Business

Petronas denies salary cut, retrenchment

The reduction as mentioned in the erroneous report affects management service providers, not Petronas Carigali employees.

Syndicated News
Written by Syndicated News

KUALA LUMPUR — April 15, 2015: Petronas has denied that its exploration and production arm Petronas Carigali has undertaken a salary reduction exercise and staff retrenchment

Its president/chief executive officer Datuk Wan Zulkiflee Wan Ariffin said there were no plans to reduce salaries of staff, whether for Petronas
Carigali or Petronas group as a whole.

“It wasn’t an accurate reporting. This is part of our cost optimisation exercise with our service providers.

“Essentially, we are looking at service providers that are providing us with professionals with a salary range of more than RM20,000 per month up to even RM100,000,” he told reporters after Petronas Dagangan’s annual general meeting here today.

Wan Zulkiflee was commenting on a newspaper report yesterday, saying that Petronas Carigali was going to cut the salaries of its employees in view of the challenging market conditions caused by low global oil prices, effective May 1, 2015.

The report quoted Petronas Carigali as saying that it would continue investing to sustain production levels despite the low oil price environment
affecting its expenditure and projects feasibility.

It said, however, as it would be challenging to do so at the current cost structure and as part of its cost optimisation efforts, the company decided to
revise the salary rates.

Petronas Carigali explores, develops and produces oil and gas in Malaysia via production-sharing contracts with up to 90 per cent of the company’s
cost base is via its partner contractors.

In a statement Petronas said it would to clarify that the report in The Sun dated April 15 was taken out of context.

It said that a memo was distributed to five management service contractors (MSCs) that provide professional manpower to Petronas.

“Due to current market conditions, Petronas, as with all oil and gas players globally has initiated cost cutting measures among contractors and vendors.

“The salary reduction of 20 per cent mentioned in the report affects 170 professionals hired by MSCs seconded to Petronas projects. It does not involve our employees,” said the statement. — Bernama

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