A National Oil Company`s Global Championship Journey

A National Oil Company’s Global Championship Journey: Sharing by PETRONAS
Disclaimer
©2012 PETROLIAM NASIONAL BERHAD (PETRONAS)
All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means (electronic,
mechanical, photocopying, recording or otherwise) without the permission of the copyright owner. PETRONAS makes no representation or warranty,
whether expressed or implied, as to the accuracy or completeness of the facts presented. PETRONAS disclaims responsibility from any liability
arising out of
Reimagining Energy™
reliance on the contents of this publication.
1. Who we are
2. Corporate Enhancement Program (CEP)
3. The Culture survey
OUR BEGINNINGS
We were formed as the custodian & manager of Malaysia’s petroleum resources
• PETRONAS was incorporated on 17 August 1974
under the Malaysian Companies Act 1965
• Exclusive rights to explore and produce petroleum
resources within Malaysia.
1st Office in Jalan Dato’ Onn (1974)
• 100% owned by the Government of Malaysia,
PETRONAS reports directly to the Prime Minister.
• The Production Sharing Contract (PSC) scheme was
introduced in 1976 to replace the Concession
system, giving PETRONAS greater control over the
petroleum resources and its development.
Total workforce: 15 3
FINANCIAL PERFORMANCE
Ranked among the world’s top ten most profitable oil companies
BY REVENUE
Profit (USD billion)
50
44.5
BY PROFITS
68 12
41.1
40
30
20
30.9
26.9
25.7
21.9
20.1
17.1
16.3
14.1
10
0
Source : FORTUNE Global 500 July 2012
4
BUSINESS OPERATIONS
Evolved from only 8 OPU’s in 1985 to more than 200 companies and subsidiaries globally
Lubricants
Petrochemical
•
•
Exploration & Production
•
•
•
•
•
•
•
•
•
•
•
Malaysia
Algeria
Cameroon
Chad
Mauritania
Mozambique
South Sudan
Sudan
Australia
Brunei
Indonesia
•
•
•
•
•
•
•
•
•
•
•
M’sia‐Thai JDA
Myanmar
Vietnam
Turkmenistan
Uzbekistan
Cuba
Venezuela
Iraq
Oman
Canada
Egypt
Malaysia
Vietnam
•
•
•
•
•
•
•
Refineries
•
•
Malaysia
South Africa
•
•
•
•
Malaysia
Australia
Egypt
Canada
*Petrochemical, lubricants and petroleum products
Trading & Marketing*
•
•
•
•
•
•
Retail
•
•
•
LNG
China
India
Indonesia Philippines
Thailand
Europe
North & Latin America
•
•
•
•
•
Malaysia
Thailand Sudan & South Sudan
Indonesia
Philippines
Vietnam
South Africa
Sub‐Saharan Africa
India
Indonesia
Philippines
Thailand
UAE
China
Gas & Power
•
•
•
•
•
•
•
Malaysia
Indonesia
Singapore
Thailand Uzbekistan
Ireland
United Kingdom
5
5
Source : Corporate Briefing Pack
OUR JOURNEY
PETRONAS growth has been impressive since three decades ago
39,000
50
Net profit
RM billion
40
25,733
30
20
23,450
110
10
8,107
6,715
2,116
Manpower
13,136
0
1974
‘76
‘79
‘84
‘88
‘95
‘04
‘09 2010
Period of Rapid Growth
(’74‐’84)
(’84‐’88)
Business •Oil exploration • International and PSC strategy and Focus
development
•Upstream processes
new businesses (depletion of local resources)
(’88‐’95)
• Expansion of domestic downstream business
• International expansion
(’95‐’10)
(’10 ‐ Beyond)
• Global LNG
• Capability based Corporate global E&P
• Superior Enhancement performance & Program (CEP)
resilience
6
Source : A Vision Realised
OUR DNA
Our vision and mission being our DNA to deliver strong performance and geared for growth
A Global Energy Champion known for its resilience and distinctiveness
Mission
Shared Values
• We are a Business Entity
• Loyalty
• Petroleum is Our Core Business
• Integrity
• Our Primary responsibility is to develop and add value to the National Resource
• Our Objective is to Contribute to the Well Being of the People and the Nation
• Professionalism
• Cohesiveness
GLOBAL ENVIRONMENT
Becoming more challenging and complex ‐ PETRONAS must reassess its way of doing business
1
Talent crunch
Heightened uncertainty arising from geopolitical instability
Oil prices remain on elevated trend with recurring volatility
7
2
3
6
Technology Rising commodities prices 5
breakthrough and innovation
Source: PETRONAS Corporate Information and Research (CIRU); CSP
4
Costs remain stubbornly high
‘Resource Nationalism’/ Protectionism limits access to resources
8
CORPORATE ENHANCENEMT PROGRAM (CEP)
Since 2010, Corporate Transformation is imperative to meet the fast changing global environment • Ensuring greater Ownership & Accountability
• Elevating Governance & Transparency to international standards
• Focusing resources to Core Business activities
• Establishing clear and visible Succession Planning & Leadership
Development
Tan Sri Dato’ Shamsul Azhar Abbas
President & Chief Executive Officer
Dato’ Wee Yiaw Hin
Executive Vice President
Exploration & Production
Datuk Anuar Ahmad
Executive Vice President
Gas & Power
Datuk Wan Zulkiflee Wan Ariffin
Chief Operating Officer & Executive Vice President
Downstream)
Datuk Manharlal Ratilal
Executive Vice President
Finance
CEP
Structural changes begin from the very pinnacle of PETRONAS …

Reconstitution of the PETRONAS Board to drive greater strategic ownership

Establishment of Board Committees (Governance & Risk, RemCo) to elevate standards of corporate governance

