Petronas plans to cut spending

Malaysian-state owned oil company Petronas plans to cut its spending by RM 50 billion (US$11.4 billion) to cope with the oil price slump.

Petronas made its announcement in an internal memo. A copy of the memo was seen by Reuters.

“We will go through another round of CAPEX (capital expenditure) and OPEX (operating expenditure) review to target cuts up to RM50 billion over the next four years. This means that we are going to have to defer some of our projects,” CEO Wan Zulkiflee Wan Ariffin said in the memo dated Monday.

“We have also made a strategic decision to begin a review of Petronas’ business operating model for better efficiency in response to the external environment,” Wan Zulkiflee said in the memo. The cute will affect contract jobs and non-core business, he continued.

Petronas confirmed they released the internal memo and said that more information will be released in due time.