Petroliam Nasional Berhad (PETRONAS) is Malaysia’s national oil and gas company and one of Southeast Asia’s most prominent energy corporations. Established in 1974, PETRONAS was created to manage and develop Malaysia’s petroleum resources. Over the following five decades, it evolved from a domestic national oil company into a globally integrated energy group involved in upstream oil and gas, LNG, refining, petrochemicals, marketing, lubricants, shipping, and newer lower-carbon energy businesses.1

Its name, PETRONAS, is derived from Petroliam Nasional Berhad. The company is wholly owned by the Government of Malaysia and has a distinctive role in the country’s economy and energy security. Under the Petroleum Development Act 1974, PETRONAS is entrusted with ownership and exclusive rights over Malaysia’s petroleum resources.

PETRONAS describes itself today as a global energy and solutions partner, rather than simply an oil company.

1974 — Foundation

PETRONAS was established on 17 August 1974, following the enactment of the Petroleum Development Act 1974.

Its creation came during a period when Malaysia was increasingly focused on gaining greater national control over its petroleum resources, particularly following the global oil crisis of the early 1970s. Rather than simply allowing international oil companies to control the country’s resources, Malaysia established a national petroleum corporation to manage them.

PETRONAS started extremely small. Its own historical account describes its early organisation as having only around 15 employees and two telephone lines, while contemporary historical records describe an initial workforce of roughly 18 people.

The company’s first headquarters were in Kuala Lumpur.

1976 — Production Sharing Contracts

One of PETRONAS’s most important early developments was the adoption of the Production Sharing Contract (PSC) model.

Rather than simply granting conventional concessions to oil companies, PETRONAS developed a system in which international and domestic operators could participate in exploration and production while PETRONAS retained a central role in managing Malaysia’s petroleum resources.

This model subsequently became an important feature of Malaysia’s petroleum industry and contributed to PETRONAS’s transformation into an international energy company.

1978 — PETRONAS Carigali

In 1978, PETRONAS established PETRONAS Carigali Sdn. Bhd., its principal exploration and production arm.

This was important because PETRONAS was no longer merely administering petroleum resources—it was developing its own technical and operational capabilities in exploration and production.

During the 1980s, PETRONAS expanded rapidly throughout Malaysia.

Major developments included:

• Discovery and development of offshore oil and gas fields.
• Development of Malaysia’s natural-gas infrastructure.
• Construction of the Peninsular Gas Utilisation (PGU) pipeline system.
• Expansion into petroleum refining.
• Development of petrochemical businesses.
• Establishment of a nationwide PETRONAS petrol-station network.
• Growth of Malaysia’s LNG industry.

PETRONAS also began exporting LNG to international customers, particularly in East Asia. Its first LNG cargo shipment to Japan became an important milestone in its internationalisation. PETRONAS says it has subsequently delivered more than 13,000 LNG cargoes, primarily to customers in Japan, China and Korea.

One of PETRONAS’s defining characteristics is vertical integration.

A simplified petroleum company might specialise in only one area—for example, exploration or refining. PETRONAS instead developed capabilities across much of the energy value chain:

Exploration → Production → Gas processing → LNG → Refining → Petrochemicals → Fuel distribution → Trading → Customers

This integration allowed PETRONAS to capture value at multiple stages of the energy industry.

Today, its portfolio covers conventional oil and gas as well as petrochemicals, fuels, lubricants and emerging cleaner-energy businesses.

PETRONAS began expanding outside Malaysia in the late 1980s and 1990s.

Its international activities eventually included exploration and production projects in countries across Asia, the Middle East, Africa and the Americas, making it one of the more internationally active national oil companies.

An early major international success came from upstream operations in Vietnam. PETRONAS subsequently expanded its international upstream portfolio significantly.

This internationalisation was strategically important: Malaysia’s domestic petroleum reserves are finite, so developing overseas resources gave PETRONAS another source of production, expertise and revenue.

PETRONAS has evolved considerably from the company founded in 1974.

The company now describes itself as a global energy company providing energy and solutions around the world. Its activities extend from traditional hydrocarbons to cleaner-energy solutions and decarbonisation technologies.

Its major areas can broadly be divided into:

Upstream

This covers the exploration, development and production of:

• Crude oil
• Natural gas
• Condensates

PETRONAS conducts upstream operations both in Malaysia and internationally.

Gas and LNG

Natural gas is one of PETRONAS’s major strengths.

The company participates in:

• Gas exploration and production
• Gas processing
• Gas transportation
• LNG production
• LNG trading and marketing

PETRONAS’s LNG activities have made Malaysia an important participant in the Asian natural-gas market.

