191.14 193.81
Malaysia Assets gigajoules per kilobarrel of oil equivalent 251.84 249.85 234.11 220.33 227.05
Intenational Assets gigajoules per kilobarrel of oil equivalent 151.73 151.51 130.95 142.76 145.12
Gas and Maritime
LNG and Gas Processing gigajoules per tonne of production 4.80 4.75 4.68 4.68 4.56
Downstream2
Refineries gigajoules per barrel of oil 0.30 0.28 0.33 0.32 0.33
Petrochemicals gigajoules per tonne of production 10.28 9.83 10.09 9.65 9.33
Notes:
1. Energy Intensity is calculated as total energy consumption over total production or throughput.
2. Boundary for Downstream Energy Intensity is Malaysia operations only.
 5 Sustainability Performance Review 169

PETRONAS Groupwide Scope 3 GHG Emissions for Category 11 (2020 – 2024) and Category 1 (2022 – 2024)

Unit 2020 2021 2022 2023 2024

Scope 3 1

Operational Control
Category 1:
Purchased Goods and Services1,2 million tonnes CO2e - - 30.27 31.06 23.88
Category 11: Use of Sold Products3 million tonnes CO2e 282.36 277.04 292.09 312.12 298.16
Equity Share
Category 11: Use of Sold Products3,4 million tonnes CO2e 277.63 272.54 285.66 297.92 292.00

Notes:
1. PETRONAS' Scope 3 materiality assessment is guided by GHG Protocol, Ipieca and benchmarking with peers. Based on the assessment, Category 11 and
Category 1 are the material Scope 3 categories for PETRONAS.
2. Quantification for Category 1 emissions began in 2023 using data from 2022 onwards.
3. Category 11 only includes emissions associated with fuel products sold to third parties. All fuel products sold are assumed to be fully combusted.
4. Scope 3 (Category 11: Use of Sold products) emissions for 2019-2023 have been restated following external GHG verification conducted by LRQA Inspection
Malaysia Sdn Bhd.

Category 1 emissions, based on Operational Control approach, decreased by 23 per cent in 2024 compared to 2023, primarily due
to reduced purchasing activities by the Downstream business. Category 11 emissions decreased by 5 per cent based on Operational
Control approach and decreased by 2 per cent based on Equity Share approach in 2024 compared to 2023. Both reductions were
driven by lower sales volume by the Downstream business.
170 PETRONAS • Integrated Report 2024

Sustainability Key Performance Data

Environment

Unit 2020 2021 2022 2023 2024

Freshwater Withdrawal
PETRONAS1 million cubic metres 60.5 68.3 77.9 79.2 82.6
By Business
Upstream million cubic metres 0.9 1.3 1.3 1.3 1.4
Gas and Maritime million cubic metres 10.9 10.8 11.2 11.3 11.4
Downstream million cubic metres 47.4 55.3 63.3 63.4 66.5
Corporate and Others million cubic metres 1.3 0.9 2.2 3.3 3.2
By Region
Malaysia million cubic metres 57.2 67.3 76.8 78.1 81.4
International million cubic metres 3.3 1.0 1.1 1.1 1.2

Effluents
Discharges to Water tonnes of hydrocarbon 532 452 487 327 393

Air Emissions
Total Sulphur Oxides Emissions tonnes 84,225 47,954 60,116 60,212 59,400
Total Nitrogen Oxides Emissions 2
tonnes 138,035 133,962 62,790 101,695 92,017

Spillage
Number of Hydrocarbons Spills into the
Environment over One Barrel3 number of cases 5 2 2 5 10

Waste
Total Hazardous Waste Generated4 tonnes 92,019 124,884 144,620 152,037 187,294
By Region
Malaysia tonnes 67,078 59,882 82,051 66,444 80,116
International tonnes 24,941 65,002 62,569 85,593 107,178
Total Hazardous Waste Sent for
Reuse, Recycling and Recovery (3R) tonnes 65,170 49,561 73,643 57,424 58,583
By Region
Malaysia tonnes 49,022 41,364 63,133 52,147 55,707
International tonnes 16,148 8,197 10,510 5,277 2,876
Total Hazardous Waste Disposed tonnes 33,349 59,228 76,485 96,310 121,809
By Region
Malaysia tonnes 14,914 21,542 24,449 20,023 17,562
International tonnes 18,435 37,686 52,036 76,287 104,247

Notes:
1. The increase in freshwater withdrawal by 4 per cent from 79.2 to 82.6 mil m3 is due to an increase in industrial activity by the Pengerang Integrated
Complex.
2. Nitrogen oxide emissions decreased to 92,017 tonnes in 2024 from 101,695 tonnes in 2023 mainly due to lower fuel gas consumption from our maritime
operations.
3. The increase in number of hydrocarbon spills over one barrel is due to factors involving operational handling, connection issues and breaches in secondary
containment.
4. The increase in waste disposal is attributed to the host country's requirements and the limited 3R facilities in the selected international operations.
 5 Sustainability Performance Review 171

Safety

Unit 2020 2021 2022 2023 2024

Number of Fatalities number 4 3 4 2 2
Employees number 1 1 0 1 2
Contractors number 3 2 4 1 0
Number of hours worked million hours 273 268 295 292 279
Employees million hours 120 120 127 131 139
Contractors million hours 153 148 168 161 140
Fatal Accident Rate (FAR) number per 100
million hours worked 1.47 1.12 1.36 0.69 0.72
Employees number per 100
million hours worked 0.84 0.84 0 0.76 1.44
Contractors number per 100
million hours worked 1.96 1.35 2.38 0.62 0
Lost Time Injury Frequency (LTIF) number per
million hours worked 0.1 0.14 0.13 0.11 0.10
Employees number per
million hours worked 0.09 0.1 0.11 0.08 0.09
Contractors number per
million hours worked 0.11 0.17 0.14 0.12 0.10
Total Recordable Case Frequency (TRCF) number per
million hours worked 0.29 0.41 0.34 0.31 0.30
Employees number per
million hours worked 0.27 0.28 0.26 0.19 0.16
Contractors number per
million hours worked 0.31 0.52 0.40 0.40 0.45
Total Recordable Occupational Illness Frequency number per
(TROIF) for Employees million hours worked 0.39 0.24 0.32 0.66 0.22
Tier 1 Process Safety Events number of cases 9 10 7 9 7
172 PETRONAS • Integrated Report 2024

Sustainability Key Performance Data

Employment

Unit 2020 2021 2022 2023 2024

Total Number of Employees1 number 48,679 46,884 49,771 54,105 52,157
By Nationality
Malaysian % 80 80 80 79 83
Other Nationalities % 20 20 20 21 17
By Region
Africa % 6.7 6.4 5.7 5.1 0.1
Asia % 84.6 84.7 83.3 84.5 88.7
Australia and New Zealand % 0.1 0.1 0.1 0.1 0.2
Commonwealth of Independent States % 1.4 1.2 1.2 1.2 1.2
Europe % 2.7 2.9 4.9 4.5 5.0
Middle East % 2.4 2.3 2.0 1.8 1.9
North and South America % 2.1 2.4 2.8 2.8 2.9
By Employment Type
Permanent % 86 87 88 87 88
Contract % 14 13 12 13 12
By Age Group
Above 35 % 53 59 60 58 61
Below 35 % 47 41 40 42 39
Total Number of Trade Union Members number 8,476 8,353 8,360 8,266 8,728
Note:
1. Employees for 2024 reduced by 3.6 per cent mainly contributed by ENGEN divestment.

Unit 2020 2021 2022 2023 2024

Gender Diversity
Employees by Gender
Women % 28 28 29 29 30
Men % 72 72 71 71 70
Employees in Technical Positions by Gender
Women % 14 14 14 15 16
Men % 86 86 86 85 84
Senior Management by Gender
Women % 19 26 22 21 20
Men % 81 74 78 79 80
Management Committee Members by Gender
Women % 22 22 22 22 18
Men % 78 78 78 78 82
PETRONAS Board Directors by Gender
Women % 25 30 18 25 29
Men % 75 70 82 75 71
 5 Sustainability Performance Review 173

Unit 2020 2021 2022 2023 2024

Benefits
Employees Who are Entitled to
Parental Leave
Women number - - - 9,863 9,280
Men number - - - 27,458 27,354
Employees Who Took Parental Leave
Women number - - - 679 620
Men number - - - 2,072 2,221
Employees Who Took Parental Leave
and Returned to Work
Women number - - - 662 575
Men number - - - 2,024 1,977
Employees Who Returned to Work After
Parental Leave Ended and Still Employed 12
Months After Their Return to Work
Women number - - - 652 568
Men number - - - 1,997 1,973

Note:
Parental leave refers specifically to maternity and paternity leave, and is subject to eligibility criteria in accordance with local labour laws.

Unit 2020 2021 2022 2023 2024

New Hires
Total Number of New Hires1 number 2,160 2,172 5,210 7,386 4,079
Malaysian number 2,003 1,982 4,358 5,796 3,229
Non-Malaysian number 157 190 852 1,490 461
Undeclared 2
number 100 389
By Nationality
Malaysian % - 86 84 80 88
Non-Malaysian % - 14 16 20 12
By Age Group
Above 35 % - 31 25 25 34
Below 35 % - 69 75 75 66
By Job Level
Non-Executive % - 26 37 38 23
Executive % - 59 54 52 65
Middle Manager % - 14 8 9 11
Senior Management % - 1 1 1 1

Notes:
1. Overall new hires decreased compared to 2023, in alignment with management’s direction to prioritise internal talent and optimise existing resources.
2. The ‘Undeclared’ category refers to new hires from companies that are unable to disclose gender information due to the Personal Data Protection
Regulation.
174 PETRONAS • Integrated Report 2024

Sustainability Key Performance Data

Unit 2020 2021 2022 2023 2024

Employee Attrition
Total % 4.9 8.4 6.6 6.4 12.3
By Gender
Women % 1.3 2.8 1.9 1.8 3.7
Men % 3.6 5.7 4.7 4.6 8.6
By Nationality
Malaysian % - 86 70 68 45
Non-Malaysian % - 14 30 32 55
By Age Group
Above 35 % - 72 57 55 64
Below 35 % - 28 43 45 36
By Job Level
Non-Executive % - 41 34 39 46
Executive % - 33 48 43 39
Middle Manager % - 22 14 15 13
Senior Management % - 4 4 3 2
 5 Sustainability Performance Review 175

Unit 2020 2021 2022 2023 2024

Talent and Future Pipeline
Training Days per Employee days 5 4 4.9 7.3 7.1
Average Training Investment per Employee RM 3,588 2,386 5,433 6,771 6,645
Average Total Hours of Training
per Employee hours 36 30 39.1 58.2 56.9
Average Total Hours of Training
per Employee by Gender
Women hours - 36.3 42.0 57.3 58.7
Men hours - 27.1 42.7 63.6 61.8
Average Total Hours of Training
per Employee by Job Level
Non-Executive hours - 20.5 41.1 63.7 61.2
Executive hours - 35.6 46.6 62.9 65.1
Middle Manager hours - 35.1 37.9 53.8 56.0
Senior Management hours - 21.7 27.5 49.3 42.0
Groupwide Technical Expertise
Technical Authorities number 501 601 618 786 838
Technical Professionals number 1,173 1,281 1,384 1,380 1,455
Technical Trade Specialists number 259 262 266 255 260
PETRONAS Scholars Recruited number 219 220 281 256 328
Recruited by PETRONAS % 61 66 90 91 89
Recruited by Others % 39 34 10 9 8
Pending Placement % 3
Sponsorships Awarded to Malaysians 1
number 370 302 587 615 967
International Universities % 25 34 34 35 22
Malaysian Universities % 75 66 66 65 78
Number of Sponsorships Awarded to Non-
Malaysians at Universiti Teknologi PETRONAS number 42 41 41 32 14

Human Rights
Security Personnel Trained in Human Rights
Policies and Procedures number 913 1,415 617 115 1,827
Number of Operations and Suppliers at
Significant Risk for Incidents of
Forced or Compulsory Labor number 0 0 0 0 0
Number of Community Grievance Mechanisms number 23 14 2 32 38

Note:
1. Sponsorship awarded excludes postgraduate sponsorship.
176 PETRONAS • Integrated Report 2024

Board Composition

Gender Composition

17% 1 Non-Independent
3 25%
Non-Executive Director
33%

50% 50%
3 Independent Non-
Executive Directors

3 75% 50%
2 Executive Directors

Tenure Age

2 0-3 years 33% 33% 4 Age 50-59

4 >3 years to 6 years

67% 67% 2 Age 70-79

Board Skills and Expertise

Oil and Gas 2

Public Sector 1

Property 3

Consultancy 2

Finance/Audit 5

Economics 5

Commercial/
Marketing
4

Legal 1

Strategy 6
 6 Commitment to Governance 177

Profile of Board of Directors

As at 28 February 2025

Tan Sri Dato’ Seri Mohd Bakke Salleh Tan Sri Tengku Muhammad Taufik
Independent Non-Executive Director/Chairman Executive Director, President and Group Chief Executive Officer

Age and Gender Age and Gender

70 Years/Male 51 Years/Male

Nationality Nationality
Malaysian Malaysian

Date of Date of
Appointment Appointment
18 June 2019 15 October 2018

Academic/Professional Qualifications: Academic/Professional Qualifications:

• Fellow of the Institute of Chartered Accountants in England • Fellow of the Institute of Chartered Accountants in England
and Wales (ICAEW) and Wales (ICAEW)
• Member of the Malaysian Institute of Accountants (MIA) • Member of the Malaysian Institute of Accountants (MIA)
• Bachelor of Science (Economics), London School of • Bachelor of Arts (Honours) (Finance and Accounting),
Economics, United Kingdom University of Strathclyde, Glasgow, Scotland

Past Appointments/Experiences: Past Appointments/Experiences:

Held key positions in a number of Government-Linked • Joined PETRONAS in 2000
Companies and local corporations: • More than 24 years of experience in the oil and gas industry
• Areas of expertise include developing and steering key
• Chairman, Telekom Malaysia Berhad business strategies, organisational transformation, and
• Chairman, Federal Land Development Authority (FELDA) finance and risk management
• Group President and Chief Executive Officer, FELDA Global • Experienced in strategic planning, finance, and business
Ventures Holdings Berhad strategy development with a focus on the oil and gas and
• Group Managing Director, FELDA Holdings Berhad energy industry
• Chairman, Yayasan FELDA • Advocate of a just and responsible energy transition by
• Executive Deputy Chairman and Managing Director, promoting regional partnership in shaping policy, innovation
Sime Darby Plantation Berhad and technology
• President and Group Chief Executive, Sime Darby Berhad • Key positions previously held:
• Council Member of Yayasan Sime Darby - Executive Vice President and Group Chief Financial
• Chairman, Malaysian Palm Oil Board (MPOB) Officer, PETRONAS
• Chairman, Bank Islam Malaysia Berhad - Partner at PricewaterhouseCoopers (PwC) Malaysia
• Non-Executive Director, Eastern & Oriental Berhad - Chief Financial Officer in listed entities
• Group Managing Director and Chief Executive Officer,
Lembaga Tabung Haji Other Current Appointments:
• Director, Property Division of Pengurusan Danaharta • Chairman, Gentari Sdn Bhd
Nasional Berhad • Chairman, KLCC (Holdings) Sdn Bhd
• Managing Director, Syarikat Perumahan Pegawai Kerajaan • Chairman, PETRONAS Carigali Sdn Bhd
Sdn Berhad (SPPK) • Chairman, PETRONAS Carigali International
• Group General Manager, Island & Peninsular Berhad Ventures Sdn Bhd
• Pro Chancellor of Universiti Putra Malaysia • Chairman, PETRONAS International Corporation Ltd
• Honorary Council Member, Malaysian Palm Oil Association • Chairman, Malaysia-United Arab Emirates Business Council
(MPOA) (MUBC)
• Chairman, National Trust Fund
Other Current Appointments: • Co-Chair, the WEF Oil and Gas Governors Community
• Chairman, Yayasan PETRONAS • Co-Chair, the WEF ASEAN Leaders for Just Energy Transition
Community
• Council Member, Northern Corridor Implementation
Authority (NCIA)
• Board Member, Malaysia-Thailand Joint Authority (MTJA)
• Member, Board of Trustees of the Merdeka Award Trust
• Pro-Chancellor of Universiti Teknologi PETRONAS (UTP)
178 PETRONAS • Integrated Report 2024

Profile of Board of Directors

As at 28 February 2025

Datuk Dr Shahrazat Haji Ahmad Tan Sri Zaharah Ibrahim

Non-Independent Non-Executive Director Independent Non-Executive Director

Age and Gender Age and Gender

56 Years/Female 72 Years/Female

Nationality Nationality
Malaysian Malaysian

Date of Date of
Appointment Appointment
13 January 2025 17 August 2020

AC NRC RC AC NRC RC

Academic/Professional Qualifications: Academic/Professional Qualifications:

• PhD in Social Sciences (International Development in • Bachelor of Laws (Honours) (LL.B), University Malaya
Economics), The University of Kitakyushu, Japan
• Masters in Social Sciences (International Development in Past Appointments/Experiences:
Economics), International University of Japan • Held key positions in the Judicial and Legal Services and the
• Advanced Diploma in Accounting, MARA Institute of Judiciary in Malaysia:
Technology - Chief Judge of Malaya
- Federal Court Judge, Federal Court, Putrajaya
Past Appointments/Experiences: - Court of Appeal Judge, Court of Appeal, Putrajaya
• With three decades of distinguished service in the Malaysian - High Court Judge, High Court of Malaya (Shah Alam and
civil sector Kuala Lumpur)
• With extensive experience of 30 years in areas that include - Judicial Commissioner, High Court of Malaya (Kuala
policy development, economics, and accountancy in the Lumpur and Shah Alam)
public and private sectors - Parliamentary Draftsman, Attorney General’s Chambers of
• Held various key positions including: Malaysia
- Deputy Secretary General of Treasury (Investment) of the - State Legal Advisor, Selangor
Ministry of Finance (MOF) - Director, Intellectual Property Division, Ministry of
- Deputy Secretary General (Development) of the Ministry Domestic Trade and Consumer Affairs
of Defence (MINDEF) - Magistrate, Melaka
- Deputy Director General (Development), Implementation • Chairman, Prasarana Malaysia Berhad
Coordination Unit (ICU), Prime Minister Department (PMD)
- Director (Outcome Evaluation Division), ICU of PMD Other Current Appointments:
- Director (Social Division), ICU of PMD • Chairman, Nomination and Remuneration Committee,
- Director (Economic Division), ICU of PMD PETRONAS
- Deputy Director (Infrastructure Division), ICU of PMD • Member, Audit Committee, PETRONAS
- Principal Assistant Secretary, MOF • Member, Risk Committee, PETRONAS
- Assistant Secretary, MOF • Pro-Chancellor of Universiti Teknologi PETRONAS (UTP)
Other Current Appointments:
• Member, Audit Committee, PETRONAS
• Member, Risk Committee, PETRONAS
• Member, Nomination and Remuneration Committee,
PETRONAS
• Non-Independent Non-Executive Director, Telekom Malaysia
• Non-Executive Director, Lumut Naval Shipyard Sdn Bhd
• Non-Executive Director, Northern Gateway Sdn Bhd
• Non-Independent Non-Executive, Rakan KKM Sdn Bhd
• Vice President of Kumpulan Wang Amanah Negara (KWAN)
• Member of Board, Suruhanjaya Tenaga
• Member of Board, Suruhanjaya Sekuriti
• Member of Board, Chairman of Integrity Committee,
Member of Audit Committee, Lembaga Tabung Angkatan
Tentera (LTAT)
 6 Commitment to Governance 179

