KUALA LUMPUR (Dec 30): Petroliam Nasional Bhd (Petronas), in response to an online news portal's report that it might be trimming its workforce due to its gas distribution agreement with Petroleum Sarawak Bhd, said it is conducting a comprehensive review of its own productivity.

The review is being done with a view "to streamline its ways of working, to eliminate inefficiencies and focus on undertakings that can deliver measurable value", it said in a statement on Monday.

The move is also part of its efforts to execute its energy transition strategy "while delivering continuous improvements by becoming more operationally focused, commercially agile and cost efficient", it said.

The statement came after Scoop reported on Saturday, citing sources, that Petronas was expected to suffer about 30% revenue loss once the agreed formula for the distribution of natural gas in Sarawak is implemented.

To cope with the projected loss, Petronas' department town halls and internal meetings discussed the potential downsizing, Scoop wrote. In addition to potential changes in the company's compensation strategy, such as discontinued bonuses and reduced salary increments across various departments, Petronas is also said to be unlikely to retain most of its contract-based staff.

Sarawak had, earlier in the year, announced that Petros was set to take over from Petronas as the sole gas aggregator in Sarawak. The aggregator is responsible to procure natural gas for distribution or supply, and to develop the gas distribution network and system in Sarawak. That role is currently played by Petronas.

On Dec 12, Prime Minister Datuk Seri Anwar Ibrahim announced that discussions on gas distribution in Sarawak between Petronas and Petros had been settled, and that the details were being fine-tuned, including parameters and legal implications. Sarawak Premier Tan Sri Abang Johari Openg, meanwhile, had said the details of the distribution would be announced by Anwar.

In its statement on Monday, Petronas further said: "Having passed the historic milestone marking its first 50 years of existence, in order to ensure its viability in the future, Petronas must continuously endeavour to remain a high-performing organisation — one that is driven by productivity, innovation, sustainability and a commitment to excellence."