Sustainability Report 2015

THRIVING
IN TOUGH TIMES
SUSTAINABILITY REPORT 2015
INSIDE
THIS REPORT
CORPORATE OVERVIEW SUSTAINABILITY FOCUS AREAS
PETRONAS AT A GLANCE 4 CORPORATE GOVERNANCE AND BUSINESS ETHICS 40
KEY HIGHLIGHTS 6 SAFETY AND HEALTH 46
VISION / MISSION / SHARED VALUES 8 ENVIRONMENTAL STEWARDSHIP 58
OUR PROFILE 10 SOCIETY 66
OUR GLOBAL PRESENCE 18
OUR BUSINESS 20
GROUP CORPORATE STRUCTURE 22 FEATURE STORIES
GROUP FINANCIAL PERFORMANCE REVIEW 27 SUSTAINABLE DEVELOPMENT IN A LOW PRICE
ENVIRONMENT 35
HOLISTIC HSE GOVERNANCE 45
KEY MESSAGE INTERVIEW WITH DATUK WAN ZULKIFLEE WAN ARIFFIN
PRESIDENT AND GROUP CEO 24 - PETRONAS HUMAN RIGHTS COMMITMENT 68
PETRONAS IN SARAWAK 79
PENGERANG INTEGRATED COMPLEX (PIC) 83
SUSTAINABILITY HIGHLIGHTS
ABOUT THIS REPORT 28
SUSTAINABLE DEVELOPMENT IN PETRONAS 31 OUR ACHIEVEMENTS
SUSTAINABILITY PERFORMANCE DATA 37 AWARDS AND RECOGNITION 86
4 P ET R ON A S SU STAINAB ILITY R E P O R T 2 01 5
PETRONAS AT A
GLANCE
Petroliam Nasional Berhad (PETRONAS), established in 1974, is Malaysia’s fully
integrated oil and gas multinational ranked among the largest corporations on
FORTUNE Global 500®. As the custodian of Malaysia’s oil and gas resources, we
explore, produce and deliver energy to meet society’s growing needs.
Started business in 1974:

41 years of proven
track record
1974 1989 1996 2001 2015
1979 1991 1999 2009

S U S T A I N A B I L I T Y R EPO R T 20 15 PETRONAS 5
91
partners
worldwide
28%
of PETRONAS
53%
of total
workforce
workforce are below
are women 35 years old
78 250
More than
Upstream platforms
development worldwide
projects
5
major LNG
facilities
KEY
HIGHLIGHTS
PETRONAS provided the winning
formula to the Formula One
world champions
of 2014 & 2015
2014 & 2015 F1 World

Constructor’s
Championship
title for MERCEDES AMG
PETRONAS Formula One Team
Total assets increased to

RM591.9 billion
from RM537.5 billion in 2014
Downstream business recorded

56% increase
in Profit After Tax in 2015
Recorded
15 million
man-hours
without Lost Time Injury for the
PETRONAS Floating LNG Satu
project
17
new oil and gas
discoveries were recorded
with reserves totalling
1 billion boe
11
projects delivered first
hydrocarbons for the
year, including five
international assets
Nine
new Production Sharing
Contracts (PSCs) were signed
in Malaysia and abroad
OUR
VISION
A Leading Oil and Gas
Multinational of Choice
OUR
MISSION
We are a business entity
Oil and Gas is our core business
We add value to this resource
We contribute to the wellbeing

of society
OUR
VALUES
Loyalty
Loyal to corporation
Integrity
Honest and upright
Professionalism
Strive for excellence
Cohesiveness
United, trust and respect for each other
OUR
PROFILE
Petroliam Nasional Berhad (PETRONAS) is Malaysia’s fully integrated oil and
gas multinational wholly-owned by the Malaysian Government. Established in
1974, PETRONAS is now ranked amongst the largest companies in the world
with a proven track record in integrated oil and gas operations spanning the
entire hydrocarbon value chain.
PETRONAS’ business activities include (i) the exploration, development and production of crude
oil and natural gas in Malaysia and overseas; (ii) the liquefaction, sale and transportation of
Liquefied Natural Gas (LNG); (iii) the processing and transmission of natural gas, and the sale of
natural gas products; (iv) the refining and marketing of petroleum products; (v) the
manufacturing and selling of petrochemical products; (vi) the trading of crude oil, petroleum,
gas and LNG products and petrochemical products; and (vii) shipping and logistics relating to
LNG, crude oil and petroleum products. Committed to ensuring business sustainability,
PETRONAS also strives to responsibly manage natural resources in a way that contributes
holistically to the wellbeing of society wherever it operates.
MAXIMISING RESOURCES FOR GROWTH EXPLORATION

UPSTREAM PETRONAS’ Upstream business which encompasses Exploration is the ‘growth engine’ for
Exploration, Development & Production, LNG Trading PETRONAS comprising a
& Marketing, LNG Assets and Malaysia Petroleum consolidation of exploration functions
Management, is a fully integrated business covering a from Upstream Malaysia, Upstream
broad portfolio of resources and play types in more International (PETRONAS Carigali Sdn
than 20 countries. As the custodian of Malaysia’s Bhd) and Malaysia Petroleum
petroleum resources, PETRONAS is focused to pursue Management (MPM) which searches,
sustainable value-driven production growth, monetise acquires, extracts and delivers new
gas resources, strengthen core capabilities and build resources to sustain long-term
niche competencies. Proven capability and track production. Core activities are block
record of successful onshore and offshore acquisition, growth strategies, basin
developments in oil and gas have earned PETRONAS evaluation, play generation, prospect
reputable operatorship in many ventures across the maturation and exploration drilling.
world.
An Exploration Centre of Excellence
In Malaysia, PETRONAS runs 198 producing fields and (COE) comprising Basin & Petroleum
355 offshore platforms while promoting sustainable System Analysis, Geology Solutions,
and orderly development of Malaysia’s petroleum Reservoir Geoscience and
resources through 101 active Production Sharing Geophysics Solutions collectively
Contracts. deliver new Resource Addition
providing the pipeline for
hydrocarbon reserves to be
developed, leading to sustained and
long-term hydrocarbon production.
DEVELOPMENT &
PRODUCTION
Development & Production (D&P)
comprises a consolidation of
development and production
functions of Upstream Malaysia and
Upstream International, LNG Assets
as well as a COE, which provides
value-driven, world-class operational
delivery, with utmost priority on
Health, Safety, Security and
Environment (HSSE), and Asset
Integrity.
Strategic expansion plans underway include MALAYSIA PETROLEUM MANAGEMENT

shale gas-to-LNG project in Canada and one
of the world’s first coal bed methane-to-LNG Premised upon efficiency, profitability and value maximisation,
projects in Gladstone, Australia. The PETRONAS’ successes in its upstream efforts in Malaysia are realised
completion and commissioning of the through partnerships with oil and gas majors as well as international
PETRONAS Floating LNG Satu, the first-of-its- and domestic service providers. A distinctive resource owner and
kind in the world, puts the Company at the regulator of Malaysia’s upstream industry, Malaysia Petroleum
forefront of technology and innovation in Management (MPM) drives value creation and shapes Malaysia’s
carrying out its strategies to monetise gas. A petroleum industry whilst managing external stakeholders.
portfolio of inventive technology and
engineering solutions complement its existing MPM focuses on building a competitive and conducive business
capabilities across the integrated gas value environment to attract new investments via attractive commercial
chain, providing PETRONAS a competitive propositions to enable further growth in mature basins to maximise
edge and flexibility to meet buyers’ energy Malaysia’s resource recovery. In addition, MPM regulates and provides
needs. stewardship to Petroleum Arrangement Contractors (PACs) throughout
the whole development and operations phase.
Meanwhile, the end-to-end capabilities across
the integrated gas value chain has allowed
PETRONAS to become a leading global LNG PACIFIC NORTH WEST LNG
player and reliable LNG supplier (PETRONAS A joint venture company responsible for the development of the
LNG Complex, Bintulu), having successfully Canada LNG project, together with partners Japan Petroleum
delivered more than 9,000 LNG cargoes to Exploration Co Ltd (JAPEX), China Petroleum & Chemical Corporation
buyers across the globe for more than three (SINOPEC), Indian Oil Corporation Ltd, and Brunei National Petroleum
decades. With a current total of eight Company Sdn Bhd (PetroleumBRUNEI).
production trains and a combined capacity of
25.7 mtpa, the complex is one of the world’s
largest LNG production facilities at a single LNG TRADING & MARKETING
location. Train 9 will add another 3.6 mtpa of
LNG. Capturing the best value across the LNG value chain by offering the
most competitive value propositions to PETRONAS’ LNG customers,
The D&P COE which comprises Petroleum LNG Trading & Marketing determines immediate and long-term LNG
Engineering, Wells and Operations & volume requirements, marketing & trading strategies and deliveries, to
Maintenance, collectively looks at technical capture optimum value.
solutions for Exploration, MPM and Project
Delivery & Technology (PD&T) to support Operating in a manner that is commercially, environmentally and
upstream business growth. socially sustainable, PETRONAS strives to invest and build capabilities in
communities where it operates. This commitment continues to drive a
technical edge which allows PETRONAS to consistently deliver value to
its partners, stakeholders and investors in the upstream business.
Downstream Business is a made up of Currently, the Company has 570 kbpd of

multiple businesses and plays the strategic refining capacity – 430 kbpd domestically
DOWNSTREAM
role in enhancing value to molecules and the remaining in Durban, South Africa
through an integrated operation, on the and 10.8 million mtpa of petrochemical
foundation of being operationally and production capacity within 16
commercially excellent. The diverse activities manufacturing subsidiaries, joint ventures
include refining, trading, and marketing of and associate companies. By 2020, once
crude oil and petroleum products as well as completed and fully in operation, the
manufacturing and marketing of Refinery and Petrochemical Integrated
petrochemical products for local and Development (RAPID) Project in
international consumption. Pengerang, Johor (slated for start-up in
2019), and Project SAMUR in Sipitang,
PETRONAS owns and operates gas Sabah (by 2016), will increase refinery
infrastructure and utilities, involving gas capacity by 300 kbpd and petrochemical
processing and utilities, as well as gas capacity to 16 million mtpa. Set to be the
transmission and regasification. Within largest integrated refinery and
Peninsular Malaysia, PETRONAS processes petrochemical development in a single
natural gas piped from offshore fields and location, Project RAPID will diversify the
transports the processed gas via the feedstock from gas-based to naphtha and
Peninsular Gas Utilisation (PGU) pipeline expand the portfolio of products to
network to customers in Malaysia and include specialty chemicals.
Singapore. In addition, the Company supplies
steam and industrial gases for customers at PETRONAS Trading Corporation Sdn Bhd
Kertih Integrated Petrochemical Complex in (PETCO), a wholly-owned subsidiary of
Terengganu and Gebeng Industrial Area in PETRONAS, undertakes marketing and
Pahang. trading activities of crude oil and
petroleum products.
Across the diverse value chain, the challenge
for Downstream remains on managing the PETRONAS Dagangan Berhad (PDB)
margins. The brand is expected to be a manages all domestic marketing and
high-performing business backed by world- retailing activities for a wide range of
class operations, infrastructure and petroleum products in Malaysia, while
manufacturing facilities. It is recognised as a Engen Petroleum Limited is responsible for
significant industry player with competitive handling of retail business in South Africa
products, offerings and solutions delivered to and sub-Saharan Africa.
customers with consistent quality and
reliability. As such, its operating model is Petrochemical products are distributed
designed to enhance market competitiveness, through our marketing subsidiaries in
mitigate external and internal challenges as Malaysia, Thailand and China as well as
well as maximise future growth potential. supported by representative offices in
Indonesia, Vietnam and the Philippines.
To date, 80 per cent of PETRONAS’
petrochemical revenues are generated from importantly, has grown to be a Technical Partner. The PETRONAS
more than 1,000 active customers who have Total Fluid Solutions™ is a collaboration with the Mercedes AMG
been in business with PETRONAS for over 10 engineers to co-develop not just the fuels, lubricants and functional
years. Moving forward, the Asia Pacific market fluids, but also to co-design the new 1.6 litre turbocharged direct-
will remain key to PETRONAS’ petrochemical injection V6 hybrid Formula One engine to exploit maximum synergy
arm. between engine development and PETRONAS products. The same is
now powering the Silver Arrows: the double consecutive World
PETRONAS Lubricants International Sdn Bhd Constructor’s Champion in 2014 and 2015.
(PLI) oversees the lubricants business globally
through an extensive network that expands More importantly, given the 2014 FIA regulations intended to ensure
over 30 marketing offices in 23 countries, that race car technology is well aligned to road car technology, the
PETRONAS owns 11 lubricants blending plants switch to turbocharged 1.6 litre V6 hybrid formula strengthens the
globally. focus on fuel efficiency to power engine performance. This valuable
experience along with the many successes from this intense sport
Since 2009, PETRONAS has not only been enables PETRONAS to consistently transfer the knowledge and insights
the Title Sponsor to the Mercedes AMG from extreme racing machines on the race tracks to everyday vehicles
PETRONAS Formula One™ Team, but more on the roads.
It comes as no surprise then, that all of the four-cylinder and eight-cylinder AMG models as well as a significant
number of Mercedes-Benz units are factory-filled with PETRONAS Syntium with °CoolTech™, an innovative solution to
fight excessive engine heat that also delivers optimum engine performance, whether on the race track or on the road.
It is also the only engine oil approved as the first fill for all high-performance Mercedes-Benz AMG M133 engines,
which is the world’s most powerful 4x-cylinder series production engine across all applications.
Moving forward, PETRONAS will further leverage on its proven track record in sustaining world-class operational
excellence and competitive marketing capabilities, to capture opportunities domestically as well as key growth markets
internationally, expanding our presence across the Downstream value chain. Stronger emphasis will also be placed on
delivering key projects safely, on time and within cost.
Downstream Business Excellence will focus on operational strategy, planning & integration, Health, Safety, Security &
Environment (HSSE) excellence, asset performance excellence, plant project, turnaround & shutdown excellence as well
as culture excellence.
This will be reinforced by Downstream Commercial Excellence, where greater emphasis will be placed on customer
experience and cost excellence, whilst leveraging on technology to be more competitive.
PRODUCT RANGE
PETRONAS Fuel
Convenience Store (C-Store)
LPG
LUBRICANTS BUSINESS
PETRONAS Lubricants International Sdn Bhd (PLI) is PETRONAS’ global lubricants manufacturing and marketing arm.
With a strong presence in more than 80 countries and five continents, the PLI product range includes high-quality
lubricants and functional fluids for both the automotive and industrial markets, as well as a range of car care products.
Flagship brands include PETRONAS Syntium for passenger vehicles, PETRONAS Sprinta for motorcycles, and PETRONAS
Urania for commercial vehicles. Headquartered in Kuala Lumpur, PLI has over 30 marketing offices in 23 countries,
managed through regional offices in Kuala Lumpur, Turin, Belo Horizonte, Chicago and Durban.
LUBRICANTS
Passenger Car
Motor Oil
Motorcycle
Oil
Automative
Functional Fluids
Agriculture &
Construction Lubricants
Commercial
Vehicle Lubricants
Base Oil
Group III Group II
Etro 4 & Etro 6 M500
PETROCHEMICAL BUSINESS
PETRONAS Chemicals Group Berhad (PCG) leads the growth of PETRONAS’ Petrochemical Business, an important
segment of the petroleum industry which supports the manufacturing and fast-moving consumer goods (FMCG)
sectors. The leading petrochemicals producer in Malaysia and one of the largest in Southeast Asia, PCG is involved
primarily in the manufacturing, marketing and selling of a diverse range of petrochemical products including olefins,
polymers, fertilisers, methanol and other chemicals and derivative products. Today, its integrated petrochemical
complexes in Kertih, Terengganu and Gebeng, Pahang as well as manufacturing complexes in Gurun, Kedah; Bintulu,
Sarawak; and Labuan have a total production capacity of over 10 million mtpa.
1 Chemical Products 2 Business Segment 3 Petrochemical Complexes
PCG comprises 22 2 business segments: 2 integrated petrochemical

manufacturing companies • Oleﬁns and Derivatives complexes:
producing a wide range • Fertilisers and Methanol • Kertih, Terengganu
of chemical products • Gebeng, Pahang
4 Manufacturing Complexes 5 Production Capacity 6 Market Leadership
3 manufacturing complexes that

produce fertilisers and methanol: 10.8
million mtpa
• Largest producer of methanol in
the world; Fourth largest producer
in Southeast Asia.
• Gurun, Kedah
• Bintulu, Sarawak
• Second largest producer of urea in
• Federal Territory of Labuan
Southeast Asia, with the
Completion of the SAMUR Project.
7 Sole Producer 8 Joint Venture

• Third largest producer of low-
of methanol, urea, paraxylene, BASF Nederland BV, BP Holdings density polyethylene (LDPE) in
methyl tertiary butyl ether (MTBE), International BV, Idemitsu Kosan Southeast Asia.
ethanolamines, ethoxylates, Co Ltd, Dialog Equity Sdn Bhd,
glycol ethers, butanol and VOPAK Terminal Penjuru Pte Ltd,
butyl acetates in Malaysia MJPX Co Ltd, Sasol Holdings
(Asia Pacific) Pty Ltd, and National
Farmers Organisation (NAFAS)
PETRONAS continues to redefine the future of energy with innovative approaches to

PROJECT technology and engineering in order to maximise and deliver sustainable energy for
DELIVERY & tomorrow. Project Delivery and Technology (PD&T), PETRONAS’ Centre of Excellence with
TECHNOLOGY distinctive expertise, leading practices and innovative solutions as well as robust systems and
processes is strategically positioned to support PETRONAS’ growth and future positioning
strategies. PD&T leverages on the value integration between Project, Procurement, Technical
and Technology to deliver top quartile projects and technology as a differentiator.
PD&T with its leaner, flatter and efficient structure allows PETRONAS to be more agile
whilst continuing to remain competitive and robust enough to withstand challenges and
grow, to meet desired targets.
OUR GLOBAL
PRESENCE
ASIA PACIFIC AFRICA
UPSTREAM • Australia – Exploration, Development, Production UPSTREAM • Algeria – Development & Production • Angola
& LNG • Brunei – Exploration & Development, Project Delivery – Exploration •  Cameroon – Development • Chad –
& Technology • China – Exploration • Indonesia – Exploration Development & Production • Egypt – Development, Production
& Development, Project Delivery & Technology • Malaysia & LNG • Gabon – Exploration • Mauritania – Production &
– Exploration, Development, Production, LNG & Project Delivery Project Delivery & Technology •  Mozambique – Exploration
& Technology • Malaysia-Thailand Joint Development Area • Republic of Sudan – Exploration, Development & Production
– Exploration, Development • Myanmar – Exploration, • Republic of South Sudan – Exploration, Development &
Development, Production & Project Delivery & Technology • Production
Vietnam – Exploration, Development & Production & Project
Delivery & Technology DOWNSTREAM • Angola – Lubricants • Botswana – Lubricants
& Oil • Burkina Faso – Lubricants • Burundi – Lubricants & Oil
DOWNSTREAM • Australia – Oil & Petrochemical • Cameroon – Lubricants • Congo – Lubricants • Democratic
• Bangladesh – Oil • China – Lubricants, Oil & Petrochemical Republic of the Congo – Oil & Lubricants • Gabon – Lubricants
• Hong Kong – Oil • India – Lubricants, Oil & Petrochemical & Oil • Ghana – Lubricants & Oil • Kenya – Lubricants & Oil
• Indonesia – Lubricants, Oil & Petrochemical • Lesotho – Lubricants & Oil • Madagascar – Lubricants
• Japan – Oil & Petrochemical, Project Delivery & Technology • Malawi – Lubricants & Oil • Mauritius – Lubricants & Oil
• Malaysia – Lubricants, Oil & Petrochemical, Project Delivery & • Mozambique – Lubricants & Oil • Namibia – Oil
Technology • Myanmar – Lubricants & Oil • New Zealand • Niger – Lubricants • Réunion – Lubricants & Oil • Republic of
– Petrochemical • Pakistan – Lubricants & Oil • Philippines Sudan – Lubricants & Oil • Rwanda – Lubricants & Oil
– Oil & Petrochemical, Project Delivery & Technology • Senegal – Lubricants • South Africa – Lubricants & Oil
• Singapore – Oil & Petrochemical • South Korea – Oil & • Swaziland – Lubricants & Oil • Tanzania – Lubricants & Oil
Petrochemical, Project Delivery & Technology • Sri Lanka – Oil • Togo – Lubricants • Zambia – Lubricants & Oil • Zimbabwe
• Taiwan – Oil & Petrochemical • Thailand – Lubricants, Oil & – Lubricants & Oil
Petrochemical, Project Delivery & Technology • Vietnam – Oil &
Petrochemical
* Includes Engen subsidiaries and marketing and trading offices.
©2016 PETROLIAM NASIONAL BERHAD (PETRONAS)

All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means (electronic,
mechanical, photocopying, recording or otherwise) without the permission of the copyright owner. PETRONAS makes no representation or warranty,
whether expressed or implied, as to the accuracy or completeness of the facts presented. PETRONAS disclaims responsibility from any liability arising out
of reliance on the contents of this publication.
EUROPE LATIN AMERICA
UPSTREAM • Ireland – Exploration, Production & Gas Storage

• United Kingdom – LNG
DOWNSTREAM • Austria – Lubricants • Belgium – Lubricants

Denmark – Lubricants • France – Lubricants • Germany
– Lubricants • Italy – Lubricants & Project Delivery & UPSTREAM • Suriname – Exploration • Argentina – Exploration
Technology • Netherlands – Lubricants & Oil • Norway – Oil
• Poland – Lubricants • Portugal –Lubricants • Russia – DOWNSTREAM • Argentina – Lubricants • Balboa – Lubricants
Lubricants & Oil • Spain – Lubricants • Turkey – Lubricants & Oil • Brazil – Lubricants • Chile – Lubricants • Colombia
• United Kingdom – Lubricants & Oil – Lubricants • Peru – Lubricants
MIDDLE EAST NORTH AMERICA CENTRAL ASIA
UPSTREAM • Iraq – Development, UPSTREAM • Canada – Exploration, UPSTREAM • Turkmenistan – Exploration,