Board Committee:
Audit Nomination and Risk
Chairman Members AC NRC RC
Committee Remuneration Committee Committee

Azizan Zakaria Liza Mustapha

Independent Non-Executive Director Executive Director, Executive Vice President and
Group Chief Financial Officer
Age and Gender Age and Gender
54 Years/Male 54 Years/Female

Nationality Nationality
Malaysian Malaysian

Date of Date of
Appointment Appointment
15 November 2023 1 June 2021

AC NRC RC

Academic/Professional Qualifications: Academic/Professional Qualifications:

• Fellow of the Chartered Association of Certified Accountants • Fellow of the Association of Chartered Certified Accountants
(FCCA) (FCCA)
• Member, Malaysian Institute of Accountants (MIA) • Advance Management Program at Harvard Business School,
• Bachelor of Science (BSc Hons) in Accounting, University of United States of America
Wales, Cardiff, United Kingdom • Member, Malaysian Institute of Accountants (MIA)
• Bachelor of Science Degree in Economics, majoring in
Past Appointments/Experiences: Accounting and Finance, The London School of Economics,
• Served as a Senior Partner of PricewaterhouseCoopers (PwC) and Political Science, University of London
Malaysia with over 26 years of experience in providing audit
and business advisory services in Malaysia and United Past Appointments/Experiences:
Kingdom • Vice President, Group Procurement, Project Delivery and
• His expertise spans various areas, such as leading financial Technology, PETRONAS
due diligences, forensic audits, internal audits, advisory, • Group Financial Controller, PETRONAS
consulting services, reporting accountants and review • Chief Financial Officer, Upstream Business, PETRONAS
engagements • Senior General Manager, Group Treasury, PETRONAS
• A Member of PwC Malaysia’s Country Management Team as • Chief Financial Officer, PETRONAS Gas Berhad
People Leader • Chairman, ENERGAS Insurance (L) Ltd
• Led PwC Malaysia’s Southern Region practice
• Chairman, Audit and Risk Committee of SilTerra Sdn Bhd Other Current Appointments:
• Member, ACCA Malaysia Advisory Committee • Director, MISC Berhad
• Member, the Malaysian Accounting Standards Board (MASB)’s • Director, KLCC Property Holdings Berhad
working Group on improvement projects • Director, KLCC REIT Management Sdn Bhd
• Director, KLCC (Holdings) Sdn Bhd
Other Current Appointments: • Director, PETRONAS Carigali Sdn Bhd
• Chairman, Audit Committee, PETRONAS • Director, PETRONAS International Corporation Ltd
• Chairman, Risk Committee, PETRONAS • Director, Gentari Sdn Bhd
• Member, Nomination and Remuneration Committee, • Director, PETRONAS Carigali International Ventures
PETRONAS Sdn Bhd
• Director, FGV Holdings Berhad • Treasurer, Malaysian Petroleum Club
• Director, TNB Power Generation Sdn Bhd
• Director, IIUM Holdings Sdn Bhd
• Chairman, IIUM Schools Sdn Bhd
180 PETRONAS • Integrated Report 2024

Profile of Company Secretaries

As at 28 February 2025

Azizi Md Ali Norwankiss Mohd Ridhuan Kau

Company Secretary Company Secretary

Age and Gender Age and Gender

56 Years/Male 39 Years/Female

Nationality Nationality
Malaysian Malaysian

Date of Date of
Appointment Appointment
17 January 2024 28 January 2025

Academic/Professional Qualifications: Academic/Professional Qualifications:

• Master of Laws, National University of Malaysia • Bachelor of Laws (Honours), International Islamic University
• Bachelor of Laws (Honours), University of Malaya Malaysia
• Licensed Company Secretary • Licensed Company Secretary

Past Appointments/Experiences: Past Appointments/Experiences:

• Joined PETRONAS in 1995 and has about 30 years of • Joined PETRONAS in 2010 and has 15 years of experience in
extensive experience in legal, corporate governance and corporate secretarial services and advisory roles
company secretarial matters • Previously served as Head of Corporate Secretarial – Non-
• Previously served as the Company Secretary of Trans-Thai Listed Companies and Corporate Secretarial – International
Malaysia, PICL (Egypt), PETRONAS Penapisan Terengganu, • Previously served as Company Secretary for Gentari Sdn
Aromatics (Malaysia), MITCO International Trading, E&P Bhd, PETRONAS International Corporation Ltd, PETRONAS
Operations and Maintenance, E&P Malaysia Venture and Carigali Sdn Bhd, and various other domestic and
Vestigo international entities within the PETRONAS Group
• General Counsel, Legal Upstream Malaysia, PETRONAS
• General Counsel, LNG Business, PETRONAS Other Current Appointments:
• Senior General Counsel, Legal Upstream, PETRONAS • General Manager, Secretarial and Governance, Group
• Chief Compliance Officer, Legal Compliance and Finance, Secretarial and Board Governance, PETRONAS
PETRONAS • Secretary, PETRONAS Executive Leadership Team
• Skill Group Advisor for Group Secretarial and Board
Other Current Appointments: Governance
• Head, Group Secretarial and Board Governance, PETRONAS
• Director, Malaysia Jet Services Sdn Bhd
 6 Commitment to Governance 181

Profile of Executive Leadership Team

As at 28 February 2025

Age and Gender Age and Gender

51 Years/Male 54 Years/Female

Nationality Nationality
Malaysian Malaysian

Tan Sri Tengku Muhammad Taufik Liza Mustapha

President and Group Chief Executive Officer Executive Vice President and Group Chief Financial Officer

Academic/Professional Qualifications: Academic/Professional Qualifications:

• Fellow of the Institute of Chartered Accountants in England • Fellow of the Association of Chartered Certified Accountants
and Wales (ICAEW) (FCCA)
• Member of the Malaysian Institute of Accountants (MIA) • Advance Management Program at Harvard Business School,
• Bachelor of Arts (Honours) (Finance and Accounting), United States of America
University of Strathclyde, Glasgow, Scotland • Member, Malaysian Institute of Accountants (MIA)
• Bachelor of Science Degree in Economics, majoring in
Past Appointments/Experiences: Accounting and Finance, The London School of Economics,
• Joined PETRONAS in 2000 and Political Science, University of London
• More than 24 years of experience in the oil and gas industry
• Areas of expertise include developing and steering key Past Appointments/Experiences:
business strategies, organisational transformation, and • Vice President, Group Procurement, Project Delivery and
finance and risk management Technology, PETRONAS
• Experienced in strategic planning, finance, and business • Group Financial Controller, PETRONAS
strategy development with a focus on the oil and gas and • Chief Financial Officer, Upstream Business, PETRONAS
energy industry • Senior General Manager, Group Treasury, PETRONAS
• Advocate of a just and responsible energy transition by • Chief Financial Officer, PETRONAS Gas Berhad
promoting regional partnership in shaping policy, innovation • Chairman, ENERGAS Insurance (L) Ltd
and technology
• Key positions previously held: Other Current Appointments:
- Executive Vice President and Group Chief Financial • Director, MISC Berhad
Officer, PETRONAS • Director, KLCC Property Holdings Berhad
- Partner at PricewaterhouseCoopers (PwC) Malaysia • Director, KLCC REIT Management Sdn Bhd
- Chief Financial Officer in listed entities • Director, KLCC (Holdings) Sdn Bhd
• Director, PETRONAS Carigali Sdn Bhd
Other Current Appointments: • Director, PETRONAS International Corporation Ltd
• Chairman, Gentari Sdn Bhd • Director, Gentari Sdn Bhd
• Chairman, KLCC (Holdings) Sdn Bhd • Director, PETRONAS Carigali International Ventures
• Chairman, PETRONAS Carigali Sdn Bhd Sdn Bhd
• Chairman, PETRONAS Carigali International • Treasurer, Malaysian Petroleum Club
Ventures Sdn Bhd
• Chairman, PETRONAS International Corporation Ltd
• Chairman, Malaysia-United Arab Emirates Business Council
(MUBC)
• Chairman, National Trust Fund
• Co-Chair, the WEF Oil and Gas Governors Community
• Co-Chair, the WEF ASEAN Leaders for Just Energy Transition
Community
• Council Member, Northern Corridor Implementation
Authority (NCIA)
• Board Member, Malaysia-Thailand Joint Authority (MTJA)
• Member, Board of Trustees of the Merdeka Award Trust
• Pro-Chancellor of Universiti Teknologi PETRONAS (UTP)
182 PETRONAS • Integrated Report 2024

Profile of Executive Leadership Team

As at 28 February 2025

Age and Gender Age and Gender

57 Years/Male 58 Years/Male

Nationality Nationality
Malaysian Malaysian

Date of Date of
Appointment Appointment
1 July 2024 1 January 2022

Mohd Jukris Abdul Wahab Datuk Sazali Hamzah

Executive Vice President and Chief Executive Officer, Upstream Executive Vice President and Chief Executive Officer,
Downstream

Academic/Professional Qualifications: Academic/Professional Qualifications:

• BSc. in Petroleum Engineering, Texas Tech University • Chartered Fellow of the Institution of Chemical Engineers
• Advanced Management Program (AMP), The Wharton School, (IChemE)
University of Pennsylvania • Bachelor of Chemicals Engineering, Lamar University, United
• Management Development Program, INSEAD States of America
• Advanced Management Programme, The Wharton School,
Past Appointments/Experiences: University of Pennsylvania, United States of America
• Joined PETRONAS in 1990 • Senior Management Programme, London Business School,
• Has more than 33 years of experience in the oil and gas London, United Kingdom
industry in the fields of petroleum engineering, strategic
planning, resource development, and assets operations and Past Appointments/Experiences:
management • Joined PETRONAS in 1990
• Other key positions previously held within the Group: • Has 35 years of experience in the oil and gas industry in the
- Independent Director, PETRONAS Carigali Sdn Bhd and fields of petroleum refining, petrochemicals, technical and
PETRONAS (E&P) Overseas Ventures engineering services and project delivery
- Vice President, International Assets • Other key positions previously held within the Group:
- Vice President, Malaysia Assets - Director, PETRONAS International Corporation Ltd
- Chairman, PETRONAS Sudan - Senior Vice President and Managing Director/Chief
- Senior General Manager, Petroleum Resource Executive Officer, PETRONAS Chemicals Group Berhad
Development (PRD) at PETRONAS Petroleum Management - Managing Director/Chief Executive Officer, Malaysia
Unit (PMU) Refining Company Sdn Bhd
- Executive Assistant to the President - Managing Director/Chief Executive Officer, PETRONAS
Technical Sdn Bhd
Other Current Appointments: - Head, Group Project Management and Delivery,
• Chairman, PETRONAS Energy Canada Ltd (PECL) PETRONAS
• Chairman, PETRONAS CCS Ventures Sdn Bhd - Head, PETRONAS Group Technical Services
• Director, PETRONAS Carigali Sdn Bhd - Various senior management positions in the refinery and
• Director, PETRONAS Carigali International Ventures Sdn Bhd petrochemical business within PETRONAS
• Trustee, Abandonment Cess Fund
Other Current Appointments:
• Director, Pengerang Refining Company Sdn Bhd
• Director, Pengerang Petrochemical Company Sdn Bhd
• Chairman, PETRONAS Marketing International Sdn Bhd
• Director, PETRONAS Dagangan Berhad
• Chairman, PETRONAS Chemicals Group Berhad
• Director, PETRONAS Carigali Sdn Bhd
• Director, PETRONAS Carigali International Ventures Sdn Bhd
 6 Commitment to Governance 183

Age and Gender Age and Gender

54 Years/Male 60 Years/Male

Nationality Nationality
Malaysian Malaysian

Date of Date of
Appointment Appointment
1 July 2024 1 February 2024

Datuk Adif Zulkifli Datuk Ir. Bacho Pilong @ Pelu

Executive Vice President and Chief Executive Officer, Senior Vice President, Malaysia Petroleum Management
Gas and Maritime Business

Academic/Professional Qualifications: Academic/Professional Qualifications:

• Bachelor of Science (Honours) in Petroleum Engineering, • Bachelor of Chemical Engineering, Cockrell School of
Colorado School of Mines Engineering, University of Texas, Austin, United States of
• Master of Business Administration, Kellogg School of America
Management, Northwestern University • Senior Management Development Program, INSEAD,
Singapore
Past Appointments/Experiences: • Advanced Management Program, AMP 65, The Wharton
• Joined PETRONAS in 1993 School, University of Pennsylvania
• Has 33 years of experience in the oil and gas industry in the
fields of petroleum engineering, operations, natural gas, Past Appointments/Experiences:
LNG, strategic planning, corporate transformation, petroleum • Joined PETRONAS in 1992
economics, mergers and acquisitions and business • Possesses more than 33 years of experience in the oil and
development gas industry
• Other key positions previously held within the Group: • Other key positions previously held within the Group:
- Executive Vice President and Chief Executive Officer, - Vice President, Malaysia Assets, Upstream
Upstream - Vice President, International Assets, Upstream
- Executive Vice President and Chief Executive Officer, - Senior General Manager, Petroleum Operations
Gas and New Energy Management, Malaysia Petroleum Management, Upstream
- Senior Vice President, Development and Production, - Head, Special Projects, Corporate Strategic Planning
Upstream - President, Sudd Petroleum Operating Company (SPOC)
- Senior Vice President, Corporate Strategy - President, White Nile Petroleum Operating Company
- Vice President, Malaysia Petroleum Management (WNPOC)
- Chairman, PETRONAS Research Fund - General Manager, Exploration and Production, Greater
- Chairman, PETRONAS Energy Canada Ltd Nile Petroleum Operating Company (GNPOC)
- Director, PETRONAS (E&P) Overseas Ventures Sdn Bhd - General Manager, PETRONAS Carigali Sdn Bhd – Sarawak
(PEPOV) Operations
- Head, Strategy and New Ventures Division in Exploration
and Production Business Other Current Appointments:
• Chairman, PETRONAS Research Sdn Bhd
Other Current Appointments: • Chairman, Institute of Technology PETRONAS Sdn Bhd
• Chairman, PETRONAS Gas Berhad • Director, PETRONAS LNG 9 Sdn Bhd
• Chairman, Malaysia LNG Sdn Bhd • Director, UTP FutureTech Sdn Bhd
• Chairman, Malaysia LNG Dua Sdn Bhd • Board of Trustees, Dana Asy-Syakirin
• Chairman, Malaysia LNG Tiga Sdn Bhd • Board of Trustees, Petroleum Research Fund
• Chairman, PETRONAS LNG 9 Sdn Bhd
• Chairman, PETRONAS LNG Sdn Bhd
• Director, PETRONAS Carigali Sdn Bhd
• Director, PETRONAS Carigali International Ventures Sdn Bhd
• Director, PETRONAS Canada LNG Limited (PCLL)
• Director, MISC Berhad
• Chairman, Society of Petroleum Engineers, Asia Pacific
Advisory Council
184 PETRONAS • Integrated Report 2024

Profile of Executive Leadership Team

As at 28 February 2025

Age and Gender Age and Gender

52 Years/Female 59 Years/Male

Nationality Nationality
Malaysian Malaysian

Date of Date of
Appointment Appointment
1 January 2024 1 January 2024

Marina Md Taib Ir. Mohd Yusri Mohamed Yusof

Senior Vice President, Corporate Strategy Senior Vice President, Project Delivery and Technology

Academic/Professional Qualifications: Academic/Professional Qualifications:

• Bachelor’s Degree in Accountancy, University of Exeter, United • Bachelor of Science in Chemical Engineering, Oklahoma State
Kingdom University, United States of America
• Master’s Degree in Petroleum Business Management, University • Advanced Management Programme, The Wharton School,
of Adelaide, Australia University of Pennsylvania, United States of America
• Fellow of the Institute of Chartered Accountants in England and • Registered Professional Engineer (PE), Board of Engineers
Wales (ICAEW) Malaysia
• Advanced Management Program, Harvard Business School, • Fellow of Institution of Chemical Engineers (IChemE)
United States of America • Fellow of the Energy Institute (FEI)

Past Appointments/Experiences: Past Appointments/Experiences:

• Joined PETRONAS in 1999 • Joined PETRONAS in 1989
• Has almost 26 years of experience in the PETRONAS in the • Has 35 years of experience in the oil and gas industry in the
fields of Finance and Treasury, Upstream and Corporate fields of refining, chemicals, marketing and sales
Planning • Other key positions previously held within the Group:
• Other key positions previously held within the Group: - Senior Vice President and Managing Director/Chief Executive
- Vice President, Treasury Officer of PETRONAS Chemicals Group Berhad (PCG)
- Senior General Manager, Corporate Strategic Planning - Vice President, Refining and Trading
- Head, Strategic Planning, Petroleum Management Unit - Head, Manufacturing, PCG
- Country Manager, Brunei - Chief Executive Officer, PETRONAS Chemicals Olefins,
Glycols, and Derivatives (PC OGD)
Other Current Appointments: - Director, ENGEN Limited
• Chairperson, PTV International Ventures Ltd (PIVL)
• Chairperson, International Conference and Exhibition Other Current Appointments:
Professionals (iCEP) • Chairman, PETRONAS Digital Sdn Bhd
• Chairperson, Board of Trustees, Petroleum Research Fund (PRF) • Chairman, PETRONAS Research Sdn Bhd (PRSB)
• Director, PETRONAS Gas Berhad (PGB) • Chairman, PETRONAS Technical Services Sdn Bhd
• Director, PETRONAS Refinery and Petrochemical Sdn Bhd • Board of Trustees, Dana Asy-Syakirin
• Director, PETRONAS Carigali International Ventures Sdn Bhd • Board of Trustees, Petroleum Research Fund
(PCIV) • Director, Pengerang Refining Company Sdn Bhd
• Director, PETRONAS Carigali Sdn Bhd (PCSB) • Director, Pengerang Petrochemical Company Sdn Bhd
• Director, PETRONAS International Corporation Ltd (PICL) • Director, UTP FutureTech Sdn Bhd
• Director, PETRONAS Digital Sdn Bhd (PDSB) • Director, PETRONAS CCS Ventures Sdn Bhd
• Director, PETRONAS CCS Ventures Sdn Bhd (PCCVSB) • Director, Institute of Technology PETRONAS Sdn Bhd
• Director, PETRONAS Management Training Sdn Bhd (PMTSB)
• Director, Malaysian Industry – Government Group for High
Technology (MIGHT)
• Director, Institute of Technology PETRONAS Sdn Bhd (ITPSB)
• Board of Trustees, Decarbonisation Fund
 6 Commitment to Governance 185

