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Engen Soldiers on in Sub-Saharan Africa with SRDC Acquisition A Stellar Performance e Merdeka Award
IN THIS ISSUE OF NADA
ENGEN SOLDIERS ON IN SUBSAHARAN AFRICA WITH SRDC ACQUISITION
With representation in 14 African countries including Botswana, Ghana, Kenya, Mozambique, Namibia, Swaziland and Zambia, future prospects remain bright in the African continent for Engen.
ELNG: PARTNERING FOR MUTUAL BENEFIT
Initially conceived as a strategic energy project to meet the gas requirements of Egypt and the Atlantic Basin markets, Egyptian LNG is testimony of the successful partnering and commitment of various parties for the sustainable development of the Egyptian LNG sector.
AOGC PONDERS A SHARED FUTURE
While demand for energy resources looks set to continue on an upward trend, the energy industry must ﬁrst get its act together to prepare for that future scenario.
SUSTAINING LNG BUSINESS THROUGH PARTNERSHIP
Flexibility and long-term mutual beneﬁts are key to expansion of the LNG industry.
A STELLAR PERFORMANCE
PETRONAS Group’s continuous emphasis on operational efﬁciency and reliability results in a much improved ﬁnancial showing.
THE ENGINE THAT COULD
Engine development initiative by Research and Technology Division promises to be a strong catalyst for technology competency development and increasing the scope of PETRONAS’ offerings.
PETRONAS AROUND THE WORLD
PETRONAS Carigali breaks new ground in Turkmenistan.
Cover rationale: Redza Piyadasa’s work reminds us of the historical background of present-day Malaysia’s social make-up; multi-cultural realities; migration and cultural assimilation; tradition and heritage; political and social history. The artist’s metaphorical visual commentaries remind us of Malaysia’s multi-cultural roots and its rich cultural past conveyed by his Malaysian Series exhibition that was held in conjunction with Malaysia’s 50th anniversary of independence at GALERI PETRONAS. The piece entitled ‘Malaysian Story No. 2’ is reproduced here courtesy of Datuk and Datin Charan Dass Sharma. Nada PETRONAS is the corporate newsletter of the PETRONAS Group of Companies published quarterly by the Corporate Communications Department of the Legal and Corporate Affairs Division. Opinions expressed in the newsletter do not necessarily reflect the official views of PETRONAS and its Group of Companies. Layout design by: Creative Section, Corporate Communications Department Printed by: Cetakrapi Sdn Bhd
CELEBRATING 50 YEARS OF HARMONY
We want your feedback on what you want to see in future Nada issues. We also welcome your views on stories featured in the current issue. To share your opinions or contribute articles, please write to: The Editor Nada PETRONAS Corporate Communications Department Level 70, Tower 1, PETRONAS Twin Towers Kuala Lumpur City Centre, 50080 Kuala Lumpur, Malaysia
Our Journey Continues
BOUND by Malaysia’s shared legacy, PETRONAS presses on in the journey to become a Global Champion.
IN this edition of Nada, we feature PETRONAS subsidiary Engen Ltd, where its Chief Executive Officer (CEO) shares the company’s future prospects and opportunities for growth in the African continent in line with Engen’s African aspirations. Also included is Engen’s progress in three focus areas in its EPIC 2016 vision, namely retaining its market share in South Africa, expanding its capabilities in the subSaharan Africa market and improving refining as well as trading performances. Then, ponder on key messages from the 12th Asia Oil and Gas Conference that feature opinions and ideas by leaders of oil corporations, government officials, consumers and industry experts on a variety of pertinent issues affecting the oil and gas industry today. These include high oil prices as well as concerns over energy security and climate change. On the industry front, read about PETRONAS’ involvement and success story in Egypt’s Liquefied Natural Gas (LNG) sector, and how this partnership of mutual benefit for Egypt and PETRONAS has been an enriching experience. Also read about sustaining the LNG business through partnership, as shared by PETRONAS President and CEO Tan Sri Dato Sri Mohd Hassan Marican in his keynote address at the LNG15 conference held in Barcelona, Spain. Nada also highlights PETRONAS’ healthy growth and record profits for financial year ended 31 March 2007, thanks to higher contributions from overseas operations and strong global demand for oil. On the innovation front, read about PETRONAS’ K200 go-kart engine development, which is part of the company’s efforts in technology innovations aimed at addressing environmental concerns such as carbon emissions and climate change, among others. Then, read how PETRONAS’ was named as one of ‘The New Seven Sisters’, a group of increasingly influential oil and gas companies from countries outside the Organisation for Economic Cooperation and Development (OECD), marking a change in the global oil and gas sector. Capping off this issue are the Merdeka Specials, featuring various programmes and activities that celebrate the values that have guided and inspired all Malaysians on our journey as a nation throughout 50 years of independence. They include the prestigious Merdeka Award introduced in conjunction with Malaysia’s 50th Merdeka anniversary. We thank all those involved in making this edition a special one. Nada Editorial Team
There is much scope for growth. Namibia. Managing Director and Chief Executive Officer of Engen. says the future prospects for the company remain bright in the continent. Kenya. Mozambique. Engen is 20 per cent owned by Worldwide African Investment Holdings (Pty) Ltd. he tells Nada in a recent interview. On the acquisition landscape. On 30 May 2007. Looking ahead. Swaziland and Zambia. The goal is to move the business from our current fourth position in subSaharan Africa behind Total.4 Nada PETRONAS FOCUS IN SUBSAHARAN AFRICA WITH SRDC ACQUISITION ENGEN SOLDIERS ON With representation in 14 African countries including Botswana.and long-term are to grow by acquisition as well as organically. W Engen announced that Engen Petroleum agreed to acquire a 60 per cent stake in Shell Republique Democratique de Congo (SRDC) and Royal Dutch Shell PLC’s petroleum business in the Democratic Republic of Congo (DRC). and we are in the number one position in South Africa. ith a 23.230 service stations and more than 530 Quickshops and Convenience Centres in South Africa. Shell and Chevron to the number one or number two position. marketing of its primary refined petroleum products and the provision of convenience services through its retail network of over 1. Engen’s wholly-owned operating company Engen Petroleum Ltd is clearly among the industry’s forerunner. Currently. the only South African blackcontrolled and managed company focusing exclusively on the broader energy sector in sub-Saharan Africa. What are Engen’s African aspirations? We aim to significantly grow the size of our business beyond South African borders and across sub-Saharan Africa.and long-term plans to further advance such aspirations? Engen’s plans for both the medium. we have a presence in 14 countries. Its core business includes crude oil refining. Mohd Rashid Mohd Yusof. we are positioning ourselves to take advantage of the changing .7 per cent market share of South Africa’s fuel market. Ghana. future prospects remain bright in the African continent for Engen. What are Engen’s medium. with significant market share in a number of these countries.
