Sunday, June 22, 2008

Petronas Bashing


I have always tried to be frank on business issues. I have no problem highlighting business missteps and poor business decisions and strategy.

Over the last two weeks, following the hike in fuel prices in Malaysia, there has been a lot of public anger and frustration looking for the right punching-bag. Petronas is now a prime target for the general public and political opposition to focus their venom at.

Is it fair? Has Petronas been badly managed? If they had been poorly run, then yes, bash away. Let’s be clear. Don’t whack first and then ask questions later.

Petronas has always published solid annual reports in accordance to international accounting standards and reporting requirements. It’s all there on their website. The information provided is deemed sufficient to raise billions of dollars from international banks. Or else, banks will not be lining up to provide credit to the corporation.

So far, it appears that what most of the criticisms have been focused on are the “additional information” – do they have planes?; how much do they spend on the philharmonic orchestra?; and what’s the senior executives pay? – to name a few.

We have to remember that how much they pay to the government is not determined by Petronas. It’s decided by the government. Hence if you want to attack Petronas, it ought to be on how well they manage the operations, and did they fritter away funds at unnecessary expenses.

Whether the funds had been deployed properly by the government is a separate issue and that does not involve Petronas.

Let’s get the nitty-gritty out of the way.

Executive planes – even if they have it, it’s a necessary business investment for a company like Petronas. Petronas is not a Malaysian oilfield business entity but has operations in over 30 countries. Its not like the executives are flying to LA to buy art or visit their second home.

Philharmonic orchestra – If Petronas had not invested, we would not have a world class concert hall and an orchestra that is of international standards. Should we even have a world class concert hall? That’s like asking if we need to have good museums.

If we had a few great concert halls and a half decent orchestra that is of international standards, then yes, Petronas would have been throwing funds at superfluous needs.

Some critics scoffed when they heard that members of the orchestra are paid between RM20,000 to RM30,000 a month, and the majority of them are foreigners. When building something of international stature, then international benchmarks (which includes salaries) will have to be used to draw them in.

Then you ask, “Why so many foreigners?” One would be naive to think that we can start an international standard orchestra dominated by Malaysians. This is not another Malaysia Boleh project.

The idea is to get the best from abroad and hope that by doing that, we can groom Malaysians in their footsteps. Think of it as a grand CSR project.

That’s pretty good but revenue and profit are still not good enough. I would look at return on capital employed as that shows how effectively the company has invested – 2003: 25.6%; 2004: 28.7%; 2005: 38.5%; 2006: 41.6%; 2007: 40.9%. The figures should speak for themselves.

To the general public, it may appear as if Petronas is staffed by fat cats sitting around twiddling their thumbs, signing joint ventures with foreign big oil companies to drill for oil in Malaysian waters. They pump, we sell – surely its easy money. If Petronas had done just that, we would have been a net importer long ago.

Petronas had reinvested well, with solid operations in Turkmenistan, Egypt, Cuba, Chad, Vietnam, to name a few. Petronas is to these countries, what Shell and Exxon are to Malaysia.

Petronas has generated total profits of RM570bil since formation in 1974 to last year, of which RM335.7bil had been given to the Government (in taxes, royalties and dividends). Effectively, that’s a 58% tax on Petronas’ profits.

The other often cited criticism is how other oil producing nations can still maintain selling fuel at deeply subsidised rates to their people. Why can’t Malaysia do that anymore? Answer – it’s a simple maths equation which has not been properly communicated.

It depends on the ratio of total net export to domestic consumption. If it’s 1:2 it means if we consume 1 million barrels, we are net exporting 500,000 barrels, which is not a lot of net exports. Some countries have a ratio of 5:1 which is to say they may be consuming 1 million barrels but they are net exporting 5 million barrels. Suffice to say, some countries benefit a little but some benefit enormously. Malaysia is at the shorter end of the curve.

The second and more important reason has to do with tax.

As shown from the table above, the effective tax rate is between 40%, and 58% if you include special dividends and royalties. If Malaysia subsidises 35% of the real price of oil, then we would NEVER have to remove the subsidy because what the government gets from oil tax will always be greater than the subsidy amount. But we all know that we subsidise a lot more than 35%, maybe 60%-70%.

Collectively the government has taken a 58% cut of Petronas’ profits. Not all of that goes to subsidy as the funds need to be diverted to other expenditures.