Age and Gender Age and Gender

51 Years/Male 49 Years/Male

Nationality Nationality
Malaysian Malaysian

Date of Date of
Appointment Appointment
1 July 2021 1 April 2024

Razman Hashim Ruslan Islahudin

Senior Vice President, Group Legal and Group General Counsel Vice President and Group Chief Human Resources Officer

Academic/Professional Qualifications: Academic/Professional Qualifications:

• Bachelor of Laws and Shariah, International Islamic University Education
Malaysia
• Licensed Company Secretary • Bachelor of Engineering, Imperial College London, United
Kingdom
Past Appointments/Experiences: • Master of Economics, Universiti Malaya, Malaysia
• Executive Master in Future Energy, ESCP Business School, France
• Joined PETRONAS in 1998 • Advanced Management Program, Harvard Business School,
• Has more than 26 years of experience in the legal and United States of America
secretarial fields
• Other key positions previously held within the Group: Certifications and Professional Membership
- Senior General Counsel, Legal Upstream
- General Counsel, Legal Upstream International, Legal • Associate, City and Guilds Institute, United Kingdom
Upstream • Chartered Fellow of the Chartered Institute of Personnel and
- Company Secretary, PETRONAS Carigali Sdn Bhd and Development (CIPD)
PETRONAS International Corporation Ltd
- Directors of various entities within Upstream business Past Appointments/Experiences:
- Member, Joint Management Committee of Garraf Operations, • Joined PETRONAS in 1997
Iraq • Has more than 27 years of experience in various leadership roles
in areas such as marketing and trading, risk management,
Other Current Appointments: corporate strategy, corporate communication, merger and
• Industry Mentor @ Ahmad Ibrahim Kulliyyah of Laws, acquisition, and human resource management
International Islamic University Malaysia • Other key positions previously held within the Group:
• Director, KLCC (Holdings) Sdn Bhd - Chief Executive Officer, PETRONAS Leadership Centre
• Director, PETRONAS International Corporation Ltd - Senior General Manager, Human Capital Development, Group
Human Resources Management
- Senior General Manager, Human Capital Strategy, Group
Human Resources Management
- Regional Managing Director, Asia Pacific, PETRONAS
Lubricants International Sdn Bhd (PLISB)
- General Manager, Corporate Strategy and Communications,
ENGEN Petroleum Limited, Cape Town, South Africa
- Executive Assistant to the President and Group Chief
Executive Officer
- General Manager and Head, Office of the Chief Operating
Officer and Executive Vice President of Downstream Business
- General Manager, Risk Management Department, PETRONAS
Trading Corporation (PETCO)

Other Current Appointments:

• Chairman, PETRONAS Technical Training Sdn Bhd (Institut
Teknologi Petroleum (INSTEP)
• Chairman, PETRONAS Management Training Sdn Bhd
(PETRONAS Leadership Centre (PLC))
• Chairman, PING23 Sdn Bhd (PING)
• Chairman, Dana Asy-Syakirin
• Director, Institute of Technology PETRONAS Sdn Bhd (IPTSB)
• Director, PETRONAS Lubricants International Sdn Bhd (PLISB)
• Director, Malaysian Maritime Academy Sdn Bhd (ALAM)
• Member, World Business Council for Sustainable Development
(WBCSD)
• Commissioner, Business Commission to Tackle Inequality (BCTI)
186 PETRONAS • Integrated Report 2024

Corporate Governance at PETRONAS

Board Governance and Structure

“At PETRONAS, we remain dedicated to applying the best standards of corporate governance principles across the Group. Our
aim is to play a key role in the energy transition, focusing on energy security and delivering energy solutions responsibly. The
PETRONAS Energy Transition Strategy centres on creating long-term value for our stakeholders.

Corporate governance plays a crucial role in promoting sustainability and value creation by providing the necessary framework
for accountability, transparency and structure within the Group. In building a sustainable business, our Board is fully aware of
their responsibility towards our shareholders and stakeholders. The Board firmly upholds effective leadership and unwavering
ethical standards by providing the framework which serves as a basis for sound decision-making and value creation.”

PETRONAS is led by a Board whose Directors are collectively responsible for creating and delivering long-term sustainable value for
the business. A key responsibility of the Board is to balance the diverse interests of the Group, its workforce and the wider communities
it serves. Our governance structure ensures role clarity by clearly delineating roles and areas of accountability and recognising the
independent roles and duties required to govern our Company effectively. It also aims to promote strategic alignment across the Group
whilst facilitating efficient decision-making at all levels. This integrated approach strengthens PETRONAS’ ability to address immediate
priorities while maintaining a forward-looking focus.

Governance Structure
Our governance structure illustrates the oversight role of the Board and the interconnected components of governance which facilitate the interaction and
information flow between the Board and the Executive Leadership Team. The table below describes the Group’s governance structure, and an overview of the key
committees of the Board and the Executive Leadership Team.
Board of Directors (Board)

Non-Executive Chairman Independent Non-Executive Directors President and Group Chief Executive Officer
• Leads the Board and ensures it operates • Provide independent judgment, external • Provides overall direction as well as setting the
effectively. perspective and objectivity to the Board’s strategic goals for the Company.
• Encourages active participation and a culture deliberation. • Responsible for management of the business,
of open discussion. • Contribute to deliberations and discussions delivering and implementing policies,
with a broad range of experience and strategies and decisions approved by the
expertise. Board.

AC NRC RC
Audit Committee Nomination and Remuneration Committee Risk Committee

Responsible for oversight functions in relation Responsible for assessing the performance of Responsible for reviewing principal risks and
to the Company’s internal controls and financial the Board, the NRC provides support on the overseeing the adequacy and effectiveness of the
reporting to safeguard PETRONAS’ assets. The implementation of a succession plan for the Board, risk management system for the PETRONAS Group,
AC provides the Board with quality and reliability President and Group CEO, Chief Operating Officer including climate-related risks and mitigations. The
assurance of the financial information reported and the Executive Leadership Team (Highest RC also reviews and recommends to the Board the
by the Company. The AC also institutes regular Management) as well as their appointments and appropriate corporate governance policies and
reporting and public disclosures on climate-related renewals. The NRC recommends to the Board procedures in accordance with good governance
matters while promoting efficiency and good the remuneration policy for the Non-Executive standards and best practices.
governance practices. Directors and Executive Leadership Team.

The NRC also reviews the annual President and

Group CEO’s Performance Scorecard for the year
which includes climate-related measures.

For more information about the AC, For more information about the NRC, For more information about the RC,
please refer to page 197. please refer to page 198. please refer to page 198.

President and Group Chief Executive Officer (CEO)

Executive Leadership Team
The Executive Leadership Team was established to assist the President and Group CEO in managing the business affairs of the Company and is responsible in providing
a holistic approach to all business strategies as well as high impact and high value investments, including mergers and acquisitions, and Health, Safety, Security
and Environment (HSSE) matters. The Executive Leadership Team discusses specific matters which include Sustainability, Innovation and Technology, and People
Development at its focused meetings.
 6 Commitment to Governance 187

Board Leadership In 2024, the Board met on 17 occasions, with the majority of
meetings conducted physically. While Board decisions require a
The Board provides effective stewardship and is responsible for majority vote, they are customarily reached through consensus to
the Group’s strategic direction and control of the Company. foster unity and collective accountability.
This is achieved through a structured governance framework,
effective delegation of authority, risk management and a Each Director has unrestricted access to the Company Secretaries,
comprehensive system of assurances covering financial reporting who provide expert guidance on corporate governance, ethical
and internal controls. The Board is accountable to its shareholders business practices, compliance with the Company’s Constitution,
while recognising its responsibilities towards a wider range of policies and procedures and the relevant regulatory requirements,
stakeholders including employees, suppliers, communities and guidelines and legislation.
the authorities.
The Board may from time to time and if deemed appropriate,
Each Director is bound by duty to act in good faith and in the best consider and approve urgent matters via Directors’ circular
interest of the Company with reasonable care, skills and diligence. resolution. All circular resolutions signed by all directors are
The Board’s roles and responsibilities are guided by the Board tabled at the next Board meeting for notation.
Charter, a document that defines the authority, responsibilities
The Board practises active and open discussions at its meetings to
and operations of the Board.
ensure that opportunities are given to all Directors to participate
and contribute to the decision-making process. Robust
The distinct roles of the Chairman and the President and Group
discussions and vigorous deliberations at the Board meetings
CEO are clearly delineated within the Board Charter. The
ensure that the process of effective and beneficial conversation is
Chairman of the Board is not a member of any of the Board
achieved.
Committees, ensuring independent leadership and oversight.
Updates from key committees—including the Audit Committee,
The Board exercises collective oversight at all times. In delegating
Nomination and Remuneration Committee, and Risk Committee—
its authority to the Board Committees, the Board does not
are regularly provided to the Board by their respective
abdicate its responsibilities. The Board further ensures that Chairperson, ensuring alignment and oversight.
such delegation does not impede its ability to discharge its core
responsibilities. In this regard, the Board clearly sets out the All Board meeting proceedings are duly minuted, confirmed and
division of responsibilities in the respective Terms of Reference signed. Minutes of each Board meeting accurately reflect the
(TOR) of the Board Committees. deliberations and decisions of the Board, including any dissenting
views and where any Directors had abstained from voting or
Together with the Management, the Board fosters a culture of deliberating on a particular matter. Minutes of the Board meetings
good corporate governance within the Company, characterised are properly kept by the Company Secretary.
by ethical leadership, professional conduct and prudent decision-
making in all aspects of its activities. Matters Reserved for the Board

How the Board Functions The Board has an approved and documented schedule of matters
reserved for its decision as follows:
The Board meets regularly, with additional meetings scheduled
as necessary to address emerging circumstances. Each meeting Strategy and Management
1
is conducted in accordance with a formal and structured agenda Strategy, policies, annual budgets and major investment
and Board papers are circulated timely to ensure that Directors decisions which include capital projects, mergers and
are well-informed, and that discussions and decisions are acquisitions, and funding requirements.
constructive and robust.
2 Financial, Governance and Risk
Board members access meeting materials online through a Financial reporting and control, and risk management.
collaborative digital platform, enhancing the efficiency of the
Board process. This digital approach enables Directors to review, 3 Corporate Matters
Reputation and stakeholder management, Health, Safety,
read and confer electronically with each other and the Company
Security and Environment (HSSE), Board and Board
Secretaries, ensuring seamless access to information. Board
Committees’ memberships, and Directors’ remuneration
Papers and presentations by the Management to the Board are
and succession planning.
prepared and delivered in a manner to support clarity and provide
sufficient understanding of the subject matter.
188 PETRONAS • Integrated Report 2024

Corporate Governance at PETRONAS

The Board’s 2024 Key Focus Areas and Priorities

Strategy

Key Focus Areas Description

The Group’s Strategic The Board deliberated on long-term strategic options and provided the relevant feedback and
Initiatives and Plans steer.

The Group’s Business Plan The Board deliberated and approved the Company’s business plan. The Company’s strategic
and Budget targets, operational plan and financial forecasts were presented to the Board for their deliberation.
The Board deliberated the risks as well as potential challenges, both external and internal, towards
achieving the business plan. The Board considered and approved the budget necessary to carry
out the business plan.

Financial

Key Focus Areas Description

The Group’s Performance The Board was updated on the performance against the business targets on a monthly basis.
Performance is measured and tracked against approved key indicators.

Dividends The Board considered and approved the proposal on the declaration of dividends.

Risk and Internal Controls

Key Focus Areas Description

Enterprise Risks The Board deliberated and approved, on a quarterly basis, PETRONAS and its Group’s critical risks
that may significantly impact the business goals and targets. The Board constantly monitors the
agreed mitigations to manage or reduce the likelihood and impact of these critical risks. Key risk
indicators which provide early warnings of risk manifestation were also reported to the Board.

To ensure risks undertaken in pursuit of business objectives are within the acceptable level, the
Board approved the Company’s risk appetite which sets its key operational boundaries. Any breach
of risk appetite may jeopardise the Company’s business sustainability, hence, will be escalated to
the Board for deliberation.

In achieving comprehensive risk-based decision making, the Board also deliberated on the risks
related to high impact business matters such as projects’ final investment decisions in order to
assess the feasibility and commerciality of these projects and investments.

Corporate Governance and Compliance

Key Focus Areas Description

Implementation and As part of its role, the Board ensures that there is an appropriate succession plan for members of
Monitoring of Succession the Board. The Fit and Proper Policy was established to enhance the Board Selection Criteria for
Planning the appointments and reappointments of directors. This includes character, integrity, experience,
competence and commitment to contribute.

Sustainability

Key Focus Areas Description

Net Zero Carbon Consideration of PETRONAS Net Zero Carbon Emissions by 2050 (NZCE 2050) Pathway
Emissions by 2050 (NZCE is embedded in the deliberation of company strategic direction, plans, budget and risks
2050) Pathway Delivery management.
Oversight on the achievement of the NZCE 2050 Pathway short-, medium- and long-term targets.

Sustainability Approach Reviewed and endorsed the refreshed PETRONAS’ Sustainability approach. This is to align the
approach with the Company’s strategic intent, embrace entrepreneurial sustainability and enhance
its narrative to motivate stakeholder's action.
 6 Commitment to Governance 189

Board Roles and Attendance

• Responsible for the effective running of the Board and ensures that the Board plays a full
and constructive role in the development and determination of the Company and the
Group’s strategy and overall commercial objectives.
• Leads the Board in setting the values and ethical standards of the Company.
Chairman • Promotes the highest standards of integrity and corporate governance at the Board level.

• Responsible for all executive management matters affecting the Company and/or the
Group and leads the Executive Leadership Team.
• Responsible for developing and recommending the long-term strategy and vision for the
President and Company and/or the Group.
Group Chief
• Fosters a corporate culture that promotes ethical practices, encourages individual
Executive Officer
integrity and the fulfilment of the Company’s corporate social responsibilities.
• Champions the Company’s values and behaviours across the Group.

• Provide comprehensive industry acumen and strategic insights from PETRONAS’

perspective.
• Responsible for steering and managing the Company’s strategic direction and operational
Executive management, ensuring alignment with Board directives, the implementation of Board-
Directors mandated policies, and the oversight of daily business operations and controls.

• Provide alternative insights and constructively challenge proposals to ensure the Board
objectively considers all relevant matters.
• Oversight on the performance of the Highest Management and monitor the delivery of
Non-Executive Group strategy within the risk and control environment set by the Board.
Directors • Bring independent judgment and scrutiny to the decisions taken by the Board.

• Facilitate the effective operation of the Board and ensure that the Directors receive
accurate, timely and clear information to enable them to discharge their responsibilities.
• Provide support and advice to the Board regarding governance matters and ethical
Company business practices.
Secretaries
190 PETRONAS • Integrated Report 2024

Corporate Governance at PETRONAS

Attendance at Meetings

The Directors’ commitment to carry out their duties and responsibilities is affirmed by their attendance at the Board meetings as set
out below. A total of 17 Board meetings were held during the year under review.

The number of meetings of the Board and Board Committees during the year ended 31 December 2024, together with a record of
the attendance is provided in the table below:

Directors as at 28 February 2025

Board AC NRC RC

Tan Sri Dato’ Seri Mohd Bakke Salleh

17/17
Chairman/ Independent Non-Executive Director

Tan Sri Tengku Muhammad Taufik

17/17
Executive Director/ President and Group Chief Executive Officer

Tan Sri Zaharah Ibrahim

17/17 7/7 4/4 2/2
Independent Non-Executive Director

Liza Mustapha
17/17
Executive Director/ Group Chief Financial Officer

Datuk Dr Shahrazat Haji Ahmad

Non-Independent Non-Executive Director
(Appointed w.e.f. 13.01.2025)

Azizan Zakaria
17/17 7/7 4/4 8/8
Independent Non-Executive Director

Directors who retired

Dato Haji Ibrahim Haji Baki

Non-Independent Non-Executive Director 11/13 6/6
(Resigned w.e.f. 16.10.2024)

Datuk Johan Mahmood Merican

Non-Independent Non-Executive Director 10/17 1/7 5/8
(Resigned w.e.f. 13.01.2025)

Datuk KY Mustafa
Non-Independent Non-Executive Director 15/17 7/7 4/4
(Resigned w.e.f. 19.01.2025)
 6 Commitment to Governance 191

Board Balance and Effectiveness

Board Balance and Composition

As of the date of this report, the Board comprises six members; The Board wishes to record its appreciation and gratitude to
the Non-Executive Chairman, two Executive Directors and Dato Hj. Ibrahim Hj. Baki (resigned on 16 October 2024), Datuk
three Non-Executive Directors (NEDs), out of which two are Johan Mahmood Merican (resigned on 13 January 2025) and
Independent Non-Executive Directors (INEDs). Datuk KY Mustafa (resigned on 19 January 2025), for their
contributions and commitments during their tenure on the
The profiles of the Directors are available on pages 176 to 179.
Board.
The size and composition of the Board is fundamental to
its success in providing strong and effective leadership. The The Board also welcomed Datuk Dr Shahrazat Haji Ahmad as a
presence of Non-Executive Directors ensures that no individual NINED to the PETRONAS Board, effective 13 January 2025.
or small group of Directors can dominate the decision-making
process and that the interests of shareholders and stakeholders The Board’s current composition has a blend of skills,
are protected. experience and knowledge which enables them to provide
effective oversight, strategic guidance and constructive
During the year under review, the Board saw some changes challenge, review and deliberation on the Management’s
and new appointments to its composition. proposals. The NRC is responsible for reviewing the
composition of the Board and assessing whether the balance
of skills, experience, knowledge and independence is
appropriate to enable the Board to perform effectively and to
be high-performing.