Production & Project Delivery & Technology Development, Production, LNG Development, Production & Project
Delivery & Technology
DOWNSTREAM • Egypt – Lubricants DOWNSTREAM • Mexico – Lubricants • Azerbaijan – Development & Production
• Kuwait – Oil • Qatar – Oil • United • United States of America – Lubricants
Arab Emirates – Lubricants & Oil DOWNSTREAM • Georgia – Oil
OUR
BUSINESS
Liquefied Natural Gas (LNG)
Liquefaction
Natural Gas
Processed Gas
Processing
Exploration,
Development &
Production
Crude Oil
Petroleum Products
Refining
• Export
Liquefied Natural Gas (LNG)
Regasification Terminal
• Power Sector
• Industrial Sector
Processed Gas/Peninsular Gas
Utilisation (PGU) System
• Residential Sector
• Commercial Sector
Liquefied Petroleum Gas (LPG)
• Industrial &
Agricultural Sector –
Ethylene, Methanol,
MTBE, Polyethylene,
Propylene, Urea
and Ammonia
Petrochemical Plant
Commercial
• Transportation
Sector – Diesel,
Gasoline, Jet Fuel
1 2
and Lubricants
Retail
GROUP CORPORATE
STRUCTURE
WHOLLY-OWNED SUBSIDIARIES (89)
PETRONAS Carigali Sdn Bhd
PETRONAS Carigali Chad PETRONAS Assets Sdn Bhd PETRONAS Trading Corporation Sdn Bhd
Exploration & Production Inc Petrofibre Network (M) Sdn Bhd PETCO Trading (UK) Limited
PETRONAS Carigali Overseas Sdn Bhd PETRONAS ICT Sdn Bhd PETCO Trading Labuan Company Ltd
PETRONAS Carigali Iraq (Garraf) Ltd Virtus IP Sdn Bhd PETCO Trading DMCC
PETRONAS Carigali Iraq Holding BV
E&P Venture Solutions Co Sdn Bhd PETRONAS Hartabina Sdn Bhd PETRONAS Technical Services Sdn Bhd
E&P Malaysia Venture Sdn Bhd Prince Court Medical Centre Sdn Bhd PTSSB DMCC
PRBF Holdings Corporation Sdn Bhd (formerly known as PTSSB JLT)
PETRONAS Research Sdn Bhd PETRONAS Technology Ventures Sdn Bhd
Primesourcing International Sdn Bhd PETRONAS Global Technical Solutions Sdn Bhd
Institute of Technology PETRONAS Sdn Bhd PETRONAS Lubricants International Sdn Bhd
PETRONAS eLearning Solutions Sdn Bhd PLI (Netherlands) B.V.
PETRONAS Refinery and Petrochemical
PETRONAS Penapisan (Terengganu) Sdn Bhd PETRONAS Lubricants China Company Limited
Corporation Sdn Bhd
PETRONAS Penapisan (Melaka) Sdn Bhd PETRONAS Lubricants Africa Ltd
PRPC Refinery Cracker Sdn Bhd
PETRONAS Management Training Sdn Bhd PETRONAS Base Oil (M) Sdn Bhd
PRPC Utilities and Facilities Sdn Bhd
PETROSAINS Sdn Bhd
Bekalan Air KIPC Sdn Bhd
Sanzbury Stead Sdn Bhd
PETRONAS Capital Limited
PETRONAS NGV Sdn Bhd
Energas Insurance (L) Limited
PETRONAS Technical Training Sdn Bhd
PETRONAS LNG 9 Sdn Bhd
PETRONAS Floating LNG 1 (L) Ltd
PETRONAS Floating LNG 2 (L) Ltd
Malaysian Refining Company Sdn Bhd
OGP Technical Services Sdn Bhd
KLCC (Holdings) Sdn Bhd
PETRONAS International Corporation Ltd

SIRRI International Ltd PETRONAS Carigali (Jabung) Ltd PETRONAS Carigali (Greenland) Holding Ltd
PETRONAS Carigali Myanmar Inc. PETRONAS Myanmar Ltd PETRONAS Power Sdn Bhd
PETRONAS Carigali (Turkmenistan) Sdn Bhd PICL Marketing Thailand Ltd PETRONAS LNG Carriers Ltd
PC JDA Limited Myanmar PETRONAS Trading Co. Ltd PETRONAS LNG Sdn Bhd
MITCO Labuan Co. Ltd PETRONAS (Thailand) Co. Ltd PETRONAS Carigali Brunei Ltd
PETRONAS Carigali Nile Ltd PC Vietnam Limited PETRONAS Marketing Ventures Limited
PETRONAS Marketing Sudan Ltd PC Mauritania I Pty Ltd PETRONAS South Africa (Pty) Ltd
P.T. PETRONAS Niaga Indonesia PC Mauritania II BV PETRONAS Sierra Leone (E&P) Ltd
PICL (Egypt) Corporation Limited PETRONAS Philippines Inc
Nada Properties Ltd PARSI International Ltd
PC Madura Ltd Argentinean Pipeline Holding Company S.A
PC Muriah Ltd PETRONAS Australia Pty Ltd
PETRONAS Carigali (West Glagah Kambunan) Ltd PETRONAS (E&P) Overseas Ventures Sdn Bhd
PC (Myanmar) Holdings Ltd PETRONAS Carigali (Urga) Ltd
PETRONAS Carigali Myanmar III Inc. Labuan Energy Corporation Limited
Note:
(I) This chart includes directly owned and up to the 2nd tier companies held by PETRONAS
(II) This chart excludes subsidiary companies of MISC Berhad, KLCC (Holdings) Sdn Bhd, Engen Limited and PLI (Netherlands) BV
(III) The records are correct as at 6 June 2016
PETRONAS GROUP OF COMPANIES

PARTLY-OWNED SUBSIDIARIES (38) ASSOCIATE COMPANIES (20)
Kebabangan Petroleum Operating Co. Sdn Bhd (40%)
*MISC Berhad (62.67%) PCPP Operating Company Sdn Bhd (40%)
Malaysia LNG Sdn Bhd (90%) BC Petroleum Sdn Bhd (20%)
Malaysia LNG Dua Sdn Bhd (80%) *Bintulu Port Holdings Berhad (32.79%)
Malaysia LNG Tiga Sdn Bhd (60%)
*PETRONAS Gas Berhad (60.63%) Industrial Gases Solutions Sdn Bhd (50%)
Regas Terminal (Sg Udang) Sdn Bhd (100%)
Regas Terminal (Lahad Datu) Sdn Bhd (100%)
Regas Terminal (Pengerang) Sdn Bhd (100%)
Kimanis Power Sdn Bhd (60%)
Kimanis Power O&M Sdn Bhd (60%)
Pengerang LNG (Two) Sdn Bhd (65%)
*PETRONAS Dagangan Bhd (69.86%) IOT Management Sdn Bhd (20%)

Tanjung Manis Oil Terminal Management Sdn Bhd (20%)
PETRONAS Lubricants Marketing (Malaysia) Sdn Bhd (100%) PS Pipeline Sdn Bhd (50%)
(formerly known as Lub Dagangan Sdn Bhd) PS Terminal Sdn Bhd (50%)
PETRONAS Aviation Sdn Bhd (100%)
PDB (Netherlands) B.V. (100%)
Kuala Lumpur Aviation Fuelling System Sdn Bhd (65%) IndianOil PETRONAS Pvt Ltd (50%)
Trans Thai-Malaysia (Thailand) Ltd (50%)
Trans Thai-Malaysia (Malaysia) Sdn Bhd (50%)
Centroid Technical Services Co. Ltd (40%)
*KLCC Property Holdings Berhad (75.46%)
Transasia Pipeline Company Pvt Ltd (35%)

Engen Limited (80%) Dragon LNG Group Ltd (50%)
*PETRONAS Chemicals Group Bhd (64.35%) BASF PETRONAS Chemicals Sdn Bhd (40%)
PETRONAS Chemicals Marketing Sdn Bhd (100%) Kertih Terminals Sdn Bhd (40%)
PETRONAS Chemicals Derivatives Sdn Bhd (100%) Idemitsu SM (Malaysia) Sdn Bhd (30%)
PETRONAS Chemicals Polyethylene Sdn Bhd (100%) BP PETRONAS Acetyls Sdn Bhd (30%)
Vinyl Chloride (Malaysia) Sdn Bhd (100%)
PETRONAS Chemicals Methanol Sdn Bhd (100%)
PETRONAS Chemicals Glycols Sdn Bhd (100%)
PETRONAS Chemicals Ammonia Sdn Bhd (100%)
Polypropylene Malaysia Sdn Bhd (100%)
Kertih Port Sdn Bhd (100%)
PETRONAS Chemicals Fertiliser Kedah Sdn Bhd (100%)
PETRONAS Chemicals Fertiliser Sabah Sdn Bhd (100%)
PETRONAS Chemicals MTBE Sdn Bhd (100%)
PETRONAS Chemical Aromatics Sdn Bhd (70%)
PETRONAS Chemicals Olefins Sdn Bhd (88%)
PETRONAS Chemicals LDPE Sdn Bhd (60%)
PETRONAS Chemicals Ethylene Sdn Bhd (87.5%)
Asean Bintulu Fertilizer Sdn Bhd (63.47%)
MESSAGE FROM
PRESIDENT AND GROUP CEO
Welcome to the PETRONAS Group Sustainability Report 2015 focusing on our
efforts in doing business right to meet the Group’s long-term obligations safely
and responsibly. Sustainability to PETRONAS is about business resilience amid
evolving social dynamics and a changing environmental landscape, as we are
mindful that we co-exist in a larger integrated environment.
Continued volatility of the oil and gas industry in The challenge for us, like any other energy company, is to emit less when
2015 exerted immense pressure on PETRONAS as monetising energy resources. Though energy transition has taken off,
price of crude oil plunged to new lows, and demand for traditional sources of energy remains high given its compatibility
oversupply persisted in the market. The new reality with the existing energy system. Suffice to say, conventional fuel-types will
called for us to further optimise our business continue to have a significant share of the global energy mix in the
practices, with sustainability strategies at the core, foreseeable future, even as diversification of the existing energy system
including in the areas of operational integrity, continues.
climate change and human rights.
PETRONAS’ efforts are fundamentally premised on a dual philosophy:
Energy Matters enhancing operational efficiency and excellence to realise our Carbon
Affordable energy is vital for development, Commitments; and concurrently fortifying our position as a leading producer
especially as global populations and urbanisation of Liquefied Natural Gas (LNG) as a cleaner source of energy.
grow steeply, driving the burgeoning of new
infrastructures. Meanwhile, spotlight on the global To this end, PETRONAS’ Malaysia operations recorded a 17 per cent reduction
interest in climate change expanded following in flaring, as a result of mitigation-related initiatives, towards our mid-term
conclusion of the 2015 Paris Climate Conference goal to achieve zero continuous venting and flaring by 2017, where feasible.
where nations collectively echoed a commitment Commendably, the inaugural PETRONAS Floating LNG facility was being
to limit global warming. assembled in the period under review, a revolutionary and unconventional
solution to redefine the production for natural gas. Other initiatives include
investments in the area of carbon capture and storage, while continuing to
PETRONAS’ efforts are leverage on Solar Photovoltaic technology.
fundamentally premised on a
Safety Matters
dual philosophy: enhancing Focus on Health, Safety and Environment (HSE) remains a top priority in
operational efficiency and realising our growth strategies. In 2015, PETRONAS recorded a 66 per cent
reduction in Fatal Accident Rate compared to 2014. Despite our efforts, we
excellence to realise our Carbon
are saddened to have recorded four loss of lives and remain committed to
Commitments; and concurrently achieve zero fatalities.
fortifying our position as a
We continued to enhance our HSE culture by instilling strong operational
leading producer of Liquefied discipline and compliance with PETRONAS’ HSE standards such as the Zero
Natural Gas (LNG) as a cleaner Tolerance (ZeTO) Rules. The outcomes of HSE assurances are vigilantly
source of energy. monitored by the senior leadership team.
DATUK WAN ZULKIFLEE WAN ARIFFIN

President and Group Chief Executive Officer (CEO)
Social Matters
The needs of our key stakeholders, both internal In 2015, despite a tighter watch on cash
and external, are vital considerations in achieving
expenditure, we invested further in our human
our business aspirations.
capital to hone a competent workforce with
Our employees are a formidable force driving the functional skills, evolving knowledge and
organisation through these challenging times.
Their determination, agility and strength continue
commercial foresight to complement the
to take PETRONAS to greater heights. In 2015, Company’s ambitious growth plans. We also made
despite a tighter watch on cash expenditure, we
progress in enhancing existing processes and
invested further in our human capital to hone a
competent workforce with functional skills, policies to steadily attract, develop and retain the
evolving knowledge and commercial foresight to best talents.
complement the Company’s ambitious growth
plans. We also made progress in enhancing
existing processes and policies to steadily attract,
develop and retain the best talents. Progress Matters
Sustainability is our business philosophy. It goes beyond regulatory
Externally, multidisciplinary teams actively compliance to embody sincere concern for the wellbeing of present and
monitored and mitigated social risks at our future generations. While it is important to integrate practices that are socially
operational sites. I am happy to share that taking and environmentally-responsible, we place importance on ensuring the
on from the PETRONAS Social Performance relevance of our strategies in coming times, being mindful of the fast-paced
Framework, the PETRONAS Human Rights changes in the external operating environment. To this end, we have much
Commitment was launched in 2015. to do in achieving our Sustainability aspirations.
Disclosure paves way for improved transparency Going forward in this volatile period, our endurance would be tested and we
in the larger scope of Sustainability and Human remain determined to push the barriers of excellence. Financial health will
Rights, alike. Going forward, we will fortify undeniably remain a priority, but equally important is the commitment to
equitable measures to manage and report on the manage the issues and needs of our employees, society, and the
Company’s non-financial risks. On this note, I am environment.
pleased to share that in 2015, all of PETRONAS’
public-listed companies, namely, PETRONAS Above all else, integrity remains of utmost significance, and the Company
Chemicals Group Berhad, PETRONAS Dagangan remains committed to eliminate any and all forms of corruption. PETRONAS
Berhad, PETRONAS Gas Berhad, KLCC Property remains grounded to its Vision, Mission, Strategic Business Direction and
Holdings Berhad, Malaysia Marine and Heavy more importantly, Shared Values in rising above the test of time.
Engineering Holdings Berhad and MISC Berhad
were among the 34 constituents of the
FTSE4Good Bursa Malaysia Index. We are proud of
this achievement which is a testament of
PETRONAS’ persistence in integrating sustainable
business practices across the Environment, Social Datuk Wan Zulkiflee Wan Ariffin
and Governance spheres. President and Group CEO
GROUP FINANCIAL
PERFORMANCE REVIEW
PETRONAS’ KEY FINANCIAL INDICATORS
In RM billion
Revenue EBITDA Profit After Taxation
288.5
247.7
222.8
120.4
123.0
291.2
123.4
329.1
125.3
317.3
20.8
65.6
68.7
47.6
55.9
59.5
75.5
95.7
PE2011
CY2011
FY2012
FY2013
FY2014
FY2015
PE2011
CY2011
FY2012
FY2013
FY2014
FY2015
PE2011
CY2011
FY2012
FY2013
FY2014
FY2015
Net Profit Attributable to Cash Flow from Total Assets
Shareholders Operations
103.6
69.6
90.4
49.9
72.0
37.0
489.2
91.0
13.2
59.7
49.1
476.4
591.9
54.1
78.1
528.7
537.5
PE2011
CY2011
FY2012
FY2013
FY2014
FY2015
PE2011
CY2011
FY2012
FY2013
FY2014
FY2015
PE2011
FY2012
FY2013
FY2014
FY2015
Note:
PE2011 represents audited nine-month period from 1 April to 31 December 2011.
Financial Ratios FY2015 FY2014 FY2013 FY2012 PE2011*
Profit After Tax Margin 8.4% 14.5% 20.7% 20.4% 25.1%
Return on Total Assets** 5.9% 14.1% 17.5% 18.0% 21.6%
Return on Average Capital Employed** 5.1% 11.9% 17.4% 16.8% 20.1%
Debt/Assets Ratio 0.10x 0.07x 0.08x 0.08x 0.11x
Gearing Ratio** 16.0% 12.6% 14.3% 15.1% 17.5%
Dividend Payout Ratio** 70.2% 53.6% 54.1% 57.0% 54.7%
* PE2011 was calculated based on annualised figures.

** Comparative figures have been restated to conform to the revised computation method.
Contribution to the Federal and State Governments of Malaysia in 2015 totalled RM 52.7 billion, compared to RM 75.3 billion in 2014. Dividends paid in
2015 of RM26.0 billion were in respect of 2014, which translated to a dividend payout ratio of 70 per cent. Please refer to the Group’s Annual Report
2015 for more information.
ABOUT THIS
REPORT
PETRONAS has voluntarily disclosed the Company’s non-financial performance

since 2007. In this eighth edition of the Group Sustainability Report, PETRONAS
continues to highlight its efforts towards realising business objectives in a safe,
responsible and ethical manner, amidst a challenging operating environment.
The PETRONAS Group Sustainability Report 2015 (SR2015) The SR2015 was developed by a dedicated unit at the
highlights the key environmental, social and governance related Group-level, entrusted to consolidate information from the
initiatives carried out throughout a 12-month period, from 1 various Business, Operating and Holding Company Units.
January to 31 December 2015, supported by data on lagging PETRONAS’ financial statements and strategic business plans
and leading performance indicators. are made available in the PETRONAS Group Annual Report.
Both reports are available online at www.petronas.com.
SCOPE AND DATA COLLECTION STAKEHOLDER MANAGEMENT

The scope of information in SR2015 covers entities where PETRONAS delivers upon its business priorities by taking into
PETRONAS has operational control in its Businesses of oil and consideration the concerns, interests and expectations of its
gas production, unless otherwise stated, in Malaysia and various stakeholders, wherever it operates. The intent is to
internationally. The sustainability data presented in SR2015 was achieve mutually beneficial relationships by; building trust and
collated through a centralised web-based system. To date, commitment; growing with nations and partners; and ensuring
initiatives such as tightening of internal mechanisms to enhance stable and reliable supply of energy.
overall monitoring, reporting and verification of sustainability
data are ongoing. PETRONAS strives to ensure the highest PETRONAS adopts a systematic mechanism in engaging the
accuracy levels of its sustainability data. Potential variances in Company’s stakeholders, where the approach is localised based
sustainability data compared to levels reported previously is due on applicable norms in the countries of operations. Formal and
to ongoing streamlining of data accounting and management informal channels are deployed to obtain feedback and where
practices. required, coordinated efforts are undertaken by multidisciplinary
teams to act upon the perspectives received. Typically, regular
and timely engagements enable the Company to share updates
as well as obtain viewpoints from its stakeholders in realising
shared growth aspirations.
Stakeholder Groups Engagement Platforms Leading Areas of The Company’s

Interest Efforts
Business Partners, • Face-to-face meetings • Health, Safety and • Provided timely
Suppliers and Service • Audits Environment (HSE) project updates
Providers • Targeted forums practices using multiple
• Monitoring of contractual provisions • Key investment communication
projects platforms
Customers and • Hotline • Socio-economic • Disbursed payment
Consumers • Email queries gowth of dividends
• Volatile oil prices and royalties to
Employees and • Townhall sessions governments
Trade Unions • Open dialogues among teams • Held continuous
• Intranet portal engagements with
various stakeholders
Host Governments • Face-to-face meetings on HSE matters
and Regulatory • Regular reports • Launched the
Authorities • Participation in discussions PETRONAS Human
Rights Commitment
Industry Associations • Engagements through business partnerships • Continued to
and Non-Governmental • Leading working groups in Industry pursue Corporate
Organisations associations Social Investments
in Malaysia and
Local Communities • Face-to-face meetings internationally
• Various social events • Prioritised growth
projects, with a
Media • Media releases stronger focus on
• Quarterly media briefings asset rationalisation
Shareholders, Financial • Group Annual Report
Institutions, Bond • Quarterly media briefings
Holders and Investors • Email queries
Note: This list is not exhaustive and collectively represents the Group’s stakeholders at large. The PETRONAS Whistleblower channels are
accessible by all internal and external stakeholders.
ABOUT THIS REPORT
IDENTIFYING MATERIALITY REPORTING STANDARDS

PETRONAS strives to provide fair, comparable and accurate information on The SR2015 was prepared in accordance with the
the initiatives pursued for managing non-financial risks, supported by Global Oil and Gas Association for Environmental
performance data on selected sustainability indicators. and Social Issues or IPIECA’s third edition of the oil
and gas industry guidance on voluntary
Content of the SR2015 was generated by reviewing several internal and sustainability reporting published in 2015.
external sources of information, findings from which were deliberated with Concurrently, it was cross-referred to the Global
internal subject-matter experts. The exercise conducted internally facilitated Reporting Initiative’s (GRI) sustainability reporting
the identification of material areas and key priorities of stakeholders, taking guidelines and FTSE Environmental, Social and
into consideration the wider industry context and the Company’s interests, Governance assessment indicators.
and cross-referenced against the PETRONAS’ Corporate Sustainability
Framework. Resources assessed to facilitate the content development
exercise included:
FEEDBACK
• Current and emerging global trends on Sustainable Development
• Findings from Enterprise Risk Management process Please send any comments, insights and/or
• Internal collaterals such as business plans, speeches and management queries to:
reports PETRONAS Sustainability Reporting
• Input from Businesses, Operating, and Holding Company Units Sustainable Development Department
• Media articles on the Company Group Health, Safety, Security and Environment
• Sustainability reporting guidelines and assessment requirements Petroliam Nasional Berhad (PETRONAS)
Level 45, Tower 1, PETRONAS Twin Towers
Content in the SR2015 has been divided into four themes to address areas of Kuala Lumpur City Centre
concern as depicted in the table below. These areas were identified through 50088 Kuala Lumpur
an internal materiality assessment exercise described above. In each of the Malaysia
four themes, namely Corporate Governance and Business Ethics; Safety and
Health; Environmental Stewardship; and Society, key focus areas are outlined. Or email sustainability@petronas.com.my
These are supported by disclosure on management approach, discussions on
non-financial performance and sustainability efforts implemented,
complemented by relevant features, where applicable.
Corporate Governance Safety and Health Environmental Society

and Business Ethics Stewardship
Business Ethics and Safety Climate Change Social Performance