The government could have preempted the problem by having a graduated tax scale. For example: for amounts up to US$40, impose a 60% tax on profits; amounts from US$41 - US$80 impose a 70% tax; and amounts more than US$81 impose an 80% tax. That way, your subsidy should always be handily covered.

If oil stays at US$150, a lot more reinvestment will have to be done to dig deeper and it will incur more capital deployment to use more expensive equipment and technology for oil. Higher price of oil means the low hanging fruits have been mostly harvested. To find more oil now requires getting to the more difficult locations and methods.

To keep subsidy on would mean whacking Petronas with a bigger windfall tax stick, but at the same time reducing its ability to invest properly in its global business.

The other thing critics cry foul at is in relation to executive compensation. My guess is that the top guys get fetch salaries in the region of RM1mil - RM6mil a year. Before you get all knotty about those figures, it is fair to say that they are still underpaid compared to their peers in the industry.

Petronas Malaysia is by and large regarded as one of the best managed companies in the industry.

And yes, it can improve its disclosure. The people deserve that. There is room for improvement with regard to disclosures on executive compensation, justifications for special projects and events (e.g. F1, Monsoon Cup, Cyberjaya, etc.), actual deployment of funds into petro-related projects, including cost, joint venture terms, payback calculations, return on capital deployed, success rate and so forth.

At the end of the day, the people need to be clear on how RM234.3bil (retained profits) had been spent through the years. It’s just a matter of coming clean if you have nothing to hide.

But don’t make the mistake of interchanging Petronas with the Government. The uprising criticisms against Petronas Malaysia is largely misdirected. Aim your arrows elsewhere.

p/s photo: Deanna Yusoff


8 comments:

jayam88 said...

dear mr s dali.

THINGS HAPPEN NOT WITHOUT A REASON OR TWO!

PETRONAS BASHING IS ORCHESTRATED.

THE TARGET IS NOT PETRONAS. THATS WHAT THEY WANT EVERYBODY TO THINK.

THE TARGET IS TAN SRI HASSAN MARICAN, PRESIDENT CEO OF PETRONAS.

BEFORE I ANSWER YOUR QUESTION WHY, LET ME TAKE YOUR BACK A FEW YEARS.

IMMEDIATELY AFTER PAK LAH TOOK OVER FROM DR.M AS PM ON 31.10.2003, A SMALL CONSULTING FIRM NAMED BINA FIKIR WAS INVITED TO MAKE A PRESENTATION TO PAK LAH TO PRESENT THEIR VIEWS OF MALAYSIAN ECONOMIC SITUATION BACK THEN. SUBSEQUENT EVENTS LEAD TO ANOTHER SOON THEY WERE MEETING EVERY OTHER DAY, OF COURSE ALL THESE WITH THE HELP FROM KJ, PM SON-IN-LAW. THERE WERE SO MANY PROPOSALS FROM BINA FIKIR THAT EVEN THE GOVERNMENT SENIOR OFFICERS JUST COULD'T KEEP UP. MEANWHILE, A PLAN WAS HATCHED TO TELL THE MALAYSIAN THAT THERE IS NO MORE MONEY IN TREASURY SO ALL PROJECTS ARE HALTED INCLUDING DOUBLE-TRACKING, SINGAPORE CROOKED BRIDGE AND MANY MANY MORE!

BUT PAK LAH TELLS MALAYSIAN THAT AN ACTION PLAN IS IN PLACE AS HE CALL FOR ELECTION IN MARCH 2004.

MR. CLEAN WON THE ELECTION IN 2004 BY BREAKING RECORDS FOR UMNO AS WELL AS BARISAN.

EARLIER NEWSPAPER REPORT WAS FOCUSING ON KHAZANAH NASIONAL BERHAD PERFORMANCE AND AFTER SEVERAL COLLECTIVE COMMENTS ON KHAZANAH, PAK LAH ANNOUNCED THAT THE MD, DATUK ANWAR AJI, OF KHAZANAH IS TO BE REPLACED BY AZMAN MOKHTAR ON JUNE 1 2004, BARELY 2 MONTHS AFTER ELECTION.

AZMAN WAS THE BRAIN AND MD OF BINA FIKIR.

DATUK ANWAR WAS GIVEN CHAIRMAN OF FABER GROUP BERHAD.

IT WAS PLANNED SO WELL THAT PEOPLE HARDLY NOTICED.