as well as the Engen value system which holds the company to a common set of values and aspirations. Most of the volume sold by SRDC is stored and delivered using the shared petroleum distributor SEP Congo. We have the benefit of a resilient.7 million litres for the financial year ended 30 June 2005. It is headquartered in Kinshasa and operates 26 retail sites. What is the SRDC deal about? How would the latest deal help in advancing Engen’s African aspirations? SRDC is jointly owned by the Royal Dutch Shell Group (60 per cent) and the government of DRC (40 per cent). The refinery has put in place its plans to improve operational excellence through various initiatives – PIP (Profit Improvement Plan). What progress has been made in the three focus areas identified by Engen under the vision. The deal is certainly not just about building a portfolio of new businesses. dedicated team of people who are conversant with doing business in sub-Saharan Africa. Shell’s decision to sell its interests in SRDC is a good business opportunity for us and has enormous synergy with our joint venture with Total in SRDC. Other focus areas are in East Africa but we will also pursue good opportunities wherever they may arise in sub-Saharan Africa. with combined sales in the region of 162. two lubricant depots and has about 40 commercial customers. . How has Engen fared in Africa over the years? What are the factors that have enabled Engen to achieve some of these things? We have had a challenging history. together with those opportunities that exist in West Africa. and we aim to defend that position and market share vigorously. Nigeria is a major market in Africa and we intend to be a player there. These initiatives are now moving forward using the Operating Performance Improvement (OPI) methodology which has been implemented successfully in PETRONAS. What prompted Engen’s purchase of the 60 per cent stake in SRDC? DRC is a significant market in Africa and we see it as an important match for us. GEMS (Global Energy Management System) and GRS (Global Reliability System). we have done a comprehensive review on the strategic markets and supply infrastructure. We will examine the synergies of our operations. It is also about how well they fit together with our existing businesses. expanding capabilities in the sub-Saharan Africa market and improving refining. It also supplies fuel to six airports. as we strive to build market share across sub-Saharan Africa. Africa is a difficult business environment and there have been setbacks in the past. East Africa and Nigeria. The SRDC deal is one example and we are making bids in other countries. We also leverage on our expertise gained from our South African operations. We have steadily grown the size and profitability of the business over the years by taking advantage of growth opportunities as they arise. while remaining innovative in our service offerings. For expansion in sub-Saharan Africa. and we have identified the target markets and countries. manufacturing and trading performances? We are the number one market leader in South Africa.Nada PETRONAS 5 strategies of some multinationals. This deal is an important strategic step in expanding our investments in SRDC and will be a good stepping stone for our growth across sub-Saharan Africa. Engen introduced the EPIC 2016 vision in 2006. namely retaining its market share in South Africa.
. Egyptian LNG is testimony not only of commercial success but of the successful partnering and commitment of various parties for the sustainable development of the Egyptian LNG sector.6 Nada PETRONAS FOCUS FOR MUTUAL BENEFIT ELNG: PARTNERING Initially conceived as a strategic energy project to meet the gas requirements of Egypt and the Atlantic Basin markets.
decision making in ELNG is being done by consensus among all the partners. At the same time. In terms of export capacity. . A lot of off-site engagement has to be carried out to understand various viewpoints and concerns. ELNG has been designed to accommodate another four LNG trains. Sarawak) and it has proven to be a simple and robust design that eases construction work and is easy to operate. from consultants and lawyers to shareholders and government. PETRONAS inked a cooperation agreement with Tharwa Petroleum Company of Egypt to create and add value to the oil and gas resources in and outside Egypt. For PETRONAS. the first specialised port in Egypt to achieve this. Today. as decisions have to be based on unanimous agreement of all parties. while sustaining the ELNG Project at Idku on a long-term basis. The LNG industry is projected to provide export revenue for at least 20 years. when PETRONAS acquired a 35. Subsequently. while Shell.” Equally valuable is ConocoPhillips’ licensed LNG technology employed at the ELNG facility. and a 50 per cent working interest and joint operatorship of the West Delta Deep Marine (WDDM) concession block offshore Egypt from Edison SpA of Italy. It has successfully built a capacity of 7. Egypt currently ranks as the world’s eighth largest LNG exporter. PETRONAS took a 16 per cent stake in the concession.5 per cent interest in the Egyptian LNG (ELNG) Project at Idku. not least because it represents the largest project financing arrangement in Egypt and is the single largest investment made by PETRONAS outside Malaysia that integrates the upstream. “The percentage of the equity stake (35.Nada PETRONAS 7 P ETRONAS’ foray into Egypt began in 2001 when it signed its first farm-in agreement with Royal Dutch Shell plc to explore and develop gas fields in the North East Mediterranean Deepwater (NEMED) concession area. From the onset. the realisation of other trains will strengthen the Group’s position in the LNG business. as PETRONAS has interests in upstream blocks under exploration. the ELNG Project provides an important international source of LNG that has positioned it to establish a foothold in the Atlantic basin market. in July 2005. if there are significant gas finds. Egyptian Natural Gas Holding Company and Gaz de France. “PETRONAS has learnt project execution strategies that can be replicated in new projects to ensure shorter project schedule and minimisation of cost. for instance. Adnan adds.” Adnan explains. held the remaining 84 per cent in the ultra deepwater block. creating long-term job opportunities. PETRONAS’ involvement in the ELNG Project has been an enriching experience. Managing and engaging all partners at all levels is important. This has proven to be true. As Adnan says.” What are PETRONAS’ plans for the ELNG Project in the foreseeable future? According to Adnan. downstream and marketing activities of LNG. it has led to the transfer of technology and technical expertise that will go a long way in supporting the strong development of Egypt’s petroleum industry in particular and its national economy in general. But the breakthrough came two years later. ELNG has been awarded the ISO 9001:2000 accreditation company-wide and Idku Port has been awarded ISO 9000 certification. and to help develop the human resource capability of its Egyptian partner. “It is different from the process developed by Air Products & Chemicals Inc at our Malaysia LNG plants (in Bintulu.5 per cent in the case of PETRONAS) does not make any difference in how the company is managed. as the operator. Egyptian General Petroleum Corporation. Chief Executive Officer of ELNG Adnan Zainal Abidin says ELNG is significant at many levels. We have also learnt about project financing with its associated intricacies when it comes to a consortium of banks and multiple parties. ELNG is Egypt’s largest LNG partnership. With five partners in the joint venture. he points out. PETRONAS and its JV partners knew that a strategic and mutually beneficial partnership was the key to creating value from Egypt’s rich gas resources. The other partners in the ELNG joint venture (JV) included British Gas. so that issues can be addressed and taken into account before decisions are made.2 million tonnes per annum and a two-train gas liquefaction plant that has brought in nearly USD2 billion of foreign investment into the Egyptian economy.
That leaves two-thirds of the world’s resources out of reach of the IOCs. consumers and industry experts to discuss and evaluate the prospects and challenges in the industry. participants at the 12th Asia Oil and Gas Conference (AOGC) were advised. such as carbon dioxide emissions. Additionally. This will require massive investments amounting to USD20 trillion. Some governments may decide to hike energy taxes or channel revenues from their national oil companies (NOCs) to meet social needs. James Mulva. Mulva cautions. Mulva says. Partnerships with NOCs enable IOCs to gain access to another one-quarter. the annual event was organised by PETRONAS in Kuala Lumpur from 10 . projects the world will require 40 per cent more oil – or 120 million barrels per day – and 66 per cent more natural gas by 2030. It was attended by more than 1. slows down the badly needed increase in production. inflation in the cost of industry equipment and services stretches delivery time by a few years. This. However. suppliers. Additionally. idely recognised as the premier platform for networking and exchange of ideas within the Asia-Pacific oil and gas fraternity. high demand growth may not be sustainable due to several factors. traders. draining the oil companies of the money needed for capital investments. Citing figures from the International Energy Agency. But a number of obstacles may jeopardise these new investments. Chairman and Chief Executive Officer (CEO) of ConocoPhillips. FOCUS W .8 Nada PETRONAS AOGC PONDERS A SHARED FUTURE While demand for energy resources looks set to continue on an upward trend. Mulva notes. where complex geology or remote locations typically drive up exploration costs. Another issue is that only seven per cent of the world’s oil and gas resources are fully available to international oil companies (IOCs) for exploration and development. to meet new demand. one of them being rising awareness of environmental consequences. Mulva adds. government officials. translating into 105 million barrels a day of new production by 2030. coupled with a shortage of skilled personnel. they are for the more challenging areas such as deepwater fields. the industry will have to replace well over 100 per cent of its current production. In cases where IOCs are granted new licences. Driving this demand growth is strong world economic expansion.000 leaders and representatives of oil and gas corporations. the energy industry must get its act together to prepare for that future scenario. especially in the AsiaPacific region.12 June 2007.