Compliance
Health and Wellness Water Management Community Investments
Industrial Hygiene Environmental Management Our People
Product Stewardship
SUSTAINABLE DEVELOPMENT
IN PETRONAS
SUSTAINABILITY AND BUSINESS
STRATEGY
Balancing social and environmental considerations
in meeting the current as well as future energy
needs underpin the Group’s commitment to
generating long-term business value.
Context:
Energy is an essential component for growth, with
crude oil and natural gas constituting a significant
portion of the global energy mix. The projected
increase in global population, growing urbanisation
rate and the quest to support burgeoning
socio-economic developments collectively
intensify the need for energy resources. The
challenge herein lies in meeting increasing energy
needs while being mindful of the changing social
and environmental landscape, conscious that
energy resources are finite.
Realities facing the global oil and gas industry

include:
• Higher cost of monetising and adding value to
energy resources
• Environmental risks related to climate change
and fresh water use
• Shrinking profits due to the plunging oil price
Approach:
• Increasing demand and requirements from
Sustainable Development encompasses carrying out business in a socially
stakeholders on social performance matters
responsible and holistic manner to ensure continued growth as well as
• Maturing facilities and assets
success for the benefit of present and future generations where PETRONAS
• Geopolitical issues and political unrest
operates. The underlying aim being to create lasting social benefits; safeguard
• Business transparency and corporate
the health and safety of employees, contractors and neighbours; minimise
governance
disruptions to the community; lower emissions; minimise impact on
ecosystems and biodiversity; and use energy, water and other resources
efficiently. The Group is guided by the PETRONAS Code of Conduct and
Business Ethics (CoBE), PETRONAS Corporate Sustainability Framework,
PETRONAS Policies, Standards and Guidelines as well as compliance to local
regulations on environmental and social requirements in countries of
operations.
SUSTAINABLE DEVELOPMENT IN PETRONAS
Embedding Sustainability in PETRONAS

Strong governance mechanisms facilitate the integration and promote holistic
management of sustainability in PETRONAS, spanning across the integrated
business value chain covering day-to-day operations as well as projects, via:
Robust • PETRONAS CoBE Outlines clear

systems and • PETRONAS Health, Safety and Environment (HSE) Policy expectations to facilitate
processes • PETRONAS HSE Management System and Mandatory Control business decision making
Framework and streamline our
• PETRONAS Corporate Sustainability Framework practices in managing
• PETRONAS Carbon Commitments operational sustainability
• PETRONAS Energy and Loss Management System Group-wide
• PETRONAS Human Rights Commitment
• PETRONAS Technical Guidelines on Social Risk Assessment, Human
Rights Due Diligence and Grievance Mechanism
• PETRONAS Water Management Guide
• Procedures and Guidelines for Upstream Activities 2.0
• Sustainable Development Management System
Resilient • PETRONAS Corporate Sustainability Council Oversees implementation

organisational • Subject matter Experts at Business, Operating and Holding Company of sustainability plans in
structure Units adherence with existing
procedures and processes
Ongoing • Climate Change Nurtures individuals with

capability • Social Performance and Human Rights knowledge and skills
development • Fresh Water Management to effectively address
• Biodiversity and Ecosystem Services sustainability risks as well
as opportunities
Growing Sustainability in PETRONAS

The Group’s focus was to continue achieving operational sustainability in 2015, parallel to which, PETRONAS further strengthened its
foothold in the three identified areas below. Multidisciplinary teams worked together in addressing evolving stakeholder and business
needs, amidst a challenging operating landscape in these focus areas:
Focus Areas 2013 2014 2015
Social • Established Social • Conducted Social Risk • Accelerated • PETRONAS Human Rights
Performance Performance Assessments. capability Commitment approved
Framework • Held strategic development by PETRONAS EXCO and
engagements with local efforts endorsed by the Board
communities Group-wide • Developed three
PETRONAS Technical
Guidelines
• Ongoing social risk
assessments and Human
Rights Due Diligence
Water • Streamlined • Completed groundwork • Deployed the PETRONAS

Management definition of fresh to develop a Water Water Management Guide
water withdrawal Management Guide • Developed best practices
• Internal • Pursued internal fresh on water and wastewater
verification on water assessments systems
accounting • Carried out situational • Conducted water review
• Capability analysis for the exercise at selected plants
development development of
commitments on fresh
water withdrawal
Climate Change • Roll out • Reduced greenhouse • Established PETRONAS

of Carbon gas (GHG) emissions via Climate Change Framework
Commitments process enhancements • Established climate change
• Developed • Reinforced the Energy risk profiling methodology
systems and and Loss Management • Reduced GHG emissions
processes System through operational
• Rolled out best practices excellence practices
on energy management
Governing Sustainability in PETRONAS Health, Safety and Environment Executive Committee

The PETRONAS Corporate Sustainability Council (the Council) (PETRONAS EXCO and/or PETRONAS HSE EXCO) for the
is an advisory body established to discuss business matters on implementation of corporate sustainability practices across
sustainability facing the oil and gas industry. The Council, the Group. Secretary to the Council, which is scheduled to
comprising top management personnel with diverse expertise, meet at least twice a year, is the Sustainable Development
experience and knowledge spanning across the energy Department.
industry, is entrusted to oversee the implementation of
sustainability-related strategies in PETRONAS. To date, the Council played an instrumental role in solidifying
PETRONAS’ sustainable development practices by providing
Key roles of the Council include making recommendations to clear guidance on current and emerging sustainability issues.
the PETRONAS Executive Committee and/or the PETRONAS
In the period under review, composition of the Council was reviewed and Berhad, PETRONAS Dagangan Berhad, PETRONAS
expanded in response to the revised Company structure as well as Gas Berhad, KLCC Property Holdings Berhad,
changing business landscape, as approved by the President and Group Malaysia Marine and Heavy Engineering Holdings
Chief Executive Officer of PETRONAS. The position of the Chair is helmed Berhad and MISC Berhad are also required to
by the Senior Vice President of Corporate Strategy, supported by seven uphold PETRONAS’ Sustainable Development
members from the respective Business, Operating and Holding Company aspirations as outlined in the PETRONAS
Units. The holistic representation allows the Council to effectively cascade Corporate Sustainability Framework.
corporate sustainability practices Group-wide, ensuring a streamlined
execution of plans and strategies in line with established systems and Promoting Industry Growth
processes. PETRONAS is a member of several industry
associations which deliberate on current and
Evolution of Non-Financial Disclosure emerging trends in response to business needs.
The concept of sustainability reporting or non-financial disclosure is gaining The Group supports relevant events to spur
a stronger foothold internationally, led by growing investor interest and knowledge development amongst members of
tightening legislation. In Malaysia, Public Listed Companies (PLCs) must the oil and gas fraternity. In-house Community of
adhere by the amended listing requirements on sustainability disclosure. Practice (CoP) for the various HSE disciplines were
Presently, selected Malaysian PLCs undergo an assessment of respective also established to deliberate and cascade learning
environmental, social and governance performance based on publicly acquired from industry-wide participations. Some
available information. As of 31 December 2015, all six of the Group’s of the Group’s efforts to promote sharing and
partly-owned PLCs successfully made it to the FTSE4Good Bursa Malaysia discourse among Malaysian as well as international
(F4GBM) Index, compared to 2014 when three of the PLCs were included industry players on various energy-related
on the F4GBM Index. These PLCs, namely PETRONAS Chemicals Group disciplines in 2015 are as below:
Associations and Memberships Working Groups Events

• The Institution of Chemical Engineers • ASEAN Council on Petroleum - • Asia Oil and Gas
• International Association of Oil and Gas Production Environmental Health Expert Working Conference 2015
• International Council of Chemical Associations Group • Center for Chemical
• International Gas Union • Asian CORE Programme (Japan – Process Safety Asia
• Malaysian Gas Association Malaysia) on Risk Based Watershed Pacific Regional
• Malaysian Industrial Hygiene Association Management Meeting and
• Malaysia Oil and Gas Services Council • Industrial Hygiene Technical Working Conference 2015
• Petroleum Industry of Malaysia Mutual Aid Group Group, Department of Standards, • ENSEARCH -
• Subscribing Member of Oil Spill Response Limited Malaysia Payment of Cess and
• Certified Professional of Industrial Hygiene Board • Joint Food and Agriculture Organization Environmental Impact
• IPIECA - Water, Field and Production, Climate Change, of the United Nations/World Health Assessment Order 2015
Biodiversity and Oil Spill, Social Responsibility, Globally Organization Meeting on Pesticide Forums
Harmonised System for Classification and Labeling of Residue Expert Panel
Chemicals
• The National Institute for Occupational Safety and Health
• The Society of Petroleum Engineers - Environment and
Social Responsibility Technical Committee Member

FEATURE
SUSTAINABLE DEVELOPMENT IN A LOW OIL PRICE ENVIRONMENT

The sharp decline in price of crude oil reshaped • Downstream: Achieve and sustain optimum
the external business landscape for energy plant reliability and performance. This includes
companies globally. For the Group, this resulted in diversifying the Company’s petrochemicals
realignment of growth plans and strategies amidst portfolio and promoting our range of product
a challenging operating outlook, backed by a offerings in new international markets.
stronger focus on sustainable business practices.
The emphasis is on delivering optimum Elements of sustainability embedded into the
shareholder value over the longer term across Company’s business value chain to boost
PETRONAS’ various Businesses: resilience in a low price environment are
• Upstream: Sustain production to maintain encapsulated below:
healthy reserves, and seek further growth in
the Liquefied Natural Gas (LNG) Business, a
cleaner-burning fuel.
COST HSE &

OPTIMISATION OPERATIONAL
EXCELLENCE
GOVERNANCE OPERATIONAL
& RISK
SUSTAINABILITY
MANAGEMENT
TALENT TECHNOLOGY
MANAGEMENT & INNOVATION
MUTUAL SUPERIOR
GROWTH PRODUCTS
Our Actions Value Proposition Achieving Sustainable Growth
Cost Strengthening the Company’s • Reduced capital and operating expenditure

Optimisation financial position and business • Prioritised growth projects to manage investments
competitiveness • Simplified business processes
Governance Upholding integrity, while • Zero tolerance on corruption and bribery

and Risk addressing current and emerging • Established the position of a Chief Integrity Officer
Management risks facing the energy industry • Increased participation of women on PETRONAS’ Board
• Expanded the scope of the Enterprise Risk Management on
sustainability elements
HSE and Operating reliably, effectively and • Promoted HSE excellence across the business value chain
Operational efficiently across the Health, Safety • Conducted thorough HSE assessments and audits
Excellence and Environment (HSE), including • Strengthened asset integrity management
societal spheres
Operational Striving for prudent use of natural • Implemented Commitments on Carbon and Human Rights
Sustainability resource and improved social • Focused on 3R (reduce, recycle, reuse) activities on fresh water
performance practices • Improved governance via the Sustainable Development Management
System
• Held timely engagements with various stakeholders
Superior Manufacturing and marketing • Strengthened chemical management practices via robust product
Products quality products risk management and toxicology plans
• Produced innovative fuels and developed class-leading lubricants via
involvement in Formula One
Technology Developing and deploying • Forayed the PETRONAS Floating Liquefied Natural Gas Facility
and technologies to drive business • Generated energy using Solar Photovoltaic (PV) technology
Innovation growth • Pursued the carbon capture, utilisation and storage technology
Talent Nurturing a diverse and talented • Developed holistic leaders equipped with business acumen and
Management workforce to drive business growth technical expertise
strategies via robust talent planning • Ongoing succession planning
• Mobilised talents across varying functions to provide enriching on-
the-job exposure
Mutual Spurring socio-economic growth • Awarded education sponsorships – collectively, more than 35,000
Growth by contributing towards societal individuals have benefitted to date
wellbeing • Sourced goods and services from local suppliers in areas of
operations
• Created job opportunities to host country nationals
SUSTAINABILITY
PERFORMANCE DATA
Safety 2012 2013 2014 2015
NO. OF FATALITIES 12 4 10 4
Employees 5 0 3 0
Contractors 7 4 7 4
FATAL ACCIDENT RATE

Recordable fatalities per 100 million man-hours 3.91 1.23 3.03 1.02

LOST TIME INJURY FREQUENCY (LTIF)

No. of cases per one million man-hours 0.39 0.24 0.19 0.20

TOTAL RECORDABLE CASE FREQUENCY (TRCF)

No. of cases per one million man-hours 0.68 0.40 0.64 0.63

NO. OF TIER 1 PROCESS SAFETY EVENTS 22 10 7 15
TOTAL RECORDABLE OCCUPATIONAL ILLNESS

FREQUENCY (TROIF)
Illness per million working hours – employees 0.50 0.51 0.07 0.32
Environment 2012 2013 2014 2015
TOTAL GREENHOUSE GAS EMISSIONS 49.75 52.36 48.82 48.63

(millions tCO2e)
Upstream 28.9 31.83 29.54 29.38
Downstream 15.36 15.17 14.70 14.80
MISC Bhd 5.49 5.36 4.58 4.45
TOTAL FRESH WATER WITHDRAWAL 49.94 48.89 50.47 52.26

(million cubic metres per year)
Upstream 2.23 2.17 2.93 3.71
Downstream 47.71 46.72 47.54 48.55
TOTAL AMOUNT OF ENERGY GENERATED

FROM SOLAR PV INSTALLATIONS IN MALAYSIA
(megawatt-hours) 830 1,662 14,782 14,902
NO OF HYDROCARBON SPILLS TO THE

ENVIRONMENT OVER ONE BARREL (bbl)
One bbl is equivalent to 159 litres - 24 25 25
TOTAL SULPHUR OXIDES EMISSIONS

(metric tonnes) - 63,721 61,698 63,363
TOTAL NITROGEN OXIDES EMISSIONS

(metric tonnes) - 85,496 100,915 144,729
TOTAL DISCHARGES TO WATER

(metric tonnes of hydrocarbon) 992 992 680
TOTAL HAZARDOUS WASTE DISPOSED

(metric tonnes) - - 26,974 29,280

Note: Efforts are ongoing to achieve higher accuracy in data accounting.
SUSTAINABILITY PEFORMANCE DATA
Our Workforce 2012 2013 2014 2015
TOTAL NUMBER OF EMPLOYEES 46,145 49,193 50,949 53,149
BREAKDOWN OF EMPLOYEES (%)

Malaysian 79 78 79 80
Other Nationals 21 22 21 20
CONTRACT TYPE (%)

Permanent 84 82 85 83
Contract 16 18 15 17
GENDER DISTRIBUTION (%)

Male 73 72 72 72
Female 27 28 28 28
EMPLOYEES ABOVE AND BELOW AGE OF 35 (%)

Above 35 48 44 46 47
Below 35 52 56 54 53
NO. OF NEW HIRES

(core businesses in Malaysia) 5,428 3,699 3,541 4,078
Malaysian 4,864 3,380 3,198 3,781
Other Nationals 564 319 343 297
NO. OF GROUP-WIDE TECHNICAL EXPERTISE

Technical Authorities (TAs) 125 163 276 499
Technical Professionals (TPs) 613 673 736 825
Technical Trade Specialists (TTS) 114 126 144 180
WOMEN IN TECHNICAL POSITIONS (%) 14 14 14 14

TOTAL ATTRITION RATE BASED ON NO. OF

EMPLOYEES (%) 5.9 6.5 5.7 5.9
Male 5.2 6.1 5.3 5.5
Female 7.6 7.4 6.7 7.0
NO OF STAFF UNDER COLLECTIVE 10,260 10,684 8,954 9,651

BARGAINING AGREEMENTS
NO. OF PETRONAS SCHOLARS RECRUITED 563 432 250 351

Recruited by PETRONAS (%) 63 75 47 51
Recruited by Others (%) 37 25 53 49
NO. OF SCHOLARSHIPS AWARDED TO 318 329 337 326

MALAYSIANS
International Universities (%) 25 41 44 42
Malaysian Universities (%) 75 59 56 58
*NO. OF SPONSORED NON-MALAYSIANS 290 255 257 191

Universiti Teknologi PETRONAS (UTP), Malaysia
*This constitutes number of students studying at the UTP which varies from number of scholarships awarded to non-Malaysians.
SUSTAINABILITY PEFORMANCE DATA
TOTAL NO. OF MALAYSIAN AND HOST No. of HCN Malaysians Other

COUNTRY NATIONALS (HCN) IN SELECTED Employees Nationalities
COUNTRIES - 2015
Indonesia 356 329 22 5
Myanmar 342 253 82 7
South Africa 4,153 3,509 4 640
Turkmenistan 577 457 85 35

CORPORATE GOVERNANCE &

BUSINESS ETHICS
PETRONAS takes a proactive
approach in responding to
business risks and
opportunities, while being
mindful of stakeholder
expectations. The quest is to
achieve long-term business
competitiveness facilitated
through robust policies,
management systems,
standards as well as guidelines
that conform to internationally
accepted standards and
industry good practices.This
entails abiding by the
PETRONAS Shared Values of
Loyalty, Integrity,
Professionalism and
Cohesiveness in every aspect of
business decision-making. The
Company seeks to uphold
transparency in its actions and
disclosures, subject to provision
on business confidentiality.
This area matters:

• Business Ethics and Compliance
CORPORATE GOVERNANCE & BUSINESS ETHICS
BUSINESS ETHICS AND