Refining and Petroleum Products

PETRONAS operates in downstream oil activities, including:

• Refining
• Fuel production
• Petroleum marketing
• Retail fuel stations
• Aviation fuel
• Commercial fuels
• Lubricants

Petrochemicals

PETRONAS has developed a substantial petrochemicals business producing materials used in industries such as:

• Plastics
• Packaging
• Automotive
• Construction
• Electronics
• Healthcare
• Consumer products

This helps the company capture additional value from hydrocarbons rather than simply selling crude oil and natural gas.

Trading and Marketing

PETRONAS also participates in international energy trading, allowing it to connect its production portfolio with customers around the world.

PETRONAS occupies a particularly unusual position in Malaysia.

It is simultaneously:

1. A commercial corporation
2. Malaysia’s national oil company
3. The custodian of Malaysia’s petroleum resources
4. A major contributor to government finances
5. A major participant in national energy security

Under the Petroleum Development Act 1974, PETRONAS has the ownership and exclusive rights to explore, exploit, win and obtain Malaysia’s hydrocarbon resources.

This makes PETRONAS different from an ordinary publicly listed oil company.

Its relationship with the Malaysian government is therefore fundamental to understanding the company.

PETRONAS has historically been one of the most important contributors to Malaysia’s public finances.

Its contributions can come through mechanisms including:

• Dividends
• Taxes
• Royalties
• Duties
• Other payments associated with its operations

Because of this, PETRONAS’s financial performance has consequences beyond the company itself.

When oil and gas prices are high, PETRONAS can generate very substantial earnings. Conversely, falling commodity prices can significantly reduce its revenue and profits.

PETRONAS remains a very large corporation by global standards.

For financial year 2025, PETRONAS reported:2

Revenue fell 17% from 2024, while profit after tax declined 18%, reflecting factors including lower realised prices, lower sales volumes, foreign-exchange effects and the divestment of Engen Group.

PETRONAS is one of the most recognisable Malaysian brands internationally.

Its branding is particularly distinctive because of its emerald-green colour and geometric logo.

The original PETRONAS logo was introduced in 1974. According to PETRONAS, its symbolism includes:3

• Emerald green — the sea and land from which the energy business originates.
• White — trust and integrity.
• Continuous line — continuous pursuit of innovation and progress.
• Triangle — movement toward the future and the relationship between the Federal Government, State Government and PETRONAS.
• Circle — potential within people, communities and the environment.

The logo has undergone several revisions, including versions introduced in 1990, 2013 and 2019.

Perhaps the most famous physical representation of the brand is the PETRONAS Twin Towers in Kuala Lumpur.

The towers became an international symbol of both PETRONAS and Malaysia.

They were completed in the late 1990s and became famous for their distinctive Islamic-inspired geometric architecture, twin-tower design and connecting skybridge.

Although the towers are strongly associated with PETRONAS, they should not be confused with the entire PETRONAS corporate group—the company operates a huge portfolio of businesses beyond the towers.

PETRONAS has also built an exceptionally strong international brand through motorsport.

Its involvement in Formula 1 has been particularly important.

PETRONAS became associated with Mercedes-AMG PETRONAS Formula One Team, turning its green branding into a highly visible presence at one of the world’s largest sporting events.

Motorsport has also served as a technology platform for PETRONAS, particularly for research involving:

• Lubricants
• Fuels
• Thermal management
• Engine efficiency
• Materials
• Energy technologies

This helped transform PETRONAS from a company primarily known within the oil and gas industry into a globally recognised consumer and technology brand.

Most Malaysians encounter PETRONAS through its petrol stations.

The company operates an extensive retail network selling products such as:

• Petrol
• Diesel
• Lubricants
• Convenience products
• Automotive-related services

Its retail presence has made PETRONAS a highly visible part of everyday life in Malaysia.

The company also markets its lubricants internationally under the PETRONAS brand.

The biggest strategic challenge facing PETRONAS is the global transition away from fossil fuels.

PETRONAS remains heavily involved in oil and gas, but it is increasingly investing in businesses and technologies intended to support a lower-carbon energy system.

Its areas of interest include:

• Renewable energy
• Solar power
• Biofuels
• Green mobility
• Carbon capture and storage (CCS)
• Carbon management
• Cleaner energy solutions
• Lower-carbon industrial technologies

PETRONAS has stated an ambition to achieve net-zero carbon emissions by 2050.

The company’s strategy is therefore not simply to abandon oil and gas immediately. Instead, it describes its approach as strengthening its core businesses while developing new businesses associated with the energy transition.

One area receiving particular attention is Carbon Capture and Storage (CCS).

CCS involves capturing carbon dioxide from industrial processes or other sources and storing it underground rather than releasing it into the atmosphere.

For PETRONAS, CCS is strategically interesting because Malaysia has geological formations that may potentially be suitable for carbon storage, while the company’s existing expertise in subsurface geology, drilling and petroleum engineering is transferable to CCS.

PETRONAS identifies carbon management and CCS as important components of its decarbonisation activities.4

PETRONAS identifies four core shared values:

Loyalty

Being loyal to the corporation.

