PETROLIAM Nasional Bhd (Petronas) is looking to keep its capital expenditure at RM40 to RM45 billion per annum over the next five years.

President Tengku Muhammad Taufik Aziz said the plan is to spend 55% of the allocation domestically and the remainder abroad.

Tengku Taufik reasoned higher domestic investment will achieve the aim of getting the best value for the group’s money.

This also helps the group fulfil its commitment to de-risk its cash flow generation and at the same time ensure the domestic oil and gas sector remains vibrant.

Petronas will increase its capex for renewable energy to 9% in 2021.

 “This is a marked increase compared to the 5% allocation announced last year, signalling our intensified commitment to net zero carbon emissions by 2050,” he said in a press conference.

He said in addition to the availability of new technology for renewable energy, there is growing consumer preference for it, especially in Europe.

“Second, legislation is pushing towards this as there is a lot more acceptance on the impact that has come to human civilisation,” he said.

“Climate action has gained traction even in emerging markets,” he said while adding that a policy shift was imminent if it has already not happened.

He added that the group has very little choice and will have to make measured and careful steps towards this end.

However, he said oil and gas will continue to constitute about half of the world’s energy mix for the next two to three decades, giving Petronas time to transition to the renewable sector. – February 26, 2021.