KJ WAS SUCCESSFUL IN PLANTING HIS PEOPLE AT KHAZANAH NASIONAL BERHAD AND NOW HAVE ACCESS TO ALL THE ASSETS OF KHAZANAH.

KHAZANAH PASSIVE POLICY ON ITS INVESTMENTS WERE CHANGED ALMOST OVERNIGHT.

THEY WERE ALLOWED TO USED THEIR ASSETS AS SECURITIES TO RAISE MONIES FOR INVESTMENTS OVERSEAS.

INVEST THEY DID INTO THE BILLIONS OF RINGGIT THRU CERTAIN INVESTMENT ADVISORS WHICH MAKES TONS ON AVISORY SERVICES.

PERSONAL GREED IS DIFFICULT TO SATISFY!

PETRONAS IS BY FAR THE RICHEST COMPANY AND MOST PROFITABLE IN MALAYSIA.

PETRONAS HAS WON SEVERAL ACCOLADES AS THE BEST MANAGED COMPANY TOO.

AND TAN SRI HASSAN MARICAN IS A TOUGH NUT TO CRACK.

TO REPLACE HASSAN IS NOT AN EASY TASKS.

SO WHEN THE OPPORTUNITY COMES, KJ & CO TOOK FULL ADVANTAGE TO BASH PETRONAS.

USING MASS MEDIA WHICH HE CONTROLS, USING MANY BLOOGERS TO PLANT HATE MAILS INTO VARIOUS LOCAL SITES AND EVEN TO THE EXTENT OF SPREADING SMSes SENT NATIONWIDE TO BOYCOTT PETRONAS STATIONS AND PRODUCTS, HE IS SEEING THE DESIRED RESULTS.

HE FURTHER ATTACK PETRONAS FOR NOT BEING TRANSPARENT IN THE ANNUAL ACCOUNTS, WHICH IS STRANGE BECAUSE KHAZANAH NASIONAL DO NOT EVEN PUBLISH ITS ANNUAL ACCOUNT. IT IS PETRONAS IS BEING BASHED.

TAN SRI HASSAN CAME OUT DEFENDING PETRONAS SAYING ACCOUNTS ARE AVAILABLE, ONLY CERTAIN PEOPLE REFUSES READ IT!

NEVER BEFORE HAS TAN HASSAN HAVE TO COME DEFEND HIMSELF. DEFEND HE DID, HE TRIED, BUT HASSAN DO NOT HAVE THE POWER KJ HAS.

SILLY ALLEGATIONS WERE THROWN AT PETRONAS ALL WITH EVIL INTENTION TO MAKE PEOPLE ANGRY AT HASSAN FOR THE FUEL HIKE WHICH WAS ACTUALLY A GOVERNMENT DECISION.

THE MODUS OPERANDI WAS SIMILAR TO KHAZANAH NASIONAL, BUT PETRONAS SEEM MORE DIFFICULT.

MORE ATTEMPTS TO UNSEAT HASSAN WILL BE PLAN BY THESE GREEDY PEOPLE, AND ALL THEY NEED IS A WRONG MOVE BY HASSAN. SO FAR HE HAS DONE NONE OF IT.

ONCE THEY WIN, THEY WILL REPLACE HASSAN WITH THEIR OWN PEOPLE AND PETRONAS MONEY (OUR MONEY) WILL BE AT THEIR DISPOSAL!

SOME ONE MUST STOP THESE CULPRITS. AND DON'T SAY I DID NOT FOREWARN YOU.

BARBARIAN AT THE GATES OF PETRONAS!

JAMILMALIK88

Petrol said...

The word "subsidy" has been brandished by the BN government as if it has so generously helped the rakyat and in doing so incurred losses. This simple example will help to clarify the situation:

Example:
Ahmad is a fisherman. He sells a fish to you at $10 which is below the market value of $15. Let's assume that he caught the fish from the abundance of the sea at little or no cost. Ahmad claims that since the market value of the fish is $15 and he sold you the fish for $10, he had subsidised you $5 and therefore made a loss of $5.

Question : Did Ahmad actually make a profit of $10 or loss of $5 which he claimed is the subsidy?

Answer:
Ahmad makes a profit of $10 which is the difference of the selling price ($10) minus the cost price ($0 since the fish was caught from the abundance of the sea). There is no subsidy as claimed by Ahmad.

