KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) will likely be spending at least RM300 billion in capital expenditure (capex) over the next five years, partially on clean energy or non-hydrocarbon-related ventures.
"Over the next five years, our capex will be larger than the last five years. It will be about RM60 billion a year," Petronas president and group chief executive officer Datuk Tengku Muhammad Taufik said.
This would be a 20 per cent step up over the "lean years" where Petronas would have normally spent RM48 billion to RM50 billion, Tengku Muhammad said at a breakfast session with the media today.
"Just to keep the lights on, we spend about RM20 billion-RM25 billion," he remarked.
While clean energy business will get a fair portion, the bulk of the capex will still be invested in the national oil company's traditional oil and gas ventures.
In 2021, Petronas reportedly set aside RM30.5 billion capex before raising this to RM60 billion for 2022 as it prepared for the resumption of business activities, which were earlier disrupted by Covid-19-driven movement restrictions.
Tengku Muhammad urged its existing vendors as well as other local oil and gas service and equipment (OGSE) providers to embark on a fresh journey with Petronas as industry activities returned to normal with a higher spending.
He said they should build up their skills and capacities to take advantage of the greater opportunities not just in Malaysia, but internationally too.
On the idea of floating Petronas shares and that such a listing would ensure better transparency and governance, Tengku Muhammad said the group had been in compliance with the global standards of reporting and accounting.
"We are audited by a 'Big Four' firm. We report our results four times a year. (With regards to) the answers to Parliament...there are four questions lodged regarding Petronas and they are never left unanswered.
"We have responded to the ministries openly and transparently every time a matter of national importance comes through. We are under the scrutiny of not only credit ratings agencies at home, but also abroad," he added.
Subang member of parliament Wong Chen recently suggested the listing of Petronas as a means for the government to raise money to help reduce its debt.
He claimed that if Petronas was managed as a company with high international governance standards, its average profit would exceed RM60 billion a year and could reach RM100 billion annually.
Tengku Muhammad also fielded questions on Petronas' dividend to the government.
He said aside from the RM50 billion dividend the group had committed for 2022, it had not received any request for a special dividend payment.
Petronas is expected to announce its year ended Dec 31 2022 results next month.
It saw its net profit surge 120 per cent to RM77.2 billion while revenue soared 58.3 per cent to RM271.3 billion in the first nine months of 2022.
The group attributed this mainly due to favourable prices for major products aligned with higher benchmark prices.
On the sale of South Africa-based Engen Ltd, Tengku Muhammad said Petronas had recovered its carrying costs and would made gains.
Petronas had on Feb 10 announced that it was selling its entire 74 per cent stake in Engen for undisclosed sum to Vivo Energy, one of the largest African fuel retail operators and part of multinational energy company Vitol.
Engen operates the largest retail footprint with around 1,300 service stations across seven countries in sub-Saharan Africa and the Indian Ocean islands.