COMPLIANCE
Context:
The Company strives to meet energy needs
through sound financial and operational practices,
wherever it operates by being privy to the external
landscape influencing the industry.
Approach:
Good governance provides clarity on acceptable
and expected standards of behaviour. It paves the
way for business competitiveness in an effective
and efficient manner. PETRONAS’ commitment to
good corporate governance is reflected in its
Code of Conduct and Business Ethics (CoBE),
which guides the Company in fulfilling its business
obligations with utmost integrity as well as
transparency. The CoBE, as well as other policies
and procedures, are rolled out to stakeholders anti-corruption and transparency. This included the World Economic Forum’s
through various training as well as communication Partnering against Corruption Initiative (PACI) and Transparency International
programmes. In addition to a robust governance Malaysia. PETRONAS is also a signatory to the Malaysian Corporate Integrity
mechanism, PETRONAS conforms to applicable Pledge.
laws, rules and regulations in countries where it
operates. Code of Conduct and Business Ethics
The CoBE, benchmarked to international standards, outlines the behaviour
Overseeing the Company’s overall strategic and and ethical conduct expected of employees, directors as well as third parties
operational business performance are PETRONAS’ working for or on behalf of the PETRONAS Group. Some of the pertinent
Board of Directors. The Board Governance and areas covered encompass conflict of interest, anti-corruption, competition,
Risk Committee as well as the Board Audit anti-money laundering, international trade and export controls.
Committee were established to assist the
PETRONAS Board in discharging its functions in To date, PETRONAS has communicated the CoBE to all existing and new
relation to internal controls, risk management, employees through a series of training programmes since 1 April 2012. An
compliance with applicable laws and regulations, online helpdesk was also established for internal and external stakeholders
as well as reviewing internal policies and to forward enquiries, seek clarifications and/or report breaches of the CoBE,
procedures. Collectively, they are entrusted to including raise any matters relating to PETRONAS at
further fortify the levels of accountability and cobe@petronas.com.my.
integrity in PETRONAS.
As of 31 December 2015, a total of 39,203 employees underwent
In the period under review, PETRONAS continued face-to-face training on the CoBE. Refresher trainings are also conducted
to engage with various business constituents and periodically to ensure ongoing compliance by all directors and employees. In
Non-Governmental Organisations in Malaysia as 2015, a compulsory online training programme on CoBE was rolled out, with
well as internationally on matters such as integrity, the first phase targeting PETRONAS Group employees in Malaysia.
The CoBE is constantly reviewed and relevant provisions are enhanced on 2015, commencing with the PETRONAS Group of
need basis to adapt with requirements of the local norms in countries of Companies in Malaysia. The ABC Manual is
operations. The CoBE Country Supplements are thus developed to cater for available at http://www.petronas.com.my/
local jurisdictions’ applicable legislation and social mores. The CoBE is about-us/governance/Pages/default.aspx.
accompanied by a CoBE Guide that sets out the Frequently Asked Questions,
together with a list of Do’s and Don’ts in relation to specific situations. In addition to the ABC Manual, PETRONAS
launched a handbook entitled Integrity
The CoBE Country Supplements (where applicable) and CoBE Guide have Management Training Manual in 2015 which
been distributed to all employees. A written acknowledgement is obtained guides the formulation of an effective anti-bribery
citing an obligation to read and adhere to the CoBE. The consequences of and corruption compliance programme. This
breaching the Code are clearly set out in the CoBE. Subject to applicable manual outlines five modules to provide
laws, disciplinary action will be taken against any employee for employees with the necessary tools and guidance
non-compliance with the CoBE. for planning as well as conducting comprehensive
Integrity Management Trainings to suit respective
The CoBE and supporting documents are available on PETRONAS’ corporate business functions, compatible with risks facing
website at http://www.petronas.com.my/about-us/governance/Pages/ the Company, including third parties dealing with
governance/code-of-conduct-business-ethics.aspx. PETRONAS, such as vendors, suppliers and
contractors. The five modules of the Integrity
Anti-Bribery and Corruption Compliance Programme Management Training Manual are for:
PETRONAS mandates zero tolerance for all forms of bribery as well as
corruption and has implemented a No Gift Policy since 1 April 2012. The
PETRONAS Integrity Compliance Framework (PICF) focusing on the following
three core components was developed to inculcate a stronger culture of
ethics and integrity within the Company, complementing the CoBE:
• Policies and Procedures
• Systems and Processes
• People and Culture
The Anti-Bribery and Corruption (ABC) Manual, among others, was developed
to supplement the general policy statements set out in the CoBE on fighting
PETRONAS
corruption and unethical practices. The ABC Manual, applicable across the
ANTI - BRIBERY
PETRONAS Group, contains detailed explanation on procedures for dealing
AND CORRUPTION
with improper solicitation, bribery and corruption, as well as addressing
ethical issues in sensitive situations. This includes dealing with gifts,
MANUAL
entertainment and corporate hospitality; facilitation payments; dealing with
third parties; including promoting PETRONAS’ whistleblowing channels to all
employees as well as third parties. As of 31 December 2015, a total of 29,436
employees underwent face-to-face training on the ABC Manual. In addition,
personnel working in positions or job functions exposed to a higher risk of
bribery and corruption were identified to attend a more in-depth training
programme. Mandatory online ABC training was rolled out in December
• Management Directors/Chief Executive The Compliance Desktop will be rolled out in phases to all PETRONAS
• Officers, PETRONAS Group of Companies subsidiaries across the Group, starting with PETRONAS Group of Companies
• Middle Management in Malaysia.
• Executive
• Non-Executive Combating Corruption Programme among Third
• External Party/Vendors Parties
PETRONAS has imposed a provision in all contracts requiring third parties to
All employees are to strictly adhere by the comply with the CoBE. Contractors, sub-contractors, consultants, agents,
provisions on anti-bribery and corruption representatives and others performing work or services on behalf of
stipulated in the CoBE as well as ABC Manual. PETRONAS are thus expected to abide by the relevant parts of the CoBE.
PETRONAS may suspend an employee when Failing to do so shall result in legal consequences which may include
investigating a suspected breach of CoBE or law termination of contract.
based on internal procedures. PETRONAS may
institute disciplinary action against an employee Companies applying for Licensing and Registration undergo an internal due
should findings reveal concrete and cogent diligence screening process to filter out third parties engaged in improper
evidence in support of the alleged acts of business practices. This process involves verification of information provided
misconduct. Consequences of breaching the against credible sources to detect elements of corruption, fraud, money
CoBE may include dismissal, among others. laundering, sanctions and insolvency. An overall risk rating is generated based
on findings from the due diligence process, and other relevant requirements,
Managing Bribery and Corruption following which the application for Licensing and Registration will either be
Risks approved or rejected.
To further strengthen its anti-bribery and
corruption compliance programme, PETRONAS In addition, an online compliance screening process was rolled out in 2015 to
has introduced the PETRONAS Compliance further enhance the due diligence process across all aspects of the
Desktop in 2015. The Compliance Desktop is an procurement and supply chain activities in ensuring adherence with
integrated online compliance solution designed to PETRONAS’ standards of integrity.
effectively manage PETRONAS’ Group-wide
compliance needs. In managing bribery and PETRONAS also conducts training and holds regular engagements with
corruption risk, the Compliance Desktop provides external stakeholders to ensure compliance with the CoBE and stipulation
on-line training on the ABC Manual, an online within the ABC Manual. A total of 188 companies have participated in nine
register for employees to declare gifts, PETRONAS Vendor Integrity Programme held in 2015, which reinforced the
entertainment and conflicts of interest as well as message that consequences of non-compliance may include termination of
facilitate compliance activities related to third party contract, debarment and/or disqualification from participating in any
screening and due diligence. PETRONAS tender exercise.
Furthermore, several roundtable dialogues were held with contractors,

vendors and joint venture partners to share industry good practices in
embedding integrity as part of the corporate culture, including PETRONAS’
governance mechanisms. The sessions promoted coordinated efforts among
PETRONAS’ contractors and business partners to internalise ethical business
practices.
In 2015, PETRONAS’ partly-owned subsidiaries, PETRONAS Chemicals Group PETRONAS’ Whistleblowing Committee
Berhad, PETRONAS Dagangan Berhad and PETRONAS Gas Berhad, including (Committee) deliberates on disclosures made and
33 contractors became signatories to the Corporate Integrity Pledge decides on the next course of action, as well as
representing Anti-Corruption Principles for Corporations in Malaysia. The monitors progress of cases. The Committee which
support towards unilateral declaration against corrupt practices demonstrated meets at least once a month provides updates to
a collective interest to promote a highly principled business environment. the Internal Audit Management Committee and
the Board Audit Committee. In 2015, the
Fortifying Compliance and Integrity Committee received a total of 26 disclosures via
A series of regional engagements themed Instilling a Compliance Culture by existing channels and appropriate actions were
Setting the Tone at the Top involving PETRONAS’ senior and middle taken in accordance with the PETRONAS
management were continued in 2015. The programme, carried out in Whistleblowing Procedures.
Malaysia and internationally, emphasised on the need for leaders to embody
ethical behaviours in influencing others to follow suit. The Company’s ongoing efforts to promote the
Whistleblowing Policy and its established platforms
The Corporate Integrity Advocacy Programme was also conducted to raise entailed displaying communication collateral at
awareness among PETRONAS employees stressing on maintaining business strategic locations within the Group’s office
integrity, while complying with relevant laws and regulations. In 2015, three premises such as the PETRONAS Twin Towers in
employee engagement sessions were conducted in Malaysia. Kuala Lumpur, and countries of operations.
The Company also participated in external fora promoting compliance and The Whistleblowing Policy and Procedures are
integrity. Among the international conferences and meetings PETRONAS available on PETRONAS’ corporate website at
th
participated in were the 11 South-East Asia Parties against Corruption www.petronas.com.my/about-us/governance/
(SEA-PAC) Meeting in Brunei Darussalam, the International Ethical Alliance Pages/governance/whistleblowing.aspx
th
Discussion webcast and the 16 International Anti-Corruption Conference in
Malaysia.
Whistleblowing Policy and Procedures

The PETRONAS Whistleblowing Policy launched in 2012 allows PETRONAS
employees and members of the public to disclose any improper conduct
such as misconduct or criminal offence or malpractices to the Company.
A whistleblower is assured confidentiality of identity, to the extent reasonably

practicable. This includes protecting employees against implications for
disclosing any act which was committed or pending execution within
PETRONAS, provided that the disclosure is made in good faith. A
whistleblower remains anonymous should investigation findings reveal errors
in facts, as well as misunderstanding in interpretation of rules and procedures.

FEATURE
HOLISTIC HSE GOVERNANCE

Managing the safety of people, assets and the environment is PETRONAS’ top The Zero Tolerance Rules
priority. The emphasis being to develop adequate and effective controls on (ZeTo rules)
identified Health, Safety and Environment (HSE) risks. PETRONAS’ business Strict compliance to 10 primary
control, quality principles and risk management elements center on doing the elements of the ZeTo Rules, which
right thing right every time, as well as promoting proactive leadership at all must be observed by all employees
levels. Hazards are identified and reviewed through risk assessments as well and contractors.
as a comprehensive HSE assurance and management review processes. HSE
assurance findings are deliberated at the Board Audit Committee. In addition,
HSE and Sustainable Development performance updates are presented at
scheduled intervals to the PETRONAS’ Executive Committee and
subsequently, the Board for oversight.
The PETRONAS HSE Policy governs and reinforces the commitment towards Rules
safeguarding its employees, preserving the reliability of facilities and Work with a valid work permit (PTW) required by
operations. This in turn translates into efficient business activities wherever PTW the job
PETRONAS operates. The Policy, which is applicable to all employees and Verify energy isolation before starting work
third party service providers, is supported by a HSE Mandatory Control Obtain authorisation before overriding or disabling
safety critical equipment
Framework (MCF) to strengthen HSE Governance within the Group while
Obtain authorisation before entering a confined
providing clear requirements on operational safety, environment and health space
for consistent and effective implementation. Protect yourself against a fall when working at
height
PETRONAS HSE Executive Council Use the correct personal protective equipment
(PPE) when handling hazardous chemicals
The PETRONAS HSE Executive Council, depicted below, provides leadership Obtain authorisation before excavation or entering
for strengthening existing governance and strategies on HSE across the a trench
Group, including policies, practices, contractor HSE management, and Do not position yourself under a suspended load
resource requirements including capability development. The HSE Council, Do not smoke outside designated areas or bring
potential ignition sources into process areas
which meets at least twice a year, is chaired by PETRONAS’ President and without authorisation
Group Chief Executive Officer (CEO), supported by Group HSE. Similar HSE Do not use your mobile phone/walkie-talkie while
driving, follow the speed limit and use your seat belt
committees are established at Business, Operating and Holding Company
Units to deliberate on HSE matters.
PRESIDENT &
GROUP CEO
PETRONAS
SECRETARIAT
GROUP HEALTH, SAFETY
AND ENVIRONMENT
EVP & EVP & SVP PRESIDENT/ MD/CEO

CHAIRMAN EVP & CEO
CHAIRMAN GROUP CFO
TECHNOLOGY & KLCCP
UPSTREAM DOWNSTREAM ENGINEERING MISC BHD HOLDINGS BHD
Note: EVP refers to Executive Vice President, CFO refers to Chief Financial Officer and SVP refers to Senior Vice President and MD refers
to Managing Director.
SAFETY &
HEALTH
Health, Safety and Environment (HSE) is a prerequisite for a resilient and
sustainable business. PETRONAS continues placing unparalleled importance on
the commitment to safeguard people, the environment and its assets, in line
with the PETRONAS HSE policy.
SAFETY These areas matter:

Context: • Safety
Safety considerations are embedded in all that PETRONAS does, where every • Health and Wellness
person is entrusted to collectively take ownership in upholding safety. • Industrial Hygiene
Technically complex global operations with diverse and multidisciplinary • Product Stewardship
teams of people are subjected to stringent PETRONAS HSE standards.
Approach:
PETRONAS adopts a single-minded focus to meet energy demand as well as
discharges its responsibilities across the oil and gas value chain in a safe,
reliable, and efficient manner. This is done by managing identified HSE risks
to ensure integrity of assets in safeguarding PETRONAS’ workforce, third
party personnel and the community living around the operating facilities.
SAFETY & HEALTH
PETRONAS has in place robust governance communities to inform on potential incident scenario, supported by
mechanisms and adopted streamlined safety necessary controls and appropriate measures to mitigate the situation.
practices Group-wide, demonstrating a strong
commitment to uphold the PETRONAS HSE The call for HSE excellence is especially vital on the back of tightening
Policy. This includes the HSE Management regulatory requirements and increasing stakeholders’ expectations.
System (HSE MS), HSE Mandatory Control PETRONAS takes active efforts to strengthen its HSE culture, mindset and
Framework (MCF) as well as PETRONAS operational discipline among the workforce. Great emphasis is placed on the
Technical Standards and Guidelines. The HSE PETRONAS Zero Tolerance (ZeTo) Rules, applicable to all personnel working
stipulations are cascaded to members of the at PETRONAS’ assets, with level of compliance being monitored by top
workforce and contractors via various platforms management. Efforts to raise awareness on HSE matters were also led by
such as contractual obligations, formal and the leadership team through regular management walkabouts, engagement
informal engagement sessions, including other sessions with internal as well as external stakeholders to foster shared
means of communication such as trainings and accountability on HSE matters, including learning from internal and external
briefings. Assurance programmes are established incidents.
to review and verify the effectiveness of the HSE
controls. Overseeing safety performance across the Company are HSE experts,
including Technical Professionals, monitored by top management through
The approach to safety involves ensuring the scheduled reporting to the PETRONAS Board and Executive Committee. Key
design, technical and operational integrity of performance indicators on HSE are also incorporated as part of the
assets, focusing on the adequacy as well as Executive Committee members’ scorecard.
effectiveness of control barriers. PETRONAS has
in place crisis management and emergency The changing operating landscape heightens the need for competent and
response plans to mitigate the consequences well-rounded HSE talents. PETRONAS actively hones the knowledge, skills,
from an event. The plans are tested through capabilities and experience of personnel in the HSE discipline through
regular emergency drills and exercises to evaluate targeted capacity development programmes as well as assessments. The
the response capabilities. PETRONAS works with Company adopts platforms such as trainings, plant exposure and information
its stakeholders such as local authorities and sharing through the various HSE related Community of Practice (CoP).
HSE PERFORMANCE
FATAL ACCIDENT RATE (FAR) LOST TIME INJURY TOTAL RECORDABLE CASE TIER 1 PROCESS SAFETY
Recordable Fatalities per FREQUENCY (LTIF) FREQUENCY (TRCF) Number of events
100 million man-hours Number of cases per one Number of cases per one
3.91
million man-hours million man-hours
3.32
3.03
2.86
2.58 1
0.4 0.81 22
0.39 0.78
0.34 0.68
0.32 0.64 0.63
15
1.23 0.24
1.02
0.19 0.20 0.4 10
7
247.7
247.7
CY2011
2011
PE2011
2012
2013
2014
2015
CY2011
CY2011
2011
PE2011
2012
2013
2014
2015
2011
PE2011
2012
2013
2014
2015
2012
2013
2014
2015
SAFETY & HEALTH
Project Safety
Safety is a top consideration for the successful
delivery of projects. In 2015, the Company
focused extensively on the Refinery and
Petrochemical Integrated Development (RAPID)
Project ensuring HSE requirements are integrated
from the early design stage, spanning throughout
the project lifecycle. This included reviews on Fire
Safety Adequacy, 3D Model and Fire Safety Design
Philosophy to address risks associated with the
design, construction, operation as well as
maintenance of the planned facilities.
Contractor Management
PETRONAS views effective HSE communication as
an imperative for the safe execution of project
Adherence to HSE practices and procedures across the Business, alongside activities. Parallel to this, a revamped and
the availability of effective control barriers, underpins how PETRONAS strives standardised HSE Briefing video was deployed to
for sustainable HSE performance. In the period under review, the Company enhance contractors’ understanding of HSE
recorded a 66 per cent and two per cent reduction in FAR and TRCF, requirements in the changing business landscape.
respectively. This video, available in several languages, provides
consistent insights to contractors of varying
Regrettably, four fatalities were recorded in 2015. Three casualties took place nationalities serving at all PETRONAS project sites
in the Upstream, and one at Downstream, attributed to project construction in Malaysia. The video also complements other
activities as well as land transportation, namely business travel. Such safety educational collateral.
unfortunate incidents serve as a painful reminder to continuously elevate
existing HSE standards, particularly, through rigorous safety mechanisms, Fire Safety Assessment
supported by heightened awareness on taking a collective responsibility in PETRONAS conducted Fire Safety Assessments
managing personal safety. (FSA) at selected operating facilities in Malaysia and
internationally to assess the adequacy as well as
The rise in Tier 1 Process Safety Events was largely due to increased number operational readiness of its fire protection systems.
of Loss of Primary Containments (LOPCs) recorded at local and international Training and coaching sessions on the FSA were
operational sites. In 2015, PETRONAS focused on Safety Critical Element held for plant personnel to strengthen internal
(SCE) management, by leveraging on Hazard and Effects Management capacity for conducting the necessary reviews
Process to ensure the adequacy of controls. Concurrently, efforts are based on the PETRONAS Technical Standard on
ongoing to strengthen operating discipline and HSE culture Group-wide. Management of Fire Protection Systems, while
instilling greater ownership and accountability
Safety Programmes among the identified individuals. Classroom
PETRONAS adopts a holistic approach on safety across its business value sessions on the FSA techniques were supported
chain in Malaysia and internationally. In 2015, the following initiatives were by practical plant inspection activities to assess the
carried out to strengthen existing controls for identified risk areas. operational conditions of the existing fire
protection systems.
SAFETY & HEALTH
Process Safety A stronger operating discipline is fundamental to drive improvements in

PETRONAS works towards enhancing the design, process safety performance. PETRONAS advocated the need for strong
technical and operational integrity of its assets by process safety culture through regular awareness sessions to enhance
deploying engineering solutions based on knowledge and skills across all levels of personnel via leadership workshops
internationally-accepted codes and standards on as well as boot camps on process safety. While these assist in addressing
process safety. This means, design it right, operate some of the arising concerns, PETRONAS also pursues concerted efforts at its
it right and maintain it right in line with the Upstream and Downstream Businesses to inculcate a stronger focus on
requirements of PETRONAS’ HSE MS and MCF. safety culture, focusing on the behaviour as well as mindset of its people, via
The ultimate aim being to protect the integrated human factors engineering practices.
environment and ensure continual improvement
of the Company’s HSE management and In continuously honing a competent talent pool in the niche discipline of
performance. This includes preventing process safety, PETRONAS pursues capability development initiatives through
LOPC. collaboration with internationally-renowned bodies on process safety and
higher learning institutions for the development of learning modules. In
In 2015, PETRONAS continued to strengthen and addition to providing and sharing technical expertise on process safety at
accelerate process safety implementation by international conferences, in 2015, PETRONAS led the Technical Committee
undertaking relevant Group-wide interventions for the second Center for Chemical Process Safety’s Global Summit on
arising from thorough performance review Process Safety which was held in Kuala Lumpur.
analysis. Largely, the efforts focused on risk and
barrier management, instilling operational
discipline as well as capacity and capability
building.
Asset Integrity
In upholding the HSE aspects of the industry, PETRONAS
PETRONAS embarked on in-depth analysis of continuously enhanced its asset integrity management to
process safety leading key performance indicators incorporate industry good practices and standards. Some of
(KPIs) where the results were deliberated by top the existing governance mechanism encompass the
management, following which, endorsement was PETRONAS Technical Standards, Project Management
processes and Operational Readiness Framework to ensure
obtained to enhance and expand the scope of
robust inspection, check and balance of its maintenance
leading KPIs. The importance of existing internal
system. PETRONAS takes a lifecycle approach to assess the
process safety systems and processes in managing
physical condition of assets and feasibility of processes, to
SCEs were reinforced which enabled a more determine if an operational facility should be enhanced or
holistic management oversight. rejuvenated. Ongoing initiatives in 2015 include the
Technical Integrity and Process Safety programme in the
PETRONAS also adopted a Process Safety Tool Upstream Business, alongside rigorous asset integrity
that uses a customised risk management software assurance activities across the Group.
for proactive identification of potential issues at its
operational facilities using the Dynamic Risk
Analyser (DRA) technology to provide leading or
early warning signs of potential risks. This risk
management system and tool was a winner
under the Process Safety category at the 2015
Institution of Chemical Engineers (IChemE)
Malaysia Award.
SAFETY & HEALTH
Human Factors
Awards for Process Safety PETRONAS focuses on Human Factors as an
important aspect of Process Safety which reduces
In 2015, PETRONAS received recognition from the Institution of the likelihood of events arising from human errors.
Chemical Engineers (IChemE), in the following categories:
The Company enhanced its guidelines on Human
• Leading Indicators Approach to Process Safety: ASEAN Factors Engineering (HFE) in projects, aligned to
Bintulu Fertilizer Sdn Bhd for the Dynamic Risk Analyser PETRONAS Project Management Standard. Several
which resulted in early identification of potential risks, thus HFE workshops were held throughout the year,
avoiding potential process safety and plant reliability issues. which included topics such as 3D Model Review,
• Future of Process Safety Management: PETRONAS Valve Criticality Analysis (VCA) and Safety Critical
Chemicals Ammonia Sdn Bhd (Highly Commended) for Task Analysis (SCTA).
successfully implementing the Deep Dive Audit, which
subsequently improved overall plant effectiveness and Series of Technological Solutions for
functionality. Process Safety and Asset Integrity
A range of solutions collectively known as the
Pipeline Integrity Management System using
maintenance and protective technologies were
utilised to perform risk assessment, inspection, and
rehabilitation as well as repair works of pipeline
infrastructures. This included the composite
ProAssure™ Clamp, an award-winning PETRONAS
innovation, deployed for field trial at a propane
pipeline located at Kertih, Malaysia in 2015. The
composite material infrastructure is
corrosion-resistant and weighs one-third of a
similar-sized metal clamp. It can also be easily
customised, allowing efficient and cost-effective
repairs.
Minimising risks in hydrocarbon fields is the Sand