Fit and Proper Policy Diversity

The Fit and Proper Policy was established to strengthen The Board recognises the importance of diversity and the value
the PETRONAS Board Selection Criteria ensuring that all it brings to the Group. Diversity promotes the inclusion of
appointed or re-elected Directors within the PETRONAS different perspectives, raising the standards of good practice in
Group demonstrate the requisite character, integrity, Board leadership and enhancing valuable insights in business
experience, competence and commitment to discharge their judgment. It also ensures the Company remains relevant,
responsibilities effectively. resilient and sustainable in the rapidly transforming and
evolving business environment.
As part of this process, the Board through its NRC, conducts
Fit and Proper assessment for individuals identified to be While it is important to promote diversity, the primary criteria
appointed as Directors or to continue holding the position for the selection of Directors remain focused on an effective
as Directors. This evaluation is undertaken prior to the blend of competencies, skills, experiences and knowledge
appointment or reappointment, ensuring that each candidate in areas identified by the Board to carry out its functions and
meets the high standards expected for the role and contributes duties effectively. The Board is committed to ensuring that its
effectively to the governance and the Group’s strategy. composition reflects diversity and has the right mix of skills and
balance to contribute to achieving the Company’s goals and
objectives.
192 PETRONAS • Integrated Report 2024

Corporate Governance at PETRONAS

Board Independence

The Board conducts an annual assessment of the independence of its Non-Executive Directors (NEDs). The independence
assessment considers whether the NEDs have demonstrated an independent state of mind and objective judgment in their
deliberations and decision-making process. The assessment on the independence of the NEDs may also be undertaken in the
following circumstances:

1 2 3

Prior to the Appointment of Annual Notice of Change of

Non-Executive Directors Review Circumstances

Prior to the appointment of NEDs, The Board determines the Each NED has an affirmative
the independence of each individual independence of each obligation to notify the NRC of
candidate will be reviewed and NED annually, based on the any change in circumstances that
determined by the Board based on recommendations from the NRC may affect his/her independence
the recommendations from the per the PETRONAS Independent status. Once notified, the NRC
NRC upon reviewing his/her criteria Directors Guidelines. shall re-evaluate the independence
per the PETRONAS Independent status and make the necessary
Directors Guidelines. recommendations to the Board.

The Independent Non-Executive Directors (INEDs) are appointed for their specific experience and expertise and are independent of
management and free from any business or other relationship that could materially interfere with the exercise of their independent
judgment. NEDs may serve on the boards of other companies provided there is no conflict of interest, and such appointments do
not restrict their ability to discharge their duties to PETRONAS in any way.

In line with the exemplary practices of corporate governance, the Board has adopted a tenure policy whereby an INED’s total
tenure on the Board is capped at nine years. As of the date of this Statement, no INED has exceeded this tenure limit.

Conflict of Interest

To ensure transparency and integrity of the decision-making process and to prevent conflict of interest, a declaration of interest
by Directors is a fixed agenda item at the commencement of every Board meeting. Directors with a direct or indirect interest in a
transaction shall recuse themselves when required and abstain from deliberations and voting. This approach is to ensure impartial
discussions and unbiased decision-making. The nature and extent of the Directors’ interest as well as their abstention from
proceedings are duly recorded in the minutes of the Board meetings.

The Principles of Directorship for the PETRONAS Group was established to govern the way Directors conduct themselves in a
conflict-of-interest situation, which corresponds with the Companies Act 2016 and the PETRONAS Code of Conduct and Business
Ethics (CoBE).

In addition, Directors are required to declare their interests annually, in compliance with the disclosure requirements outlined in
the Company’s Audited Financial Statements. This reinforces PETRONAS’ commitment to upholding governance standards and
ensuring accountability at all levels.
 6 Commitment to Governance 193

Board Remuneration Policy

In recognition of the highly competitive market, PETRONAS designed a robust fee structure to attract, retain and appropriately
compensate the diverse and internationally experienced NEDs. The details of this framework are outlined below:

Annually Per Meeting

Retainer Fees:
PETRONAS Non-Executive
Board and Board Committees Directors Remuneration Attendance Allowance
Framework
Special Fee*

Benefits

* Only for eligible Non-Executive Directors

Board Onboarding and Professional Development Programme

The Board recognises the importance of ensuring that new Directors have a complete introduction to the business so they
can make a full and meaningful contribution to the Board. To that end, the Board has adopted a comprehensive and extensive
onboarding programme for new Directors, including meetings with key senior leadership teams, bespoke training on relevant
regulatory and legal obligations and onboard procedures and processes.

Beyond the induction phase, PETRONAS ensures its Directors continue to develop their skills and expertise through ongoing access
to professional development programmes and targeted events that address key areas relevant to the Group’s operations and
governance responsibilities.

Suite PETRONAS Board Excellence (PBE)

Continuous
Solution Onboarding Foundational* Advanced Conference
Education

Effective
Onboarding Best Practices
Essentials Strategy for Audit
Programme Rising for Board Round Updates on Directors
Programme for Stakeholder Committee
for New Above 2 Excellence Table trends Conference
Directorship Management Forum
Directors (Advanced 1)
(Advanced 2)

E-Learning (5 Critical Legal Areas, Code of Conduct, Anti Corruption, Data Privacy)
Continuous
Programme
Board Assessment (Observation, Interview and Digital)

* The Foundational programmes only apply to the directors who are employees of the PETRONAS Group, thus, the PETRONAS Directors, upon their onboarding, will
attend the Advanced programmes of the PBE.
194 PETRONAS • Integrated Report 2024

Corporate Governance at PETRONAS

A suite of development programmes, known as the PETRONAS Board Excellence, tailor-made to the requirements of Directors
across the Group, has been in place since 2016 to chart the Directors’ development plans in a structured manner.

The PETRONAS Board Excellence programme is developed to enhance Directors’ awareness and knowledge involving their roles
and responsibilities.

Recognising the growing importance of sustainability, PETRONAS is expanding its approach to develop sustainability-related
competencies within the Board. Directors currently benefit from two key upskilling initiatives:

1 Quarterly Board Conversation Series –a platform for dialogue on emerging sustainability topics. The planned sessions
for 2024 include:

• Human Rights and the Role of Business

• Carbon Markets
• COP28 Reflection
• Just Transition

2 Sustainability 101 – a course designed to create awareness of sustainability and Directors’ responsibilities under
environmental, social and governance (ESG) requirements.

In line with the Securities Commission Malaysia’s Corporate Governance Strategic Priorities 2021-2023 and the Mandatory
Accreditation Programme Part II: Leading for Impact (LIP), PETRONAS is enhancing the PETRONAS Board Excellence programme
to include more curated sustainability content, focusing on knowledge development and strengthening strategic insights.

To further align its governance with sustainability priorities, PETRONAS is incorporating sustainability-related competencies into the
Board’s skills matrix. Directors’ expertise will be assessed based on criteria such as academic qualifications, training and professional
experience.

Board Conversation

As part of our commitment to fostering a high-performing Board, a series of Board Conversations were convened, which included
topics on strategies, sustainability and the energy transition. These sessions were conducted in-house or by external subject matter
experts and provided valuable insights into sustainability and market outlook while facilitating in-depth discussions on the Group’s
strategic and growth plans.

These initiatives are designed to enhance Directors’ knowledge, ensuring they remain well-informed of the latest trends and
developments, and are equipped to contribute effectively to the Group’s long-term success.
 6 Commitment to Governance 195

Qualified and Competent Company Secretaries

The Company Secretaries of PETRONAS are qualified to act as company secretary by virtue of Section 235 of the Companies
Act 2016. Both Company Secretaries are legally qualified. They serve as advisors to the Board, particularly regarding PETRONAS’
Constitution, policies and procedures and its compliance with regulatory requirements, codes, guidelines and legislations.

The Company Secretaries act as an important link between the Board and the business. Through effective communication, they
provide the Management with an understanding of the expectations and value brought by the Board.

The Company Secretaries ensure that discussions and deliberations at the Board and Board Committee meetings are well
documented and subsequently communicated to the Management for appropriate actions. The Company Secretaries update the
Board on the follow-up of its decisions and recommendations. The Board is satisfied with the performance and support rendered
by the Company Secretaries to the Board in discharging their functions in the financial year under review.

The Company Secretaries also keep themselves abreast of the evolving regulatory changes and developments in corporate
governance through continuous training.

Board Evaluation

The Board, through the NRC, undertakes an annual performance evaluation of the Board and its Committees, facilitated by the
Company Secretary. Evaluation results are reported to the NRC. Individual Director’s evaluation results are made available to
the NRC Chairman and reported directly to the Chairman of the Board. The Chairman of the Board will then conduct feedback
sessions through peer-to-peer meetings.

This is in line with the best practice recommended by the Malaysian Code on Corporate Governance (MCCG) for the Board to
engage an independent expert at least every three years to facilitate objective and candid Board evaluation. The process of the
Board Effectiveness Evaluation involved a set of questionnaires consisting of evaluations by the Board, Board Committees and self-
assessment which were developed to maximise the effectiveness and performance of the Board in the best interests of PETRONAS.
The indicators for the performance of the Board include, among others, the Board composition, planning process, conduct,
communication with the Management and stakeholders, as well as strategy and planning for the Company.

The NRC reviewed the outcome of the Board Effectiveness Evaluation that the Board is committed to the highest standards of
good governance and affirmed the effectiveness of the Board in carrying out its responsibilities.

Directors’ Indemnity

PETRONAS continued to provide and maintain indemnification for its Directors throughout the financial year as allowed under
the Companies Act 2016 to the extent it is insurable under the Directors’ and Officers’ Liability Insurance (D&O) procured by the
Company. Directors and Officers are indemnified against any liability incurred by them in discharging their duties while holding
office as Directors and Officers of the Company.

Additionally, all Directors have the option to obtain D&O insurance to provide insurance protection (to the extent it is insurable)
against unindemnified liabilities by the Company or uninsured circumstances. The insurance company determines the premium to
be paid by all Directors.
196 PETRONAS • Integrated Report 2024

Corporate Governance at PETRONAS

Succession Planning

The Board had adopted the Board Succession Planning Framework to ensure a structured and timely identification and selection
of new Non-Executive Directors in the event of an opening on the Board. This framework facilitates the seamless management of
Board vacancies, whether arising from anticipated retirement, Board expansion, or other circumstances.

The Board, through the NRC, has the responsibility of ensuring appropriate succession planning of Directors and by regularly
reviewing the Board’s required mix of skills and experience, as well as assessing the tenure of INEDs on the Board.

In addition to the succession planning for the Directors, the NRC also reviewed the succession plan for key management positions
in the Company. The NRC continued to focus on conducting all relevant reviews and assessments of the key management
positions.

Board and Management Commitment to Sustainability

The Board recognises that the well-being of employees, customers, suppliers, stakeholders, the environment and society as a
whole is crucial to sustaining the Company’s long-term performance and ongoing relevance. The careful consideration of the
needs of a broader stakeholder base ultimately fosters value creation for shareholders.

Given the increasing materiality of sustainability to the business, the Board consistently integrates such considerations, including
associated risks and opportunities, into its strategic discussions. Sustainability risk is a key component within PETRONAS’ Corporate
Risk Profile, which is reviewed by the Risk Committee (RC) and approved by the Board on an annual basis. In addition, the RC
regularly recommends updates to the Corporate Risk Profile and Risk Appetite, ensuring alignment with the Group’s business
objectives, strategies and current exposure management.

Since 2022, 20 per cent of the long-term incentive plan has been linked to sustainability outcomes, including net carbon intensity
(NCI) and diversity and inclusion (D&I).

At the management level, the President and Group CEO oversees sustainability-related risks and opportunities, supported by the
Sustainability Executive Leadership Team (S-ELT). In 2024, the S-ELT convened a total of eight meetings and discussed a wide range
of sustainability topics relating to climate change, nature, just transition, human rights, disclosure requirements, data management
and supply chain.

PETRONAS has established three sustainability-related policy-level documents which are: PETRONAS Commitment to Net Zero
Carbon Emissions by 2050, PETRONAS Position on Nature and Biodiversity and the PETRONAS Human Rights Policy, to provide
consistent direction Groupwide.

The Sustainability Committee monitors progress towards PETRONAS’ sustainability targets, while the Risk Management Committee
reviews the PETRONAS Corporate Risk Profile including climate-related risk and mitigation strategies.
 6 Commitment to Governance 197

Board Committees

AC Audit Committee

Azizan Zakaria Chairman

Datuk Dr Shahrazat Tan Sri Zaharah Datuk Datuk Johan Mahmood

Haji Ahmad Ibrahim KY Mustafa Merican
(Appointed w.e.f. (Resigned w.e.f. Chairman
13 January 2025) 19 January 2025) (Resigned w.e.f.
13 January 2025)

The AC continued to play a key role in assisting the Board in fulfilling its oversight responsibilities to ensure the effectiveness of financial
reporting, internal controls, and internal and external audit functions.

The AC discharges its responsibilities through its scheduled meetings during the year following its fixed agenda which covers the matters under
the purview of the AC. The AC met seven times in 2024.

For more information about the AC’s attendance, please refer to page 190.

Key Matters in 2024 Internal Control and Audit Activities

The AC reviewed and deliberated internal audit reports which included opinions on the adequacy and
Financial effectiveness of governance, risk management and internal controls, audit findings' root causes, implications
During the year under review, and the agreed recommendations to be undertaken by the Management.
the AC reviewed the quarterly
financial results and the financial The internal audit exercises provide reasonable assurance on the state of PETRONAS Governance and Control
performance of business as well as compliance to applicable policies, procedures, laws and regulations over the following key areas (but
segments, the PETRONAS Group, not limited to):
and its report for the financial
year ended 31 December 2024, a) Technical areas covering:
to ensure they were prepared • Operational excellence and HSE covering PETRONAS Lubricants International, PETRONAS Floating
in compliance with the relevant LNG, as well as Wells Plug and Abandonment at Upstream.
regulatory requirements and • Post Implementation of Project DELIMA at Downstream business.
guidelines. b) Non-Technical areas covering:
• Integrated report on GHG emissions covering Corporate (CSO and GHSE) and Upstream, Gas and
The AC also reviewed the effects
Downstream Business.
of applying significant accounting • Integrated Report for LNG and Gas Value Chain.
areas of estimation uncertainty • Contractor Performance Management at selected Holding Company Units/Business Divisions/OPUs.
and critical judgments including • Trading and Marketing Activities covering PETCO Group and LNG Marketing and Trading (LMT).
impairment assessment and • Commercial activities at PETRONAS Lubricants International (PLI) Group, PLI China and PETRONAS
provision for decommissioning, Refinery and Petrochemical Corporation at Downstream business.
dismantling, removal and • Audit on Material Management at PETRONAS Floating LNG.
restoration (DDRR).
c) Digital and Technology areas covering:
As part of continuation from the • Cyber Security Management and Operations at selected international assets. PETRONAS Carigali
benchmarking of PETRONAS Indonesia Operation and Turkmenistan.
Audited Financial Statements • Value realisation from digital investment covering Audit on Cloud Services and Marketplace, Audit
in 2022, the AC also reviewed on Enterprise Data Hub, Audit on PETRONAS Digital Sdn Bhd, Audit on Project and Asset Excellence
the benchmarking exercise on (NervCentre).
the PETRONAS Group Quarterly d) Shareholders audits covering operations, HSE, commercial and procurement at selected joint venture
Report performed against industry (JV) entities covering Shareholders Audit on Trans Thai-Malaysia 2024, Shareholders Audit on IPPL
players to achieve best-in-class Management Activities
financial reporting disclosures. The AC also reviewed and endorsed the following matters:
As a result, several opportunities
a) Comprehensiveness of the Annual Audit Plan developed based on the enterprise/business strategies,
and areas for enhancement
enterprise/business risks, audit/assurance history results and stakeholder feedback.
are identified and proposed
b) Continuous risk sensing and insights to ensure the proposed audit activities are carried out as per
for adoption which include: emerging and relevant risks as well as the latest enterprise/business strategies.
additional reporting dimensions c) Quarterly status on agreed recommendations arising from internal audit assignments.
for the Group and business d) Overall performance of Group Internal Audit, which includes budget, resources including talent
segments performance, revision composition, progress of audit operations and key initiatives.
on Quarterly Report presentation
flow and sustainability-related The AC, together with the external auditors reviewed the results of the statutory audit and the audit report.
disclosure to demonstrate The AC also reviewed the proposed fees for the statutory audits and limited reviews fees for PETRONAS and
PETRONAS’ commitment to Net selected subsidiaries.
Zero Carbon Emissions by 2050.
198 PETRONAS • Integrated Report 2024

Corporate Governance at PETRONAS

NRC Nomination and Remuneration Committee

Tan Sri Zaharah Ibrahim Chairperson

Datuk Dr Shahrazat Haji Ahmad Azizan Zakaria Datuk KY Mustafa

(Appointed w.e.f. 20 January 2025) (Resigned w.e.f. 19 January 2025)

The NRC carries duties and responsibilities regarding nomination

Key Matters in 2024
and remuneration matters with strict adherence to the principles of
good corporate governance. • The NRC reviewed and made recommendations to the Board
on the status of independence of the NEDs of PETRONAS in line
with the requirements of the PETRONAS Independent Directors
The NRC is responsible for assisting the Board in ensuring that the
Guidelines as a result of the annual review of independence of
Board and Board Committees retain an appropriate structure, size the NEDs.
and balance of skills and experience, as well as the independence • The NRC reviewed PETRONAS’ Highest Management
and diversity required to meet PETRONAS’ strategic objectives. appointments, contract renewals and contract cessations, as well
The NRC is also responsible for reviewing, PETRONAS’ Highest as succession planning and development opportunities.
Management’s appointments and succession planning before the • The NRC also reviewed and endorsed the establishment of the
Board’s approval. 2024 President and Group CEO’s Performance Measurement
to balance between “Perform” and “Transform” objectives
The NRC discharges its responsibilities through its scheduled with emphasis on enterprise outcomes and promoting desired
behaviours.
meetings during the year following its fixed agenda, which covers
• The NRC reviewed and endorsed the high-level organisation
the matters under the purview of the NRC. The NRC met four times
structure.
in 2024. • The NRC reviewed and endorsed the Annual Board Assessment
and Board Performance for PETRONAS.
For more information about the NRC’s attendance, please refer to
page 190.