Had Ahmad not caught the fish himself but purchased it from another person at the market price ($15), then he is right in claiming that he had made a loss of $5 (Selling price $10 –cost $15) which is the amount of the subsidy.


The BN government claims that it is a subsidy because the oil produced by Petronas is kept separated and treated as somebody else's property (you know who). By right, the oil belongs to all citizens of the country and the government is a trustee for the citizens. So as in the above simple
example, the BN government cannot claim that it has subsidised the
citizens!

Letting the time pass me by said...

Petronas is not the one to blame.. it is the government who raise the oil price..

Pipop said...

There you are, Dali you are right. We need a fair view as well. Partly Malaysian is bashing of of their "periuk nasi" without realising it.

I'm not pro govt or opposition, no matter what, Malaysian, the promise of continuous subsidy is an empty promise. Opposition, please tell us exactly how you are going to do it?

One thing I'm sure, Petronas is a Fortune 500 company. But its top management is unfairly paid compared to what the company has achieved!

So, maybe now is the time for government to tell the rakyat where the RM200+ BILLION goes?

Gary said...

Is it fair to bash Petronas? I’m really disappointed with this article by you Dali. Let me ask you this Is it fair NOT to bash Petronas? I can understand your argument on Petronas from a business entity perspective but don’t forget that Petronas is not an ordinary company. It is linked to the government under the Petroleum Act and you can’t just analyze it solely on its own . They are just like Siamese twins and you can’t separate one without having a significant impact on the other. Remember that the person with highest authority over Petronas is not its chairman or board of directors but the Prime Minister of Malaysia.
Lets look at Petronas from your context .ie as a business entity…you are full of praises for Petronas and I can’t help but wonder whether you are paid indirectly to write this article. Were you told to write an article on Petronas by the Star ? Hope you don’t look at this too negatively and start attacking me with all the four letters words. OK.back to Petronas as a business entity….lets look at some of your arguments or rather your praises. Philharmonic orchestra…. your reasons to justify the establishment of this orchestra is laughable and silly. Dali,let me ask you this question… What does having a world class hall and International standard orchestra have in common with the Angkasawan project ? Both are world class and of international standard but when you have 96% of the orchestra composition from foreign countries its nothing to shout about.Just like the angkasawan project ,its not Malaysia Boleh, its Malaysian Ringgit Boleh.Its still foreign technology and for the orchestra its still foreign talents. Now you are saying that with the setting up of this orchestra we can hope to groom malaysian in their footsteps…doesn’t this argument or hope is what the people responsible for the angkasawan project is trying to feed us? Its all BS and it’s a waste of money ,orchestra=500mil.angkasawan = 200mil ,can you accept this? Now if you argue from the perspective of investment for publicity purposes,I still can accept it but not this HOPE thingy please lar Dali.
The reality is that the orchestra is an elitist extravaganza by Petronas which has no real desire to 'Malaysianise' the orchestra. They have toured China and Australia at enormous expense without any apparent realisation that having a European conductor conducting an orchestra called Malaysian with a 4% Malaysian participation is a national disgrace and insults the intelligence of the Chinese and Australians.
Petronas should take a leaf out of the Singapore Symphony Orchestra's book. Its musicians are mainly Asian and they perform Western music to high standards. They even have a recording contract with the respected Swedish recording company BIS. The Singapore government did not fund the orchestra at its inception. It was formed primarily by local classical music lovers who raised funds individually and through business sponsorship.
Such is the nature of Petronas' fiscal responsibility in a time of economic uncertainty and containment. The idea that a country of 25 million people which has the Twin Towers and has sent a Malaysian into space cannot produce a choir of sufficient standard to sing with the Malaysian Philharmonic Orchestra is nothing short of a national insult and tragedy.
Executive planes…why can’t they fly MAS ? Why can’t they support our own national carrier ? Don’t you think it’s a better corporate responsibility? When some government agencies are encouraging VIPs to use Proton as the official car instead of BMW or Merz,why can’t they at least fly with our local carrier? Next ,how many planes do they have ? Is it more than one? The cost of maintaining theses planes are not cheap and how sure are you that they are not using the planes for their own personal trips? I really have doubts that they are that noble to use the planes just for business trips. In this current inflationary situation ,the government is asking all Malaysian to help reduce wastages by conserving energy and cut down on unnecessary expenses. Now, using a private jet to fly just a few executives to certain destinations is not exactly leading by example is it? Or is it because they have so much oil that they can afford to waste?
On the ratio of net export to local consumption …Malaysia export 700,00bpd of oil and imports about 300,000bpd of heavier crude and also 80,000bpd of petrol. Now the rough estimates will be a ratio of 2 : 1 and not forgetting that we still export diesels also. Now ,on a ratio of 2:1, how do we stand out in comparison to the other oil exporting countries? Not bad I presume, but that’s not the issue,the issue is if by your argument that we are tiny exporter in comparison to others then why the hell are we spending as if we are like them. Planes,orchestra ,F1 …do other oil exporting countires have all of these? If they have, must we follow their footsteps…and forget the fact that we are just a small exporter.
On their remunerations…no objection there but in difficult times like now they should not increase their salary too much just like what Khazanah did…the rakyat will curse them like hell. I’m a firm believer that if you perform well then you should be rewarded accordingly.
Next you are talking about subsidies…Petronas, don’t give any subsidy it’s the government that is giving out the subsidies…and you are also linking both of them together on this issue. . As I said they are inseparable. Note that the government actually started subsidizing a little bit from 2004 and their highest subsidy will be from 2007 onwards but with the recent hike in petrol price the actual subsidies borne by the government is not much . Now, whats wrong with whacking Petronas with higher windfall tax ? Oil price have quadruple and Petronas is making hell a lot of money from this . If its OK to impose a 30% windfall tax on the planters,why is it not appropriate to impose additional taxes on Petronas? CPO price only double in comparison to oil that quadruple..so where is the logic? Can you explain this to the planters and IPP’s and who knows other sector that might be slap with the windfall tax on their windfall profits? I’m not saying they should give all of their profits to the government but in difficult times like this some adjustments can be made to ease the burdens of the rakyat. Its not as if by giving a little bit more they will not have extra funds to seek out new explorations. Just look at their profits and as Seng pointed out it is even higher then the profits of all the KLCI counters added up. Will allocating extra 5bil kill them or cripple them?