Solutions, a methodology for managing sand in
wells. The solution reduces erosion risks by using
Computational Fluid Dynamics (CFD) simulations
that employ proprietary sand erosion correlations
to determine optimum placement of segmentisers
in Open Hole Stand Alone Screen (OHSAS)
completion wells. In 2015, the technology was
successfully applied at several oilfields in Malaysia
and internationally.
SAFETY & HEALTH
SmartCen™ replaces conventional systems to In 2015, GUSA™ was among the 10 standard engineering solutions applied to
manage metering operations more effectively by improve reliability and efficiency at varying operating facilities across the
accurately monitoring the movement of Group through streamlined data tracking for ease of benchmarking as well as
hydrocarbon products, thus eliminating potential trend analysis.
error margins in billing. SmartCen™ preserves data
integrity by producing tamper-proof reports, while The other engineering solutions were:
its integrated and automated validation function • P-RBI™ (PETRONAS Risk Based Inspection) for plant inspections and
offers an added advantage, particularly for remote maintenance.
and offshore facilities. In 2015, SmartCen™ • P-ALS™ (PETRONAS Asset Life Study) assesses a plant nearing end of its
bagged the Special Meritorious Awards for design life.
Engineering Innovation under the Intelligent • P-IPF™ (PETRONAS Instrumented Protective Function) prevents
Systems and Components Category. operations beyond safety limits.
• P-ELSOR™ (PETRONAS Electrical Safety and Operability Review) verifies
Rigorous Independent Asset Integrity Review safety limits of electrical systems during design stage.
(i-AIR™) inspections were accelerated to address • P-VIP™ (PETRONAS Value Improvement Program) integrates engineering
challenges posed by ageing offshore platforms. know-how and process simulation capability across the Upstream and
This enhanced process safety and asset integrity Downstream operating facilities to increase yields, minimise hydrocarbon
of the operational facility, thereby extending the loss as well as improve energy efficiency.
lifespan of the Group’s assets. Complementing • FnGMap™ maps the best placement for fire and gas detectors using a
i-AIR™ is the Global Ultimate Strength Analysis visualisation software at engineering stage.
(GUSA™), a methodology for assessing the • P-EDMS™ (PETRONAS Engineering Data Management System) uses
integrity status of fixed offshore jackets and web-based engineering design and data management system for
facilitating mitigation works where needed. projects as well as plant operations.
• PERSIS™ (PETRONAS Equipment Reliability Strategy and Information
System) sees to the inspection, testing and preventive maintenance of
assets.
• P-ALARM™ (PETRONAS Alarm Management) prevents operations
Recognition for PETRONAS’ beyond safety limits.
Technical Programmes
In 2015, the Group’s holistic HSE Capability Development
technical training initiatives, namely PETRONAS’ frontline personnel are central to the Company’s growth and
the Technical Capability contribute significantly towards HSE value creation, a central component for
Development Programme, received enhanced operational excellence. Considering this, three areas of
recognition having been accorded specialisation, particularly operation safety, industrial hygiene, and
the Getenergy Award under the occupational health were included as part of the Technical Trade Specialist
category - Learning at the Core.
(TTS) framework for non-executives in 2015. This scheme, while providing an
PETRONAS staff also won at the alternative career progression opportunity, retains the tacit technical
2015 Institution of Chemical knowledge and niche HSE skills.
Engineers (IChemE) Malaysia Awards,
in addition to, being highly New disciplines on safety, particularly Technical and Maritime were also
commended at the IChemE Global established under the Technical Professional Career Progression (TPCP)
Awards for the category Young
framework for executives. This move carried out in the period under review
Chemical Engineer in Industry.
intended to develop a pool of competent personnel on process safety and
marine related activities in new projects for complementing growing business
needs.
SAFETY & HEALTH
Emergency Preparedness and Crisis Management

Ongoing emergency response and crisis management exercises as Local Community Safety
well as programmes further elevated the Group’s preparedness, Programmes
including response capabilities to manage major fires and oil spills,
In upholding safe and responsible
among others. The primary aim being to minimise harm on people via
operations, the Group engages its
effective solutions and swift response time, while upholding business stakeholders to share regular updates on
resilience by adequately controlling exposure to current and emerging safety prerequisites, based on the nature
risks. Regular training and engagement sessions with various parties of the operations. In Malaysia, for
such as local government agencies, host country authorities, business example, PETRONAS abides by the
partners, contractors and local community members wherever Control of Industrial Major Accidents
PETRONAS operates underscores the strategy to foster a closer Hazard (CIMAH) Regulations 1996. In
working relationship in addressing emergencies as well as crisis striving to go beyond legislative
situations. In 2015, a multidisciplinary internal task force was formed requirements, the Group proactively
to enhance existing current emergency plans and processes, based conducts safety initiatives to create
on findings derived from the various exercises conducted.
awareness among local community
members surrounding areas of
operations through relevant
In 2015, a crisis management exercise, Ex-Siaga 3, was conducted at
programmes.
the PETRONAS Twin Towers in Kuala Lumpur, Malaysia to test the
robustness of existing controls, particularly, the emergency evacuation In 2015, PETRONAS raised awareness
procedures, security features and business continuity plans. The among local community members in
simulation exercise which depicted a major catastrophic incident Lawas, Sarawak, Malaysia on pipeline
involved occupants of both the Towers, including multiple local safety for the Sabah-Sarawak Gas
government agencies. Results of the exercise allowed for the Pipeline Project via a pilot programme,
identification of potential improvement areas and opportunities to Bomba Sukarelawan. The collaborative
leverage upon shared synergy via partnerships with the Company’s initiative, aimed at forming a
various stakeholders for increased vigilance against potential crisis. knowledgable and skilled voluntary fire
brigade, equipped rural communities
with skills to act as the first line of
Internationally, existing contingency plans were reviewed and
defense in emergency situations.
strengthened in line with the changing external landscape. Emergency
Tailored trainings on basic fire-fighting
response and crisis management exercises were also conducted at and emergency response were provided
selected international operational facilities to assess our preparedness to the identified members of the
and readiness in managing potential crisis. This included assessing the voluntary fire brigade. The grooming of
effectiveness and efficiency in collaborating with multiple stakeholders our overall safety response capabilities,
to overcome an occurrence, such as turnaround time as well as clear while complementing the PETRONAS
understanding of respective responsibilities. Community Emergency Response Team
effort, brought together its various
stakeholders, including local regulatory
authorities, in achieving a common
safety goal. Notably, establishment of
this voluntary unit will also benefit 10
satellite villages in the area of Lawas.
SAFETY & HEALTH
OCCUPATIONAL HEALTH AND

Management of occupational health assessment, and documentation were
WELLNESS
also enhanced further through the development of a secure online system
Context: that systematically simplifies current process and strengthens medical record
Healthy employees are fundamental for the management. Timely health advisories in response to public health concerns
delivery of the Group’s business priorities. The such as Ebola, Middle East Respiratory Syndrome (MERS) and Atmospheric
nature of its operations and presence across Haze are also developed to address and manage the potential business
multiple geographical locations with unique impacts as well as consequences to employees’ health. Concurrently, The
challenges may result in varying degrees of health Group focused on encouraging a healthy culture among its people through
risks. The underlying intent is to sustain optimal regular health promotion activities, as an additional means to influence
health levels of its people towards achieving workforce behaviour and health culture.
PETRONAS’ growth aspirations by preventing
work-related diseases and promoting a healthy Travel Health
lifestyle, wherever the Group operates. The scope and delivery of Travel Health, Safety and Security management
was streamlined in 2015 for better consistency Group-wide, particularly, in
Approach: the areas of health, safety and security advice for employees as well as
PETRONAS develops, implements and oversees assignees. It also encompasses support for management of medical issues
the implementation of health strategies, which are and emergencies during business travel, including during the course of work
aligned to the Company’s needs and evolving while at a respective destination or host country location. This entails access
trends of the energy industry. The Group has put to 24-hour medical advice by medical personnel, more efficient outpatient
in place robust health standards and guidelines, in and hospital admission assistance as well as adequate support, evacuation
line with industry good practices. It conducts risk and repatriation during an emergency situation. Moving forward, regular
identification, health surveillance, assessment of updates on travel health advisories, alerts and precautionary measures would
fitness for work, management of fatigue, and be made available using a dedicated travel website for employees offering
communicable diseases, among others to manage up-to-date, timely and fit for purpose information.
and mitigate health risks among employees. In
addition, the effectiveness in responding to Occupational Illnesses
medical emergencies at the workplace is regularly TOTAL RECORDABLE OCCUPATIONAL ILLNESS FREQUENCY (TROIF)
tested at its facilities. Collectively, these Illness per million working hours - employees
requirements are applicable across the PETRONAS
0.51
0.50
Group, including projects.
An enhanced Occupational Health strategy was

0.32
rolled out covering five priority areas over a
five-year period from 2015 - 2019, centered on
fulfilling the requirements stipulated in PETRONAS’
HSE Technical Standards and MCF, among others. 0.07
The priority in 2015 was to institutionalise Global
Travel Health, Safety and Security management
FY2012
FY2013
FY2014
FY2015
system for PETRONAS employees.

SAFETY & HEALTH
Total recordable occupational illness cases were largely attributed to food

poisoning and occupational noise induced hearing loss. To date, the Group
Atmospheric Haze
recorded a reduction in the latter since 2012, resulted from ongoing Hearing
Conservation programmes involving exposure monitoring, strengthening of Several regions in Malaysia were
noise control measures and surveillance activities. The number of food affected by atmospheric haze, with
poisoning incidents however continued to occur, and constituted 93 per cent
potential health impacts and
disruptions to work activities. In
of the total recorded cases in 2015 as higher number of cases were reported
addressing the national-scaled
for each of the incidents. Relevant interventions are being developed and
occurrence, the Group activated a
deployed in compliance with the PETRONAS MCF’s requirements on food multidisciplinary taskforce to
and water safety. implement interventions in mitigating
potential health consequences by
Healthy Lifestyle and Culture adhering to the Company’s guidelines
Supporting The Group’s various health activities are ongoing Workplace on Managing Haze Hazard Situations.
Wellness programmes to improve workforce health and wellness. This The Group’s efforts covered issuance
entailed elevating awareness levels among employees through health and of Haze Health Advisories to
nutritional talks, voluntary health screenings, weight management employees and regular alerts to
programmes, smoking cessation campaigns, addressing communicable Businesses on the air pollutant index
health diseases, namely, Tuberculosis and Dengue, in addition to global
as well as guidance on response
which included distribution of N95
public health concerns in the period under review. The Group developed and
masks, and provision of flexible
disseminated timely health advisories as well as recommendations for
working arrangements for high risk
reducing potential risks to its employees and contractors. staff.
A new Group-led wellness initiative launched in 2015 was the Klinik GHSE
dan Rakan Rakan (Clinic GHSE and Partners) themed A Recharge Station to
Wellness. The initiative underscored the importance of mental resilience for
enhanced productivity, as well as fortifying the Group’s existing culture on
healthy living. Fortnightly health promotional themes have been
identified for a year-long period and topics such
Contractor Health Management at Project-Level as personal hygiene are repeated to ensure that
PETRONAS ensures that the living and welfare conditions for workers are the right behaviour is inculcated and practiced on
aligned with its internal and industry practices, including globally recognised a daily basis.
requirements such as International Finance Corporation’s standards on
Labour and Working conditions (IFC PS 2). Notable initiatives have been Though there have been no cases reported to
executed to ensure that the workers’ accommodation and infrastructure date, in order to address the risk of sexually
meet requirements, as well as provision of sanitary, recreational and catering transmitted diseases which is a potential health
facilities for a diverse workforce. concern especially in projects involving large
numbers of contractor workforce, a proactive
Regular tool box talks and health promotions such as awareness events and approach was taken by the project team to
information posters on identified topics are among means to instill a strong organise a HIV/AIDS campaign in collaboration
HSE culture. The materials are also translated into multiple languages to with the local Government District Health Office
enhance workers’ understanding levels, such as at the RAPID Project. for the RAPID Project community.
SAFETY & HEALTH
This was held in conjunction with World Aids Day INDUSTRIAL HYGIENE
2015 and comprised talks and exhibitions on HIV/
AIDs targeting contractors as well as local Context:
community members while being sensitive to We adopt Industrial Hygiene principles through the anticipation, recognition,
local norms, and citing availability of free voluntary evaluation, prevention and control of health risks arising in or from the
testing at the neighboring Government Health workplace. The primary intent being to develop health risk profile, its
Centre. Moving forward, efforts would be applicable control measures, and assess its effective implementation through
intensified to raise awareness on HIV/AIDs among timely assessments.
contractors from varying cultural backgrounds,
especially with the expected significant increase in Approach:
the number of contractors from mid-2016. PETRONAS addresses health risks in its operations and projects by developing
onwards. relevant governance mechanisms on Industrial Hygiene, aligned to the
PETRONAS MCF. This extends to conducting coordinated health risk
assessments using an integrated online database which simplifies processes,
while producing timely information. The Company works closely with
multidisciplinary engineering teams to ensure industrial hygiene controls are
established and implemented Group-wide. This involves reviewing workers’
personal exposures, effectiveness of control measures and monitoring gap
closure activities. Mitigation initiatives include specific programmes such as
Chemical Management, Noise Controls as well as Human Factors
Engineering and Ergonomics. Sufficient resources are also allocated to
develop internal technical capabilities to facilitate the roll out of Industrial
Hygiene strategies Group-wide.
Chemical Management
In 2015, the Company’s Chemical Management process was updated to
meet the Occupational Safety and Health (Classification, Labelling and Safety
Data Sheet of Hazardous Chemicals) Regulations 2013 requirements, Industry
Code of Practice on Chemicals Classification and Hazard Communication
2014. Collectively, the revisions further enhanced the management of onsite
chemicals, with a view of minimising exposure to possible health effects. A
more stringent chemical approval process was implemented, whereby
incoming chemicals categorised as highly hazardous must be thoroughly
screened and assessed for replacement. Any exceptions must obtain approval
from the relevant Group Technical Authority.
Chemical Risk Management

The PETRONAS Health Risk Assessment (HRA) methodology, particularly the
Company’s standard on Chemical Management was enhanced in line with
the revised Malaysian regulations, namely Guideline on Assessment of
Hazardous Chemicals. Moving forward, efforts to further strengthen
management of hazardous chemicals will be continued in high risk areas
such as turnaround activities.
SAFETY & HEALTH
PRODUCT STEWARDSHIP
Context:
The Downstream Business, in particular, produces an array of chemicals for
use across multiple industries, and formulates fuels and lubricants. The use of
chemicals sourced externally also facilitates day-to-day operations, requiring
strict adherence to PETRONAS’ safety and health requirements.
Approach:
PETRONAS’ product stewardship practices are aligned with industry good
practices such as that by the United Nations Strategic Approach to
International Chemicals Management (SAICM) 2020 goals. The Group’s
product lifecycle management approach encompasses prudent risk
assessments to ensure the substances developed and chemicals utilised
across its operations are safe for people and the environment. The Group’s
dedicated team of internal experts spearhead the development of Safety Data
Sheets (SDS) for the products it manufactures and undertakes continuous
hazard communication. This is central to the aim of achieving sustainable
sound chemical management and ongoing engagements with stakeholders
to communicate HSE measures such as safe handling of chemicals and
transportation of dangerous goods. Simultaneously, this ensures the Group
delivers more efficient products formulated using innovative solutions which
offer superior quality, meeting evolving stakeholder requirements through
rigorous research and development activities.
Product Risk Assessment

In 2015, five product risk assessments were conducted by the Group’s
partially-owned subsidiary, PETRONAS Chemicals Group Berhad (PCG), for
substances identified to contain higher risk elements, in facilitating the
Industrial Hygiene in Design development of Global Product Safety Summary (GPSS) sheets. This enabled
Industrial Hygiene requirements in the RAPID accurate characterisation of risks, facilitating the development of suitable
Project was strengthened stipulating specific mitigation measures. In 2015, PETRONAS has published one GPSS for
requirements such as Health Risk Assessment for Ammonia in 2014, accessible for public viewing on the portal of International
design, noise engineering study, ergonomic/ Council of Chemical Associations (ICCA).
manual handling study, and chemical compatibility
study. The Group utilised internal expertise in Product Safety Data Sheet
providing project oversight for ensuring In 2015, all PETRONAS’ products were compliant with the Malaysia
compliance to PETRONAS design requirements. Occupational Safety and Health (Classification, Labelling and Safety Data
Findings from the assessments were incorporated Sheet of Hazardous Chemicals) Regulations 2013, or better known as CLASS
in the overall design facilities for proactively Regulations 2013. In 2015, the Group completed the development of SDS for
minimising workers’ exposure to health hazards. all PETRONAS’ manufactured products, available in English and Malay,
accessible at https://sds.petronas.com.my, with efforts ongoing to translate
these SDS in relevant languages for export markets.
SAFETY & HEALTH
Customer communication was improved through

feedback channel within the portal, via timely Responsible Care Initiative
responses on queries, largely related to product In 2015, PCG was awarded two platinum, four gold, six
specifications. Moving forward, an automated silver and 14 merit awards under the Corporate Awards for
label management system is scheduled for the Six Codes of Management Practices category at the
implementation. Chemical Industries Council of Malaysia (CICM) Responsible
Care (RC) Awards 2014/2015. To date, PETRONAS, via PCG,
PCG continued to comply with international is a Malaysian signatory to the RC Global Charter.
product-specific regulations such as the Strategic
Trade Act 2010 (STA), Chemical Weapons
Convention (CWC) and the European Union’s Engagements were also held with the Malaysian regulatory authority to share
Registration, Evaluation, Authorisation and knowledge and experiences on the Group’s toxicology and chemical
Restriction of Chemicals (REACH). New and management practices.
emerging chemical regulations are being screened
proactively to put in place adequate measures, as In 2015, PETRONAS led the Environmental Health Working Group under the
required. ASEAN Council on Petroleum (ASCOPE) and the IPIECA Taskforce on
Globally Harmonised System Task Force under Fuels and Products.
Some of PCG’s products, namely, polymers and
methanol, are accorded HALAL certification and in SHIELD – Enterprise Wide System
2015, several programmes were carried out to SHIELD, short for Stewardship, Health, Information and Environment Linked
raise awareness and promote HALAL management Database, was developed to further integrate HSE risk management practices
practices throughout the business value chain. across PETRONAS. SHIELD paves the way for an enterprise-wide database on
HSE from which relevant risks can be managed holistically from the Business,
Ongoing Capability Development Operating and Holding Company’s perspective, based on the PETRONAS HSE
Skills and know-how of identified PETRONAS staff MS.
in the discipline of Product Stewardship was
expedited through structured capability building In 2014, SHIELD was kicked off with three core areas namely Occupational
programmes, focusing on on-the-job experience. Health (OH), Industrial Hygiene (IH) and Product Safety (PS), covering
Training sessions to impart insights on the CLASS Employee Medical Records, Health Risk Assessment (HRA) and the
2013 Regulations requirements were conducted consolidation of all PETRONAS product Safety Data Sheets (SDS). SHIELD’s
for relevant personnel to ensure consistent roll out was divided into several phases or waves, spanning over a period of
understanding on the revised stipulations and five years. Wave 1, executed in 2014, was successfully completed in March
promote streamlined SDS labelling practices. 2015 with the implementation at five Operating Units (OPUs) in Malaysia.
Several knowledge sharing sessions to impart SHIELD continued into Wave 2 in 2015, with deployment of SHIELD at nine
information on good practices for product additional OPUs. Expanded deployment of SHIELD across domestic and
stewardship and toxicology were also led by international OPUs is anticipated moving forward, with ongoing
internal product stewards throughout the year. improvements to the current system functionalities.
ENVIRONMENTAL
STEWARDSHIP
PETRONAS’ holistic approach to upholding operational These areas matter:

sustainability entails adopting robust systems and • Climate Change
processes in protecting the environment as well as • Water Management
• Environmental Management
using natural resources more efficiently in line with
the PETRONAS Health, Safety and Environement (HSE)
Policy. The underlying intent being to elevate
operational excellence wherever it operates.
ENVIRONMENTAL STEWARDSHIP
CLIMATE CHANGE
Context:
Greenhouse gas (GHG) emissions are rising in tandem with the world’s
growing energy demand. The 2015 Paris Agreement is a clear indication that
the world is signaling for a new transitional phase towards a low-carbon
economy.
Approach:
PETRONAS duly recognises its corporate responsibility as a player in the
global energy sector to balance climate change risks while sustainably
producing affordable and reliable energy. PETRONAS focuses on enhancing
its existing carbon management practices and proactively seeking out
measures to address climate change issues. Guiding the Company’s iniatives
is the PETRONAS Climate Change Framework, in addition to other prudent
risk management for addressing as well as adapting to the effects of climate The PETRONAS Climate Change Framework
change.
PETRONAS Carbon Commitments

The Carbon Commitments drive the Company’s efforts to reduce carbon footprint and improve
operational efficiency. The intent is on reducing flaring and venting in Upstream, and improving energy
efficiency in Downstream as well as other operations, where PETRONAS has operational control. Key
efforts in 2015 included:
• Carbon footprinting covering monitoring, reporting and verification of GHG emissions;
• Climate change mitigation and adaptation activities;
• Investment in low-carbon technology;
• Climate change awareness and capability building; and
• Ongoing engagements with key stakeholders.
Improved Governance Mechanisms on Climate Change

Over time, PETRONAS has strengthened existing systems and processes to ensure the effective
management of its Carbon Commitments and other supporting initiatives to reduce GHG emissions,
including:
• Embedded GHG monitoring and reporting requirements in the HSE Mandatory Control Framework
(MCF);
• Developed the PETRONAS GHG Monitoring, Reporting and Verification Standard;
• Implemented the Exploration and Production Flaring and Venting Framework and Guideline;
• Enhanced PETRONAS Energy Practices Standard (PEPSTAR) to support the Energy and Loss
Management System (ELMS) as well as equipment operating guidelines;
• Adopted an internal carbon price mechanism to assist in project decision-making process; and
• Initiated an internal GHG verification programme.
GHG Performance PETRONAS Total GHG Emissions

GHG Emissions (million tCO2e)
Overall, PETRONAS’ GHG emissions for the Group
totalled 48.63 million metric tonnes of carbon
3.15
dioxide equivalent (million tCO2e). Of this, 83.43 2.59 0.94 0.99
0.01 5.36 2.69 2.62
per cent was attributed to its Malaysian operations,
5.49 4.58 4.45
while the remaining was from its international
6.15
operations. Direct GHG emissions accounted for
99 per cent, and the rest was indirect emissions,
15.17
mainly from electricity purchased. 4.64 15.36 13.76 13.81 Domestic Upstream
12.21
Domestic Downstream
• Domestic Operations: Overall, PETRONAS’ 8.26 MISC Berhad
operations in Malaysia recorded emissions of International Upstream
40.57 million tCO2e, a 0.10 per cent decrease
International Downstream
compared to 2014. The Upstream Business
reduced GHG emissions by 0.34 per cent
23.95 18.45 26.31 28.68 26.85 26.76
compared to 2014, contributed largely by a 17
CY2011
PE2011
FY2012
FY2013
FY2014
FY2015
per cent reduction in flaring and venting at
several oilfields. The Downstream Business
reported a nominal rise of 0.36 per cent Note: Efforts are ongoing to achieve higher accuracy in data accounting.
compared to 2014, despite higher