RC Risk Committee

Azizan Zakaria Chairman

Datuk Dr Shahrazat Tan Sri Zaharah Dato Hj. Ibrahim Datuk Johan Mahmood
Haji Ahmad Ibrahim Hj. Baki Merican
(Appointed w.e.f. (Appointed w.e.f. Chairman (Resigned w.e.f.
13 January 2025) 17 October 2024) (Resigned w.e.f. 13 January 2025)
16 October 2024)

The RC supports the Board in reviewing principal risks

Key Matters in 2024
and oversees the adequacy and effectiveness of the
risk management system for the PETRONAS Group. • The RC assisted the Board in deliberating the PETRONAS Group’s Corporate
The Committee also deliberates on risk mitigation Risk Profile and Risk Appetite every quarter. Additionally, the Committee
strategies and measures, reviews investment recommended revisions to the Corporate Risk Profile and Risk Appetite which
proposals that are significant from a risk perspective the Board approved to align with the Group’s business objectives and strategies
as well as monitors the activities on integrity-related as well as reflect the current exposures being managed.
initiatives for the PETRONAS Group. • The RC played its oversight role in reviewing risks related to strategic and high-
impact business matters, such as investment decisions and Parent Company
The RC discharged its responsibilities through its Guarantee issued by PETRONAS for key projects during the year.
scheduled meetings during the year following a fixed • The RC appraised the performances and activities of Group Integrity every
agenda, which covers the matters under the purview quarter and was updated on the progress of the Group’s integrity and
of the RC. The RC met eight times in 2024. governance programmes.
• The RC reviewed the report and activities on the Company’s Portfolio
For more information about the RC’s attendance, please Commodity Hedging programmes on a half-yearly basis.
refer to page 190.
 6 Commitment to Governance 199

Compliance
Cascading and Disseminating the Tone from the Top The following list encapsulates the areas of laws under CLA as
categorised by PETRONAS:
At PETRONAS, a strong culture of compliance is driven by a
tone-from-the-top approach, underscored by continuous Critical Legal Areas
advocacy from the Board of Directors and the Executive
Leadership Team (ELT). Through their leadership, the principles
of PETRONAS Shared Values and PETRONAS Cultural Beliefs 1. Ethics and Integrity 4. Export Control
are consistently being reinforced. 2. Data Privacy 5. Competition
3. Sanctions
This messaging is further disseminated by senior management
and directors across the Group of companies to ensure that
all business activities are conducted responsibly and ethically.
By cascading expectations from the leadership throughout the Key Compliance Areas
organisation, this approach is designed to shape the behaviour
and attitudes of PETRONAS employees at all levels, embedding The Legal Compliance Controls, a key element of the Legal
a culture of integrity and accountability across the Group’s Compliance Framework, are designed to address legal
operations. and regulatory requirements and manage associated risks
across the Group. Implemented by PETRONAS entities and
Compliance Focus Areas corporate divisions, these controls are organised into five
Key Compliance Areas (5 KCAs) to facilitate classification and
Given the Group’s portfolio of businesses—including Upstream, monitoring.
Gas and Maritime, Downstream, Renewable Energy, and
Project Delivery and Technology—its operations are inherently 5 Key Compliance Areas
exposed to legal and regulatory risks. PETRONAS is committed
to adhering to all applicable laws across its business portfolio. Legal Compliance Framework’s 5 Key Compliance Areas
While PETRONAS ensures compliance with all relevant laws
and regulations, particular emphasis is placed on Critical Legal
Areas (CLA) to mitigate risks and uphold the highest standards
of legal and regulatory adherence. 1 Governance and Risk Assessment

CLAs encompass laws with extra-territorial effect that may

pose significant enterprise risks to PETRONAS as the holding 2 Training and Awareness
company. Breaches of these laws could lead to substantial
financial penalties, legal actions and severe reputational
damage. 3 Due Diligence and Contractual Obligations

To manage legal and regulatory risks effectively, PETRONAS has

implemented a Legal Compliance Framework, which serves 4 Business Practice
as an overarching governance framework. This is supported
by the Legal Compliance Standards, which outline detailed
requirements and standards for ensuring compliance across 5 Monitoring and Assurance
the Group.
200 PETRONAS • Integrated Report 2024

Corporate Governance at PETRONAS

1 Governance and Risk Assessment

PETRONAS has developed a suite of governance documents, including policies, frameworks, standards, guidelines and
manuals, to establish the foundations for implementing internal controls and interpreting the principles underlying
applicable laws and regulations.

Governance Documents for Critical Legal Areas

Sanctions and Export

Ethics and Integrity Data Privacy Competition
Control

• PETRONAS Code of • PETRONAS Corporate • PETRONAS Sanctions • PETRONAS Competition

Conduct and Business Privacy Policy and Export Control Law Guidelines
Ethics (CoBE) and • PETRONAS Master Guidelines • PETRONAS Competition
Country Supplements Guidelines to the • PETRONAS Maritime and Law Compliance
• PETRONAS Anti-Bribery PETRONAS Corporate Shipping Guidance Protocols:
and Corruption Manual Privacy Policy (MGPCPP) - Meetings and
(ABC Manual) Information Sharing
• PETRONAS - Merger and
Whistleblowing (WB) Acquisition
Policy Transactions

To support PETRONAS employees in understanding the principles underlying legal and regulatory requirements, certain
governance documents have been translated into several languages, localised to align with jurisdictional requirements,
and tailored to specific business segments.

Given the inherent hazards and risk factors associated with its business activities, PETRONAS has implemented robust risk
assessment processes i.e., Corruption Risk Assessment, Social Risk Assessment and Risk Assessment in Decision Making
to identify potential threats that could significantly impact its operations. These assessments enable the establishment of
relevant controls, which are then applied across the Group to mitigate identified legal and regulatory risks and prevent
potential non-compliance.

2 Training and Awareness

PETRONAS has continued to deliver comprehensive groupwide training and awareness programmes through digital
platforms, such as e-Learning modules on the Company’s internal web application myLearningX, and customised
engagements led by compliance officers. These initiatives play a crucial role in building awareness and reinforcing
adherence to legal and regulatory requirements among PETRONAS employees and directors.

In 2024, approximately 44,000 employees across the Group completed mandatory compliance e-Learning modules on
Anti-Bribery and Corruption Manual, Third Party Risk Management, Export Control and Personal Data Protection and
Privacy. Additionally, around 37,000 employees completed the revised modules on Sanctions and Competition. Additional
to these e-Learning modules, 305 focused training and engagement sessions were conducted, benefitting over 18,000
participants across the Group.

Digital learning remained the primary mode of engagement in 2024, with 48 per cent of sessions delivered virtually,
42 per cent held physically, and 10 per cent conducted in a hybrid format.
 6 Commitment to Governance 201

3 Due Diligence and Contractual Obligations

PETRONAS Third Party Risk Management

Given the Group’s extensive dealings with third parties—including partners, contractors, vendors, suppliers, distributors and
agents—Third Party Risk Management (TPRM) has been established as a key programme to manage associated risks. TPRM
serves as a robust due diligence process, safeguarding PETRONAS against exposure to breaches of CLA, particularly risks
linked to corporate liability arising from third-party misconduct.

The TPRM framework enables PETRONAS to identify potential threats both prior to formal engagement and throughout
the course of business relationships with third parties. This proactive approach allows for timely risk mitigation or the
incorporation of contractual safeguards to prevent legal, financial and reputational harm to the organisation.

PETRONAS TPRM’s tools consists of:

KYC Declaration Online Screening Compliance

Questionnaire System Clauses

In-house due diligence An externally managed screening Embedment of compliance

questionnaire for completion by system covering key themes in clauses relating to the five CLAs
our third parties or counterparties relation to the five CLAs with in all contracts. Base clauses
covering Corporate and Business a capacity for enhanced due provided could be negotiated and
Information, Ethics and Integrity, diligence. customised in accordance with
Data Privacy, Sanctions, Export business needs.
Control and Competition.

4 Business Practice
PETRONAS regularly reviews its business practices and activities to ensure they remain current and aligned with legal and
regulatory requirements. These reviews are conducted with a focus on maintaining the highest standards of compliance
and integrity.

To further strengthen this commitment, PETRONAS has introduced pre-emptive measures that all PETRONAS entities are
required to embed and implement. These measures ensure that the Group adopts best practices and continues to set a
benchmark as an exemplary model within the global oil and gas industry.

5 Monitoring and Assurance

The PETRONAS Board and Executive Leadership Team (ELT) maintain rigorous oversight of the Group’s activities and
its compliance with critical laws through robust monitoring processes. Compliance activities and updates on control
implementation are escalated to relevant senior management and governing bodies. This escalation process ensures that
the ELT and directors remain informed of the Group’s compliance status and any gaps in control implementation, enabling
them to provide guidance to address such gaps in a practical and effective manner. This clear line of sight reinforces
alignment with PETRONAS’ strategic position while meeting business expectations.

The oversight and monitoring of compliance is conducted annually through a structured self-assessment process, i.e., First
Line Assurance for Critical Legal Areas (FLA-CLA) supported by myCompliance, PETRONAS’ integrated compliance system.
This system enhances the efficiency and effectiveness of monitoring legal and regulatory compliance across the Group.
202 PETRONAS • Integrated Report 2024

Corporate Governance at PETRONAS

Digitalising Compliance Ethics and Integrity

With a workforce of over 50,000 employees, PETRONAS We are committed to building trusted relationships with our
requires a robust digital solution to efficiently monitor legal stakeholders while creating a positive impact on society
and regulatory compliance and manage associated risks across and the environment. We believe that how we deliver is
its operations. In response, the myCompliance system, an as important as what we deliver, which is why we remain
integrated compliance solution, was introduced in 2022. dedicated to growing our business responsibly and upholding
the highest standards of ethics and integrity across all our
This system leverages automation, data-driven tracking operations.
and real-time reporting through a centralised compliance
dashboard, providing a streamlined approach to compliance This commitment to good corporate governance is embodied
management across the Group. By consolidating compliance in PETRONAS’ Code of Conduct and Business Ethics (CoBE),
activities into a single platform, myCompliance enables more a key pillar of the Group’s overall business strategy. First
effective oversight and decision-making. introduced in 2012 and updated in 2022, the CoBE is anchored
on PETRONAS Shared Values — Professionalism, Loyalty,
The implementation of myCompliance has strengthened the Integrity and Cohesiveness. These values are fundamental to
capabilities of the Legal Compliance team within Group Legal, the success and sustainability of the Group. Benchmarked
reducing exposure to risks such as financial and non-financial to international standards, the CoBE outlines the expected
penalties, loss of business opportunities, and reputational standards of behaviour and ethical conduct for all employees,
harm. This integrated system ensures a proactive approach directors and third parties performing work or services on
to safeguarding PETRONAS against potential threats while behalf of the Group. The CoBE expressly prohibits improper
supporting its commitment to regulatory excellence. solicitation, facilitation payments, bribery and other corrupt
practices.
Operationalising Compliance from the Ground
Recognising the global nature of PETRONAS’ operations,
Highlights on Critical Legal Areas the CoBE is applied uniformly across all countries where we
operate. Where necessary, certain provisions are adapted
The Group recognises the importance of keeping abreast and to meet the specific requirements of local jurisdictions.
compliant with the five CLAs namely Ethics and Integrity, Data In such cases, the CoBE is supplemented with Country
Privacy, Sanctions, Export Control, as well as Competition. In Supplements that address applicable local legislation and
line with this objective, various initiatives were undertaken. cultural practices. To date, the CoBE and its supplements have
been translated into multiple languages, ensuring that our
Five CLAs standards for integrity and ethical business conduct are clearly
communicated and understood.
On 21 August 2024, the Legal Compliance team of Group
Legal hosted the Global Compliance Watch Outlook The CoBE also clearly outlines the consequences of non-
Conference 2024 at the Kuala Lumpur Convention Centre. The compliance. Subject to applicable laws, disciplinary action will
conference focused on key developments and enforcement be taken against any employee found to be in breach of its
trends surrounding all five CLAs. It served as a platform for provisions.
sharing insights, and foster networking among compliance
practitioners from PETRONAS and other industries. The CoBE is publicly accessible on PETRONAS’ global
website at Governance and Ethics | PETRONAS Global,
underscoring our commitment to transparency and
ethical business practices across all aspects of the
organisation.
 6 Commitment to Governance 203

Data Privacy with respect to activities relating to the shipping industry. A

new guideline for the shipping and maritime industry was rolled
The PETRONAS Corporate Privacy Policy and the Master out, laying out the sanctions and export control risks and the
Guidelines to the PETRONAS Corporate Privacy Policy steps to be taken to address these risks.
(MGPCPP), which has been benchmarked against global
privacy programmes, embeds the common and internationally Additionally, further efforts were taken to strengthen the
recognised core privacy and personal data protection controls relating to specific activities, mainly involving financial
principles. In upholding PETRONAS’ commitment to and human resources. These efforts were made in cognisant of
safeguard personal data, significant progress has been made the diversity of issues and considerations, and hence specific
in developing country-specific supplements to the MGPCPP, processes and procedures are being devised to address the
including Brazil, Argentina and Thailand. Driven by the Group’s risks relating to these activities. Several specific processes
global footprint, these efforts reflect its commitment to and controls were rolled out to address the risks relating to
complying with local legal frameworks and adapting to the finance/banking related transactions. Moreover, several training
ever-evolving global data protection landscape. sessions were held with relevant employees performing
these functions in collaboration with the PETRONAS Finance
In inculcating a strong commitment to Data Privacy, the Academy to ensure its implementation.
annual International Data Privacy Day event was held on 20
February 2024 for Group Legal and key stakeholders within Competition
PETRONAS, to strengthen their awareness of emerging issues
and developments in Data Privacy while reinforcing a culture of On the Competition front, three PETRONAS entities in
compliance across the organisation. Indonesia demonstrated its commitments to ensure
compliance with Competition laws in the jurisdictions where
Recognising the inherent risks associated with specific activities PETRONAS operates in by participating in the Competition
such as human resource management, internal audit and Compliance Programme introduced by the Indonesian
complaints management, comprehensive and targeted Data Competition Commission (or better known as KPPU).This
Privacy training and upskilling initiatives were conducted to programme was introduced as part of the KPPU’s efforts
minimise compliance risks and empower personnel to navigate to combat the risks of competition law infringements by
Data Privacy challenges effectively, underscoring PETRONAS’ businesses, in line with best practices adopted by various other
dedication to cultivating a culture of accountability and competition authorities globally.
excellence in Data Privacy compliance.
In addition, a new and targeted initiative has been successfully
Meanwhile, following the key changes introduced by the rolled out to combat bid rigging within the Group’s
Personal Data Protection (Amendment) Act 2024, PETRONAS procurement processes. This initiative focused on enhancing
has undertaken significant efforts to prepare for the regulatory transparency, ensuring fairness, and promoting ethical conduct
changes. These include targeted training sessions, groupwide throughout the procurement cycle. By implementing stricter
communications and active engagements with the Malaysia monitoring and adopting analytical measures, the Group aims
Personal Data Protection Regulator Commissioner Office to detect and prevent collusive behaviours among vendors and
(JPDP). suppliers. The initiative also included comprehensive training
for procurement teams with speakers from the Malaysia
Sanctions and Export Control Competition Commission and the KPPU. This proactive
approach not only safeguards the integrity of the procurement
The Sanctions and Export Control landscape in 2024 proved to process but also fosters a competitive environment, ultimately
be challenging with increasing use of trade control measures leading to better value for the organisation and its stakeholders.
by many countries. Recognising this and building on the
existing framework of controls, further improvements have
been made to PETRONAS’ Sanctions and Export Control
measures to ensure compliance and avoid breaches.

In particular, 2024 saw the focus of sanction authorities on

sanctions evasions and the shipping industry. In addressing
these issues, steps have been taken to strengthen the TPRM
204 PETRONAS • Integrated Report 2024

Corporate Governance at PETRONAS

PETRONAS Commitment to Integrity

PETRONAS maintains a zero-tolerance approach to all forms of bribery and corruption. This commitment is reinforced
through the PETRONAS Code of Conduct and Business Ethics (CoBE), the PETRONAS Anti-Bribery and Corruption Manual
(ABC Manual), and the PETRONAS Whistleblowing Policy, which provide clear guidance for employees, directors and
third parties in managing potential or actual instances of bribery, corruption, or improper conduct in their daily business
activities. These governance documents serve as essential references to uphold ethical behaviour and integrity across the
Group.

In a significant demonstration of our commitment to The PETRONAS Integrity Governance Unit (IGU), also referred
combating corruption, the PETRONAS Board of Directors to as Group Integrity, provides relevant reporting to the
completed the Corruption-Free Pledge, setting a clear PETRONAS Board Risk Committee and Agency Integrity
tone from the top. This initiative was further reinforced by Management Division of the Malaysian Anti-Corruption
PETRONAS leaders at the General Manager level and above, Commission (MACC) on a semi-annual basis which complies to
who also took the pledge, underscoring our collective the Prime Minister’s Directive 2018. This is also with the support
determination to uphold integrity and transparency throughout of the Integrity Focal Person (IFP) established at respective
the organisation. businesses.

To address corruption risks systematically, we continuously Continuous internal and external assessments, including audits
review our Corruption Risk Assessment (CRA) in line with of the ISO 37001:2016 Anti-Bribery Management System
adequate procedures. Prioritised mitigation measures are (ABMS), are conducted to verify the adequacy and effectiveness
elevated and monitored as part of the PETRONAS Integrity of our integrity framework.
Plan. One such measure included a roundtable discussion
with integrity units in Government departments, to strengthen In 2024, we carried out 806 integrity engagements and training
defences against corruption risks and foster collaborative sessions to strengthen integrity awareness among internal
solutions, particularly in implementing PETRONAS No-Gift and external stakeholders. Targeted employees were further
policy. trained in the latest enforcement actions in the anti-bribery and
corruption sphere to equip them with the necessary knowledge
We have also enhanced PETRONAS Integrity Management and tools to mitigate the risks of dealing with third parties.
System (PIMS) guided by Anti-Bribery Management System This was further complemented by 311 campaigns, including
(ABMS), to ensure its relevance in standardising integrity leadership messages on integrity, as part of our ongoing efforts
practices across our operations. to maximise outreach and reinforce ethical behaviour.

To further empower individuals to speak up, we launched To enhance integrity management capabilities, we established
an enhanced whistleblowing platform, WhistleNOW, which and implemented the Integrity Focal Person Competency
provides secure and accessible reporting mechanisms. This Module, which focuses on practical skills and understanding
initiative reflects our commitment to providing a secure and of IGU’s core functions—complaint management, detection
efficient system for employees and stakeholders to report and verification, governance and integrity strengthening.
suspected misconduct or corruption. Additionally, in collaboration with SIRIM, we delivered
ISO37001:2016 ABMS training, creating a pool of certified
internal auditors to further reinforce compliance and
governance practices.
 6 Commitment to Governance 205

Anti-Bribery and Corruption Compliance Programme PETRONAS Whistleblowing Policy and Procedures

The PETRONAS Anti-Bribery and Corruption Manual (ABC The PETRONAS Whistleblowing Policy was first introduced in
Manual), first introduced in 2013, addresses key areas such as 2012 to provide a formal avenue for PETRONAS’ employees
dealing with public officials, facilitation payments, managing and members of the public to report improper conduct,
third-party relationships, the handling of gifts, entertainment, including misconduct, criminal offences, or malpractice, in
corporate hospitality, sponsorship and donations. accordance with the procedures outlined in the policy.