My conclusion…If Petronas comes out with innovative products such as a cure for cancer or Aids and they earn billions,I would not say a single word if they don’t contribute to the nations because its their prerogative.Simmilarly with the planters,they invested billions on cultivating palm trees and now they’re reaping what they sow, and its ok if they are selfish. But Petronas is profiting from the country natural resources which rightfully belongs to every Malaysian and it is the only right and proper thing to do by contributing back to the rakyat. They have ventured abroad but majority of their reserves is still from Malaysia..which accounts for over 70% of its current reserves. I’m not saying they should subsidize fully the fuel but come on,a 40% and 63% hike in petrol and diesel price respectively is too much of a burden to the rakyat which will be further burdened by other increases due to the rising inflationary pressure from this crazy hike in fuel price. Yes,its government policies but if Petronas were to chip in a bit more the situation will not be that bad. If Malaysian in general are well off I don’t give a shit what they do with their income but there are so many living below the poverty line ,last I checked it was 30% and here they are spending money on philharmonic orchestra,ptivate jets,F1, monsoon cup,putrajaya,cyberjaya,bailing out troubled GLC . The point I’m trying to say here is they don’t know how to prioritize, I’m not against having world class infrastructure or orchestra but is our country that rich that we can afford all of these things or more importantly are the Malaysian in general able to lead a decent life? Many are suffering now and crime rates are increasing and ppl are finding it hard to even provide meals for their love ones and why can’t Petronas concentrate something along this poverty eradication line? It damn good publicity too in my opinion and our natural resources belongs very much to them too and not just to Petronas or the government (who are merely just a custodian of our country natural resources) who has fail miserably in providing for the poors in this country. Do you know that if you happen to discover oil beneath your house ,it still belongs to governments and the rakyat? Even if you strike gold it still doesn’t belongs to you. Artifact discovered does not belongs to the discoverer but must be return to the government to display at museum for the rakyat to see . So oil discovered in malaysia does not belongs to Petronas but to all Malaysian.

Starter

Starter said...