says energy security is crucial to ensure continuous expansion of world economic activities and requires the cooperation of all countries. East-West Centre. National companies are. Iran is capable of playing a vital role in the world’s energy equation. Burghardt. On alternative fuels. One example of the new energy architecture is the trend towards cross. Senior Vice President.” – Peter de Wit. In particular. but highly capable operators with great knowledge of their businesses. Wallin. he suggests. Mulva urges. • “Despite concerns about China’s increased strength and aggressive search for raw materials including energy.” – Norman Gildorf. are developing wide international experience. Executive Vice President for Global Business. says high oil prices have had an impact on Asia. In 2007. and as such.Nada PETRONAS 9 It is. while Asian economies seek to secure long-term energy supplies. biofuel makers now have to contend with high feedstock costs. Some.7 billion in foreign investments. providing a floor for global demand. he adds. the region should consider establishing a uniform energy market to promote energy cooperation. thus. plus USD43. His Excellency Syed Kazem Vaziri Hamaneh. which have risen relatively faster than those of oil. US • “A new energy structure architecture is emerging as Middle East producers look to secure long-term markets. Persian Gulf countries have now emerged as a major demand growth centre. Chairman and CEO of FACTS Global Energy. of course. Director of East-West Seminars. The Netherlands • “The industry needs to overcome new challenges such as climate change and sustainability of natural resources. important for governments to make appropriate policies and for industry leaders to spearhead the development of oil fields and critical infrastructure. China. participation from major consuming countries is welcome. But Iran cannot meet the required level of investment and technology needs on its own. He estimates Iran will require USD93.” – Ali Obaid Al Yabhouni. US • “The partnership between resource holders and the international industry has enabled the development of Asia-Pacific Liquefied Natural Gas (LNG). President.7 billion in domestic resources through 2014. Demand is growing fast in China and more slowly in India but the rest of Asia is seeing some stagnation. Iran’s Petroleum Minister. like PETRONAS.and joint-investments to create win-win partnerships between the Middle East and Asia. there are real possibilities for Sino-US cooperation to protect sea routes from sabotage and to protect their shared interest in stability in the oil-producing regions of the Middle East. India and the Middle East were expected to collectively lock in growth by about one million barrels per day. no longer just resource holders. ranging from pipelines to refineries. Solutions for these challenges can be found through increased technological innovation and collaboration. due to competition with food supplies. he says. Dr Fereidun Fesharaki. says the Minister. Energy Intelligence. UOP LLC. With its huge oil and gas reserves. stability in the international arena and the free flow of trade in oil and gas markets are preconditions for global energy security. US .” – Raymond F. As Asia is home to both major oil and gas producers as well as consumers. Shell Gas & Power International. Oil and gas companies must also address environmental concerns by promoting energy-efficient technology and alternative energy resources. Fesharaki observes that industry enthusiasm has somewhat waned after an initial burst of excitement.” – Thomas E. UAE Governor and National Representative for OPEC • “High oil prices and sharply increased upstream spending budgets of most oil companies have not yet provided any significant improvement in global additions to reserves but more time may be needed. Peaceful conditions.
with close to another 150 in the order books scheduled to be delivered between 2007 and 2010. There were 32 LNG trains worldwide producing LNG. .10 Nada PETRONAS SUSTAINING LNG BUSINESS THROUGH PARTNERSHIP By Beatrice Lye INDUSTRY At the beginning of 2007. there were 225 Liquefied Natural Gas (LNG) tankers criss-crossing the world’s oceans. with 13 under construction and 17 more being planned.
” Nonetheless. and we have demonstrated our willingness to be flexible in meeting their needs for longterm mutual benefits. PETRONAS subsidiary MISC Berhad is also the world’s largest single owner-operator of LNG tankers. MISC has maintained an unblemished record of delivering more than 4. The corporation’s third LNG asset is the upcoming Dragon LNG receiving and regasification terminal in Milford Haven. enabling both parties to capitalise on opportunities presented by market forces. he believes in the long-term model. respect and trust. “The LNG industry is built on a strong foundation of partnerships.700 LNG cargoes on time since 1983. The global LNG export volume has more than doubled since 1996 to more than 200 billion cubic metres in 2006. PETRONAS has forged long-term relationships with our customers and business partners. the terminal gives PETRONAS an entry point for its LNG into the United Kingdom and European markets. the industry is not immune to challenges. currently an estimated 88 per cent of all sales. Much of it goes to long-term buyers in Japan. This is part of its endeavour to retain its status as the world’s second largest equity owner of LNG production capacity. PETRONAS and Britain’s biggest domestic gas supplier. the LNG15 in Barcelona.8 million tonnes for financial year ended 31 March 2007. the complex produces about 23 million tonnes per annum and supplies almost 15 per cent of the world’s LNG demand. all our buyers and partners are important regardless of size. The word in the industry is that it is a sellers’ market. LNG is a booming industry. Consisting of three trains. Scheduled for completion in 2008. Against this backdrop of abundant challenges and opportunities in the LNG industry. on-time delivery and reliability. he called upon suppliers to offer more flexibility and continue their commitment to safety. PETRONAS also made a breakthrough with the growing Chinese LNG market this year when it secured a long-term contract with Shanghai LNG Company Ltd. “In our over two decades in the business. where “traditional market solutions will help buyers and sellers manage the volatility of demand. The signing of long-term contracts for the supply of LNG. Relationships fostered in the early days of the LNG market still prosper today. Wales. PETRONAS also has a 35. South Korea and Taiwan. how does PETRONAS remain one step ahead in this increasingly competitive field? As PETRONAS President and Chief Executive Officer Tan Sri Dato Sri Mohd Hassan Marican emphasised in his keynote address at the industry’s biggest triennial conference. Its fleet of 26 LNG ships is scheduled to increase to 29 by 2010. attract timely supply to markets and support the substantial upstream and downstream investments that suppliers and customers must undertake to meet rising demand. while global demand for LNG continues to rise. “These elements and values have stood the test of time and I strongly believe that long-term relationships will continue to be the foundation for a robust and healthy LNG industry. In the area of LNG shipping. which increased the corporation’s LNG production capacity by 1. These short-term buys enable the supplier to sell at higher prices in markets where demand is spiking due to supply shortages during unseasonably cold winters and pipeline disruptions. Are happy days set to continue for PETRONAS’ LNG business? The PETRONAS LNG Complex in Bintulu is still the world’s largest production facility in a single location. The current 17 importer countries are expected to increase to 47 by 2020. while Centrica is able to secure its gas supplies at a cheaper rate from other sources.Nada PETRONAS 11 C learly. The industry is also changing rapidly. mutually terminated an agreement for PETRONAS to supply LNG to Centrica for 15 years. Centrica Plc. Tan Sri Hassan concluded his address by saying. PETRONAS can now seek higher prices for its LNG elsewhere. which is an inseparable element of the LNG business. “The flexibility and importance of long-term mutual benefits is a prominent feature in the relationship anchored on mutual understanding. is being supplemented by a growing number of arbitrage or spot buys. In July.5 per cent stake in Egyptian LNG. To us.” An aerial view of the PETRONAS LNG Complex in Bintulu . However. China’s growing requirements for energy and the shutdown of Japan’s largest nuclear power plant after the Kashiwazaki earthquake continue to put pressure on buyers to secure the much-needed quantities of LNG. Spain.
1 billion respectively. Revenue and profit before tax rose to an all-time high of USD51.2 billion. ongoing geopolitical uncertainties and growing global demand continue to push crude oil prices higher. . While supply disruptions. both increasing by approximately 15.0 per cent to USD85.0 per cent.0 billion and USD21. as well as the integrated nature of its operations.12 Nada PETRONAS A STELLAR PERFORMANCE INDUSTRY Revenue and profit soared to record levels yet again for the financial year ended 31 March 2007. thanks to the Group’s continuous emphasis on operational efficiency and reliability. The Group’s balance sheet continued to strengthen with total assets increasing also by 15. ETRONAS Group delivered another record performance for the financial year ended 31 March 2007. tight capacities and operating cost escalations resulted in a more complex and increasingly challenging P global oil and gas industry environment. This has played a key role in cushioning the impact of the disproportionate increase in operating cost.
