The iconic PETRONAS logo launched in 1989 by the then president and chief executive officer Tun Azizan Zainul Abidin (left) and chairman Tan Sri Basir Ismail.
STORIES of humble beginnings never get old, and such is true for Petroliam Nasional Berhad (PETRONAS), the national oil company which turned 50 this year.
Born to solve a crisis, its tale of adversities matures with time, each chapter a lesson learnt or a distinct growth, strengthening its resilience over time.
It all began in the wake of the 1973 global oil shock, in which Malaysia as a producer nation, recognised the need to assert greater control over its petroleum resources, moving away from dependence on foreign oil companies.
Then came the pivotal mission of managing these resources and PETRONAS was formed to undertake the Amanah mandated – the full and orderly development of the Malaysian petroleum industry to add value to the nation’s resources.
The iconic PETRONAS Twin Towers, a tribute to Malaysia’s ambition and excellence.
What was set up with only a handful of ex-public servants, amateurs to the oil business and competing against pioneering multinational oil majors with an initial RM2mil budget, has grown into a Fortune Global 500 company and a national pride today.
Incorporated on Aug 17, 1974, under the Companies Act, PETRONAS was conferred a commercial identity with a clear purpose – to be commercially driven and function as a true business entity.
It was to contribute to the then New Economic Policy, an ambitious socio-economic undertaking to restructure society particularly in uplifting the bumiputras.PETRONAS is vested with ownership and control of the nation’s petroleum resources by Act of Parliament, the Petroleum Development Act (PDA) 1974, including the exclusive rights, powers, liberties and privileges.
Drafting of the PDA 1974 was said to be tortuous as ‘they were in virgin territory’, but the journey ahead was even more challenging, as the small, novice PETRONAS team hit the ground running to deliver its mandate, engaging in controversial negotiations with foreign oil majors – indeed born in crisis and ready for battle.
And history was soon to be written.
Lighting the path of progress
Today, PETRONAS has evolved into a global energy company with a presence in over 100 countries and a workforce of more than 50,000 employees.
Its 50-year journey has been marked by a series of transformative milestones and its fair share of challenges, both of which have shaped its evolution and defined its legacy.
One pivotal moment was the discovery of the Dulang oil field in 1981.
This milestone not only boosted Malaysia’s stature in the energy sector but also sparked growth that impacted communities far beyond oil revenues. It brought jobs, built infrastructure and laid a solid foundation for Malaysia’s economic diversity.
From humble beginnings, such as opening its first petrol station in Taman Tun Dr Ismail in 1981 and launching PETRONAS Penapisan Terengganu Sdn Bhd refinery in 1982, to expanding into upstream and downstream ventures, each step has been a leap forward in PETRONAS’ journey.
The introduction of the first flagship service station in Taman Tun Dr Ismail, Kuala Lumpur, marked the beginning of PETRONAS’ participation in the domestic fuel retailing segment. PETRONAS now operates the largest network of petrol stations in the country, with over 1,000 stations, continuously extending and upgrading its services beyond fuel.
Former Sarawak Chief Minister Tun Abdul Rahman Ya’kub (third from right) and the then PETRONAS chairman Tengku Razaleigh Hamzah (second from right) signing ‘The Vesting Deed’ between Sarawak and PETRONAS.
The company enhances customers’ lives through innovative offerings, including Setel and an extensive network of Kedai Mesra convenience stores.
From its early days, PETRONAS distinguished itself through pioneering offshore oil exploration in deep waters, embodying the spirit of innovation that persisted through the decades.
Although a late entrant into the field, it has achieved many firsts; a series of groundbreaking accomplishments that have shaped the energy landscape.
It was the pioneer in bringing gas ashore in Peninsular Malaysia; supplied the inaugural gas-fired power plant; first to process Malaysian crude and built the initial joint venture liquefied natural gas (LNG) plant in the country, among other achievements.
Overseas, it has gone on to find oil in Vietnam, Iraq and Sudan. PETRONAS was the first to witness the maiden production of oil in Sudan for export and its initial pipeline across the desert.
One of its most significant achievements was the development of the world’s first floating liquefied natural gas (FLNG) facility, PFLNG Satu in 2017.
This revolutionary technology allows for the extraction, liquefaction and storage of natural gas at sea, enabling the company to unlock remote and hard to reach gas fields in an efficient and sustainable manner.
PFLNG Satu has not only bolstered Malaysia’s energy capabilities but also positioned PETRONAS as a global leader in LNG innovation.
It continued to develop its FLNG technologies and became the world’s first owner and operator of two FLNG facilities with the introduction of PFLNG Dua in 2021.
PETRONAS’ transformation extended across its value chain with its first ever refinery, PETRONAS Penapisan Terengganu Sdn Bhd in 1982 in Kerteh, Terengganu.
The PETRONAS Taman Tun Dr Ismail station officially opened for business on July 3, 1981.
This led to the establishment of PETRONAS Petroleum Industry Complex (PPIC), an industrial hub that linked the entire oil and gas value chain – a turning point that opened up new possibilities for economic growth and development in Kerteh.
It then paved the way for the establishment of a refinery in Melaka in 1994, now called Melaka Energy Park, which commands one of the largest refining capacities in the country to produce various types of petroleum products to meet energy demands beyond domestic markets, including the production of base oil for lubricants with a presence in over 100 countries.
PETRONAS progressed ever further with the development of Pengerang Integrated Complex (PIC), its largest downstream investment, enabling its operations to be more integrated and resilient.
The integration of refinery and petrochemical facilities within PIC allows PETRONAS to boost its capacity to support the energy needs of its customers globally.