Integrity

Being honest and upright.

Professionalism

Striving for excellence.

Cohesiveness

Working together with trust and respect.

These values are presented by PETRONAS as part of the foundation for its corporate culture and conduct.5

PETRONAS currently describes its purpose as:

“A progressive energy and solutions partner enriching lives for a sustainable future.”6

This wording reflects the transformation of the company.

Its identity has moved from:

“Malaysia’s national oil company”

toward:

“A global energy company participating in the energy transition.”

Nevertheless, petroleum remains fundamental to PETRONAS’s business.

PETRONAS is significant because it demonstrates how a relatively young national oil company can develop into a major international energy corporation.

There are several reasons for its global importance:

1. National resource management
It controls and manages Malaysia’s petroleum resources.

2. LNG
Malaysia is an important LNG-exporting country, and PETRONAS is central to that industry.

3. International upstream operations
PETRONAS has developed oil and gas projects outside Malaysia.

4. Integrated business model
It operates across much of the oil and gas value chain.

5. Petrochemicals
It has developed substantial downstream chemical manufacturing capabilities.

6. Global brand recognition
The PETRONAS name is recognised far beyond Malaysia.

7. Energy transition
The company is attempting to transform a traditional hydrocarbon-based business while continuing to meet energy demand.

PETRONAS is sometimes compared with companies such as Saudi Aramco, QatarEnergy, ADNOC, ExxonMobil, Shell and BP, but its corporate structure and national role are different.

A useful distinction is:

PETRONAS is therefore best understood as a national energy company that has become multinational, rather than simply as a Malaysian version of a private oil major.

Resource Position

PETRONAS has a privileged position in Malaysia’s petroleum industry because of the Petroleum Development Act.

LNG Expertise

Its long history in LNG gives it substantial experience in one of the most important segments of the global gas industry.

Vertical Integration

Its presence across upstream, gas, downstream and petrochemicals provides diversification.

Strong National Brand

PETRONAS is deeply embedded in Malaysian society and enjoys exceptional brand recognition.

International Experience

Its overseas operations have given it experience competing with major global energy companies.

Financial Scale

With hundreds of billions of ringgit in annual revenue and hundreds of billions in assets, PETRONAS is one of Malaysia’s largest corporations.

A simple way to understand its history is:

1974
🇲🇾 National petroleum company established

↓

Late 1970s
🛢️ Develops Malaysian upstream capabilities

↓

1980s
⛽ Expands into gas, LNG, refining and retail

↓

1990s
🌏 Accelerates international expansion

↓

2000s
🏭 Strengthens global upstream, downstream and petrochemical businesses

↓

2010s
🌐 Becomes a globally recognised integrated energy company

↓

2020s
⚡ Expands into cleaner energy and energy-transition businesses

↓

2050 ambition
🌱 Net-zero carbon emissions

PETRONAS, or Petroliam Nasional Berhad, is Malaysia’s state-owned national oil and gas company, established on 17 August 1974 under the Petroleum Development Act framework. Originally created to manage and develop Malaysia’s petroleum resources, it grew into a vertically integrated multinational energy corporation involved in exploration and production, natural gas, LNG, refining, petroleum products, petrochemicals, trading, lubricants and newer cleaner-energy solutions. Its control over Malaysia’s petroleum resources gives it an exceptional role in the country’s economy and energy security, while its international operations and globally recognisable brand have made PETRONAS one of Asia’s best-known national energy companies. Today, PETRONAS is attempting to balance its traditional oil-and-gas business with the global transition toward lower-carbon energy, including renewable energy, carbon management and carbon capture and storage, while maintaining its ambition to reach net-zero carbon emissions by 2050.

PETRONAS = Malaysia’s national energy champion.

• 🇲🇾 Country: Malaysia
• 🏢 Founded: 1974
• 🛢️ Original purpose: Manage Malaysia’s petroleum resources
• 🌏 Today: Global integrated energy company
• 🔥 Core businesses: Oil, gas, LNG, refining and petrochemicals
• ⛽ Consumer business: Fuel stations and lubricants
• 🏭 Industrial business: Petrochemicals and energy solutions
• 🌱 Future direction: Energy transition and decarbonisation
• 🏙️ Icon: PETRONAS Twin Towers
• 🏎️ Global branding: Formula 1 and motorsport
• 💰 FY2025 revenue: RM266.1 billion
• 💵 FY2025 profit after tax: RM45.4 billion
• 🌍 Strategic identity: Malaysian national oil company → global energy and solutions partner
• 🎯 Net-zero ambition: 2050

1. About Us | PETRONAS Global
2. Passionate about Progress | PETRONAS Global
3. PETRONAS AT 50: Powering the future with resilience and sustainability
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5. BERNAMA – Petronas Posts Lower Net Profit Of RM45.4 Bln In FY2025
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