4% 2.Nada PETRONAS 13 FINANCIAL YEAR ENDED 31 MARCH FY 2007 USD billion 51.0 44.1 39.8 per cent to USD49. coupled with the Group’s effective management policies and operational excellence.8% 41.7% 14. on par with or superior to other established players in the industry.4 10 10 CAGR 20.9 FY2005 USD billion 36.0 FY2006 3.7 10.9 CAGR 24. The year’s outstanding financial and operational performance was a testimony to the success of the Group’s overall strategy of integration.8% 14.9 85.12x 26.4 +/14.3 17.6%) FY2006 restated USD billion 44.8 % 16. The Group generated strong cashflow from operations this year.9 20. While stronger prices were a factor.38x FY2006 restated 41.1 billion.9 25. more than sufficient to cover its investing and financing needs.09x 0.5 21. 51. comprising the manufacture of petroleum products. Revenue from international operations and exports contributed USD39.9 31. i.0% 13.4 74.4 per cent of total Malaysian exports. processed gas and petrochemicals.8% 40. compared to USD25.9 Revenue Proﬁt Before Tax EBITDA Proﬁt After Tax & Minority Interests Total Assets Shareholders’ Funds Total Cash & Fund Investment Balance Total Debt CAPITAL EXPENDITURE (in USD billion) FY2007 4. crude oil.7 25. reflecting the success of the Group’s globalisation strategy.0 KEY FINANCIAL RATIOS FY2007 Proﬁtability Proﬁt Before Tax Margin Return on Total Assets Return on Average Capital Employed (ROACE) Liquidity Current Assets/Current Liabilities Cash & Fund Investment/Current Liabilities Gearing Total Debt/Total Assets Interest Cover 41.5 12. contributed USD28.4 21. Export revenue of USD20.5 6.0 2. effectively adding value to its oil and gas resources.4 30 30 25.7 21. has served and continues to serve PETRONAS well in addressing the challenges encountered by the volatile and unpredictable oil and gas industry.2 49.1 24. LNG.16x 23.7 billion.4 28.0 21.4% 24. the Group’s cash and fund investment balance expanded to USD28. value adding and globalisation.3% 2.1 1.4 18.4 62.1 15. representing 12.1 44.6 20 20 15.4 25.5 billion to Group revenue.e.5 2.5 19.2 13.2% 15.8 per cent of total revenue.3 billion accounted for 39.1 1.00x Domestic International Total (by business) Exploration & Production Others Total 3.7 per cent of Group revenue.4 per cent.4 billion while Return on Average Capital Employed remained strong at 40. This strategy.3% (12.9 billion last year. With this surplus.0 27.4 28.4 50 50 36.9% 14. PETRONAS’ ability to achieve higher sales volume for its key products.73x 2.0% 23.0 3.0 STRONGER MANUFACTURING REVENUE USD billion INCREASING REVENUE FROM GLOBAL OPERATIONS USD billion .0 Shareholders’ funds expanded 23.1 40 40 36.4% 24.1 51.1 20.0 5. The Group’s manufacturing activities.96x 0.55x 1.9 9.9 6. refined petroleum products and Liquefied Natural Gas (LNG) in a highly competitive and challenging environment was also a significant contributor to the growth in revenue.5 11.8 13. accounting for 76.1 11.5 39.9 5.8 % 0 0 FY03 FY04 FY05 FY06 FY07 FY03 FY04 FY05 FY06 FY07 International Operations & Exports Domestic Market Manufacturing Sector Non-Manufacturing Sector CAGR .Compound Annual Growth Rate 34.
Upon completion of the programme. Building from scratch Headed by Azahari Yahya (then Manager and Development Engineer. “And true to its name. Moreover. The recent success of the K200 go-cart engine is a shining example. The K200 also produces less noise compared to a two-stroke engine. the first K200 fourstroke go-kart engine was produced in June 2004. the team began by benchmarking the engine they had in mind against top engines of similar class readily available in the market. At the recommendation of the then Commission Internationale de Karting . thus improving combustion efficiency.Federation Internationale de L’ Automobile (CIK-FIA) President Yvon Leon. many crucial technical questions had to be answered. . A total of six K200 engines were built in Switzerland. It all began with the Third Technology Transfer Programme in 2003 when a team of engineers at PETRONAS Research Sdn Bhd was selected for a stint at Sauber PETRONAS Engineering AG (SPE) in Switzerland. Each engine was tested in a special room called a ‘dynamometer’. the K200 is cleaner because it allows for a better air-fuel mix. Unlike a two-stroke engine. relative to a conventional two-stroke engine. The latest addition to its family of engines is the K200 developed specifically for go-kart racing. Project Leader and Designer Md Isham Isnin says that the letter ‘K’ in the name refers to ‘Burung Kelicap’. Special Projects. a type of sunbird species that closely resembles the energetic hummingbird. S And after many man-hours of labour. in that the K200 offers more power across the different engine speed bands.14 Nada PETRONAS INNOVATION THE ENGINE THAT Research and Technology Division’s initiatives promise to be strong catalysts for future growth by way of increasing technological competency and increasing the depth and breadth of PETRONAS’ offerings. The figure ‘200’ signifies the engine capacity of 200cc. a valve system in the K200 prevents exhaust gases from flowing back into the chamber. PETRONAS has embarked on a series of engine development projects with considerable success. they formed a team to produce an affordable. Next up was the sourcing of parts needed for the engine. Equally important is the fact that the K200 promises longer engine life because of a dedicated lubrication system for moving parts (which is absent in two-stroke engines). the engineers were keen to put their skills to the test. design works followed using 3D modelling. the K200 is small and light due to the fewer parts needed to build the engine. But the engine’s simple appearance is deceiving. At that stage. ince 1996.” Isham adds. Corporate Planning and Development Division (CPDD)). cleaner and environment-friendly four-stroke go-kart engine that could potentially bring about a significant shift in the market dominated by less-efficient two-stroke engines. As soon as the engine target specifications were set.
Fadhlan had the opportunity to meet Peter Sauber. Go-kart championship “Our engine has a big commercial potential as the public gets more environmentally conscious about the pollution caused by two-stroke engines. “That really opened up my eyes. The experience turned out to be unforgettable. Sauber said he already knew who he was and even went on to chat with him. he reckons. says the Technology Transfer Programme taught him more than just the technical know-how. the K200 is promising on a number of fronts. Once the engines passed the test. the championship will also serve as a platform for the branding and marketing of PETRONAS’ products. To Fadhlan’s surprise. the process was as thrilling as watching a baby take its first steps.” Isham argues.among many others . Special Projects. Amid environmental concerns such as carbon emissions and climate change. PETRONAS is not sitting idle on the engines. But Isham is confident this will happen eventually. Multiple benefits Overall. the Development and Testing Engineer. CPDD) who was in charge of development and testing. recalls Shaharuddin Hamid Mustapha.Nada PETRONAS 15 COULD efforts that are aimed at addressing those concerns. this would help the country to identify talents in motor sports. This would make go-karts more affordable and appealing to Malaysian youths. The idea is to assess all drivers purely on skills since everyone will be using a common vehicle with the same engine specification. the K200 is testimony .of PETRONAS’ research and development . Meanwhile. Apart from introducing the K200 to Malaysia’s go-kart circles. Do the engines run smoothly as intended? Do they have noise vibration and harshness issues? Does the cooling strategy work? How about gasoline consumption and the durability of the engines when subjected to extreme running conditions? To Kyairol Izwan Ghazali (then Development Engineer. estimates that if the engine is commercialised. the journey thus far has been rewarding. before he could introduce himself. The key is to persuade original equipment manufacturers to take up four-stroke engines like the K200. this is not an easy task because of sheer economics. he believes the performance could be a lot more exciting with a professional go-kart driver behind the wheel. says Isham. The Alpha Kart chassis was chosen in line with the requirements for a four-stroke World Formula Go-Kart championship. one of the Design Engineers in the K200 project. owner of the Sauber Formula One team and co-founder of SPE. In turn. Regardless of the outcome. Isham concedes. it could sell for less than US$2. and being an amateur at that. At one SPE dinner in Switzerland. they were put into a go-kart chassis for actual driving.” Fadhlan says.000. Having driven the go-kart at as fast as 115 kilometres per hour. A switch to four-stroke engines requires substantial investments in new production lines on the part of the manufacturers. an Analysis Engineer. However. Mohd Suffian Sahadan. who conducted the inaugural test drive. not forgetting the fact that established gokart championships still prefer to run on two-stroke engines. Fadhlan Nik Abd Aziz. The company is considering a single-make championship using the K200.