In 2015, an internal GHG verification programme was conducted involving
petrochemical production.
PETRONAS Chemicals Group Berhad and PETRONAS Gas Berhad, which are
• International Operations: PETRONAS’ CoBs
partly-owned subsidiaries. Historical GHG data was adjusted to reflect
and identified Downstream operations
improved accuracy as a result of the internal GHG verification programme.
collectively reported a total of 3.61 million
Moving forward, similar exercises would be carried out at other Operating
tCO2e in emissions, citing a 0.55 per cent
Units.
decrease compared to 2014. This was mainly
due to prudent operational excellence
In addition, MISC Berhad, also a partly-owned shipping subsidiary, recorded
practices.
emissions of 4.45 million tCO2e, a reduction of 2.84 per cent compared to
2014, ensuring compliance with International Maritime Organization and
International Organization for Standardization (ISO) 50001 energy efficiency
standards.
International Operations 2012 2013 2014 2015
Upstream Business’ Carigali- Mauritania Mauritania Ireland Indonesia

operated Blocks (CoBs) Myanmar Myanmar Mauritania Ireland
Turkmenistan Turkmenistan Myanmar Mauritania
Vietnam Vietnam Turkmenistan Myanmar
Vietnam Turkmenistan
Vietnam
Downstream - - Argentina Argentina

Operations Belgium Belgium
Brazil Brazil
China China
Italy Italy
South Africa South Africa
Spain Spain
Managing Climate Change Renewable Energy Solution: PETRONAS

The Company’s key efforts in 2015 to improve continued to pursue existing projects in Malaysia
GHG emissions are as follows: which converted solar energy into electricity using
photovoltaic (PV) technology. Supply from
Promote Natural Gas as a Low-Carbon Fuel: PETRONAS Solar Independent Power Producer
Natural gas will play a key role towards achieving (IPP) Project in Gebeng, Malaysia totalled 14,229
a low-carbon economy and PETRONAS aspires to MWh, resulting in a reduction of 9,732 tCO2e in
strengthen its position as a global Liquefied GHG emissions. In 2015, solar energy totalling up
Natural Gas (LNG) player. In supporting this to 13,676 MWh or 96.11 per cent of the total solar
pursuit, the Company embarked on its first energy produced from the IPP was sold as a
PETRONAS Floating LNG (PFLNG) Satu Project, a cleaner source of energy to the national grid.
versatile facility comprising LNG production,
processing, liquefaction and offloading facilities. In addition, 673 MWh of solar energy, equivalent
The structure, which limits the need for extensive to 460 tCO2e reduction in emissions, was
pipelines or heavy infrastructure will further unlock generated from the Solar PV Demonstration
value from Malaysia’s remote and stranded gas Project located at the rooftops of Suria KLCC and
fields. PFLNG is PETRONAS’ new game-changer PETRONAS commercial stations, namely Solaris
that will transform the landscape of energy Putra and Solaris Serdang. A significant proportion
production. of the solar energy generated was reused as
electricity at the respective facilities.
Minimise Flaring and Venting: Elimination of
Suria KLCC, PETRONAS The IPP Project
continuous flaring and venting are key aspects of Solaris Putra and PETRONAS
the PETRONAS Carbon Commitments, and are Solaris Serdang (MWh)
mandatory considerations for new projects. For (MWh)
existing undertakings and assets, vent-to-flare
2013 860 802
conversion projects were pursued, where feasible.
Initiatives, namely, better well management and 2014 811 13,971
improved export compressor reliability collectively 2015 673 14,229
contributed towards reductions in overall flaring
Note: The year 2013 covered a period of two months, November and December. Subsequent
and venting. years covered a period of 12 months, from January to December.
Improving Energy Efficiency through Operational

Excellence: The ELMS was developed for
improving energy utilisation in the Downstream
Business to reduce GHG emissions. The ELMS
utilises an Energy Index (EI) which measures the
amount of energy consumed for every unit of
output against the design or best achieved level. In
2015, PETRONAS completed a baselining exercise
involving all Downstream Operating Units in
Malaysia to develop strategies for improving
energy utilisation.
WATER MANAGEMENT
PETRONAS Sabah Operations Context:
Received International Water is a fundamental natural resource for local communities and
Commendation socio-economic development. Water scarcity is however a growing concern
as changes in weather impacts rainfall patterns resulting in floods and
PETRONAS was accorded the World extreme drought, among others. An uninterrupted supply of water is
Bank Sponsored Global Gas Flaring nevertheless vital for operational integrity across commercial sectors
Reduction (GGFR) Partnership including the oil and gas industry.
Excellence Award 2015 for successfully
achieving zero continuous flaring at Approach:
the Sumandak Field, and for PETRONAS seeks to continuously elevate its water management systems in
significantly reducing flaring at the Erb ensuring the responsible use of this natural resource across the business
West Field, both located offshore value chain. The approach entails improving water use efficiency by assessing
Sabah, Malaysia. These projects, water withdrawal practices and managing effluents across its operations. In
commenced in 2014, reduced the 2015, PETRONAS rolled out its Water Practices (WAPS) for Water and
Upstream Business’ overall carbon Wastewater Systems as well as streamlined implementation of 3R (Reduce,
footprint, resulted by utilisation of two Reuse, Recycle) initiatives.
additional gas compressors which
maximised resource monetisation, in Fresh Water Withdrawal
addition to, refurbishment of two Total fresh water drawn in 2015 stood at approximately 52.26 Mm3, covering
compressor trains that enhanced both Malaysian and international operations. The Downstream Business
associated gas export to achieve zero constituted 48.55 Mm3, encompassing gas processing, petrochemical and
continuous flaring. refining plants as well as PETRONAS subsidiary, Engen Petroleum Ltd, in
South Africa. Whereas the remaining 3.71 Mm3 was attributed to the Upstream
Business, including CoBs.
PETRONAS Fresh Water Withdrawal by

PETRONAS Water Management Guidelines
Business Strengthening of existing measures is an ongoing effort to improve fresh
million cubic metres (Mm3) water and wastewater systems performance. In 2015, PETRONAS Water
Management Guidelines, inclusive of the PETRONAS WAPS, were developed
48.55 to enhance work processes in the areas, namely, fresh water withdrawal, use
47.71 46.72 47.54
of water in operations and wastewater discharge.
PETRONAS Water Risk Assessment

PETRONAS developed a water risk assessment methodology to identify and
address potential concerns within its operations, such as water stress and
Upstream regulatory changes on fresh water. Moving forward, Water Risk Assessments
Downstream (WRAs) will be conducted at selected Downstream operating facilities in
2.23 2.17 2.93 3.71 Malaysia.
FY2012
FY2013
FY2014
FY2015
Note: Efforts are ongoing to achieve higher accuracy in data

accounting.
ENVIRONMENTAL MANAGEMENT For the Upstream Business, the controlled

discharge of oil to water was 680 metric tonnes,
Context: as compared to 992 metric tonnes reported in the
PETRONAS’ operations at varying geographical locations are subject to previous year. The reduction was attributed to
differing regulatory regimes for managing environmental impacts, related to improved quality of produce water discharge as a
air emissions, wastewater, hazardous waste, soil and groundwater. result of stringent manual interventions and close
monitoring to meet regulatory limits.
Approach:
The PETRONAS HSE MCF stipulates requirements on several environmental
aspects. PETRONAS also manages and addresses environmental issues at
various stages of the project from project planning, development, Oil Recovery at an Aviation
commercialisation to decommissioning and site closure. Ongoing risk Fuel Terminal
management allows for effective management of environmental related Previously, oil trapped in the oil
challenges through proactive mitigations, incorporated into the Company’s interceptor at the Bayan Lepas Aviation
overall business strategies. Fuel Terminal in Penang, Malaysia was
manually pumped using a portable
Spills to the Environment diaphragm pump into drums prior to
Efforts to mitigate spills have resulted in no increase in the number of being disposed as scheduled waste.
hydrocarbon spills greater than one barrel in 2015. The total estimated
volume of hydrocarbon spills greater than one barrel in 2015 was The mixture pumped into the drums
approximately 178 cubic meters, a 72 per cent reduction from the level contained oil which increased the
reported in 2014. Lessons learnt from previous incidents are used to amount of scheduled waste generated
proactively prevent Loss of Primary Containment (LOPC) with the aim to and disposal cost.
prevent and manage spills.
A system consisting a floating suction
and intermediate tank was designed to
Waste Management resolve the issue. Suction allowed for
In 2015, PETRONAS generated approximately 72,277 metric tonnes of the mixture to be pumped into drums,
hazardous waste, from its Malaysian and international operations. Of this, whilst the intermediate tank provided
around 60% of the waste was recycled and recovered, and the remaining was the mixture additional time to settle
disposed at approved licensed facilities. PETRONAS is strengthening its before water is drained back into the
technical capability in the area of waste identification and characterisation. interceptor, so only oil was recovered.
Effluent Discharge Overall, this initiative saved man-hours

In 2015, PETRONAS reviewed the performance of its Industrial Effluent spent on carrying out this task manually
Treatment System (IETS) at three selected Downstream operating facilities in and reduced scheduled waste disposal
Malaysia, and one in South Africa to ensure compliance with regulatory as cost.
well as PETRONAS requirements. The IETS was benchmarked against
international standards and other industry specific guidelines to ascertain its
robustness, following which interventions were implemented to sustain
performance at an optimum level.
Air Emissions
In 2015, the sulphur oxides (SOx) and nitrogen oxides (NOx) emissions from
Waste Management Practices
PETRONAS operations were recorded at 63,363 metric tonnes and 144,729
The Malaysia Marine and Heavy metric tonnes, respectively. Work is ongoing to embark on a Volatile Organic
Engineering Holdings Berhad (MHB), Compound (VOC) inventory programme with the view of developing a long
PETRONAS’ partly-owned subsidiary term mitigation plan.
via MISC Berhad offers offshore
solutions, engineering construction, The Malaysian Environmental Quality (Clean Air) Regulations 2014 was
including marine conversion as well as gazetted in 2014 to replace the Environmental Quality (Clean Air) Regulations
repair services for the global oil and 1978. PETRONAS has established a Group-wide strategy to ensure the
gas sector. In the year, the Company systematic implementation of the requirements.
successfully recovered and recycled 97
per cent of its hazardous waste via the
following measures: Achieving Responsible Discharge with
• On-site Garnet Waste Treatment Bioreactors
Facility: Recovered approximately
98 per cent of industrial grade The Engen 1-Stop and Vacation Station network was designed
spent garnet used in MHB’s specifically to meet the needs of long distance travellers,
operations. It was recycled into providing an avenue to fuel up and take short breaks. The
material for use in manufacturing network of 46 service stations located across South Africa’s
ceramic tiles and as an abrasive transit routes, comprised several stations in remote areas faced
media for MHB’s waterjet cutting with logistical challenges being disconnected from the
system. municipal sewage systems. This included being equipped with
• Use of Spent Copper Slag: outdated sewage treatment systems with an irregular
Recycled Copper slag from maintenance schedule.
blasting operations as a raw
material for the local cement
In addressing this, nine of Engen’s 1-Stop stations embarked on
manufacturing industry.
a bioreactor programme utilising waste water treatment
• Waste to Energy Conversion Plant:
process combined with the restorative effect of a reedbed
Generated electricity from heat oil
recovered from sludge incineration. facility. Waste water discharge is treated via a multi-level
• Oil Slops Recovery Unit: Recovered bioreactor process, combining fine bubble aeration with
as well as treated usable oil chemical, anoxic and anaerobic reaction. The reedbeds receive
produced by the waste stream and the treated waste water and further removed remnants of
waste water processes, prior to untreated contaminants.
discharge. This minimised the
volume of waste transported to A systematic reporting procedure established logged the
disposal facilities, in turn, enabled discharge quantity on a weekly basis, with discharge effluent
cost savings and resource quality being reported to relevant local authorities on a
optimisation. monthly basis. The bioreactor programme, requiring minimal
maintenance, yielded improved trends in discharge quality,
meeting local discharge limit.
Biodiversity and Ecosystem

Services
PETRONAS Eco Marine Conservation Project
PETRONAS focuses its efforts on building and
The Miri-Sibuti Coral Reefs National Park in Sarawak, covering
strengthening awareness on the importance of
an area of 186,930 hectares, is Malaysia’s second largest
protecting biodiversity wherever it operates to
Marine National Park. Conservation of this park contributes
benefit present as well as future generations. This
towards Malaysia’s commitment under the Convention on
covers conducting environmental studies,
Biological Diversity, aimed at protecting marine areas in the
developing infrastructure to support research and
country.
development activities on ecosystem sustenance
as well as nurturing knowledge, including skills in
The Miri-Sibuti Coral Reefs National Park is home to many
biodiversity management. For example, in 2015,
coral reef complexes and its beaches were a nestling area for
PETRONAS continued its partnership for the
sea turtles. Due to the unlawful trawling activities in recent
Imbak Canyon Conservation Area (ICCA), a Class 1
years, sea turtles no longer return to the beaches. Similarly,
Forest Reserve in Sabah, Malaysia. The
the number of other marine species such as whales have
conservation of this primary rainforest is critical for
dwindled.
protecting rich biodiversity species and discovering
new medicinal plants, among others.
In 2015, PETRONAS collaboratively launched a five-year
environmental conservation project to protect the park’s
BEACON Project Update marine biodiversity. The RM8 million project entails
deployment of 2,000 units of artificial Reef BallsTM and
The BEACON Project at SNP, which was
corresponding Conservation, Education, Promotion and
in its third year of implementation, saw
Awareness (CEPA) programme involving students and local
an encouraging increase in the number
communities, among others.
of returning sea turtles after a five year
lapse. According to the local
The eco-friendly artificial Reef BallsTM which mimic natural
conservation authority’s records, the last
limestone will be placed at identified locations around the
documented sighting of turtle eggs at
Miri-Sibuti Coral Reefs National Park to spur regeneration of
the SNP was in July 2010. As a result of
coral reefs and deter illegal fishing activities, while creating
this project, in 2015, a total of 545 turtle
alternative fishing ground for the local fishermen.
eggs were transferred to the established
BEACON Turtle Hatchery, located near
Once completed, this project is expected to boost
the SNP headquarters and to date, 277
eco-tourism in Sarawak and promote economic spin-offs for
turtle hatchlings were released back to
the local communities in Miri and Sibuti. It further
the sea.
complements PETRONAS’ other efforts in Sarawak, namely,
the PETRONAS Biodiversity, Environmental and Conservation
(BEACON) Project at Similajau National Park (SNP) in Bintulu,
and more recently, the Piasau Nature Reserve conservation
initiatives in Miri.
SOCIETY
Responsible growth encompasses balancing business These areas matter:

and societal considerations, ultimately encouraging • Social Performance
holistic value creation as well as spur lasting socio- • Community Investments
• Our People
economic development. People are at the centre of
the Group’s development plan, as human capital is a
fundamental driver to sustain growth. PETRONAS
promotes a progressive, empowered and resilient
workforce, parallel to enhancing local communities’
knowledge and skills.
SOCIETY
SOCIAL PERFORMANCE Human Rights

PETRONAS launched its Human Rights
Context: Commitment in 2015 which states PETRONAS is
The external operating landscape has changed as the oil and gas industry committed to respecting
grew its presence in remote areas internationally. Businesses continue to internationally-recognised human rights in areas
helm a more proactive role in addressing social risks within their sphere of of its operations, complying with its Code of
control in tandem with changing social expectations. Conduct and Business Ethics (CoBE), and all
relevant legal requirements. The Group’s Social
Approach: Performance practitioners assess potential Human
PETRONAS defines Social Performance as managing impacts arising from Rights risks in the following areas:
areas of the Group’s business while contributing to the society in a • Community Wellbeing: Support access to
responsible manner. This entails robust social risk management as well as community health and safety including natural
adequate systems and processes which conform to industry good practices, resources required for health, cultural needs as
supported by the PETRONAS Social Performance Framework depicted below. well as livelihood.
Regular engagement sessions and trainings are ongoing to advocate and • Supply Chain: Expand current supply chain
reinforce the importance of Social Performance among the Company’s practices to review contractors and suppliers’
various constituents. Leading the Group’s efforts are a dedicated pool of performance in the areas of labour and working
internal Social Performance practitioners, supported by multidisciplinary conditions, community wellbeing and security.
teams within Businesses, Operating and Holding Company Units. • Labour and Working Conditions: Eliminate
forced or trafficked labour, child labour or
underaged workers in contractors’ and
subcontractors’ workforce. Ensure conditions of
employment and work are in line with human
rights practices, including eliminating
discrimination in hiring and contractual terms.
• Security: Promote human rights training for
staff and third party security to prevent use of
excessive force.
HEALTH
SAFETY
All employees of PETRONAS Group of Companies,
contractors, subcontractors and any third parties
SOCIAL within PETRONAS premises or performing work
PERFORMANCE SOCIO and/or business for or on behalf of PETRONAS are
ECONOMIC required to abide by the Human Rights
FRAMEWORK & CULTURAL Commitment. In 2015, a total of 17 training and
awareness sessions were conducted to enhance
SECURITY internal capability in the discipline of human rights.
The target groups comprised identified personnel
with a potentially higher exposure to human rights
risks across the Group’s various Businesses globally.
ENVIRONMENT
FEATURE
INTERVIEW WITH DATUK WAN ZULKIFLEE WAN ARIFFIN

PETRONAS HUMAN RIGHTS COMMITMENT
Human Rights is generally defined as basic standards of treatment entitled to

every person, regardless of gender, nationality, ethnic origin, religion,
spoken language, or any other status. In the larger scope, it is incumbent
upon organisations to uphold fair business practices to mitigate potential
consequences arising from unintentional infringement of human rights
within the value chain. In recognition of this, PETRONAS went beyond the
conventional ambits by expanding our focus to include our local
communities’ wellbeing as a key consideration when carrying out
day-to-day operations, by establishing the Human Rights Commitment.
President and Group CEO
What is the PETRONAS Human Rights With an end goal to prevent and mitigate potential and actual
Commitment? impacts of PETRONAS’ social risks, could you share how this
The PETRONAS Human Rights Commitment was Commitment was first established?
introduced last year after the launching ceremony The team first consolidated findings from our Social Risk Assessments
on 20 October 2015 by our Chairman, Tan Sri conducted across key projects and operations located in Malaysia and
Mohd Sidek Hassan. It demonstrates PETRONAS’ internationally. A Human Rights Task Force was then formed, and
commitment to respect internationally recognised among their tasks included benchmarking with peers in the energy
human rights in areas of its operations. This industry. The assessment outcomes were then deliberated with
Commitment complements our existing Code of multidisciplinary teams, Senior Management representatives across
Business Conduct and Ethics (COBE), Anti-Bribery Business units, and the Corporate Sustainability Council to develop the
and Corruption (ABC) Policy, and Whistleblowing Human Rights Commitment. After endorsement by the PETRONAS
Policy. Board, the Commitment was made applicable to all employees across
the Group, contractors, subcontractors and any third parties
As the basis for embedding their responsibility performing duties for or on behalf of PETRONAS.
to respect human rights, many organisations
have expressed their commitment to meet this The Commitment to uphold fair business practices needs to be
responsibility through a statement of policy. reflected in other policies, procedures and practices in order to
Why is this Commitment important to embed respect for human rights throughout the business. What
PETRONAS? impact will the Commitment have to PETRONAS and the
This Commitment supports PETRONAS’ mission to industry?
contribute to the wellbeing of society and so I view Our long term goal is to be certain that every aspect of our operations
it as a sincere effort to strengthen our stand on takes human rights into consideration and that we have done our due
human rights. We have a responsibility to ensure diligence to ensure that we act as a responsible corporate citizen. We
that the rights of people impacted by our have embarked on several internal awareness sessions and trainings,
operations are not compromised, regardless of and will continue these efforts to help our employees internalise this
where we operate. Also, we need to have adequate collective Commitment.
systems and processes in place to manage these
risks. To this end, we have further enhanced our This initiative has certainly paved the way to establish a common
existing barriers to address human rights risks such consciousness on human rights within PETRONAS, and we will look to
as establishing a grievance mechanism procedure, expand our communication efforts and attention to partners,
conducting due diligence on security providers and suppliers, contractors and subcontractors over the next few years. I
contractors and introducing technical guidelines to urge everyone across our integrated value chain to play a part in
facilitate the implementation of the Commitment ensuring the successful realisation of the PETRONAS Human Rights
Group-wide. Commitment.
SOCIETY
Governing Social Performance and

Human Rights Social Performance Matters Forum
The following PETRONAS Technical Guidelines
PETRONAS held its inaugural Social Performance Matters (SP
were developed to support the Social
Matters) Forum on 20 October 2015, during which the
Performance Framework and Human Rights
PETRONAS Human Rights Commitment was launched by the
Commitment:
Group’s Chairman. The event promoted better understanding
• Social Risk Assessment (SRA): Provides a
on PETRONAS’ Social Performance practices. It also provided
holistic view of social risks and issues across a
updates on current and emerging social impacts facing the oil
project’s lifecycle, including steps to prepare
and gas industry. Highlights of the day-long forum was a panel
risk mitigation plans, based on the Enterprise
session led by top management personnel on operationalising
Risk Management methodology. The process
social performance in PETRONAS. An interactive exhibition was
was refined through use at 11 projects
held concurrently participated by various Business, Operating
between 2014 and 2015.
and Holding Company Units.
• Human Rights Due Diligence (HRDD):
Formalises the assessment of human rights
risks over the project lifecycle and developing
mitigation plan, aligned with the United
Nations Guiding Principles on Business and
Human Rights (UNGPs), and other
widely-accepted industry good practices.
• Grievance Mechanism Guideline: Developed
through benchmarking with UNGPs, IPIECA
and industry good practices, Grievance
Mechanism is a non-judicial process for
stakeholders to raise concerns as well as seek
access to remedy in a timely, fair, and
consistent manner.
SOCIETY
SRA Conducted in 2015 COMMUNITY INVESTMENTS