It is also set to be a hub of cleaner energy solutions with an advanced chemical recycling plant and a biorefinery expected to be operational in 2026 and 2028 respectively, serving its customers in the region and beyond.
For the past 50 years, the company has truly positioned itself as a progressive energy and solutions partner, enriching lives for a sustainable future.
Not only has it driven economic growth, but it has also improved the quality of life and socio-economic outcomes for communities across the nation through its focus areas in education, community well-being, and development, as well as environmental sustainability.
To build the nation is to build its talent
Central to PETRONAS’ success is its unwavering commitment to nurturing local talent and fostering human capital development.
It has empowered generations of Malaysians to realise their full potential and contribute meaningfully to the nation’s growth through the establishment of Institut Teknologi Petroleum PETRONAS (INSTEP) in 1981, PETRONAS Leadership Centre (PLC), previously known as PERMATA in 1989, Universiti Teknologi PETRONAS (UTP) in 1997 and the Kimanis Petroleum Training Centre (KTC) in 2011.
These institutions serve as incubators of innovation and excellence, providing world-class training and development opportunities to aspiring professionals across various disciplines.
The Kimanis Petroleum Training Centre is committed to equip the youth of Sabah with the necessary skills and qualifications required in the oil and gas industry.
Beyond these platforms, the company also prioritises continuous learning, innovation and collaboration through programmes such as education sponsorship under the PETRONAS Powering Knowledge initiative, BeDigital Bootcamp, and Discover PETRONAS @Schools.
By investing in education, skills development and leadership training, it is not just building a strong and diverse workforce, it is nurturing a community of learners and future leaders who will drive Malaysia’s progress for decades to come.
Beyond the classroom, the synergy between PETRONAS and Mercedes-AMG PETRONAS (MAMGP) Formula One Team exemplifies the effort towards nurturing talents in refining fuel and lubricants that contribute to the MAMGP Formula One Team’s high performance.
They have helped to push the boundaries of innovation and performance in the highly competitive world of Formula One racing, powering the team towards eight-time championships.
With the transfer of expertise and technology, the PETRONAS’ Fluid Technology Solutions was developed, delivering award-winning fuels and lubricants that meet the needs of everyday road users.
This is a testament to PETRONAS’ commitment to drive innovation beyond the racetrack in shaping the future of energy and mobility, leveraging its high-skilled talents.
Resilient amidst change
Looking back at how far the national energy company has come, its golden jubilee is more than a retrospective; it is a catalyst, propelling PETRONAS forward as it reimagines the energy landscape for Malaysia and the surrounding region.
From pioneering deepwater exploration to spearheading innovations in digitalisation and renewable energy, PETRONAS has consistently pushed the boundaries of what is possible in the energy sector.
Now 50 years on, it is once again tested with yet another inevitable challenge – climate change and the call for a just energy transition.
As the world grapples with the impacts of climate change amidst rising energy demand, PETRONAS plays a critical role in balancing its responsibilities of ensuring the nation’s energy security and delivering reliable and affordable energy, responsibly.PETRONAS’ strong integrated energy portfolio speaks volumes about its dedication to producing more, while emitting less.
This commitment goes beyond just staying relevant; it’s about embracing sustainable practices and driving positive change, in line with its aspiration to achieve net zero carbon emissions by 2050.
As the call for climate change amplifies, it’s a clear signal for PETRONAS to accelerate its energy transition strategy, shifting its years of competency in advancing the oil and gas landscape to the greatest need of the hour, clean energy solutions.
The first LNG shipment from Malaysia to Japan in 1983.
It is now aspiring to repeat history in developing a robust clean energy ecosystem to thrive in times of change, while strengthening its core portfolio along with its network of partners and vendors to meet the rising demand.
The development of the Kasawari CO2 Sequestration (CCS) project, offshore Sarawak – one of the largest offshore CCS projects in the world - as well as the three regional CCS hubs in Malaysia is an effort to ensure that the legacy it leaves behind is one of responsible energy production.
In shifting its focus towards renewable energy and green technologies, PETRONAS has also set up Gentari, an independent entity that not only drives its clean energy aspirations but also designed to create jobs and stimulate economic growth.
Gentari empowers customers and partners in their decarbonisation efforts, contributing to national and global climate goals through clean energy solutions grounded in three core pillars: renewable energy, hydrogen and green mobility.
Stepping outside of its core business, PETRONAS expanded its downstream capabilities to include a comprehensive range of non-fuel products and services.
This included scaling up its petrochemicals division to produce advanced materials and specialty chemicals, meeting growing global demands and fostering economic diversification.
50 years and beyond
Amidst this paradigm shift, digitalisation emerged as a transformative force within PETRONAS.
The company spearheaded advancements in digital oilfield technologies, leveraging real-time data analytics and artificial intelligence-driven insights to optimise production processes, enhance operational efficiency and minimise environmental impact.
In short, the next 50 years, and beyond, will see PETRONAS seize new growth opportunities in the areas of renewable energy, hydrogen, green mobility, specialty chemicals, carbon capture and storage (CCS), and bio-based value chain to meet the demands of a changing energy landscape.
Just as it was thrusted into the oil and gas business 50 years ago, PETRONAS now finds itself navigating unfamiliar territory once again, but it is no longer a novice and an amateur.
Today, with decades of experience, it is ready and better equipped with resources, supporting infrastructure and a strong pool of talent to invest into the next phase of energy.
As the sun sets behind the PETRONAS Twin Towers, casting a warm glow over Kuala Lumpur, it illuminates more than just the city skyline—it reveals a vision.
A vision of a future where energy is sustainable, innovation limitless and PETRONAS continues to lead with purpose, just as it had done for the past 50 extraordinary years.
For further information, visit www.petronas.com.