The centre started training the first batch of 50 Turkmen students in July 2005.a 1. PETRONAS holds a 100 per cent interest in Block 1 . which has been operating in Turkmenistan since July 1996 under a production sharing contract (PSC). The second batch of 49 students commenced their twoyear training programme in October 2006 and a third batch of 32 began training soon after. and PCTSB General Manager Sulaiman Abdullah. launching the construction of PETRONAS Carigali (Turkmenistan) Sdn Bhd’s (PCTSB) fabrication yard at Kiyanli. Programmes at the centre are designed to train Turkmen workers to qualify as operators and technicians at PCTSB’s onshore and offshore oil and gas facilities.a mode of operation said to be the first in the Caspian. PETRONAS has also provided scholarships to more than 80 Turkmen students to further their education at Universiti Teknologi PETRONAS in Malaysia. Production involved the use of a mobile offshore production unit in the Caspian Sea. PCTSB. P onshore gas terminal currently being constructed at Kiyanli. with storage facilities provided via a floating storage and offloading vessel .16 Nada PETRONAS CORPORATE ROUNDUP ETRONAS Carigali’s operations in Turkmenistan reached a new milestone on 5 June 2007 when the President of the Republic. drilling is in progress at well EWT/3. produced its first barrel of oil in March 2006. almost 50 per cent of the fabrication yard has been completed.900 square kilometre offshore area that includes three discovered oil and gas fields. At the event. with piling. His Excellency Gurbanguli Berdymukhamedov. PETRONAS Around the World PETRONAS CARIGALI BREAKS NEW GROUND IN TURKMENISTAN Present at the ceremony were PETRONAS Carigali’s Managing Director and Chief Executive Officer (CEO) Datuk Abdullah Karim. Currently. The gas will be exported via a subsea pipeline to an Currently. Under the PSC. civil building and other works progressing smoothly.000 barrels per day. a development expected to enhance PCTSB’s oil production to 15. The students graduated in July last year. Berdymukhamedov said PETRONAS was the first foreign oil and gas company to have been awarded the right to operate in Turkmenistan. To enhance local technical expertise in Turkmenistan. He added that the corporation had contributed significantly to the realisation of his country’s plans to develop and construct offshore loading and gas terminals. officiated the ground-breaking ceremony. PCTSB’s operations in the Diyarbekir Field reached the two million barrel mark without incident on 11 June last year. Initial gas production at a capacity of 250 million standard cubic feet per day (mmscfd) is targeted for the end of Quarter One of 2010. members of the Turkmenistan Cabinet. Malaysia Marine & Heavy Engineering Managing Director and CEO Wan Yusoff Wan Hamat. In the area of oil production. PETRONAS Management Training Sdn Bhd and PCTSB are jointly operating a training centre in Turkmenbashy. as well as other undrilled prospects. . as well as other related infrastructure. This will be followed by 500 mmscfd six months later.
Nada PETRONAS 17 PETRONASGAZPROM TIEUP PETRONAS has signed a Memorandum of Understanding with Russian gas giant Gazprom. APPOINTMENT PETRONAS Vice President of Gas Business Wan Zulkiflee Wan Ariffin was appointed as a new member of the Board of PETRONAS with effect from 1 August 2007. The collaboration with PETRONAS will provide valuable new opportunities for both companies. transport and storage. “The memorandum lays a solid foundation for long-term cooperation between Gazprom and PETRONAS. T he memorandum provides for the development of comprehensive cooperation between the companies on the implementation of projects in Russia. pipelines and regasification terminals. marking the beginning of an international collaboration between PETRONAS and one of the world’s largest oil and gas companies. At a meeting with PETRONAS President and Chief Executive Officer Tan Sri Dato Sri Mohd Hassan Marican in the second quarter of 2007. Malaysia and third countries. PETRONAS and Gazprom have also agreed to share scientific and technical expertise in the areas of gas prospecting. LNG trading and hydrocarbon fields. The Russian company intends to enhance its market presence in the region by developing gas delivery systems. including underground gas storage facilities. “We are sure that joint work will strengthen the positions of both parties in the foreign energy market. It also defines the basic principles of Gazprom-PETRONAS cooperation on projects to build gas infrastructure.” Medvedev also attended the 12th Annual Asia Oil and Gas Conference in Kuala Lumpur. production. Gazprom Deputy Chairman Alexander Medvedev said. We are talking about different projects ranging from exploration and production to marketing energy products and the sharing of experience. during which he said the AsiaPacific region was one of Gazprom’s key regions. .
4 per cent of total Malaysian exports. the two industry observers noted that PETRONAS had an advantage from the start. it proved to be both highly profitable and commercially viable. Another example of PETRONAS going global was its 2006 purchase of a USD1. PETRONAS has made enormous strides that have earned the company a more-than-respectable position in the international arena of oil and gas. PETRONAS was involved in upstream exploration and production in 59 ventures in 26 countries and was the operator for 29 of these ventures. It also became actively involved in Africa where it saw a general lack of interest from other petroleum companies. the Middle East.3 billion accounted for 39. Baker III Institute for Public Policy and the Japan Petroleum Energy Centre in March 2007. “PETRONAS has been a generally solid and wellrespected partner to both private and state entities around the world. But as a profit-oriented business entity.18 Nada PETRONAS CORPORATE ROUNDUP D espite being in existence for only 33 years.1 billion. PETRONAS has been given the entire ownership of and control over the country’s petroleum resources. This was in line with its value-adding. PETRONAS underwent a steep learning curve. At the same time. Texas and Al Troner of Asia Pacific Energy Consulting in their paper entitled ‘PETRONAS: A National Oil Company with an International Vision’. Although the move attracted much criticism initially. It was set up as a company with the goal of profit-making. . Asia and Europe. and logistics and maritime operations.8 per cent of total revenue. Von der Mehden at Rice University in Houston. The PETRONAS subsidiary is currently the world’s largest single owner-operator of LNG vessels and the world’s second-largest owner-operator of Aframax tankers. it also actively expanded and diversified into a broad range of downstream activities in order to create value from the oil and gas resources produced by its upstream operations. gas processing and liquefaction. In recent years. representing 12.1 billion stake in Russia’s Rosneft.7 per cent of Group revenue. it has been making significant contributions to Malaysia’s national monetary reserves annually. starting with its first upstream project as an operator in Vietnam. expanding its upstream operations domestically while acquiring the necessary technological know-how and capabilities. its first Russian venture. gas transmission pipeline operations. marketing and distribution of petroleum products. PETRONAS has also entered the shipping business through MISC Berhad.” the report concluded. This is an observation made by Dr Fred R. accounting for 76. By 2005. PETRONAS has also grown beyond its traditional core energy interests by financing major Governmentsponsored infrastructure projects. These included oil refining. Export revenue of USD20. marketing of liquefied natural gas. business integration strategy. rather than a statutory body that could have been misconstrued as the nationalisation of Malaysia’s hydrocarbon resources. this period was its expansion into international operations in the early 1990s. The most noteworthy move PETRONAS made during reflecting the success of the Group’s globalisation strategy. revenue from international operations and exports contributed USD39. petrochemical manufacturing and marketing. such as the construction of the PETRONAS Twin Towers and the new administrative capital of Putrajaya. In the paper written for an energy forum by the James A. and it operates like any other commercial oil and gas entity. PETRONAS contributed to little over a third of total Government revenue. PETRONAS EXTENDS ITS FOOTPRINT BEYOND NATIONAL SHORES UNDER TWO DECADES In the early years. PETRONAS had signed agreements in 35 countries in Africa. trading. For financial year ended 31 March 2007.