To date, a total of 13 SRAs and HRDD exercises
Context:
were carried out at selected Malaysian and
The Group works with multicultural communities and embraces local norms
international operational sites, aimed at identifying
to generate sustainable socio-economic benefits wherever it operates.
and profiling social risks.
PETRONAS seeks to build relationships on the back of lasting mutually
beneficial partnerships.
In the year under review, a HRDD was conducted
based on the International Finance Corporation
Approach:
(IFC) Performance Standards on Environmental
PETRONAS’ Corporate Social Investment (CSI) philosophy is based on the
and Social Sustainability for the Pengerang
guiding principle to nurture local communities with the relevant knowledge,
Integrated Complex (PIC) Project in Johor,
skills and capabilities. PETRONAS also promotes staff volunteerism, thereby
Malaysia. The exercise, led by an internal
encouraging staff to collectively lead the Company’s social and capability
multidisciplinary team, facilitated the development
building programmes.
of mitigation plan to address identified risks.
CSI Strategic Framework

Shaping the Industry’s Approach to
The PETRONAS Corporate Social Investment (CSI) Framework was developed
Social Performance
and implemented Group-wide in 2015, following a rationalisation exercise
PETRONAS plays an active role in sharing good
completed in the preceding year. The Framework outlines parameters of
practices and learnings with industry peers on
social contributions, supported by a standardised process to evaluate and
various topics and issues through guidance
endorse request for sponsorships. Collectively, our CSI initiatives amounted to
documents as well as engagements. PETRONAS is
RM500 million in 2015, covering initiatives carried out in Malaysia and
an active member of IPIECA and currently, the
internationally, across the following three focus areas:
Company’s representatives co-chair two task
forces; Local Content, and Social Investment. In
addition to co-chairing the International Gas
Union’s (IGU) Sustainability Committee.
PETRONAS CSI Strategic Framework
PETRONAS VISION A LEADING

OIL & GAS
MULTINATIONAL
OF CHOICE
We
We are a Oil and gas is We add contribute
PETRONAS MISSION business our core value to this to the
entity business resource wellbeing of
society
CSI PHILOSOPHY Empower communities where we operate
Education Community Environment

CSI FOCUS AREAS wellbeing &
development
SOCIETY
• Education: Providing access to knowledge gathering and

capability building opportunities regardless of gender,
Long Kerangan Micro Hydro Project
ethnicity and social standards.
• Community Wellbeing and Development: Empowering and PETRONAS pursued a Micro-Hydro rural
uplifting local communities via provision of basic needs, electrification project for providing power and
upskilling trainings as well as youth development clean water access to indigenous communities
programmes. in Long Kerangan in Baram, Sarawak. This project
• Environment: Encouraging active contribution towards benefitted close to 30 families or approximately
natural ecosystems related conservation efforts. 120 individuals, by generating uninterrupted
supply of power sufficient to support existing and
CSI Initiatives in 2015 future needs. The 24-hour supply of electricity
All About Youth improved the indigenous communities’ access to
The All About Youth (AAY) programme was expanded to six affordable energy, enhanced living conditions
states in 2015 from three when it was initially piloted in 2014. and provided additional economic opportunities.
The competition-based education programme held in Johor,
Melaka, Kelantan, Sabah, Sarawak and Terengganu was The project costing of RM230,000 involved
participated by 1,800 students from 90 schools who collectively tapping water flow from a nearby waterfall using
applied creativity for the invention of impactful and sustainable a turbine which was developed from aluminium
projects to benefit local communities. This programme provided waste material.
an avenue to hone the knowledge and soft skills of youths,
evidenced through feedback received. Enabling the successful
execution of this programme were PETRONAS staff who
voluntarily provided mentorship to the participants.
Improving Water Quality in Sabah Kimanis Petroleum Training Centre

Taking the Group’s involvement in the AAY (KTC)
Programme further, PETRONAS’ engineers The establishment of KTC equipped Sabah’s
supported students from a secondary school, youths with basic functional and technical skills to
Sekolah Menengah Kebangsaan Bongkol in Pitas, spur development of its domestic oil and gas
Sabah to tackle water supply constraints facing industry. Notably, KTC enrolled its first batch of
local community members by enhancing the female trainees in 2014. In the period under
original One Filter Bongkol prototype model review, KTC was also accorded approval from the
design concept developed using easily accessible Department of Skill Development, Ministry of
materials such as gravel, sand and coal. A Human Resources, Malaysia to conduct Diploma
knowledge sharing workshop was conducted to programmes.
build the revised water filtration system based on
the enhanced design specifications, involving
PETRONAS’ engineering experts and students
who collectively developed the initial prototype.
Trial run of the improved infrastructure showed
mark reduction in water turbidity levels.
SOCIETY
PETRONAS EDUCATION AND LEARNING VALUE CHAIN
PETRONAS Education
Sponsorship Programme (PESP)
Universiti Teknologi PETRONAS (UTP)
One of Malaysia’s leading science and technology institutions
DEGREE
Awards sponsorship to deserving
of higher learning, which allows for the pursuit of knowledge,
students for pursuing tertiary
expertise and advancement in the fields of STEM
education
Institut Teknologi Petroleum PETRONAS (INSTEP)

A technical learning institution offering Petroleum Technology Programme (PTP) to develop Diploma
ADVANCED
graduates into technicians for the oil and gas industry at large, including PETRONAS DIPLOMA
Sponsorship and Training Kimanis Petroleum Akademi Laut Malaysia
Assistance (VISTA) Training Centre (KTC) (ALAM)
Provides technical skill training
support for selected vocational
A centre established to develop
technical skills among local Sabahans
Maritime training centre offering
technical, administrative CERTIFICATE
institutions in Malaysia and management
education programmes
& DIPLOMA
Program Sentuhan Ilmu PETRONAS (PSIP) Trust School Program BUDI-PETRONAS
A school and student adoption programme to A collaborative
drive academic excellence among individuals programme to drive the
Special education sponsorship
programme targeting selected SECONDARY
aged between 13 and 17, namely in the
subjects of STEM
transformation of public
schools
underprivileged students SCHOOL
Program Sentuhan Ilmu PETRONAS (PSIP) Trust School

A school and student adoption programme to instill awareness on STEM A collaborative programme to PRIMARY
PRIMARY
among individuals aged between eight and 12 drive the transformation of public
schools
SCHOOL
SCHOOL
Holistic Education and Learning Value Chain

PETRONAS’ social investments center on nurturing students across primary, secondary and tertiary education
levels to proactively develop talents for the oil and gas industry. This is supported through established PETRONAS
education and learning institutions in Malaysia, namely PETRONAS Leadership Centre (PLC), UTP, INSTEP and
ALAM. PETRONAS’ other education programmes include the following:
• Trust School: Contributed RM10.35 million in support of the Malaysia Education Blueprint 2013-2025. A total
of 4,634 students across 10 schools in East Malaysia have gained from this collaborative effort for which
PETRONAS is a programme sponsor.
• PSIP: Benefitted 1,211 students from 31 primary schools and 12 secondary schools across the states of Sabah,
Sarawak, Labuan, Pahang, Terengganu, Melaka, Johor, Kedah and Perak in 2015, entailing some RM960,000 in
investment. The structured programme emphasised on enhancing participating students’ academic foundation
in the subjects of Science, Technology, Engineering and Mathematics (STEM), as well as character building.
SOCIETY
Growing with the Nation in Myanmar

PETRONAS spearheaded numerous social development efforts in
Myanmar, prioritising on providing access to quality education as
well as enhancing the skills of local communities in the areas such
as health and sanitation.
Education
A total of 53 schools were established under the Early Childhood
Care and Development (ECCD) Programme - 22 in Dawei and 31
in Kanbauk. To date, more than 20,000 young children have
gained from the ECCD, many of whom marked notable
improvement in knowledge levels and soft skills such as creativity
and communication abilities. Trainings were also provided to the
facilitators and local community members on ways to effectively
execute these programmes, in making learning a fun concept for
the children. Overall, the ECCD is a holistic initiative which
benefitted children and adults alike, via job opportunities. Children
who participated in the ECCD programme were visibly better
equipped to fare at primary schooling than their non-ECCD peers.
Eight outstanding students from Kanbauk were also sponsored to

study at a boarding school in Yangon. To date, under the PESP,
the Company has awarded 68 scholarships to deserving
individuals for pursuing quality tertiary education at UTP in
Science and Mathematics Workshop in Malaysia. This includes in fields such as Information Technology,
Iraq Electrical, Instrumental, Mechanical, Chemical and Petroleum
In 2015, PETRONAS Carigali Iraq Holding BV, Engineering.
assisted by Petrosains, held a Creative Science and
Maths Workshop to inculcate interest in the Community Wellbeing and Development
subjects of Science as well as Mathematics among Vocational and computer training programmes were organised
students from the Garraf Contract Area (GCA). The under the Yetagun CSI programme. Presently, 433 individuals
eight-day workshop consisted three components completed the vocational programmes on carpentry, masonry,
– train the trainers, train the teachers and train the basic electronics and electrical wiring, whereas 6,000 youth
students sessions. The programme held at the hailing from Yangon attended classes on basic computer literacy.
Garraf Vocational Training Centre (GVTC) in the Overall, this programme improved the employability of youth and
GCA, located one kilometre from the Garraf Base identified local communities from rural areas.
Camp, received an overwhelming response from
722 students from 10 schools. Moreover, On enhancing healthcare systems, medical officers and volunteers
approximately 40 teachers and 28 PETRONAS were sent to logistically challenged areas such as Ka lain Aung,
staff volunteers were also trained on innovative Kanbauk, Michaung Hlaung, Ohn Bin Gwin and Zinbar to provide
techniques to teach the subjects of Mathematics dental health care services to the local community members.
and Science. Continues on Page 74
SOCIETY
Local Talent
The Group also contributed laboratory equipment to
PETRONAS seeks to develop a reliable pool of
selected hospitals in expanding the reach of affordable
empowered individuals for the Group, the
medical services across identified local villages.
Company’s partners, host nations and
communities where it operates. The Group
Notably, to date, about 36,769 households obtained
encourages the participation of local
sufficient medical treatment at hospitals located in Dawei,
communities in the business value chain by
Kan Bauk, Laung Long and Yay Phyu.
providing job opportunities as well as
encouraging the growth of enterprises across
In terms of infrastructure, PETRONAS funded projects to
multiple industries, in support of the larger oil
build roads in the Tanintharyi region and upgraded roads
and gas industry. The underlying aim being to
in several villages. For example, Daminseit, Kanbauk,
spur socio-economic growth via strategies
Kaungmu, Mawgyi, Maw Ngan, Meetaing Tat, Pait Te Lay,
tailored to suit the aspirations of people in
Parchaung Inn, Paungdaw, Talaingmyaw, Thabutchaung,
areas of operations, in Malaysia and
The Chaung, Thingandaw and Ownbingwin. This made
internationally. Where necessary, PETRONAS
travelling easier for the local communities and offered
offers institutional capacity building
safer service tracts for operators where pipelines were laid.
programmes to hone local talents with the
desired knowledge and functional skills
PETRONAS also funded a project to build mechanical
required to perform the task.
water wells in Myanmar. This provided local communities
with access to efficient, clean and safe source of water.
Environment Strategic Procurement Partnerships

PETRONAS collaboratively supported the Tanintharyi Category management allows for standardisation
Nature Reserve Project (TNRP) in Dawei District located at of specifications, volume consolidation, security of
Southern Myanmar, encompassing an area of 1,700 square supply and localisation. PETRONAS seeks to elevate
km. Several activities were carried out to protect the area’s the commitment level on areas such as quality,
rich biodiversity and preserve its natural form, since 2004. delivery and after sales services through various
This covered survey on flora and fauna including bird agreements with Original Equipment Manufacturers
species, seedlings and annual tree planting as well as (OEMs) and their local partners. The sales volume
environmental education. built up by PETRONAS over time has encouraged
OEMs to establish local service centres. Benefits to
Capacity building efforts were executed to upskill local the local community include transfer of technology
community members to independently run programmes and capability development. Collectively, these
listed under the three CSI themes. This is to ensure the contribute towards the growth of Malaysia’s oil and
programmes are sustainably executed over the longer gas industry, while spurring socioe-conomic
term. Commendably, the local communities have grown growth in the country.
to possess needful skills for leading the social
programmes, backed by proactive initiatives to boost
self-reliance and self-improvement via personal initiatives.
SOCIETY
OUR PEOPLE
Context:
The Group’s workforce of more than 53,000 people comprises individuals
from different multicultural backgrounds, with varying experiences and
expectations, located across 75 countries.
Approach:
PETRONAS’ unique approach is holistic in nature where the Company
focuses on sharpening the knowledge and skills of employees given
intricacies of the industry, spurring internal succession planning, while
pursuing efforts to hone future talents by providing educational and capability
development opportunities. The Company’s Human resources policies,
procedures and strategies are aligned with international laws, regulatory
Developing High Skilled Talents requirements, cultural practices as well as industry good practices.
The Vocational Institution Sponsorship and
Training Assistance (VISTA) programme was Policy Enhancements
established in 1992 to nurture skilled personnel The following are some policies enhanced in 2015:
for the oil and gas industry. To date, this • Flexible Annual Leave: Provision of half-day leave.
signature effort promoted technical and • Compassionate Leave: Additional allocation of two days per year to care
vocational skills development amongst youths, for immediate family members.
such as in the areas of welding, A0 chargeman, • Optional Extended Maternity Leave: Optional 30 consecutive days
HSE and gas pipe fitting. The Group’s maternity leave on half-pay. This is an enhancement to the current
contributions also involved provision of practice.
infrastructure, maintenance services, and
collaboration with INSTEP for the development
of training modules. Collectively, over a period
of 24 years, PETRONAS invested approximately
RM65.5 million for the VISTA programme,
collaborating with 22 vocational institutions
under the federal government and various
states government agencies.
SOCIETY
PETRONAS Global Talent Strategy

The Company’s journey towards building an agile, resilient and distinctive
workforce continued in 2015 via the Group’s Global Talent Strategy (GTS),
enabling the Company to attract, recruit and retain talented people and
create an environment where employees can thrive. The GTS is founded on
three core pillars, and some achievements in 2015 included:
The Right Talent Driving Business The Right Environment The Right Leaders Promoting
Growth Encouraging Agility Sustainable Performance Excellence
Structured development to promote Upholding diversity and inclusion Hone holistic individuals who are
equitable opportunities for the in encouraging staff mobility across commercially-savvy while upholding
Company’s workforce, while leveraging multiple Businesses and geographical PETRONAS’ shared values, equipped
on global perspectives in creating new locations, guided by an integrated with knowledge, functional and
opportunities. talent development ecosystem aligned technical skills.
to the changing business dynamics.
• Talent Advisor Leadership Academy • Half-Day Leave • Enhancement of PETRONAS

• Global Mobility and Regional Pay • Enhancement of Compassionate Leadership Learning Series (PLLS)
• Robust Global Sourcing Strategy Leave • Executive Coaching
• Alignment of Employment Terms and • Optional Extended Maternity Leave • Beanbag sessions with PETRONAS
Conditions for Upstream Host Country • PETRONAS Returnee Programme Leaders
Nationals to Third-Party Nationals • PETRONAS Leading Women Network • Leaders Presence Programme
• Top Talent Development Programme • Competitive Medical Packages
Talent Recruitment and Retention included the enhanced Deferred Incentive

The Group’s talent sourcing practices and employment terms are Programme for better management of talent
benchmarked against industry good practices, appealing to fresh and retention in PETRONAS, as well as introduction of
experienced hirers. This includes designing, piloting and syndicating the Regional Executive Scheme to attract and
best-in-class people strategies. The PETRONAS Employment Value retain selected globally marketable, scarce, niche
Proposition (EVP) of Trust, Grow and Reward propels PETRONAS to hire as including skilled talents.
well as retain the best of talents. The EVP focuses on putting in place the
right people policies, processes and offering an environment which PETRONAS was accorded The Graduate Employer
encourages employee growth. In turn, building a workplace environment of the Year Award 2015. The Award recognises
which rewards workforce members on the back of meritocracy, performance Malaysia’s 100 Leading Graduate Employers
and delivery, offering fair growth opportunities and an environment to excel, (M100) and in the period under review, PETRONAS
concurrently, upholding diversity as well as inclusion. emerged as the overall winner and in addition,
bagged an additional recognition for being the
In 2015, the number of new hires who had undergone meticulous and most popular graduate employer under the
stringent evaluation processes accounted for 3,290, to fulfill the Company’s Energy/Oil and Gas/Utilities sector 2015.
manpower requirements, including being equipped with knowledge, PETRONAS also emerged as among the top 50
leadership and technical skills pertinent to support major project Malaysian most preferred organisations for the
developments, across the Businesses. The Company’’s efforts in the year GRADUAN BRAND AWARDS 2015.
SOCIETY
Diversity and Inclusion

The PETRONAS Leading Women Network (PLWN), established in 2015,
complemented the EVP and GTS in promoting a high performance culture.
Overall, the PLWN is intended to harness the value of women leaders based
on a multi-prong model: leader-led development; enabling organisation; and
peer engagement. The PLNW, rolled out in Malaysia, provides female
employees with a platform to engage and share success stories citing
elements vital for career advancement. In 1984, about two per cent of the
Group’s workforce comprised women, whereas in 2015, the number of
female employees have grown to constitute one quarter of the Company’s
overall workforce.
The Group also provides employment opportunities to individuals from

Malaysia and internationally to spur socio-economic growth, while supporting
capacity development efforts. PETRONAS’ local hiring practices are guided by Workforce Training and Development
regulatory requirements in countries of operations, grounded on the principle PETRONAS adopts structured development
of meritocracy. Targeted initiatives are pursued to groom local talents’ programmes, paving way for employees’ timely
technical skills and knowledge as part of effective talent development as well career progression. This encompasses formal and
as retention efforts. For example, the alignment of employment Terms and informal trainings, such as classroom sessions and
Conditions to absorb Home Country Nationals as Third Party Nationals. on-the-job trainings at the Group’s various
operating facilities to equip them with the
Collective Bargaining technical, functional, management and leadership
PETRONAS adheres to policy statements set out in the CoBE alongside other skills at the Group’s training institutions. In 2015,
Human Resources procedures, aligned with global requirements such as the PETRONAS invested RM500 million on staff
International Labor Organisation. Concurrently, consolidating labour knowledge and capability development efforts.
regulations and standards in countries of operations, strictly abiding by Staff are empowered to define and push the
requirements such as wages, working hours, local content, nondiscrimination boundary of success through the Employee
and employees’ right for freedom of association. Performance Management (EPM) system,
encouraging the concept of engagement all
PETRONAS respects and supports the right to organise as well as the right to year-long. Mechanisms such as Skills Groups and
collective bargaining, in line with national laws and regulations. To date, Accelerated Capability Development (ACD)
PETRONAS has established five in-house unions, namely, Kesatuan programmes are developed to systematically
Kakitangan Petroleum Nasional Berhad (KAPENAS) for Semenanjung Malaysia, equip employees with the knowledge required in
Sarawak, Sabah and Wilayah Persekutuan Labuan, including Kesatuan their respective disciplines to ensure safe
Pekerja-Pekerja Optimal Chemicals (M) Sdn Bhd (KEPKO). These Unions are operations.
entrusted to uphold the wellbeing of employees through continuous
engagement sessions, promoting a harmonious relationship between PETRONAS owns several educational institutions,
PETRONAS and its employees. In 2015, 10,167 staff were covered under the some of which are open to members of the oil
Collective Agreement, compared to 8,954 in the preceding year. Under the and gas fraternity at large. To date, PETRONAS
Agreement, the Company’s in-house unions are the sole bargaining body for also offeres in-house Master of Business
all eligible employees. Administration or MBA programmes, collaborating
with international universities:
SOCIETY
Technical Management Tertiary Education Others

and Leadership
• INSTEP • PLC • UTP • ALAM
• In-house academies such as

Operational Excellence and
Production
Leadership Development Workforce Engagement

In 2015, the Group enhanced the PETRONAS Leadership Competencies for In 2015, three President Townhall sessions were
all levels of staff, which centred on four dimensions; Develop Self and Others, held, compared to one in the previous year,
Outperform, Behave as an Owner, and Inspire Others. Staff’s Leadership predominantly, to discuss the Group’s strategies in
Competencies are annually assessed using an online feedback form. The mitigating impacts of the low oil price
findings from which are consolidated and deliberated, resulting in the environment. Similar Management-led sessions
development of specific action plans to improve identified gaps, tracked were also conducted by the Businesses, to
during the regular EPM discussions. cascade insights from the President’s Townhall
and discuss targeted business strategies. The
In the period under review, PETRONAS employees benefitted from the wide Townhall sessions were also a platform for
range of leadership programmes offered at the PLC, an accredited leadership PETRONAS’ employees to network with and seek
and management learning institution. The learning modules on competency insights from the Company’s management team.
building and people development cover topics on leadership as well as
management, focusing on inculcating a high performance culture. The
various modules are developed in consultation with subject matter experts.
Technical Capability Development

PETRONAS’ structured capability building plan entails technical, leadership
and management programmes, promoting the concept of continuous
learning. Having established a formalised requirement for HSE embedment in
all technical groups in 2014, the Group developed and executed a dedicated
training module on HSE fundamentals in 2015. PETRONAS also promote HSE
awareness by incorporating HSE module at every PETRONAS Induction
Programme for Executives (PIPE).
Our ongoing structured programmes include:
• Accelerated Capability Development (ACD) for technical executives
• Technical Professional Career Progression (TPCP) for Technical
Professionals (TP)
• PETRONAS Competency Assessment System (PECAS) for technical
non-executives
• Technical Trade Specialist (TTS) for skilled technicians and operators
PETRONAS FEATURE
IN SARAWAK
Sarawak is an important State in the development of oil and gas industry in