Since its implementation, the regulatory landscape surrounding In response to developments in the legal and regulatory
anti-bribery and corruption legislation has evolved significantly, landscape, the policy was revised in 2020 to reflect key
both in Malaysia and globally. Notable developments include changes, such as the Guidelines on Adequate Procedures
the introduction of the corporate liability provision under issued by the Prime Minister’s Office in 2018 to support
Section 17A of the Malaysian Anti-Corruption Commission Act Section 17A of the Malaysian Anti-Corruption Commission
(Amendment) 2018, which also provides a defence of adequate Act (Amendment) 2018. Additionally, the introduction of the
procedures for commercial organisations. European Union (EU) Directive on Whistleblower Protection in
2019, which established robust safeguards for whistleblowers
After more than a decade, the ABC Manual underwent a across EU jurisdictions, further informed the revision. As part
review and was updated in 2023. The revised ABC Manual of the enhancements, the policy now includes provisions for
was subsequently approved for global implementation and anonymous reporting, offering whistleblowers an added level
came into effect on 6 December 2023. To ensure seamless of confidentiality.
implementation of the revised ABC Manual, a series of
groupwide communications, train-the-trainer sessions and Whistleblowers submitting disclosures via PETRONAS’
employee training programmes were implemented throughout whistleblowing channels are accorded protection of their
2024. These sessions targeted employees, directors and identity, to the extent reasonably practicable. Furthermore,
leadership teams, equipping them with important insights employees who report improper conduct internally in good
into the updated provisions. The sessions also served as faith are safeguarded against adverse or detrimental actions,
refresher training, addressing frequently asked questions on even if subsequent investigations reveal that the disclosure was
key topics, including conflicts of interest, corporate hospitality, based on a misunderstanding of facts, rules or procedures.
entertainment and PETRONAS’ No Gift Policy.
The PETRONAS Whistleblowing Policy is publicly
accessible on the PETRONAS global website at
The ABC Manual is publicly accessible on PETRONAS’
https://www.petronas.com/whistleblowing.
global website at Governance and Ethics | PETRONAS
Global.

The PETRONAS Integrity Awareness Committee (PIAC)

convened quarterly meetings throughout the year to ensure
the effective implementation of the programmes under
the PETRONAS Integrity Compliance Framework. These
meetings are essential in steering, driving and monitoring
that integrity programmes are implemented in an effective,
integrated and structured manner. PIAC members comprise
representatives from various corporate and business divisions
within PETRONAS, ensuring alignment across the organisation.
Additionally, PIAC is also responsible for reporting and
escalating matters on ethics and integrity to the Executive
Leadership Team, when necessary, for their further guidance.
206 PETRONAS • Integrated Report 2024

Group Financial Results and Position

Analysis of Financial Results

Consolidated Statement of Profit or Loss

Financial Year ended

31 December
In RM Million 2024 2023
Continuing operations
Revenue 305,131 305,755
Cost of revenue (187,892) (182,465)
Gross profit 117,239 123,290
Selling and distribution expenses (9,950) (8,943)
Administration expenses (17,993) (15,245)
Net impairment losses/write-off1 (4,882) (6,096)
Other expenses (3,000) (3,359)
Other income 6,016 8,479
Operating profit 87,430 98,126
Financing costs (5,878) (5,500)
Share of profit after tax and non-controlling interests of equity accounted associates and
joint ventures 581 872
Profit before taxation from continuing operations 82,133 93,498
Tax expense (26,348) (14,559)
Profit for the year from continuing operations 55,785 78,939

Discontinued operations2
(Loss)/Profit for the period/year from discontinued operations, net of tax (693) 1,775
PROFIT FOR THE YEAR 55,092 80,714

Profit/(Loss) attributable to:

Shareholders of the Company
From continuing operations 49,996 72,840
From discontinued operations (892) 1,521
49,104 74,361
Non-controlling interest
From continuing operations 5,789 6,099
From discontinued operations 199 254
5,988 6,353
PROFIT FOR THE YEAR 55,092 80,714

Revenue (RM million)

Continuing operations Discontinued operations

305,131 14,826
2024 319,957
305,755 37,842
2023 343,597

Note 1: Excludes well costs and includes loss on remeasurement/derecognition of financial assets measured at amortised cost.
Note 2: Discontinued operations relate to disposal of Engen Group.
 7 Financial Review and Other Information 207

Consolidated Statement of Other Comprehensive Income

Financial Year ended

31 December
In RM Million 2024 2023
PROFIT FOR THE YEAR 55,092 80,714
Other comprehensive (loss)/income
Items that will not be reclassified subsequently to profit or loss
Net changes in fair value of equity investments at fair value through other comprehensive
income (OCI) (136) (128)
Items that may be reclassified subsequently to profit or loss
Net movements from exchange differences (10,663) 10,279
Cash flow hedge (1,120) (873)
Others 437 11
Total other comprehensive (loss)/income for the year from continuing operations,
net of tax (11,482) 9,289

Discontinued operations
Total other comprehensive loss for the year from discontinued operations, net of tax - (199)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 43,610 89,804

Total comprehensive income attributable to:

Shareholders of the Company
From continuing operations 39,929 80,063
From discontinued operations (892) 1,374
39,037 81,437
Non-controlling interests
From continuing operations 4,374 8,165
From discontinued operations 199 202
4,573 8,367
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 43,610 89,804
208 PETRONAS • Integrated Report 2024

Group Financial Results and Position

Revenue by Products

The Group’s total revenue was RM320 billion, primarily contributed by petroleum products and LNG which accounted for
32 per cent and 24 per cent of revenue, respectively.

RM34.1
billion RM103.9
11%
billion
RM29.8
billion 9% 32%

Total Petroleum Products Natural and Processed Gas

13%
RM320.0 LNG Chemicals
RM40.0 billion Crude Oil and Condensates Others1
billion
11%
RM35.8 24%
billion RM76.4
billion

Petroleum Products LNG Crude Oil and Condensates

132.5

103.9

76.4 74.1

35.8 38.7

22% 3% 7%

20242 20232 20242 20232 20242 20232

Natural and Processed Gas Chemicals Others1

40.0 38.2
29.8 34.1 32.2
27.9

5% 7% 6%

20242 20232 20242 20232 20242 20232

Note 1: Others comprise of shipping services, net trading gain, rental of properties, rendering of services, etc.
Note 2: All financial and operational results comprise continuing and discontinued operations.
 7 Financial Review and Other Information 209

Revenue by Geographical Trade (RM billion)

Exports International Operations Domestic

133.6 74.1 112.3

20241 320.0

135.8 108.8 99.0

20231 343.6

154.1 125.8 92.4

20221 372.3

93.7 88.8 65.5

2021 248.0

66.3 58.0 54.4

2020 178.7

• Export sales accounted for 42 per cent of the Group’s total revenue in FY2024 and remained the leading contributor to
PETRONAS Group’s revenue.
• Revenue from international operations which contributed 23 per cent of the Group’s total revenue was lower compared to
previous year mainly due to disposal of Engen Group and withdrawal from South Sudan.
• Meanwhile, higher domestic sales were primarily contributed by higher processed gas offtake in line with higher demand
from power and non-power sectors.

Revenue by Geography2

Revenue from outside Malaysia, which included export and international sales, accounted for 65 per cent of the Group’s
revenue, demonstrating PETRONAS’ strong global presence.

Rest of the world

Sale of petroleum products, crude oil
17%
and condensates, LNG, maritime and
Asia*
logistics business, and natural gas.
Sale of LNG, petroleum products,
43%
crude oil and condensates, and
petrochemical products.

Malaysia
35% Sale of petroleum products
and sales gas.
Africa
Sale of petroleum products and 5%
crude oil and condensates.

* Exclude Malaysia
Note 1: All financial and operational results comprise continuing and discontinued operations.
Note 2: Revenue by geography are populated according to the customers’ location.
210 PETRONAS • Integrated Report 2024

Group Financial Results and Position

Group Cost

• Group cost stood at RM271.8 billion comparable with prior year of RM271.0 billion.
• Domestic operations accounts for 72 per cent of the Group’s total costs to support Oil and Gas Services and Equipment
(OGSE) activities in Malaysia.

By Category By Geography

Product Costs

Tax Expenses, Sales Tax and Duties 9%

and Cash Payments
13% 28%
Price-Sensitive Expense Item 39%
(depreciation, impairment, FOREX, Total Total Malaysia
finance cost) RM271.8 RM271.8
billion billion Outside Malaysia
Production and transportation expense, 22%
purchased services, materials and supplies
72%

Others 17%

Note 1: Group costs above relate to costs charged to Income Statement only.

Earnings by Business

Businesses across the value chain displayed operational excellence amid market volatility, ensuring resilient financial performance
for the year ended 2024.

• The Group operated three core businesses in FY2024: Upstream, Gas and Maritime, and Downstream.
• Corporate and Others which complement our core businesses, comprise primarily the renewables, hydrogen and green
mobility businesses as well as property business.

Upstream

Revenue (RM billion) • Upstream recorded highest ever total daily average production in FY2024 at
140.0 2,451 thousand barrels of oil equivalent (boe) per day, mainly due to higher
2024 natural gas production from Malaysia and International.
141.8
1% • Upstream recorded slightly lower revenue in line with lower average
2023 realised prices, partially offset by higher natural gas sales volume.
• Lower PAT of RM34.9 billion compared to RM39.6 billion in FY2023 is due
PAT (RM billion) to lower revenue and higher product cost.
34.9
2024
39.6
12%
2023

PAT Margin
25%
2024
3%
28% Please refer to Upstream's operational performance in 2024 on page 66.
2023
 7 Financial Review and Other Information 211

Gas and Maritime1

Revenue (RM billion) • Following the Group reorganisation, the MISC Berhad Group, previously
131.1 reported under the Corporate and Others business, is now being managed
2024 and reported under the Gas and Maritime business (formerly known as the
127.4
3% Gas business).
2023 • Revenue slightly increased to RM131.1 billion from RM127.4 billion in
FY2023 mainly due to higher LNG and processed gas sales volume, partially
PAT (RM billion) offset by lower average realised prices.
19.9 • Despite higher revenue, Gas and Maritime business recorded a lower PAT of
2024
38% RM19.9 billion against RM31.9 billion in FY2023, primarily driven by net
31.9 impairment losses on assets and lower net product margin. Excluding net
2023
impairment losses on assets, PAT is lower by RM9.1 billion.
PAT Margin • Malaysia's average sales gas volume during the year was 3,050 million
standard cubic feet per day (MMscfd), increased from 2,878 MMscfd in
15%
2024 FY2023 mainly due to higher offtake from power and non-power sectors in
10% Peninsular Malaysia.
25%
2023 Please refer to Gas and Maritime's operational performance in 2024 on page 67.

Downstream

Revenue (RM billion) • Downstream revenue of RM153.9 billion was lower than FY2023 primarily
153.9 due to discontinued operations impact and lower average realised prices
2024 from major products.
185.4
17% • The business also recorded LAT of RM0.7 billion against PAT of RM7.1
2023 billion in FY2023 following lower taxation in the prior and impact of
de-consolidation of Engen Group. Excluding impact of de-consolidation,
PAT/(LAT) (RM billion) PAT for the year is RM1.7 billion.
(0.7) • During the year, Downstream business recorded 91.2 per cent in Overall
2024
>100% Equipment Effectiveness, higher than 87.2 per cent recorded in FY2023.
7.1 • Petroleum products sales volume was 247.8 million barrels, lower compared
2023
to FY2023's 296.1 million barrels primarily due to discontinued operation
PAT/(LAT) Margin impact.
• Chemical products sales volume was 10.1 million metric tonnes, higher by
2024 (0%) 0.7 million metric tonnes against FY2023, in line with higher production.
4% Please refer to Downstream's operational performance in 2024 on page 67.
4%
2023

Corporate and Others1

Revenue (RM billion) • Corporate and Others recorded revenue of RM14.0 billion, comparable with
14.0 FY2023 of RM14.3 billion.
2024 • The business also recorded LAT of RM0.8 billion as compared to PAT of
14.3
2% RM2.3 billion last year primarily driven by net impairment losses on
2023 receivables and impact on foreign exchange on net assets.
• KLCCP Stapled Group, the major contributor to this segment, achieved a
PAT/(LAT) (RM billion) record revenue of RM1.7 billion, the highest since its listing in 2013,
(0.8)
(0.8) underscoring its strong market performance and strategic focus.
2024
2.3
>100% For more information on KLCCP, please refer to KLCCP Integrated Report 2024.
2023

PAT/(LAT) Margin

2024 (6%)
22%
16%
2023

Note 1: Certain prior year information has been restated to conform with current year presentation.
212 PETRONAS • Integrated Report 2024

Group Financial Results and Position

Analysis of Financial Position

Consolidated Statement of Financial Position

As at
31 December
In RM Million 2024 2023
ASSETS
Property, plant and equipment 327,356 326,398
Investment properties and land held for development 16,716 12,275
Investments in associates and joint ventures 12,219 10,368
Intangible assets 31,175 31,902
Long-term receivables 46,690 47,939
Fund and other investments 16,633 10,778
Deferred tax assets 25,459 27,853
TOTAL NON-CURRENT ASSETS 476,248 467,513

Trade and other inventories 14,096 14,307

Trade and other receivables 71,748 57,028
Fund and other investments 15,698 11,620
Cash and cash equivalents 188,476 208,492
290,018 291,447
Assets classified as held for sale 407 14,341
TOTAL CURRENT ASSETS 290,425 305,788
TOTAL ASSETS 766,673 773,301

EQUITY
Share capital 100 100
Reserves 451,115 443,369
Total equity attributable to shareholders of the Company 451,215 443,469
Non-controlling interests 55,395 59,396
TOTAL EQUITY 506,610 502,865

LIABILITIES
Borrowings 90,837 98,754
Deferred tax liabilities 13,029 13,297
Other long-term liabilities and provisions 64,766 64,434
TOTAL NON-CURRENT LIABILITIES 168,632 176,485

Trade and other payables 67,156 68,076

Borrowings 20,060 12,867
Taxation 4,064 3,931
91,280 84,874
Liabilities classified as held for sale 151 9,077
TOTAL CURRENT LIABILITIES 91,431 93,951
TOTAL LIABILITIES 260,063 270,436
TOTAL EQUITY AND LIABILITIES 766,673 773,301
 7 Financial Review and Other Information 213

Total Assets (RM billion)

Total assets slightly declined to RM766.7 billion as at 31 December 2024 against RM773.3 billion as at 31 December 2023 mainly
due to impact of disposal of Engen Group and lower Cash and Fund Investments following cash paid for capital investment and
dividend to shareholders.

Property, Plant and Equipment Cash and Fund Investments Trade and Other Receivables Others

Long Term Receivables Trade and Other Inventories Assets Classified as Held for Sale

46.7 14.1
375.2 220.8 71.8 37.7
2024 0.4 766.7

14.3 14.4
370.6 230.9 57.0 38.2 47.9
2023 1
773.3

Note: Property, Plant and Equipment also includes intangible assets, investment properties and land held for development.

Total Liabilities (RM billion)

Total liabilities decreased to RM260.1 billion as at 31 December 2024 as compared to RM270.4 billion as at 31 December 2023
mainly due to impact of disposal of Engen Group.

Borrowings Trade and Other Payables DDRR Others Taxation Liabilities Classified as Held for Sale

4.1 0.1
110.9 67.2 49.7 28.1
2024 260.1

3.9 9.1
111.6 68.0 49.5 28.3
20231 270.4

Note 1: Certain prior year information has been restated to conform with current year presentation.
214 PETRONAS • Integrated Report 2024

Group Financial Results and Position

Analysis of Cash Flow

Consolidated Statement of Cash Flows

As at
31 December
In RM Million 2024 20231
Cash flows from operating activities
Profit before taxation 82,133 93,498
Adjustments for non-cash items 35,879 36,859
Net changes in working capital (754) 1,368
Cash generated from continuing operations 117,258 131,725
Interest income received 12,682 11,514
Interest expenses paid (4,750) (3,234)
Taxation paid, net of refund (24,323) (28,218)
Net cash generated from continuing operations 100,867 111,787
Net cash generated from discontinued operations 1,593 2,371
Net cash generated from operating activities 102,460 114,158
Net cash used in investing activities (71,010) (59,296)
Net cash used in financing activities (46,365) (53,098)
Net (decrease)/increase in cash and cash equivalents (14,915) 1,764
Increase in cash and cash equivalents restricted (179) (1,096)
Net foreign exchange differences (5,718) 5,957
Cash and cash equivalents at beginning of the year 207,009 200,384
Cash and cash equivalents at end of the year 186,197 207,009

Cash and cash equivalents

Cash, bank balances and deposits 188,476 208,492
Bank overdrafts (10) -
Classified as held for sale 45 652
Less: Cash and cash equivalents - restricted (2,314) (2,135)
186,197 207,009

Free Cash Flow Analysis2 (RM billion)

61.4

48.2
The Group generated free cash flow of RM48.2 billion during the year, decreased by
RM13.2 billion or 21 per cent as compared to RM61.4 billion in FY2023 mainly due
to reduced cash generated from operations in line with lower operating profit
coupled with higher capital investments spent.