” PETRONAS is an easily recognisable name on the global stage. For the past 30 years. producing oil from about 50 projects. 40 per cent of all new production came from industrialised nations. having established its presence. Source: The Financial Times Limited 2007 at http://www. Royal Dutch Shell. “The reason the original Seven Sisters were so important was that they were the rule makers. in particular. The original Seven Sisters included Standard Oil of New Jersey.com/cms/s/471ae1b8-d001-11db94cb-000b5df10621. a group of increasingly influential oil and gas companies from countries outside the Organisation for Economic Cooperation and Development (OECD). The original Seven Sisters on the other hand – which compacted to four following industry consolidation in the 1990s – account for about 10 per cent of the world’s oil and gas production. The rise of the New Seven Sisters is bound to scale up and get more prominent in years to come. the FT says the New Seven Sisters control almost one-third of the world’s oil and gas production and more than a third of its total oil and gas reserves. Brazil’s Petrobras and PETRONAS. possibly for good. BP and Royal Dutch Shell are ‘descendants’ of the Seven Sisters. Mostly state-owned. a startling change has taken place. The biggest state-backed resource competitor is CNPC whose rapid push to secure international reserves makes it powerful. most notably in Sudan and Myanmar. The International Energy Agency. the FT notes. Having turned resource seekers. About 30 per cent of its corporate revenues are from abroad and it operates in more than 26 countries. while holding just three per cent of reserves.Nada PETRONAS 19 ‘NEW SEVEN SISTERS’ FINANCIAL TIMES IDENTIFIES H alf a century after the second world war. On the other hand. chairman of PFC Energy. Venezuela’s PDVSA. leaving industry growth and the resources for world economic development in the hands of the New Seven Sisters and the respective governments that control them. these New Seven Sisters are the rule makers and the international oil companies (IOCs) are the rule takers. Now. found its way to the Middle East in the 1970s. has been described as a role model. Since then. ExxonMobil. Standard Oil of New York. the term ‘Seven Sisters’ was coined to describe the Anglo-Saxon companies that controlled oil in the Middle East. most of it controlled by the original Seven Sisters.” Robin West. The shift is extraordinary. and cooled only when oil prices declined in the late 1980s and 1990s. Standard Oil of California. the New Seven Sisters are Saudi Aramco. changing the terrain of the global oil sector. Gulf Oil and Texaco. A report by the Financial Times (FT) published on 21 March 2007 identified the ‘New Seven Sisters’. Russia’s Gazprom. CNPC of China. national oil companies (NOCs) are banding together to help develop each other’s reserves. has estimated that 90 per cent of new supplies will come from developing countries over the next 40 years.html . PETRONAS.ft.the resurgence of resource nationalism which began in Mexico in the 1930s. ripe for emulation. Chevron. Anglo Persian Oil Company. NIOC of Iran. they controlled the industry and the markets. But smaller NOCs such as Petrobras and PETRONAS are also “keeping international energy executives awake at night. This change of hands in oil muscle has carried with it another phenomenon . more than half of which it runs. was quoted as saying in the FT. an established and trusted watchdog.
One Destiny. For over three decades. CELEBRATING T his sentiment resonates deeply within the heart of PETRONAS.) . We are afforded opportunities in life that our parents and grandparents only dreamt of. PETRONAS put forth a single important message to all Malaysians: One Legacy. PETRONAS has held the nation’s oil and gas resources in trust for its people and is deeply committed to the future of all Malaysians. (Satu Warisan. for the 50th Merdeka Celebration. But we also stand in danger of forgetting our past – the values that have defined us as Malaysians for half a century. Hence. Satu Matlamat.20 Nada PETRONAS MERDEKA SPECIALS 50 YEARS OF HARMONY Today Malaysia stands at the threshold of a new age.
Shot on location in various parts of East and West Malaysia. PETRONAS rebroadcasted its five most memorable merdeka television commercials over major television channels. Aimed at educating the public on the various aspects of the industry. more than double the expected number. progress and a better life from the eyes of the Chief Executive Officer. ExxonMobil and BP . 500 consolation prizes comprising PETRONAS products. through to the value-added processes in turning crude oil not only into petrol for vehicles but also into a range of products that Malaysians use in daily life. were also given out. opportunity. the documentary took viewers on an educational journey from the moment oil and gas was discovered. a Ministry of Education trust for disadvantaged students. all of national make. The contest attracted 4. PETRONAS Vice President for Oil Business and Chairman of PETRONAS Dagangan Berhad Datuk Anuar Ahmad gave away thirty cars and twenty motorcycles. shopkeeper and fisherman. ‘Khazanah Bumi Merdeka’ EVERY Friday evening at 9.PETRONAS. Part of the proceeds of the sales benefitted the ‘Kumpulan Wang Amanah Pelajar-Pelajar Miskin’.4 million entries. oil and gas have changed the lives and livelihood of many Malaysians.00pm. In addition. celebrated cartoonist Datuk Mohd Noor Khalid (better known as Lat) and anthropologist Prof Dr Rokiah Talib. . a special presentation by the major oil and gas players in Malaysia aired over TV3. but commercial vibrance and a new work culture and standards have elevated their lives to a whole new plane.had come together to present Malaysians with an opportunity to learn about an industry that has been playing an immense part in shaping the nation’s development. Employment and educational opportunities were perhaps the most obvious. educator and activist Rasammah Bhupalan. Shell. Shivadas. The series told the story of development. ‘Khazanah Bumi Merdeka’ (Treasures of an Independent Land) was an 11-episode account of the history of the oil and gas industry and the many strides it has made in its 100 plus year history.Nada PETRONAS 21 A Nation Rejoices – the ‘Saya Anak Malaysia’ Contest FOR the 50th Merdeka Celebration. schoolteacher. the documentary also marked the first time that the major oil and gas players in the country . C. to 50 very happy winners. each worth RM500. former New Straits Times Group Editor P. from the month of July through September 2007. Fifty winning entries were selected by a distinguished panel of judges composed of the eminent historian Prof Emeritus Dato’ Dr Khoo Kay Kim. But more than just plants and processes. These formed the basis of a public contest – the ‘Saya Anak Malaysia’ contest – wherein participants were required to match a message to each of the commercial and pen down a personal account of what the nation’s independence means to them.
They make good shoes in Gombak. One Little Indian Boy: 1996 A flashback account by a now-grown Indian man of the day when. each possesses a humour and lightness of touch that appeal to both the heart and mind.22 Nada PETRONAS PETRONAS MERDEKA ADVERTISEMENTS THROUGH THE YEARS What started out as a simple commemoration of an important national event. as a little boy. Local Hero: 1998 Amidst a nation maturing and gaining confidence as to who we were and what we stood for. IN RETROSPECT P ETRONAS Merdeka advertisements have always centred on the important principles of trust and unity. While each of them deals squarely with this issue. he was given a bath and made to put on his best clothes. He knew it was a special day. but did not know exactly why. “So what if my shoes were made in Gombak?!” The girl replied.” . He saw and felt imagined snubs everywhere he went – from the attractive shopkeeper to even the girl on a bus. He thought that this was why he could not find a girlfriend. Still half asleep. “Nothing. Their lasting popularity was largely due to the ability of the advertisements to capture the inner thoughts of Malaysians with messages that clearly resonate within their own belief system. Lifted off the ground and seated squarely on his father’s shoulder. The following are the five most memorable ones. he was woken up early by his father. PETRONAS’ Merdeka advertisements have gained almost a cult following. He and his father then cycled down the crowded streets of Kuala Lumpur to an even more crowded place. he saw that he was in Merdeka Stadium and in the distance was the Tunku proclaiming independence. He finally snapped. the advertisement featured a young man riddled with self-doubt because he wore only Gombak-made shoes.
Param and his bicyle were no more. he proclaimed. “It’s big. . And they noted too. it’s nice. were completely oblivious to each other. the memories of the genuine friendship they shared were fresh and vivid. As he put on his prosthetic leg. Param’s Bicycle: 2003 Atan. who was determined to be independent and live a full life. absorbed in their MP3 players and in their own worlds. is the greatest. Special Shoes: 2005 ‘Independence is synonymous with responsibility for oneself’ . narrated the story of a boy who had no leg. as old men. in a hospital. until fate intervened and they met. “I have travelled far with it. Lim and Param lived and grew up together in the same village. and all things that pulsate with life. a beehive and running for dear life. walk forward. seated on opposite ends of a hospital bench. not backward”. But still. Their conversation was overheard by a man who was having a cobbler repair his shoes nearby. that their sons. he turned back to them and said. in turn. if we could see things like children do. He. the boys realised that he had told them his own story .this was the realisation two brothers came to after ogling a pair of shoes in a shop window. When you choose to walk. we would agree that our ‘house’. Over the years life took them down different paths. Particularly memorable was an episode involving some mangoes.Nada PETRONAS 23 My House: 1999 “Why do I like my house?” a precocious little boy wondered out loud. As the man walked to his chauffeur-driven car. with all the joys and pains. Indeed. with a tinge of regret. playing little pranks as children do and getting into the usual trouble. griping about their father who would not let them have the money to buy them. My house is the best”.