Creation of EXCO to drive impactful integrated business strategies, apart from providing leadership bench & clear succession planning

Refinement of organisational structure with greater focus on core business, bottom line, portfolio management & cost discipline

More transparent practices such as quarterly financial release, announcements of plans, full Annual Report disclosures
THE IMPETUS FOR STRUCTURAL CHANGE
External volatilities compel the need to initiate real & meaningful change…
Structural changes to drive strengthened culture of behaviours that are:
Externally oriented
Empowered & accountable
Quick to make decisions
Open & candid
More risk tolerant
PETRONAS FOCUS FROM INTERNAL TO EXTERNAL VIEW
Measuring whether PETRONAS has attained HPC is strongly related to CEP & global championship
CEP
2011
2010
“PETRONAS Organisational
Culture Survey 2011”
Measures attainment of HPC
2007
PETRONAS Tracking Survey (PTS)
2003 ‐ 2008
PETRONAS Tracking Survey (PTS)
Measures mindset & behaviour
People Commitment Survey (PCS)
Measures employee commitment
• Growing external orientation
PETRONAS ORGANISATIONAL CULTURE SURVEY 2011
How do we go from good to great?
PETRONAS WAY FORWARD Our manifestation of CEP
Nonetheless, we must take cognisance of the increased scrutiny and requirement for enhanced level governance, professionalism and transparency.
During the announcement, the Canadian Prime Minister declared that further foreign takeovers by state‐owned enterprises will be found “on an exceptional basis only”. I am personally convinced that similar level of scrutiny is to become a norm. I hope we all now understand the very need to transform is no longer an empty, baseless threat. In fact, this is the very reason that compelled me to introduce the Corporate Enhancement Programme (CEP) back in 2010. Moving forward, it is our level of professionalism; together with rigorous governance and transparency which will elevate PETRONAS global standing, thereby the ability to successfully secure future opportunities. Tan Sri Dato’ Shamsul Azhar Abbas
Intranet announcement on PETRONAS’ acquisition of Canada’s Progress Energy, 11 Dec 2012
Thank You
HRT Observable Characteristics1: Mindsets & Behaviours
CEP expectations:
•
Externally oriented
•
Empowered and
accountable
•
Quick to make decisions
•
Open and candid and
•
More risk tolerant
Mindset
Behaviour
Traits (CCR)
HPC
Measurement
EVP
• Drive global vision and direction • Maximise business opportunities • Build business partnerships
CCR = Credible (HR Brand)
• Commit to learning and development • Strengthen interpersonal effectiveness CHRO
HR Professionals
Market Focus
Cohesive
• Customer & ness
Employee Satisfaction Index
Partner “Mindset”
Adaptable1
Reliable
Proactive1
Agile1
Enabler1
“Mindset”
Solution –
Provider1
Competent
Compassion
Operational Excellence
Shared Values “Empowered within Boundaries1”
• Lead change and innovation • Demonstrate professionalism and expertise • Get results • Foster collaboration and teamwork Shareholder Value
Loyalty
• POCS
Consistent People Practices Leadership Behaviour
Competencies
Integrity
• Vacancy Management
• Capability Professio
Development nalism
• Succession Planning
Organisational
Learning
• Competency level
HR Corporate House is anchored along the 6 Imperatives supported
by the Triple Plus elements, and the Enhanced HR Operating Model
Strategic Enabler and
Partner to the
Business
HR Vision
Key
Strategic
Thrusts
HR
Imperatives
Global workforce
management
Rapid
Global
Talent
Sourcing
Attraction and
retention of talents
Global
Workforce &
Leadership
Mobility
Differentiated
Workforce
Flexible
Employee
Benefits
Partner/ service
the business
Customercentric
Employee
Experience
Empowered Leaders with Clear Ownership and Accountability
Triple Plus
Business Savvy with Excellent Competencies to Deliver Value
Performance Driven Culture and Customer-Focused Mindset
Enhanced HR Operating Model
Global HR
Shared
Services
Enhanced HR Operating Model
Strategy
(COE)
Performance
Enhancement
(COE and BU/OPU
Partners)
Transactions &
Administration
(BU/OPU Partners)
Shared
Services
Center
CHRO and
End User
Corporate Enhancement Program (CEP)
The diversity of the Board and establishment of Board Committees seek to elevate standards of corporate governance
Tan Sri Dato’ Shamsul Azhar Abbas
President & Chief Executive Officer
Tan Sri Dr Wan Abdul Aziz
Wan Abdullah
Non Independent
Non Executive Director
Tan Sri Dato’ Seri Hj
Megat Najmuddin
Datuk Seri Dr Hj Megat Khas
Independent Non Executive Director,
Chairman of the PETRONAS Board
Governance & Risk Committee
Datin Yap Siew Bee
Datuk Muhammad Ibrahim Datuk Anuar Ahmad
Non Independent
Executive Director
Non Executive Director
Tan Sri Mohd Sidek Hassan
Chairman of the Board
Dato’ Wee Yiaw Hin
Executive Director
Independent Non Executive Director,
Chairperson of the PETRONAS
Remuneration Committee
Datuk Wan Zulkiflee
Wan Ariffin
Executive Director
Tan Sri Amirsham A Aziz
Independent Non Executive Director
Dato’ Mohamad Idris Mansor
Independent Non Executive Director
Krishnan CK Menon, FCA
Datuk Manharlal Ratilal
Datuk Mohd Omar Mustapha
Independent Non Executive Director Independent Non Executive Director, Executive Director
Chairman of the PETRONAS Board
Puan Faridah Haris Hamid
Audit Committee
Company Secretary
Encik Abdul Rahman Musa Joint Company Secretary
19