Malaysia. Oil was discovered in 1910 and the industry has exponentially
developed into an integrated oil and gas value-chain since the enactment of the
1974 Petroleum Development Act and the stewardship of PETRONAS; from oil
and gas production, to liquefaction of Natural Gas, to feedstock supply for
petrochemical products and feed source to electricity and reticulation businesses.
Today, Sarawak is producing an average of 850 thousand barrels of oil equivalent
per day (kboe/d) from 64 fields with 23 investors.
PETRONAS IN SARAWAK
For the gas business, our PETRONAS LNG

Complex, or in short MLNG, at Bintulu, which
started its operations in 1983, is currently running
on 8 trains, with a total capacity of 25.7 million
tonnes per annum (MTPA). A further expansion of
our MLNG will see a ninth train to be operated in
2016, adding another 3.6 MTPA of capacity.
Additionally, our PFLNG Satu, the world’s first

floating Liquefied Natural Gas (LNG), will begin
operating in 2016 at the Kanowit gas field located
offshore Bintulu. With a capacity of 1.2 MTPA, the
PFLNG Satu is set to redefine the business
landscape, as processes such as liquefaction,
production and processing of LNG will be carried
out closer to the source of gas. Previously, this
was only possible at onshore plants, making it
difficult to monetise stranded gas resources in an
economical and safe manner.
As for downstream, we operate the Asean Bintulu

Fertiliser (ABF) plant with a 63.5 per cent equity. PETRONAS and the Sarawak State Government
The plant produces 0.75 MTPA of urea, making it PETRONAS and the Sarawak State Government has formed a special
Asia’s largest granular urea plan, and 0.45 MTPA of committee to collaboratively work towards spurring greater growth of
ammonia. Additionally, PETRONAS runs and Sarawak’s energy industry. Among the focus areas are:
manages five fuel terminals, four bunkering • Supply of natural gas for domestic consumption, including State’s
facilities, four aviation depots, two LPG bottling participation in PETRONAS LNG 9 Sdn Bhd
plants and over 80 ground service stations across • Development of local Sarawak vendors and/or service providers
the State. • Development of human capital and educational programmes
• Accelerate corporate social investment (CSI) programmes
Developing Local Vendor

The thriving oil and gas industry in Sarawak entails a pool of qualified and
credible local service providers capable of competing at the global forefront.
Hence, PETRONAS collaborated with the State Government to spearhead
strategies to enhance the participation of local Sarawakian companies in the
industry, equipped with desired competencies and market competitiveness.
In 2015, we held nine engagement sessions with the State authorities and
two seminars on licensing processes and procurement governance for local
vendors. We also established three licensing counters, namely, in Kuching,
Bintulu and Miri to facilitate applications of licenses. As a result, the number of
Sarawak vendors with PETRONAS license increased by 15 per cent from 328
in 2014 to 385 in 2015.
PETRONAS IN SARAWAK
Mutual Growth Aspirations

We embarked on numerous long-term initiatives
to inspire and empower local communities
focusing on the areas of education; community
wellbeing and development; and environment.
PETRONAS had invested over RM87 million to
execute over 100 CSI programmes in Sarawak,
between 2010 and 2015, and will continue to
invest towards initiatives aimed at upholding the
wellbeing of Sarawakians.
Education: The PETRONAS Education

Sponsorship Programme (PESP) provides selected
students with opportunities to pursue tertiary
education at local and international universities,
whereas the Program Sentuhan Ilmu PETRONAS
(PSIP) focuses on strengthening the academic and
non-academic achievements of students residing
at selected areas of its operations in Sarawak.
PETRONAS is also jointly contributing towards the

construction of a new Maktab Rendah Sains
MARA (MRSM) in Bintulu and the establishment of
Asrama Desa facilities at three selected schools.
Education sponsorship are also extended to

selected students hailing from underprivileged
families studying at MRSM Kuching, MRSM Betong
and MRSM Mukah. In 2015, some 150 MRSM
students received the annual allowance.
PETRONAS also jointly-sponsored the Trust
School programme, benefitting a total of 2,600
students from five public schools in Lundu,
Sarawak.
PETRONAS IN SARAWAK
Community Wellbeing and Development: The Group pursued the

following initiatiaves in 2015:
• Program Kenali Anak Kita a social ills awareness programme targeting
parents;
• Program Sentuhan Harapan PETRONAS for providing food aid and
skills training to the extreme poor; and
• PETRONAS’ Disaster Relief Programme to channel immediate aid in
times of disaster.
In addition, PETRONAS will expand coverage of the Vocational Institution

Sponsorship and Training Assistance (VISTA) programme to support four
additional technical institutions, namely Centre of Technical Excellence
Sarawak, Pusat Pembangunan Kemahiran Sarawak, Institut Latihan
Perindustrian (ILP) Miri and Institut Kemahiran Belia Negara (IKBN) Miri.
The assistance will include provision of machineries and heavy
equipment, learning and training aids, technical support and advisory as
well as financial support for selected trainees.
Environment: Some of the Group’s ongoing commitments include

contributions towards the Biodiversity, Environmental and
Conservation (BEACON) Project and Piasau Nature Reserve
development initiative - collectively, entailing an investment of more
than RM15 million.
Amongst the new environmental undertakings in 2015 include

conservation of coral reefs at the 12,200 hectares Sibuti Reef
Complex within the 186,930 hactares of Miri-Sibuti Marine National
Park.
PENGERANG INTEGRATED
COMPLEX (PIC) FEATURE
JOHOR
Pengerang
PIC
Together, We Deliver
PCP
RAPID
ASU
PIC
UF
PDT2
RGT2
Associated Facilities of PIC

PAMER PCP RGT2
Raw Water Supply Pengerang Regasification
Project to RAPID Cogeneration Plant Terminal 2
LNG
230 MLD of water Power > 1,220 MW 2x 200,000 m³ LNG storage
Steam at 1,480 tph 500 MM SCFD natural gas
PDT2 ASU UF
Pengerang Deepwater Air Separation Unit Utilities and Facilities
Terminal 2 O2 at >1,500 TPD Centralised and shared
1.3mil tonnes of petroleum N2 at >1,300 TPD facilities
0.2mil tonnes of chemicals
5
To date, PIC marks PETRONAS’ largest downstream In 2015, cases were received via the Grievance Mechanism
investment in Malaysia. In 2015, the PIC Project delivery was channel, using a systematic process to receive, assign, investigate,
on track, whereby 19.3 per cent completion was achieved. resolve and report issues, monitored by committees such as the
PIC, located in the State of Johor, Malaysia comprises the Grievance Resolution as well as Grievance Management.
Refinery and Petrochemical Integrated Development (RAPID) Collectively, these complemented the overarching PIC Health,
and several associated facilities, namely: Safety and Environment Policy. To date, all the issues have been
-- Pengerang Cogeneration Plant (PCP): Provide reliable resolved, where some were cascaded to local authorities for
supply of steam and power, where surplus would be further action.
supplied to the national grid.
-- Pengerang Deepwater Terminal 2 (PDT2): Storage facility Consultations with local communities in Pengerang were
for the imported feedstock (crude oil) and export products conducted using several channels, some of which are listed
(petrochemical and petroleum products). below:
-- Utilities and Facilities (UF): Comprehensive utilities and • Community Leaders Committee (CLC) – an avenue for leaders
facilities network comprising infrastructure such as air and from different segments of the society to raise issues and
fuel system, firewater, flare, tankage and storage, among concerns, in the presence of relevant state authorities and
others. PETRONAS. The meeting held on a monthly basis was
-- Raw Water Supply Project to RAPID: Source of raw water participated by representatives such as women leaders, village
for the PIC and local communities. heads and youth leaders.
-- Regasification Terminal 2 (RGT2): Feed natural gas for the • Community Liaison Officer (CLO)– a dedicated Company focal
PIC and Peninsular Gas Utilisation system. point for local community members to directly raise any
-- Air Separation Unit (ASU): Breaks atmospheric air particles concerns to PETRONAS.
into its primary components; nitrogen and oxygen, • Project Disclosure Sessions – targeted engagement sessions
converting it into industrial gases. for various stakeholder groups such as students, teachers and
cultural heritage groups to provide project updates in a
In 2015, PETRONAS focused its efforts to continue conducive manner.
engagements with local community members, spurring the
involvement of local Johoreans in the project, while The effective discourse enabled timely implementation of
addressing the needs of a growing personnel population. measures to address local communities’ concerns. This included
Engagements at PIC adopted a process aligned with the embarking on a Raw Water Supply Project to RAPID or PAMER,
International Finance Corporation’s (IFC) Performance one of the several associated facilities at PIC. PAMER is expected
Standards. to channel 230 million litres per day (MLD) of raw water to the
water treatment plant within the project site at PIC and 30 MLD to
Local Community Engagement Sungai Lebam Dam to supplement Johor State’s existing water
PETRONAS regularly engages with local community members supply for public consumption in the Pengerang sub-district. The
throughout the various phases of a project to share updates facility scheduled for completion in 2016 will comprise a dam with
and seek insights on development plans. Largely, these storage capacity of 72 million cubic metres, an intake pump
dialogue sessions are led by the project team members, taking station, a booster pump station, a terminal reservoir and raw water
into account the local cultural norms and expectations. pipeline measuring approximately 90 kilometres in length.
Feedback received is carefully scrutinised to ascertain areas
for further improvement and deliberation. PETRONAS is also constructing a haulage and public access road
in curtailing potential traffic increase due to transportation of
heavy equipment, movement of workers to and from the project
site as well as availability of limited infrastructure.
Operationalisation of the Material Offloading Local Talent Development

Facilities (MOLFs) at Teluk Ramunia and Tanjung PETRONAS’ sustainable solutions on human capital development have
Setapa are additional solutions to reduce increased the participation of Johoreans in our operations at Pengerang. In
foreseeable road congestion. Collectively, the 2015, sub-contract value totalling some 82 per cent was awarded to qualified,
ports are estimated to receive about four million reliable and experienced Johor local vendors to partake in the numerous
tonnes of containerised bulk and super heavy lift growth projects related to PIC.
oversized materials via sea passage for the
development of PIC over the next three years. Other initiatives executed in the Johor State were:
• #ForPengerang – Initiative to create and offer business and job
Temporary Workers’ Village opportunities for local communities to benefit from industrial spin-offs of
PETRONAS is establishing a temporary workers’ the larger PIC Project.
2
village covering some 2,167,550 m within PIC to • Vocational Institution Sponsorship and Training Assistance (VISTA) – A
minimise impact of a large workforce on the local skills development programme held alongside selected institutions which
community within Pengerang. benefitted 2,176 individuals since 2009, many of whom are employed to
serve in a myriad of industries. In 2015, PETRONAS invested close to RM1
Approximately more than 15,000 workers are million for the VISTA programme edition held in Johor.
presently involved in the project activities. • Recruit to Train (RTT) – Recruitment and training programme for securing
Developments are ongoing to ensure the talent pool to drive project growth, in both technical and non-technical
availability of adequate facilities for an estimated areas.
peak workforce of around 60,000 individuals in • Entrepreneurship Development Programme (EDP) – Avenue for small
total. cottage industries to grow and participate in the development of
Pengerang.
Main contractors have been allotted sub-plots
within the larger village area to construct, operate
and maintain accommodation for respective
workers, ensuring compliance with PETRONAS’ KOPEJA
standards on living conditions for workers.
Relocated residents from Taman Bayu Damai made up 90
The facilities’ pending completion include road,

per cent of Koperasi Pengerang Jaya Johor Berhad’s
drainage networks, power substations, portable (KOPEJA) membership. In late 2015, the KOPEJA’s was
water storages, sewerage treatment plants and fire allocated dealership to run PETRONAS’ first commercial fuel
water system. Amenities such as administration station at the site of PIC. This initiative under #ForPengerang
buildings, mosque, fire station, ambulatory medical
provided job opportunities to locals and promoted capacity
clinic, cinemas, post office, workshop,
supermarket and grocery, cafe, mass hall, barber building for effectively operating a PETRONAS commercial
shop and gymnasium would also be made fuel station. In turn, this generates a stable income and
available. The village will also be equipped with dividends for its members, including capital for reinvestment.
leading edge systems on security,
telecommunications and access control.
AWARDS &
RECOGNITION
1. MALAYSIA’S 100 LEADING GRADUATE PETRONAS Chemicals MTBE (M) Sdn Bhd
EMPLOYERS 2015 Areas of Testing
PETRONAS was accorded the Graduate Employer 1. Polypropylene
of the year Award 2. MTBE and Propylene
This Award highlights Malaysia’s finest graduate 3. Water
employers focusing on specific recruitment 4. Catalyst
processes.
PETRONAS Gas Berhad
PETRONAS emerged as a sector winner under the Areas of Testing

Energy/Oil and Gas Utilities 1. Gas
This Award is based on public polls to identify and 2. Water
recognise the most popular graduate recruiters. 3. Wastewater
2. MALAYSIAN INSTITUTE OF CHEMISTRY PETRONAS Penapisan (Melaka) Sdn Bhd

LABORATORY EXCELLENCE AWARDS 2015 Areas of Testing
This Award was designed to ensure laboratories 1. Petroleum
demonstrate a strong commitment in providing quality 2. Water
and competent testing services in the fields of health,
safety and the environment.
PETRONAS Penapisan (Terengganu) Sdn Bhd
Winners/Companies
Areas of Testing
PETRONAS Chemicals Group Berhad
1. Petroleum
Areas of Testing 2. Petroleum Products
1. Water and Wastewater 3. Aromatics – Benzene and p-Xylene
2. Ethylene 4. Utilities (Water)
3. Polyethylene 5. Gas
6. Wastewater
PETRONAS Chemicals Methanol Sdn Bhd
Areas of Testing PETRONAS Research Sdn Bhd
1. Methanol Areas of Testing

2. Water 1. P
etroleum Products (Crude Oil, Fuel, Polyolester)
3. Gas 2. Water (Drinking Water, Formation Water, Wastewater,
4. Environmental Samples Seawater)
3. Natural Gas
3. PRIME MINISTER’S HIBISCUS AWARD 5. ROYAL SOCIETY FOR THE PREVENTION

2014/2015 OF ACCIDENTS (ROSPA) OCCUPATIONAL
HEALTH AND SAFETY AWARDS 2015
This Award is a premier recognition honouring
companies' committment towards upholding This prestigious national Award scheme recognises
environmental protection. excellence in work-related health and safety
performance by private and public sector organisations.
Exceptional Achievement under the Chemical
Industry Gold Medal Award
1. PETRONAS Chemicals Ammonia Sdn Bhd, PETRONAS Chemicals Ammonia Sdn Bhd
Terengganu
2. PETRONAS Chemicals Derivatives Sdn Bhd, Gold Award
Terengganu PETRONAS Penapisan (Melaka) Sdn. Bhd
Malaysia LNG Sdn Bhd
Notable Achievement Award
Malaysia LNG Sdn Bhd Silver Award
PETRONAS Chemicals Methanol Sdn Bhd
Notable Achievement Award
PETRONAS LNG Complex (MLNG) Sector Award
Commended: PETRONAS Chemicals Ethylene Sdn
Bhd and PETRONAS Chemicals Polyethylene Sdn Bhd
4. CHEMICAL INDUSTRIES COUNCIL OF
MALAYSIA (CICM) RESPONSIBLE CARE
AWARDS 2014/2015 6. INSTITUTION OF CHEMICAL ENGINEERS
This Award aims to recognise organisations‘ notable
(IChemE) MALAYSIA AWARDS 2015
progress in implementing the Responsible Care’s Six This Award celebrates excellence, innovation and
Codes of Management Practices in Malaysia. achievement in the chemical, biochemical and
process industries.
Corporate Awards for the Six Codes of
Management Practices Petrochemicals Category Oil and Gas Award Category
under the Chemical Industry st
Winner: MG3DF™ – “1 PETRONAS Drilling Fluid”
1. PETRONAS Chemicals Group Berhad
– Two platinum, four gold, six silver and 14 Sustainable Technology Award Category
merit awards
Winner: “Palm-Based Polyester Polyols and Polyol
Esters”
7. GETENERGY AWARDS 2015 10. MINORITY SHAREHOLDER WATCHDOG

GROUP (MSWG) – ASEAN CORPORATE
This global Award recognises the oil & gas companies
GOVERNANCE INDEX 2015 AWARD
which have made the most significant contribution to
staff learning and development in the past 12 months. This Award commends public listed companies which
promote high levels of business transparency and
PETRONAS‘ Technical Capability Development notable corporate governance practices.
Programme (TCDP) won the Getenergy Awards 2015
under the "Learning at the Core" Category. PETRONAS Chemicals Group Berhad received the
Industry Excellence Award under the Oil and Gas
sector.
8. MERITORIOUS AWARDS FOR
ENGINEERING INNOVATION (MEA) 2015
11. MALAYSIAN OCCUPATIONAL SAFETY AND
The MEA, organised by Hart Energy's E&P editors and
HEALTH PROFESSIONAL ASSOCIATION
now in its 44th year, is among the most
(MOSHPA) OSH EXCELLENCE AWARDS
distinguished engineering award programmes in the
2015
industry, recognising the world's best new tools and
techniques for finding, developing and producing This Award recognises industry players‘ outstanding
hydrocarbons. achievements in implementing safety and health
practices in the workplace.
The PETRONAS SmartCen™ won the 2015 Special
Meritorious Award for Engineering Innovation under KLCC Parking Management Sdn Bhd was accorded a
the Intelligent Systems and Components Category. Gold Award for its Parking Management Services.
th
9. BRITISH SAFETY COUNCIL 56 12. NATIONAL ANNUAL CORPORATE REPORT
INTERNATIONAL SAFETY AWARDS 2015 AWARDS (NACRA) 2015
This Award acknowledges and celebrates the The Award recognises and highlights the importance
successes of organisations in the areas of health, of good financial reporting, not only to protect
safety and employee wellbeing. stakeholders‘ interest, but also to ensure the effective
functioning of the capital market. In 2015, a new
PETRONAS Penapisan (Melaka) Sdn Bhd was Award category on Inclusiveness and Diversity was
accorded the Best Distinction Award. introduced.
PETRONAS Dagangan Berhad received a Gold Award

for Best Designed Annual Report.
PETRONAS Gas Berhad received the Industry

Excellence Award under the Industrial Products and
Technology category.

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THRIVING

Started business in 1974:

1979 1991 1999 2009

2014 & 2015 F1 World

Total assets increased to

Downstream business recorded

Oil and Gas is our core business

We add value to this resource

We contribute to the wellbeing

MAXIMISING RESOURCES FOR GROWTH EXPLORATION

Strategic expansion plans underway include MALAYSIA PETROLEUM MANAGEMENT

Downstream Business is a made up of Currently, the Company has 570 kbpd of

Convenience Store (C-Store)

1 Chemical Products 2 Business Segment 3 Petrochemical Complexes

PCG comprises 22 2 business segments: 2 integrated petrochemical

4 Manufacturing Complexes 5 Production Capacity 6 Market Leadership

3 manufacturing complexes that

7 Sole Producer 8 Joint Venture

PETRONAS continues to redefine the future of energy with innovative approaches to

* Includes Engen subsidiaries and marketing and trading offices.

©2016 PETROLIAM NASIONAL BERHAD (PETRONAS)

EUROPE LATIN AMERICA

UPSTREAM • Ireland – Exploration, Production & Gas Storage

DOWNSTREAM • Austria – Lubricants • Belgium – Lubricants

MIDDLE EAST NORTH AMERICA CENTRAL ASIA

UPSTREAM • Iraq – Development, UPSTREAM • Canada – Exploration, UPSTREAM • Turkmenistan – Exploration,

Liquefied Natural Gas (LNG)

Liquefied Petroleum Gas (LPG)

OGP Technical Services Sdn Bhd

KLCC (Holdings) Sdn Bhd

PETRONAS International Corporation Ltd

PETRONAS GROUP OF COMPANIES

*PETRONAS Dagangan Bhd (69.86%) IOT Management Sdn Bhd (20%)

Centroid Technical Services Co. Ltd (40%)

*KLCC Property Holdings Berhad (75.46%)

Transasia Pipeline Company Pvt Ltd (35%)

DATUK WAN ZULKIFLEE WAN ARIFFIN

Financial Ratios FY2015 FY2014 FY2013 FY2012 PE2011*

Profit After Tax Margin 8.4% 14.5% 20.7% 20.4% 25.1%

Return on Total Assets** 5.9% 14.1% 17.5% 18.0% 21.6%

Return on Average Capital Employed** 5.1% 11.9% 17.4% 16.8% 20.1%

Debt/Assets Ratio 0.10x 0.07x 0.08x 0.08x 0.11x

Gearing Ratio** 16.0% 12.6% 14.3% 15.1% 17.5%

Dividend Payout Ratio** 70.2% 53.6% 54.1% 57.0% 54.7%

* PE2011 was calculated based on annualised figures.

PETRONAS has voluntarily disclosed the Company’s non-financial performance

SCOPE AND DATA COLLECTION STAKEHOLDER MANAGEMENT

Stakeholder Groups Engagement Platforms Leading Areas of The Company’s

ABOUT THIS REPORT

IDENTIFYING MATERIALITY REPORTING STANDARDS

Corporate Governance Safety and Health Environmental Society

Business Ethics and Safety Climate Change Social Performance

Realities facing the global oil and gas industry

SUSTAINABLE DEVELOPMENT IN PETRONAS

Embedding Sustainability in PETRONAS

Robust • PETRONAS CoBE Outlines clear

Resilient • PETRONAS Corporate Sustainability Council Oversees implementation

Ongoing • Climate Change Nurtures individuals with

SUSTAINABLE DEVELOPMENT IN PETRONAS

Growing Sustainability in PETRONAS