It told the story of a soon-to-retire boat maker who half-heartedly built one last boat when asked to by his friend. the boatmaker was pleasantly surprised when told that he could keep it as a token of their friendship. F The first in the series was ‘The Boatmaker’ which extoled the value of hardwork and genuine commitment in building a thing of value that would stand the test of time. When the boat was finished. hard work and unity still remain the principal ingredients of nation building. with the latter entirely through the uncomplicated and untainted eyes of children. PETRONAS in celebrating the nation’s 50th year of independence aired a series of advertisements in the months of August and September 2007 on the themes of dedication to the cause and national unity. tolerance. . They all invite us to take a retrospective look at ourselves and find the true meaning of independence. ifty years on. His happiness. His friend even threw in a new engine for good measure. The materials used were inferior and his workmanship shoddy. was shortlived when he found that the boat he built was not fit to sail. And lest these lend themselves to the dark recesses of our minds. however.24 Nada PETRONAS ALL TOGETHER NOW “Upon the conduct of each depends the fate of all” .Alexander the Great Any seasoned Merdeka veteran will tell you that the nation’s independence was won through unparalleled dedication and commitment to the task. and the coming together of the various races in the then Malaya to chart a common destiny. respect and understanding. and to always embrace the values of mutual trust.
His admiration was not unrequited when Umi. in turn.” ‘Tunjuk’ (Point) “Who is your best friend?” The spontaneous pointing to each other said it all. And she… and he…. “Race?” asked the friends. Against the background of globalisation and new opportunities for growth and self-discovery stands our precious legacy – the cornerstone of our achievements as a people. One was unanimously agreed upon – ‘Kita’. Kawan Baik’ (Good Friend) When asked who his best friend was.. ‘Karate’ “What will I do if anybody messes with Rachel? I’ll do this... like this… and this…” ‘Kita’ (Us) After successfully building a ‘country’ and their own respective ‘houses’ in a sandpit.. “If he is your best friend. a group of children were seriously thinking of a name to give their new country. uncomplicated and completely unprejudiced view of life and friendship. . “Race. Tan Hong Ming in Love A doe-eyed boy gave a spontaneous confession of how he secretly admired his best friend Umi Kazrina. And it is only by recognising our shared legacy can we understand and achieve our shared destiny. a Malay boy shyly pointed to a Chinese boy beside him. what is his race?” The question was met with puzzled expressions on both the boys’ faces.Nada PETRONAS 25 The Children ‘Get It’ The other commercials in the series were of children who offered their candid.like race car…?” She/He “ My best friend? He….. Then he was asked. confided that Hong Ming was her ‘boyfriend’.
Four of the five award categories are open to all Malaysians living at home or abroad. The winners of each . Benchmarked against the Nobel Prize. religion or ideology. we celebrated the values that have guided and inspired us on our journey together as a nation. Launched by Prime Minister Dato’ Seri Abdullah Haji Ahmad Badawi on 27 August 2007. Many Malaysians have made history in service to the country but. It also aims to instil an awareness of the challenges . PETRONAS led a core group drawn from the Malaysian oil and gas industry to create the nation’s most prestigious industry-led award. there has been no single award that honours their achievements. It explores the liberation of the human mind and spirit.26 Nada PETRONAS THE MERDEKA AWARD On the 50th anniversary of our independence. the Merdeka Award underscores the fact that the quest for individual excellence will prove an important driving force for the future of our nation.and equally the responsibility in preserving our precious legacy. the Merdeka Award values human achievement regardless of race. In working to promote a more competitive society. the Merdeka Award seeks to inspire excellence in a nation that has reached a new milestone in its history. and towards the betterment of Malaysian society. I n the spirit of unity and shared responsibility for our nation’s future. sex. Together with Shell and Exxonmobil. to date. PETRONAS founded the Merdeka Award to give due recognition to Malaysian citizens and organisations that have made outstanding contributions in their respective fields. and fosters the realisation of human potential through the pursuit of excellence.
and heritage preservation. the arts. The Merdeka Award complements and enhances the CSR objectives of the industry as a whole. science and technology. will be managed by a nominations committee of at least three qualified Malaysians or foreign individuals in each category. Nominations. . Each category emphasises the concept of excellence in the broadest sense and acknowledges that our collective good stems from the individual goal of doing one’s best. either in primary or applied research. Through joint endeavours of oil and gas players. The third category – the environment . from November to February in the following year. sports and community services. including renewal and conservation.encompasses the broader spectrum of environmental issues and efforts.5 million. which will be open each year. the Merdeka Award strengthens the message that we each have a responsibility to give back to humanity. the Merdeka Award will be the largest in Malaysia and is comparable to other renowned prizes. The committee will invite qualified individuals to submit names of candidates for consideration. Past winners of the award will be ex officio qualified nominators for life. The Merdeka Award will be given away annually in the month of Merdeka by the Prime Minister as the Award’s Patron. The final category is about outstanding contributions to the people of Malaysia. while appointed nominators will hold their positions for a period of three years.Nada PETRONAS 27 category will receive a gold medal and prize money of RM500. As for the outstanding scholastic achievement category. With the total prize money awarded in all categories estimated at RM2. linguistics. All categories of the Merdeka Award are open to institutions and organisations. The Merdeka Award strongly reiterates the Corporate Social Responsibility (CSR) initiatives that oil and gas players are already carrying out in their own capacities. science and technology. For all Malaysians. sports and the community. This award is presented to a Malaysian student or Fellow undertaking postgraduate studies who has displayed exceptional scholarship in the academic field. such as educational research. it is the only award that is of purely academic merit. The contribution may be in any specialised field. It is open to foreign nationals who have made substantial contributions to the lives of Malaysians. The five award categories are broadly defined to encourage the widest possible field of nominations. with the exception of outstanding scholastic achievement. which can be awarded only to an individual.000. it would elevate the position and prominence of Malaysian oil and gas CSR initiatives to national and international platforms. Former Malaysians who are naturalised citizens of another country will not be eligible. and must or potentially be of high benefit to a large segment of the community. innovation or advancement of technology in all aspects of health. The first award category recognises outstanding contributions in the fields of education. The second category rewards excellence in the area of health. fine or performing arts.
GALERI PETRONAS highlighted a broad range of themes and issues in art and Malaysian society. reflecting the evolution of our society in the past half-century. MEANWHILE AT THE GALLERY… .28 Nada PETRONAS IMAGES OF INDEPENDENCE Through a year-long programme (The Heart of ‘07).