21%

Note 1: Certain prior year information has been restated to conform with current year presentation.
2024 2023 Note 2: Free Cash Flow was derived from net cash generated from operating activities less cash CAPEX.
 7 Financial Review and Other Information 215

Capital Investments (RM billion)

• Total CAPEX spent during the year of RM54.2 billion was higher by RM1.4 billion compared with RM52.8 billion in FY2023.
• More than 60 per cent of the CAPEX was spent in Malaysia amounting to RM33.3 billion, increased by 27 per cent compared
to FY2023, contributing to the growth of the Malaysian economy.
• Included in the Corporate and Others business is CAPEX incurred for Gentari Sdn Bhd (Gentari), which includes renewable
energy, hydrogen and green mobility businesses.
Domestic International

33.3 20.9
2024 54.2

26.2 26.6
2023 52.8

18.6 31.5
2022 50.1

15.0 15.4
2021 30.4

17.5 15.9
2020 33.4

Capital Investments by Business and Geographical Segments in FY2024 (RM billion)

Domestic CAPEX International CAPEX

5.9 3.9

Total Upstream 0.6

Total
4.1
RM33.3 15.9 RM20.9
Gas and Maritime 12.1
billion 4.3
billion
Downstream

7.4
Corporate and Others

Capital Investments by Energy Transition Strategy in FY2024

3%
10%

Core Business
CAPEX by
New Business
Strategy
Net Zero Carbon Emissions

87%
Note:
Capital investments are based on cash, inclusive of costs of acquisition of subsidiaries and investments in associates
and joint ventures.
216 PETRONAS • Integrated Report 2024

Group Financial Results and Position

Capital Investment by Business Upstream

• CAPEX for Upstream business accounted for 52 per cent of the Group’s total CAPEX
• Aligned with our PETRONAS
with a total spending of RM28 billion, an increase of RM0.9 billion as compared to
Energy Transition Strategy, we
FY2023. Upstream’s CAPEX for FY2024 was predominantly spent on exploration,
continue to strengthen our Core
development and production activities aimed at sustaining and growing production
Business, pursue growth in
in Malaysia and international operations.
capturing opportunities for New
• About RM15.9 billion or 57 per cent of Upstream total CAPEX was spent domestically
Business, and at the same time
to intensify efforts to enhance the recovery rate of existing fields as well as the
responsibly manage carbon
development of new fields. Among the key projects in Malaysia are Kasawari Gas
emissions.
Field Development and Integrated Bekok Oil.
• Meanwhile, a total of RM12.1 billion was allocated towards international portfolio
• As we progress in this journey,
investments, which include key countries such as Angola, Indonesia and Brazil.
PETRONAS continues to uphold
strict discipline in allocating capital
Gas and Maritime1
resources, to strike the right
balance between investments in • Gas and Maritime business accounted for 21 per cent of the Group's total CAPEX and
growth for Core Business and recorded a total spending of RM11.7 billion in FY2024 comparable to the restated
New Business, while reducing figure for last year of RM11.9 billion.
greenhouse gas emissions. • CAPEX for FY2024 were predominantly spent domestically amounting to RM7.4
However, this comes with billion or 63 per cent mainly on the Sabah shore-based LNG facility, aimed at
increasing challenges given the monetising gas resources in an optimised and more environmentally conscious
restricted access to capital market manner. Internationally, the key investment was on the LNG project in Canada.
for energy players.
Downstream
• In FY2024, PETRONAS’ overall • Downstream business’ CAPEX of RM4.7 billion during the year accounted for
CAPEX stood at RM54.2 billion, 9 per cent of the Group’s overall CAPEX allocation, decreased by RM1.1 billion as
higher compared to RM52.8 billion compared to prior year.
last year. This includes over RM7 • 87 per cent of the CAPEX spending made during the year was mainly allocated
billion on emissions reduction towards domestic operational projects as well as turnaround activities.
projects and cleaner energy
solutions, specifically on renewable Corporate and Others1
energy, hydrogen and CCS related • CAPEX spent by businesses under Corporate and Others during the year amounted
projects. to RM9.8 billion with Gentari accounting for 41 per cent of the total spending.
• Gentari’s significant investments on the forefront of renewables were mainly on
green ammonia projects across various locations in India.

Note 1: Certain prior year information has been restated to conform with current year presentation.
 7 Financial Review and Other Information 217

Five-Year Key Financial Indicators

Revenue (RM billion) EBITDA (RM billion)

372.32 170.7

320.0 343.6

248.0 128.6
114.1 100.4
178.7

55.3

2024 2023 2022 2021 2020 2024 2023 2022 2021 2020

Profit/(Loss) After Tax (RM billion) Cash Flows from Operations (RM billion)

101.6 135.3

80.7 114.2
102.5

55.1 78.5
50.9

40.7

(21.0)

2024 2023 2022 2021 2020 2024 2023 2022 2021 2020

Net Cash Position (RM billion) Total Assets (RM billion)

108.5 108.0 766.7 773.3

710.6
93.3
635.0
574.1
68.7

52.1

2024 2023 2022 2021 2020 2024 2023 2022 2021 2020
218 PETRONAS • Integrated Report 2024

Group Financial Results and Position

PAT Margin (%) Return on Average Capital Employed (ROACE) (%)

27.3% 19.9%
23.5%
20.5%
14.4%
17.2%

11.4%
9.7%

(11.8%)
(4.1%)

2024 2023 2022 2021 2020 2024 2023 2022 2021 2020

Return on Total Assets (ROTA) (%) Debt/Assets Ratio (x)

19.1% 0.17x
0.15x 0.15x
0.14x 0.14x

11.6% 11.6%
9.8%

(2.3%)

2024 2023 2022 2021 2020 2024 2023 2022 2021 2020

Gearing Ratio3 (%) Dividend Payout Ratio (%)

23.1% >100% >100% >100%

21.3%
19.6% 19.8% 20.3%

43% 43%

2024 2023 2022 2021 2020 2024 2023 2022 2021 2020

Note 1: All financial and operational results comprise continuing and discontinued operations. Discontinued operations relate to disposal of ENGEN Group.
Note 2: Prior year revenue and group cost has been restated to conform with current year presentation, with no impact to PAT.
Note 3: Gearing ratio is calculated as adjusted total debt (total debt including financial guarantees) divided by adjusted total equity (total equity plus deferred tax
liabilities and minus capitalised interest) and adjusted total debt. Gearing ratio for corresponding period has been restated to conform with this formula.
 7 Financial Review and Other Information 219

Index

Ipieca Sustainability Reporting Guidance for the Oil and Gas Industry

Ipieca Disclosures Reference Page

Governance and Business Ethics

Governance and GOV-1: Governance approach Commitment to Governance, pages 176-205

management GOV-2: Management systems Creating Sustainable Value through Responsible Governance,
systems
pages 85-86, 89-91

Delivering Net Zero, pages 96-98, 103-106

Thriving with Nature, pages 120-123, 129

Fostering a Just Transition, pages 134, 137, 143, 159

Corporate Governance at PETRONAS, pages 176-205

Business ethics and GOV-3: Preventing corruption Commitment to Governance, pages 202-205
transparency

GOV-4: Transparency of payments Executive Vice President and Group Chief Financial Officer’s
to host governments Letter, page 24

Climate Change and Energy

Climate strategy CCE-1: Climate governance Delivering Net Zero, page 95
and risk and strategy

CCE-2: Climate risk and opportunities Risks Linked to Creating Value, page 41

Delivering Net Zero, pages 95-98

Technology CCE-3: Lower carbon technology PETRONAS Energy Transition Strategy, page 29

New Business, pages 70-77

Net Zero Carbon Emissions, pages 78-81

Emissions CCE-4: Greenhouse gas Delivering Net Zero, pages 92-111

(GHG) emissions
Sustainability Key Performance Data, pages 163-169

CCE-5: Methane emissions Delivering Net Zero, pages 100-101, 107-110

Sustainability Key Performance Data, pages 164-165

Energy use CCE-6: Energy use Delivering Net Zero, pages 103-105

Sustainability Key Performance Data, pages 168

Flaring CCE-7: Flared gas Delivering Net Zero, pages 102-103, 107-109

Sustainability Key Performance Data, pages 165-166

220 PETRONAS • Integrated Report 2024

Index

Ipieca Disclosures Reference Page

Environment
Water ENV-1: Freshwater Thriving with Nature, pages 120-121

Sustainability Key Performance Data, page 170

ENV-2: Discharges to water Sustainability Key Performance Data, page 170

Biodiversity ENV-3: Biodiversity policy and strategy Thriving with Nature, pages 113-117

ENV-4: Protected and priority areas for Thriving with Nature, pages 113-114
biodiversity conservation

Air emissions ENV-5: Emissions to air Thriving with Nature, pages 119-120

Sustainability Key Performance Data, page 170

Spills ENV-6: Spills to the environment Thriving with Nature, page 122

Sustainability Key Performance Data, page 170

Materials ENV-7: Materials management Thriving with Nature, pages 118-119, 124-129
management
Sustainability Key Performance Data, page 170

Decommissioning ENV-8: Decommissioning Thriving with Nature, pages 128-129

Safety, Health and Security

Workforce SHS-1: Safety, health and security Risks Linked to Creating Value, page 42
protection engagement
Creating Sustainable Value through Responsible Governance,
pages 85-89

Fostering a Just Transition, pages 159-162

SHS-2: Workforce and community Risks Linked to Creating Value, page 42

health
Creating Sustainable Value through Responsible Governance,
pages 85-89

Fostering a Just Transition, pages 138, 159-162

SHS-3: Occupational injury and illness Creating Sustainable Value through Responsible Governance,
incidents pages 85-89

Sustainability Key Performance Data, page 171

Product health, SHS-5: Product stewardship Thriving with Nature, page 123
safety and
environmental risk

Process safety SHS-6: Process safety Creating Sustainable Value through Responsible Governance,
pages 85-89

Sustainability Key Performance Data, page 171

Security SHS-7: Security risk management Risks Linked to Creating Value, page 42

Creating Sustainable Value through Responsible Governance,

pages 90-91

Fostering a Just Transition, pages 134, 137

 7 Financial Review and Other Information 221

Ipieca Disclosures Reference Page

Social
Human rights SOC-1: Human rights due diligence Fostering a Just Transition, pages 132-138
management
SOC-2: Suppliers and human rights Fostering a Just Transition, pages 132-143, 145-146
Sustainability Key Performance Data, page 175
SOC-3: Security and human rights Fostering a Just Transition, pages 134-137, 143
Sustainability Key Performance Data, page 175
Labour practices SOC-4: Site-based labour practices Fostering a Just Transition, pages 134-135, 139-141, 147-148
and worker accommodation
Sustainability Key Performance Data, pages 173, 175
SOC-5: Workforce diversity and Fostering a Just Transition, pages 150-152, 160
inclusion
Sustainability Key Performance Data, page 172
Corporate Governance at PETRONAS, page 191
SOC-6: Workforce engagement Engaging with Stakeholders, page 57
Fostering a Just Transition, pages 152, 160
SOC-7: Workforce training and Fostering a Just Transition, pages 131, 142-143, 146-147,
development 150-158
Sustainability Key Performance Data, page 175
SOC-8: Workforce non-retaliation and Fostering a Just Transition, pages 139-140
grievance mechanisms
Community SOC-9: Local community impacts and Engaging with Stakeholders, page 59
engagement engagement
Fostering a Just Transition, pages 135-137
SOC-10: Indigenous peoples Fostering a Just Transition, page 137
SOC-11: Land acquisition and Fostering a Just Transition, page 138
involuntary resettlement
SOC-12: Community grievance Fostering a Just Transition, pages 139-141
mechanisms
SOC-13: Social investment Chairman’s Letter, pages 14-17
Executive Vice President and Group Chief Financial Officer’s
Letter, page 24
Vice President and Group
Chief Sustainability Officer’s Letter, page 28
Engaging with Stakeholders, page 59
Thriving with Nature, pages 117, 127
Fostering a Just Transition, pages 144, 157-158
Sustainability Key Performance Data, page 175
Local content SOC-14: Local procurement and Engaging with Stakeholders, page 58
supplier development
Fostering a Just Transition, pages 145-146
SOC-15: Local hiring practices Fostering a Just Transition, pages 150-152, 160
Sustainability Key Performance Data, page 172
222 PETRONAS • Integrated Report 2024

Index

Global Reporting Initiative (GRI) Standards

PETRONAS has reported the information cited in this GRI content index for the period covering the full calendar year from
1 January to 31 December 2024 with reference to the GRI Standards.

GRI Standard Reference Page

GRI 2: 2-1 Organisational details Basis of This Report, pages 4-5

General Disclosures
We Are Passionate About Progress, pages 6-7

2-2 Entities included in the Basis of This Report, pages 4-5

organisation’s sustainability reporting

2-3 Reporting period, frequency and Basis of This Report, pages 4-5
contact point

2-4 Restatements of information Delivering Net Zero: Independent GHG Emissions Data
Verification, page 167

Sustainability Key Performance Data, pages 163-175

2-5 External assurance Basis of This Report, pages 4-5

2-6 Activities, value chain and other We Are Passionate About Progress, pages 6-9
business relationships

2-7 Employees Sustainability Key Performance Data, pages 172-174

2-8 Workers who are not employees Sustainability Key Performance Data, pages 172-174

2-9 Governance structure and Commitment to Governance, pages 176-186

composition

2-10 Nomination and selection of the Commitment to Governance, pages 186-196

highest governance body

2-11 Chair of the highest governance Commitment to Governance, page 177

body

2-12 Role of the highest governance Commitment to Governance, pages 186-196

body in overseeing the management of
impacts

2-13 Delegation of responsibility for Commitment to Governance, pages 186-196

managing impacts

2-14 Role of the highest governance Basis of This Report, pages 4-5
body in sustainability reporting

2-15 Conflicts of interest Commitment to Governance, page 192

2-17 Collective knowledge of the Commitment to Governance, page 193

highest governance body

2-19 Remuneration policies Commitment to Governance, pages 186-196

2-20 Process to determine Commitment to Governance, pages 186-196

remuneration
 7 Financial Review and Other Information 223

GRI Standard Reference Page

GRI 2: 2-22 Statement on sustainable Chairman’s Letter, pages 14-17

General Disclosures development strategy
President and Group Chief Executive Officer’s Letter,
(cont’d.)
pages 18-21
2-23 Policy commitments Fostering a Just Transition, pages 132-133
Commitment to Governance, page 204
2-24 Embedding policy commitments Fostering a Just Transition, pages 132-143
2-25 Processes to remediate negative Fostering a Just Transition, pages 139-141
impacts
2-26 Mechanisms for seeking advice Fostering a Just Transition, pages 139-141
and raising concerns
2-28 Membership associations Refer to PETRONAS Global website:
Memberships & Association | PETRONAS Global
2-29 Approach to stakeholder Engaging with Stakeholders, pages 54-59
engagement
2-30 Collective bargaining agreements Fostering a Just Transition, pages 140, 149 -150
GRI 3: 3-1 Process to determine material How We Create Value: Material Topics, pages 50-53
Material Topics 2021 topics
3-2 List of material topics How We Create Value: Material Topics, pages 50-53
3-3 Management of material topics How We Create Value: Material Topics, pages 50-53
GRI 201: 201-1 Direct economic value Executive Vice President and Group Chief Financial Officer's
Economic generated and distributed Letter, pages 22-25
Performance 2016
How We Create Value, pages 30-31
Fostering a Just Transition, pages 144, 148-149, 157
Group Financial Results and Position, pages 206-218
Audited Financial Statements, pages 6-19 (access the
Statements via QR code on page 5 of this Report)
201-2 Financial implications and other Delivering Net Zero, pages 95-98
risks and opportunities due to climate
change
201-3 Defined benefit plan obligations Audited Financial Statements, pages 100-103 (access the
and other retirement plans Statements via QR code on page 5 of this Report)
GRI 202: 202-1 Ratios of standard entry-level Fostering a Just Transition, page 148
Market Presence wage by gender compared to local
2016 minimum wage
GRI 203: 203-1 Infrastructure investments and Thriving with Nature, pages 117, 127
Indirect Economic services supported
Fostering a Just Transition, pages 157-158
Impacts 2016
203-2 Significant indirect economic Engaging with Stakeholders, pages 54-59
impacts
Thriving with Nature, pages 117 and 127
Fostering a Just Transition, pages 157-158
224 PETRONAS • Integrated Report 2024

Index

GRI Standard Reference Page

GRI 205: 205-2 Communication and training Corporate Governance at PETRONAS, pages 193, 200 and
Anti-corruption about anti-corruption policies and 204-205
procedures

GRI 301: 301-2 Recycled input materials used Thriving with Nature, pages 124-129
Materials 2016

GRI 302: 302-1 Energy consumption within the Delivering Net Zero, pages 104-105
Energy 2016 organisation
Sustainability Key Performance Data, page 168

GRI 303: 303-1 Interactions with water as a Thriving with Nature, page 120
Water and Effluents shared resource
2018
303-3 Water withdrawal Thriving with Nature, page 121

Sustainability Key Performance Data, page 170

GRI 304: 304-1 Operational sites owned, leased, Thriving with Nature, pages 113-115
Biodiversity 2016 managed in, or adjacent to, protected
areas and areas of high biodiversity
value outside protected areas

304-2 Significant impacts of activities, Thriving with Nature, pages 113-115

products and services on biodiversity

GRI 305: 305-1 Direct (Scope 1) GHG emissions Sustainability Key Performance Data, pages 163-165 and 167
Emissions 2016
305-2 Energy indirect (Scope 2) GHG Sustainability Key Performance Data, pages 163-165 and 167
emissions

305-3 Other indirect (Scope 3) GHG Delivering Net Zero, page 111
emissions
Sustainability Key Performance Data, page 169

305-4 GHG emissions intensity Sustainability Key Performance Data, page 166

305-5 Reduction of GHG emissions Delivering Net Zero, pages 99-102

305-7 Nitrogen oxides (NOx), sulfur Thriving with Nature, pages 119-120
oxides (SOx), and other significant air
Sustainability Key Performance Data, page 170
emissions

GRI 306: 306-2 Management of significant Thriving with Nature, pages 118-119, 124-129
Waste 2020 waste-related impacts

306-3 Waste generated Thriving with Nature, page 119

Sustainability Key Performance Data, page 170

306-4 Waste diverted from disposal Thriving with Nature, page 119

Sustainability Key Performance Data, page 170

306-5 Waste directed to disposal Thriving with Nature, page 119

Sustainability Key Performance Data, page 170

 7 Financial Review and Other Information 225

GRI Standard Reference Page

GRI 308: 308-1 New suppliers that were Fostering a Just Transition, pages 145-146
Supplier screened using environmental criteria
Environmental
Assessment 2016

GRI 401: 401-1 New employee hires and Sustainability Key Performance Data, pages 173-174
Employment 2016 employee turnover

401-2 Benefits provided to full-time Sustainability Key Performance Data, pages 148-149
employees that are not provided to
temporary or part-time employees

401-3 Parental leave Sustainability Key Performance Data, page 173

GRI 403: 403-1 Occupational health and safety Creating Sustainable Value through Responsible Governance,
Occupational Health management system pages 85-89
and Safety 2018
403-2 Hazard identification, risk Creating Sustainable Value through Responsible Governance,
assessment, and incident investigation pages 85-89

403-3 Occupational health services Fostering a Just Transition, pages 159-161

403-4 Worker participation, Creating Sustainable Value through Responsible Governance,

consultation, and communication on pages 86-89
occupational health and safety
Fostering a Just Transition, pages 159-161

403-5 Worker training on occupational Creating Sustainable Value through Responsible Governance,
health and safety pages 85-89