Hi Dali,
Please allow me to clarify why I have the perception that you are paid indirectly to write the article about Petronas. Remember Dali,its just a perception and I’m not accusing that you’re guilty in the first place ,that is why I phrased it as a question and you didn’t exactly answered it yet. Haha!!! Firstly, its known facts that you’re paid by theStar to write articles in Saturday Starbiz,and theStar could possibly be told by certain top ppl to write an article about Petronas and you might be the vehicle they choose to satisfy their goal. Again its just a perception and I could be dead wrong on this but does it means I should just keep quiet about it? Secondly, most of the points or facts raise by you are positively biased towards Petronas,for an article to be credible in nature it should consist of a balance views of positive and negative elements. Its just sound too onesided to me as I believe even the best company in the world has its flaws. Just my perception again. Finally,I would like to apologise to you if I’ve sounded too critical and drawn some crazy conclusion about your participation in this article.

Still have some points to add about Petronas.

Petronas had generated a total profit of RM570bil since its formation in 1974 to last year, of which RM335.7bil had been given to the Government (in taxes, royalties and dividends) as revealed by Hassan, Petronas had not explained how the remaining RM55.4bil had been spent after a reinvestment of RM178.9bil of its profits. We currently among the lowest in the world in term of reserves . Hassan Marican's statement that the national oil corporation could go bust by 2018 , did they reinvest well?


UAE
population = 4,380,000
oil reserve = 97 billion barrels
production rate = 2.5 million barrels per day
Reserve life = 107 years

Kuwait
population = 2,851,000
oil reserve = 99 billion barrels
production rate = 2.5 million barrels per day
Reserve life = 108 years

Saudi Arabia
population = 24,735,000
oil reserve = 260 billion barrels
production rate = 8.8 million barrels per day
reserve life = 81 years

Iran
population = 71,208,000
oil reserve = 136 billion barrels
production rate = 3.9 million barrels per day
reserve life = 74 years

Nigeria
population = 148,093,000
oil reserve = 36.2 billion barrels
production rate = 2.3 million barrels per day
reserve life = 43 years

Venezuela
population = 27,877,000
oil reserve = 80 billion barrels
production rate = 2.4 million barrels per day
reserve life = 91 years

Malaysia
population = 27,452,091
oil reserve = 4.8 billion barrels
production rate = 550,000 barrels per day
reserve life = 33 years

Data ontained from EIA shows that last year Petronas contributed 52.3bil to the government when the average crude price was at USD64.20 Average crude price this year,lets assume its only USD 110…as such Petronas contribution this year will be around = 89.6bil. Now my question is…if Petronas is expected to contribute almost 90bil to the government this year and the actual subsidy estimated by Sharir is around 30bil if the fuel price is not increased, why is it that the government still needs to remove the subsidies? The government will still have about 60bil which is more then last year. Last year contribution was 52.3bil but the subsidy was 8.8bil.,so net subsidy, the government still have 43.5bil (last year) This year the net contribution from Petronas should be 60 bil without subsidy and 90bil – 4bil (current subsidies) = 86bil with partial subsidies. So WHY ! must they take away the subsidies? My take is that Petronas does not generate that much income for the government and I’m not surprise one day Petronas will end up like Pertamina ,being milked dry by the government. There are also rumours that Petronas sold its crude in advanced at a lower rate to Japan with contracts lasting a few decades. I just couldn’t understand why the government needs to take away the subsidy if they have higher contributions from Petronas this year.


Dali,Petronas might look good from the outside but I have this suspicion that its rotten from inside. I could be wrong too but unless you can provide a better answer to justify the need for the government to increase our fuel price I still do not think that Petronas is a well managed company.


Lastly, my apologies again if I have offended you and hope you will not take my constructive criticism too negatively. Your reasoning on the MPO is still difficult to accept but I can respect your views and hopefully you can respect mine too even. Cheers brader !!

Salvatore_Dali said...

starter,

u r comparing our wonderful malaysia with every single OPEC country.... we r not even invited to look see at OPEC...?? Its like comparin g Malaysian baseball team with the World Series countries??

What gives man??? YOu should compare with countries with same sort of reserves level, and maybe same population... otherwise its silly to compare. How to compare GM to Proton?

msApple said...

dear starter,

just looking at the info u provided is just clear enough. while UAE has production rate = 2.5 million barrels per day and us, the good malaysia has production rate = 550,000 barrels per day is like comparing kasut Bata to Kasut Prada...

570B profit in 33 years and 336B was given back to Government.. we should not question PETRONAS... instead we have to ask our dera government 'mn pergi semua duit itu'...

anyway ini adalah my 2cents. and thanks mr. Dali to help clarify things for our dear PETRONAS. =)