From October to December 2007. Photojournalism and the Imaging of Modern Malaysia (23 March – 20 May 2007) ‘BUMI MANUSIA: Nusantara Journey’ with PETRONAS Expedition (26 May – 15 July 2007) A subtle portrait of the shaping of modern Malaysia is captured through the lens of working photojournalists. Curated by GALERI PETRONAS and presented by GALERI PETRONAS and PETRONAS Motorsports. . Curated by Eddin Khoo and Prof Dato’ Dr Khoo Kay Kim.The Grain of Strands from Some Moments (10 April – 13 May 2007) Fifty new paintings (produced between 2002 and 2006) and the poetry of prominent Malaysian artist Latiff Mohidin were featured in this much awaited exhibition. GALERI PETRONAS features The Independence Project. Highlights in the month of August 2007 included 50 Ways to Live in Malaysia. It also featured photographic accounts of the expedition by the PETRONAS Adventure Team. Sabapathy and Dato’ Baha Zain. cultural and historical events that influenced and affected the course of Malaysia’s history in the last 50 years. photography and video clips illustrating his experiences from the 55day PETRONAS Nusantara 2006 Expedition from Bintulu to Banda Acheh in Indonesia. a group show of prolific new-generation Malaysian women artists. This debut solo exhibition by Masnoor Ramli Mahmud. Suria KLCC. Building Merdeka explored the iconic monuments built to mark our independence (such as Stadium Negara. Admission is free. cultural and historical events that have helped shaped our nation . The Heart of ‘07 presents a vibrant and entertaining view of the social. K. Containing some 90 images from the photographic archives of present and past newspapers. new media and gender-driven projects such as Out of the Mould. Kuala Lumpur collaborated to bring this unique exhibition to the public in celebration of Malaysia’s 50th Merdeka and the Japan-Malaysia Friendship Year 2007. showcased paintings. He presented a ‘scenic movement presentation’ of 12 moving sculptures which combined art and technology to create free movement. GALERI PETRONAS is located at Level 3. the gallery featured explorations of contemporary movements. GALERI PETRONAS and the Japan Foundation. From December 2007 through to February 2008. and a republication of the book Garis. T Voyage: Kembara Latiff Mohidin (16 January – 11 March 2007) TOKITSUMUGI . transliterations of Rumi/ Khayyam. Highlights included book publications.Nada PETRONAS 29 he year 2007 kicked off with the blockbuster Voyage: Kembara Latiff Mohidin exhibition by the iconic Malaysian artist. Parliament House and Subang Airport). and the exhibition also documented how they transformed Kuala Lumpur for its future growth. This exhibition of kinetic sculptures by Japanese kinetic artist and multidimensional space designer Masato Tanaka was the artist’s Malaysian premiere. the exhibition highlighted the principal social.a view seen through the eyes of artists who continually push the boundaries of their creativity to find new forms of expression. What follows is a summary of The Heart of ‘07. an anthology of poems (Sajak-Sajak Lengkap). Gitanjali and Tao Te Ching. Curated by T. which showcased half a century of relevant works by Malaysian artists in the evolution of an independent Malaysia. a key member of the MATAHATI artist collective. an international collaboration which explores contemporary independent artistic practices from Malaysia and Australia. which was followed by the art-historical show Photojournalism and the Imaging of Modern Malaysia from March to May 2007.
Zakaria Ali. art theorist. Bayu Utomo Radjikin. architecture. Ivan lam. politics. These iconic structures provided key institutional and national spaces that highlighted the emerging geopolitical importance of Kuala Lumpur. race and globalisation. Paiman. Nirmala Shanmugalingam Dutt. Muzium Negara. Jolly Koh.The Malaysian Series (20 July – 5 August 2007) This tribute exhibition was held in memory of modern Malaysian artist. Ahmad Fuad Osman. These paintings continued his conceptual thrust of combining traditional Asian art forms with contemporary Western art impulses. Simryn Gill. Merdeka Park. national pride and affirmations of social and infrastructural progress. Stadium Negara. printmaking. photographs. Eric Peris and Sulaiman Esa. The collective geniuses of 50 of Malaysia’s most well-known artists were showcased in this exhibition.30 Nada PETRONAS ‘Daerah Samad’: 100 Sketches by A. Curated by Associate Prof Dr Lai Chee Kien. Sharon Chin. Contemporary practitioners included Juhari Said. The exhibition told the stories behind each construction . Ise and Mutalib Musa.all of which have contributed to the way we think and feel as Malaysians. art historian. Curated by T. The exhibition also showcased the documentation of these 10 projects and included architectural drawings. communities. Curated by GALERI PETRONAS.the people. endowing Malaysia’s capital city with new national landmarks and structures. National Monument. textiles and new media. It also examined the balance between aesthetics. Dewan Bahasa dan Pustaka. Yusof Ghani. religion. installation. both local and global . University of Malaya campus and Subang International Airport. sculptures and films. Kow Leong Kiang. featuring 50 artworks made since 1957 to the present day. gender. critic. specifically painting. Khalil Ibrahim. With visual expressions that were sometimes abstract. Dzulkifli Buyong. models. . Senior artists represented included Fatimah Chik. Victor Chin. Jailani Abu Hassan. Ibrahim Hussein. The works span approximately two decades of Piyadasa’s art practice up to his demise. Samad Said demonstrated the celebrated author’s understanding of line and colour. Masjid Negara. practicality. who died in May 2007. while addressing issues of nation. murals. Yee I-Lan. The exhibition featured 40 selected paintings from Piyadasa’s Malaysian Series. educator and writer Redza Piyadasa. Ramlan Abdullah. food and historical events. K. Joseph Tan. Ten iconic building projects were realised between 1957 and 1966. The exhibition showcased a broad crosssection of Malaysian artists and included celebrated pioneer modernists such as Syed Ahmad Jamal. Wong Hoy Cheong. Ahmad Zakii Anwar. Amron Omar. leisure. It also showcased the range of media that Malaysian artists have explored in their quest. architectural rationales and feats involved in the construction of each building. Sabapathy. Samad Said (12 June – 15 July 2007) Building Merdeka – Independence Architecture in Kuala Lumpur 1957 -1966 (15 August . Houses of Parliament. PIYADASA . Soraya Talismail.30 September 2007) 50 Ways to Live in Malaysia (21 August – 30 September 2007) This debut exhibition of ink sketches and handwritten documents by National Literature Laureate Datuk A. this exhibition illustrated how Samad succesfully created a visual language to express ideas that could not be communicated by the written word. Ismail Zain. Latiff Mohidin. Kok Yew Puah and Raja Shariman. and his astonishing command of the visual medium. society. photography. The buildings were Merdeka Stadium. Shia Yih Yiing. sculpture. personal and obscure. The exhibition painted a picture of modern Malaysia that was inspired by sub-themes such as the environment. religion. Hasnul Jamal Saidon. bringing his career to a definitive close.
1999. mixed media and collage on board.Watermark of Piyadasa’s Malaysian Story No 2. .
race and religion. Umibaizurah Mahir Ismail and Yee I-Lann.A Glimpse of Islamic Heritage in Spain (14 December 2007 – 6 January 2008) The Independence Project Contemporary Spaces in Malaysia and Australia (13 December 2007 – 10 February 2008) In tandem with the 50 Ways to Live in Malaysia exhibition. which portray our multiracial essence. The Independence Project features the works of 16 contemporary Australian and Malaysian artists. Curated by Alexie Glass. The exhibition featured the art of Yau Bee Ling. One Destiny. have resonated deeply in viewers’ hearts with fine stories that cut across boundaries of gender. independent spaces and social contexts in Malaysia and Australia. These important films also give voice to PETRONAS’ message of One Legacy.2 December 2007) The works by Malaysia’s most prolific ‘new generation’ of women artists are showcased in this exhibition. Shia Yih Yiing. Their internationally recognised artistic practices reflect the freshness of their own presence within a modern Malaysian society. Azliza Ayob. as captured by the lens of Alex Moh. GALERI PETRONAS screened a compilation of the best PETRONAS Merdeka and religious festival television advertisements (which were in reality short films). these award-winning commercials. age. Hayati Mokhtar. . Presented by the Australian High Commission and Australia International Cultural Council (AICC). This exhibition covers aspects of independence as seen through the lens of artistic practices. The exhibition is presented in collaboration with the Embassy of Spain. An impressive collection of 44 colour photographs showcases the beauty of Islamic heritage in the Spanish region of Andalusia. Nur Hanim Mohammad Khairuddin. Nadiah Bamadhaj. and emphasises the ways individual artists question and define themselves. Bibi Chew. Sharmiza Abu Hassan. Rahel Joseph and GALERI PETRONAS. and construct independent positions outside mainstream artistic practice. Over the years.Nada PETRONAS 31 PETRONAS on Film (21 August – 30 September 2007) Spain through the Lens of a Malaysian Photographer . ‘Out of the Mould’: Age of Reason (25 October . Curated by Shireen Naziree and GALERI PETRONAS. directed by celebrated director Yasmin Ahmad.
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