Petronas

Stock performance

History

Petronas was established as Malaysia's wholly state-owned national oil company, given exclusive ownership and control over the country's oil and gas resources under Malaysian petroleum law, a structure designed to ensure resource wealth stayed under national rather than foreign-company control. It built the Petronas Twin Towers in Kuala Lumpur, the tallest twin buildings in the world, as a visible symbol of Malaysian economic ambition during the 1990s.

Business model

Petronas explores for, produces, and sells oil and natural gas both domestically and internationally, with a globally significant liquefied natural gas (LNG) export business, and channels substantial dividends directly into the Malaysian federal government budget, making it one of the primary sources of national fiscal revenue.

Market position

Petronas is one of the largest state oil companies in the world and a major global LNG exporter, with international upstream operations extending well beyond Malaysia into other oil and gas basins worldwide, giving it a more internationally diversified footprint than many other national oil companies.

Country impact

Petronas is the single most important company in Malaysia's economy, historically providing a very large share of Malaysian government revenue, and its financial health and dividend payments are treated as central to Malaysian fiscal policy and public spending capacity.