Malaysia’s Petronas reports higher gas output in 2024

Market: Crude oil, Natural gas
27/02/25

Malaysia's state-owned Petronas reported higher gas output in 2024, but its oil production fell. It also posted a significant drop in profit, resulting from lower average realised prices and divestments.

Petronas' total oil and gas production amounted to 2.4mn b/d of oil equivalent (boe/d) in 2024, up by 1pc on the year. Of this, oil production fell by 4.4pc on the year to 813,000 boe/d, while gas output rose by 3.6pc to 1.64mn boe/d. The rise in gas production was attributed to the firm's attempts to maximise output from domestic and international operations.

Petronas achieved first hydrocarbon production for 21 projects in Malaysia and Indonesia in 2024, and signed 14 production sharing contracts during the year. It expanded its presence in the UAE with its third concession in Abu Dhabi — the 7,300km² onshore block 2, for which it holds 100pc equity and will assume operatorship during the exploration period.

The firm's oil product sales fell by 16pc on the year to 247.8mn bl in 2024, while its LNG sales rose by 9pc to 35.7mn t. Its petrochemical product sales rose by 7pc to 10.1mn t.

The firm's revenue fell by 7pc on the year to 320bn ringgit ($72.2bn), partly because of lower average realised prices, said Petronas. Its 2024 revenue also only included five months of South African oil firm Engen's financial results, until the divestment of its 74pc share in the company in May 2024.

In line with the fall in revenue, the firm's profit after tax fell by 32pc to 55.1bn ringgit. The divestment of Engen also meant an unfavourable realisation of the firm's foreign currency translation reserve, said Petronas.

Petronas' capital expenditure (capex) rose by 3pc on the year to 54.2bn ringgit. About half of its capex went to its upstream business, with investments mainly in the Kasawari gas field development and the integrated Bekok oil development. Over 70pc of the group's costs were attributable to domestic activities, said Petronas.

The firm also allocated over 6bn ringgit of capex toward cleaner energy solutions, mainly in renewables, hydrogen and carbon capture and storage.

The firm's Scope 1 and 2 greenhouse gas emissions totalled 46.04mn t of CO2 equivalent (CO2e) across its Malaysian operations in 2024, surpassing its target of 49.5mn t of CO2e for the year. In comparison, the firm recorded 45.6mn t of Scope 1 and 2 GHG emissions last year.

By Prethika Nair

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