403-6 Promotion of worker health Fostering a Just Transition, pages 159-161

403-7 Prevention and mitigation of Risks Linked to Creating Value, page 42

occupational health and safety impacts
directly linked by business relationships

403-9 Work-related injuries Creating Sustainable Value through Responsible Governance,

page 85

Sustainability Key Performance Data, page 171

403-10 Work-related ill health Creating Sustainable Value through Responsible Governance,
page 85

Sustainability Key Performance Data, page 171

GRI 404: 404-1 Average hours of training per Sustainability Key Performance Data, page 175
Training and year per employee
Education 2016
404-2 Programmes for upgrading Fostering a Just Transition, pages 153-158
employee skills and transition
assistance programmes

GRI 405: 405-1 Diversity of governance bodies Sustainability Key Performance Data, page 172
Diversity and Equal and employees
Commitment to Governance, page 176
Opportunity 2016
226 PETRONAS • Integrated Report 2024

Index

GRI Standard Reference Page

GRI 406: 406-1 Incidents of discrimination and Fostering a Just Transition, pages 132-141
Non-discrimination corrective actions taken

GRI 408: 408-1 Operations and suppliers at Sustainability Key Performance Data, page 175
Child Labour 2016 significant risk for incidents of child
labour

GRI 409: 409-1 Operations and suppliers at Sustainability Key Performance Data, page 175
Forced or significant risk for incidents of forced
Compulsory Labour or compulsory labour
2016

GRI 410: 410-1 Security personnel trained in Fostering a Just Transition, page 143
Security Practices human rights policies or procedures
Sustainability Key Performance Data, page 175
2016

GRI 411: 411-1 Incidents of violations involving Fostering a Just Transition, page 137
Rights of Indigenous rights of indigenous peoples
Peoples 2016

GRI 413: 413-1 Operations with local Engaging with Stakeholders, pages 54-59
Local Communities community engagement, impact
Thriving with Nature, pages 117, 127
2016 assessments, and development
programmes Fostering a Just Transition, pages 132-144, 157-158

GRI 414: 414-1 New suppliers that were Fostering a Just Transition, pages 145-146
Supplier Social screened using social criteria
Assessment 2016

GRI 416: 416-1 Assessment of the health and Thriving with Nature, page 123
Customer Health and safety impacts of product and service
Safety 2016 categories
 7 Financial Review and Other Information 227

World Economic Forum’s (WEF) Stakeholder Capitalism Metrics

WEF Disclosures Reference Page

Principles of Governance: Core metrics and disclosures

Governing purpose Setting purpose Basis of This Report, pages 4-5

We Are Passionate About Progress, pages 6-7

Quality of Governance body composition Commitment to Governance, pages 176, 177-179, 181-185
governing body

Stakeholder Material issues impacting stakeholders How We Create Value, pages 48-59
engagement

Ethical behaviour Anti-corruption Commitment to Governance, pages 204-205

Protected ethics advice and reporting Commitment to Governance, pages 204-205

mechanisms
Fostering a Just Transition, pages 139-141

Risk and opportunity Integrating risk and opportunity into How We Create Value, pages 38-47
oversight business process
Delivering Net Zero, pages 96-98

Planet: Core metrics and disclosures

Climate Change Greenhouse gas (GHG) emissions Delivering Net Zero, pages 101-111

Sustainability Key Performance Data, pages 163-169

TCFD implementation Delivering Net Zero, pages 95-99

Nature loss Land use and ecological sensitivity Thriving with Nature, pages 113-116

Freshwater Water consumption and withdrawal in Thriving with Nature, pages 120-121
availability water-stressed areas
Sustainability Key Performance Data, page 170

People: Core metrics and disclosures

Dignity and equality Diversity and inclusion Sustainability Key Performance Data, page 172

Risk for incidents of child, forced or Fostering a Just Transition, pages 134-138
compulsory labour

Health and wellbeing Health and safety Sustainability Key Performance Data, page 171

Skills for the future Training provided Value Creation Model, pages 30-31

Sustainability Key Performance Data, page 175

228 PETRONAS • Integrated Report 2024

Index

WEF Disclosures Reference Page

Prosperity: Core metrics and disclosures

Employment and Absolute number and rate of Sustainability Key Performance Data, pages 173-174
wealth generation employment

Economic contribution 1. Revenue: 2024 Key Highlights, page 10

2. Payments to government:
i. Chairman’s Letter, pages 14-17
ii. Executive Vice President and Group Chief Financial
Officer’s Letter, pages 22-25
3. Community investment: Value Creation Model, page 30
4. Employee wages and benefits: Audited Financial Statements,
page 102 (access the Statements via QR code on page 5 of
this Report)
5. Payment to providers of capital
i. Financing costs: Audited Financial Statements, page 103
(access the Statements via QR code on page 5 of
this Report)

Financial investment contribution Chairman’s Letter, pages 14-17

Executive Vice President and

Group Chief Financial Officer’s Letter, pages 22-25

Innovation of better Total R&D expenses Value Creation Model, pages 30-31
products and services
Strategic Review, page 80

Community and Total tax paid Audited Financial Statements, pages 13-14 (access the
social vitality Statements via QR code on page 5 of this Report)
 7 Financial Review and Other Information 229

International Financial Reporting Standards (IFRS) S2: Climate-related Disclosures

IFRS S2 Disclosure Requirement Reference Page

No.

Governance

The governance processes, controls and procedures used to monitor, manage and oversee climate-related risks and
opportunities

6 (a) The governance body(s) (which can include a Risks Linked to Creating Value, page 34
board, committee or equivalent body charged
Delivering Net Zero, page 95
with governance) or individual(s) responsible
for oversight of climate-related risks and Corporate Governance at PETRONAS, pages 186-205
opportunities.

6 (b) The management’s role in the governance Risks Linked to Creating Value, page 34
processes, controls and procedures used to
Corporate Governance at PETRONAS, page 196
monitor, manage and oversee climate-related
risks and opportunities.

Strategy

Strategy for managing climate-related risks and opportunities

9 (a) The climate-related risks and opportunities PETRONAS Energy Transition Strategy, page 29
that could reasonably be expected to affect the
Delivering Net Zero, page 95
entity’s prospects.

9 (b) The current and anticipated effects of those Delivering Net Zero, pages 95-98
climate-related risks and opportunities on the
entity’s business model and value chain.

9 (c) The effects of those climate-related risks and Delivering Net Zero, pages 95-98
opportunities on the entity’s strategy and
decision-making, including information about
its climate-related transition plan.

9 (d) The effects of those climate-related risks and Delivering Net Zero, pages 95-98
opportunities on the entity’s financial position,
financial performance and cash flows for
the reporting period, and their anticipated
effects on the entity’s financial position,
financial performance and cash flows over
the short, medium and long term, taking into
consideration how those climate-related risks
and opportunities have been factored into the
entity’s financial planning.

9 (e) The climate resilience of the entity’s strategy Delivering Net Zero, page 95
and its business model to climate-related
changes, developments and uncertainties,
taking into consideration the entity’s identified
climate-related risks and opportunities.
230 PETRONAS • Integrated Report 2024

Index

IFRS S2 Disclosure Requirement Reference Page

No.

Risk Management

Processes to identify, assess, prioritise and monitor climate-related risks and opportunities, including whether and how those
processes are integrated into and inform the entity’s overall risk management process

25 (a) The processes and related policies the entity Delivering Net Zero, pages 95-98
uses to identify, assess, prioritise and monitor
Risks Linked to Creating Value, pages 35-47
climate-related risks.

25 (b) The processes the entity uses to identify, Risks Linked to Creating Value, pages 35-37
assess, prioritise and monitor climate-related
Delivering Net Zero, pages 95-98
opportunities, including information about
whether and how the entity uses climate-related
scenario analysis to inform its identification of
climate-related opportunities.

25 (c) The extent to which, and how, the processes Risks Linked to Creating Value, pages 35-37
for identifying, assessing, prioritising and
Delivering Net Zero, pages 95-98
monitoring climate-related risks and
opportunities are integrated into and inform the
entity’s overall risk management process.

Metrics and Target

Performance in relation to its climate-related risks and opportunities, including progress towards any climate-related targets it
has set, and any targets it is required to meet by law or regulation

29 (a) Information relevant to the cross-industry Delivering Net Zero, pages 98-104
metric categories.
Sustainability Key Performance Data, pages 163-169

29 (b) Industry-based metrics that are associated with Delivering Net Zero, pages 98-104
particular business models, activities or other
Sustainability Key Performance Data, pages 163-169
common features that characterise participation
in an industry.

29 (c) Targets set by the entity, and any targets it Delivering Net Zero, page 93
is required to meet by law or regulation, to
Sustainability Key Performance Data, pages 163-169
mitigate or adapt to climate-related risks or
take advantage of climate-related opportunities,
including metrics used by the governance body
or management to measure progress towards
these targets.
 7 Financial Review and Other Information 231

Glossary of Terms

Acronym/Term Definition Acronym/Term Definition

2C Contingent Resources MMscfd Million standard cubic feet per day

2P Petroleum Reserves MTBE Methyl tert-butyl ether
3Rs Reduce, Reuse, Recycle NED Non-Executive Director
AC Audit Committee NGO Non-Governmental Organisation
ASEAN Association of Southeast Asian Nations NINED Non-Independent Non-Executive
Director
Bboe Billion barrels of oil equivalent
NRC Nomination and Remuneration
Board Board of Directors
Committee
boe Barrels of oil equivalent
OEE Overall Equipment Effectiveness
CAPEX Capital Expenditure
OGMP Oil and Gas Methane Partnership
CCS Carbon Capture and Storage
OGSE Oil and Gas Services and Equipment
CO₂ Carbon Dioxide
PCG PETRONAS Chemicals Group Berhad
CO₂e Carbon Dioxide Equivalent
PETRONAS Group Petroliam Nasional Berhad and
CoBE Code of Conduct and Business Ethics its subsidiaries
COP Conference of the Parties PFLNG PETRONAS Floating Liquefied
Natural Gas
D&I Diversity and Inclusion
PLC PETRONAS Leadership Centre
EBITDA Earnings Before Interest, Tax,
Depreciation and Amortisation PSC Production Sharing Contract
ELT Executive Leadership Team RC Risk Committee
ERM Enterprise Risk Management RM Ringgit Malaysia
ESG Environmental, Social and Governance RMC Risk Management Committee
EV Electric Vehicle SDG Sustainable Development Goals
FY Financial Year SEEd.Lab Social Enterprise Education Lab
GHG Greenhouse Gas STEM Science, Technology, Engineering and
Mathematics
GRI Global Reporting Initiative
TCFD Task Force on Climate-related
HSE Health, Safety and Environment Financial Disclosures
HSSE Health, Safety, Security and UN United Nations
Environment
UNESCO United Nations Educational, Scientific
IFRS International Financial Reporting and Cultural Organization
Standards
WEF World Economic Forum
INED Independent Non-Executive Director
INSTEP Institut Teknologi Petroleum PETRONAS
IPCC Intergovernmental Panel on
Climate Change
IR Integrated Reporting
ISO International Organization for
Standardization
kboe Kilo barrels of oil equivalent
LNG Liquefied Natural Gas
LOPC Loss of Primary Containment
MARA Majlis Amanah Rakyat
MBR Malaysia Bid Round
1974 -1984 1985 - 1994

The Beginning Growing with the Nation

The first PETRONAS office at Jalan Dato Onn, Kuala Lumpur.

1974
PETRONAS was incorporated on 17 August as Malaysia’s
national oil and gas company to manage the country’s
hydrocarbon resources. Chairman of PETRONAS, Tun Azizan Zainul Abidin (left) at the signing
of the Production Sharing Contract with PETROVIETNAM for Block 01
and 02 offshore Vung Tau, Vietnam on 9 September 1991.
1978
Incorporated PETRONAS Carigali to undertake exploration 1989
and production activities.
Established the PETRONAS Leadership Centre, previously
Embarked on Malaysia Liquefied Natural Gas (MLNG) known as PERMATA.
project to develop the country’s gas resources.

1980
Expanded into petrochemicals with Asean Bintulu
Fertilizer.

1981
Made first oil discovery at Dulang and opened first petrol
station. PETRONAS petrol station at Taman Tun Dr Ismail in the 1990s.

1991
Entered Vietnam’s upstream sector, marking our first
successful international venture.

1993
Completed the 2,623km Peninsular Gas Utilisation network
Tenaga Satu delivered the first LNG shipment from Malaysia to
to transport gas across Malaysia, ensuring stable energy
Japan in 1983.
supply.

1983
1994
Made history with maiden liquefied natural gas shipment
to Japan following the completion of MLNG Satu. Malaysian Refining Company Sdn Bhd began operations.
1995 - 2004 2005 - 2014
Energy Receive, Reimagining
Energy Return Energy

PETRONAS' Sudan Office was officially opened by Prime Minister Tun Dr

Mahathir Mohamad (left) on 15 May 1998.

Continuing a
legacy
Garraf Oil Field in Iraq.

2004

together
Baram 8, the first rig deployed in the Rigs-to-Reef project,
an initiative using retired oil rigs to create thriving marine
ecosystems.

for our future

The old UTP (previously known as PETRONAS Institute of Technology)
campus which was initially shared with Universiti Sains Malaysia.
2008
1996 PETRONAS Lubricants International, the technical resource
behind PETRONAS’ partnership with the Mercedes-AMG
PETRONAS ventured into Africa, strengthening our global PETRONAS Formula One Team, was established.
presence in South Africa by acquiring Engen, and entering
Sudan’s upstream sector the following year.
2010
PETRONAS entered into the Fortune Global 500 list inspired by
world-class excellence and growth. Since 2010, PETRONAS has committed RM83 million towards
the conservation of Imbak Canyon in Sabah, Malaysia, to
protect its rich biodiversity.
1997
Established Universiti Teknologi PETRONAS to focus on 2012
engineering and technology education.
Acquired Progress Energy in Canada, marking a major
investment in North America’s LNG sector.
2002
Built Malaysia’s first LNG regasification terminal located in
Officially opened the PETRONAS Petroleum Industry Complex in Sungai Udang, Melaka to ensure long term security of domestic
Kertih, Terengganu, Malaysia. gas supply.

2003 2013
Completed MLNG Tiga, PETRONAS' third liquefied natural gas Successfully delivered first oil production from PETRONAS'
plant in Bintulu, Sarawak, Malaysia. operated Garraf oil field in Iraq.
1974 -1984 1985 - 1994

The Beginning Growing with the Nation

The first PETRONAS office at Jalan Dato Onn, Kuala Lumpur.

1974
PETRONAS was incorporated on 17 August as Malaysia’s
national oil and gas company to manage the country’s
hydrocarbon resources. Chairman of PETRONAS, Tun Azizan Zainul Abidin (left) at the signing
of the Production Sharing Contract with PETROVIETNAM for Block 01
and 02 offshore Vung Tau, Vietnam on 9 September 1991.
1978
Incorporated PETRONAS Carigali to undertake exploration 1989
and production activities.
Established the PETRONAS Leadership Centre, previously
Embarked on Malaysia Liquefied Natural Gas (MLNG) known as PERMATA.
project to develop the country’s gas resources.

1980
Expanded into petrochemicals with Asean Bintulu
Fertilizer.

1981
Made first oil discovery at Dulang and opened first petrol
station. PETRONAS petrol station at Taman Tun Dr Ismail in the 1990s.

1991
Entered Vietnam’s upstream sector, marking our first
successful international venture.

1993
Completed the 2,623km Peninsular Gas Utilisation network
Tenaga Satu delivered the first LNG shipment from Malaysia to
to transport gas across Malaysia, ensuring stable energy
Japan in 1983.
supply.

1983
1994
Made history with maiden liquefied natural gas shipment
to Japan following the completion of MLNG Satu. Malaysian Refining Company Sdn Bhd began operations.
1995 - 2004 2005 - 2014 2015 - 2024
Energy Receive, Reimagining Passionate about Progress
Energy Return Energy

PETRONAS' Sudan Office was officially opened by Prime Minister Tun Dr

Mahathir Mohamad (left) on 15 May 1998.

Garraf Oil Field in Iraq.

2004
The PETRONAS 50 Homecoming: Twin Torches Meet was held on 17 August 2024.
Baram 8, the first rig deployed in the Rigs-to-Reef project,
an initiative using retired oil rigs to create thriving marine
ecosystems. 2016
The old UTP (previously known as PETRONAS Institute of Technology) PFLNG SATU, the world’s first floating liquefied natural gas facility, achieved its first gas production from the Kanowit gas
campus which was initially shared with Universiti Sains Malaysia.
2008 field, offshore Sarawak.

1996 PETRONAS Lubricants International, the technical resource

behind PETRONAS’ partnership with the Mercedes-AMG 2019
PETRONAS ventured into Africa, strengthening our global PETRONAS Formula One Team, was established.
presence in South Africa by acquiring Engen, and entering Completed the Pengerang Integrated Complex, a world-class facility that boasts a refining capacity of 300,000 barrels
Sudan’s upstream sector the following year. per day and an annual production capacity of over 3 million tonnes of petrochemical products.
2010
PETRONAS entered into the Fortune Global 500 list inspired by Ventured into specialty chemicals through acquisition of Da Vinci Group B.V. (BRB).
world-class excellence and growth. Since 2010, PETRONAS has committed RM83 million towards
the conservation of Imbak Canyon in Sabah, Malaysia, to Acquired a 100 per cent interest in Amplus Energy Solutions Pte Ltd, marking our first international entry into the
protect its rich biodiversity. renewable energy sector.
1997
Established Universiti Teknologi PETRONAS to focus on 2012 2020
engineering and technology education.
Acquired Progress Energy in Canada, marking a major Announced our aspiration to achieve net zero carbon emissions by 2050.
investment in North America’s LNG sector.
2002
Built Malaysia’s first LNG regasification terminal located in 2022
Officially opened the PETRONAS Petroleum Industry Complex in Sungai Udang, Melaka to ensure long term security of domestic
Kertih, Terengganu, Malaysia. gas supply. Gentari Sdn Bhd was officially launched to accelerate the adoption and commercialisation of clean energy.

2003 2013 2024

Completed MLNG Tiga, PETRONAS' third liquefied natural gas Successfully delivered first oil production from PETRONAS' Celebrated our golden jubilee by honouring all stakeholders, sharing our journey of growth and aspirations for a
plant in Bintulu, Sarawak, Malaysia. operated Garraf oil field in Iraq. progressive future.
 Petroliam Nasional Berhad (PETRONAS)
197401002911 (20076-K)
Tower 1, PETRONAS Twin Towers, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia

www.petronas.com