About 1988 Malaysia has 16th largest natural gas and has 22nd largest oil world.

Its
exports of the two commodities accounted for 15% of Malaysias foreign exchange income in
that year. PETRONAS (Petroliam Nasional Bhd) the exclusive ownership and control of both
resources rests ,the only Malaysian company to appear in the Fortune500 list. PETRONAS
companies, subsidiaries and joint ventures involve themselves in almost every aspect of the
oil and natural gas industry, extending across boundaries and upstream (exploring and
moving oil and gas) downstream (filter and distribution of products). In the 19th century oil
was found in Malaysia, meaning PETRONAS was not the first company to produce oil and
gas in Malaysia. In 1910 a group of the first leading private small scale oil company in
Sarawak was the only oil company in the area in 1963, when the Persekutuan Tanah Melayu
achieved independence from six years of English before merging Sabah and Sarawak into
Malaysia. Royal Dutch/ Shell has taken the Malaysian offshore oilfield in 1968 to maintain
their relationship. The federal government switched to Mobil, Esso and Continental licencing
in Terengganu on the Persekutuan Tanah Melayu is the most concentrated area. In 1974 the
area was discovered by natural gas during the year and quickly made. Large oil producers
from Sabah and Sarawak. About 81,000 barrels of oil per day can be produced by 1974
production of crude oil in Malaysia.
Several factors converged in the early 1970 to prompt the Malaysian government into
setting up a state company, as first proposed in the five year plan published in the 1971.These
were years in which power in the world oil industry began to shift away from the majors
,which then controlled more than 90% of the oil trade, toward the Organization of Petroleum
Exporting Countries , as well as a proliferation of new private and state companies joining
in the search for reserves. By 1985 the majors, reduced in number from seven to five, were
producing less than 20% of the world total. It seemed that Malaysia would either have to join
then trend or continue to leave its and gas entirely to Royal Dutch/Shell and Esso,
multinational corporations necessarily attuned to the requirements of their directors and
shareholders, rather than to priorities the government of a developing country might seek to
realize. Further, an agreement between Malaysia and , signed in 1969, had settled doubts and
disputes about each countrys claim over territorial waters and offshore resources, at a time
when both were heavily indebted to Organization for Economic Co-operation and
Development(OECD)government and banks as well as to the international Monetary
Fund(IMF)and the world Bank. Setting up a state oil and gas company, through which the
government could get international capital but avoid tangling with foreign oil companies or
governments, had worked for Indonesia why not for Malaysia as well the oil crisis 1973-1974
made the government even more aware of Malaysias dependence on foreign oil and foreign
capital in general.
New technologies have been developed as another factor for exploring and expanding
offshore outbursts, the vast expanses of sediments with shallow and calm water around have
made exploration of gas and oil more successful than mast parts of the world. Malaysian
crude oil has most parts of the world. Malaysia crude iol has become of high quality due to its
low sulphur content. Thats all the history of the PERTONAS .
Next founders information of PETRONAS, That is Tan Sri Tengku Razaleigh Hamzah born
in 13 April 1937 is a Malaysian elder statesman and a major political figure from the state of
Kelantan , He is dubbed the Father of Malaysias Economy for playing a pivotal role in
establishing and implementing key foundations and Policies in Malaysias economy. Tengku
is a Malay descendant whois usually translated as a prince. He is known as Ku Li, Taken
from the last syllable of Tengku Razaleigh. From 1976 to 1984 he became finance minister,
International trade and industry minister (1984-1984) he was once the former head of the
world bank, former head of Islamic Delevopment Bank and founder of chairman and chief
executive of the company Malaysia oil, PETRONAS. He is now the longest lawmaker in
Malaysia.
Many worlds already know that PETRONAS is a big organization that exports Malaysian
oil. Every company must have its own vision and mission to achieve its goals such as
PETRONAS. It is to serve its customers with the best goals they can provide. Vision ia a
long-term plan that exists in almost every company. PETRONAS vision is to lead
multinational oil and gas options. PETRONAS hopes to become a world-renowned
organization and also the first choice among all the other oil companies present. PETRONAS
mission is petroleum is our core business, the primary responsibility is to develop and value
added to Malaysia`s national resources. Our objective is to contribute to the well being of the
people and the nation.(PETRONAS , 2001)The mission and vision PETRONAS believes had
made it grows tremendously since it was incorporated in the month of August on the 17th in
the year 1974. PETRONAS is among the top 500 companies in the world, an integrated oil
and gas company.
Shareholder of a firm can directly influence its policies and activities. The government is a
shareholder of the PETRONAS. PETRONAS provided revenue and value generating for the
government as an example of a PETRONAS giving the government a RM52.3 billion of tax
profit before tax RM86.8 billion from exports. PETRONAS has given shareholders the
opportunity to get first exposure in the company`s operations by organizing tours on how to
process its gas. This enhances cache transparency and helps shareholders take long-term view
of their investment in corporate and operating strategies . PETRONAS recognizes of
information to shareholders. As a result, shareholders and PETRONAS have been holding
significant annual general meetings (AGMs) in communication.
Organization structure is the internal, formal framework of a business thet shows the way
in which management is linked together and how authoristy is transmitted.( Stimpson, 2006)
PETRONAS adopts the functional organization structure. It enable specialization and
allowing its employees to focus on their respective areas. There are functions of each
PETRONAS and government department . It is the bond and process of specialization that
has led to the success of the organization. Cooperation is strongly encouraged, this can help
to achieve the company`s goals and targets. This has been proven as it rewards all
organization as a whole from staff, customers and suppliers. The President and CEO of the
PETRONAS must have a decision when orders are sent from the highest level.
There are planning and corporate developments have introduced long-term and short-term
strategies that lead to development. Apart from that the education division has been
responsible for all education activities related to the PETRONAS all involving scholarship
provided by PETRONAS Technology Universities and programs that have been provided to
less-respected communities . The finance division provides the company with its accounting
and financial reporting backbone of the company. The role of the PETRONAS to look for
these financial resources to fund the smooth operation of the company and to find a profitable
way in which PETRONAS can invest in business money to get a high return as PETRONAS
is involved in the sports world though its investors with F1 Mercedes team . It has also
contributed towards the development of Turkmenistan economy, by investing US dollar $1.8
billion in the oil and gas industries. To manage PETRONAS`s technological activities, the
PETRONAS has set up a technical service division. The most important function is the
human resources department because the human resources department is the recruitment,
selection and training of employees. The best employees should be chosen by the
PETRONAS and excellently though talent search among local and foreign graduates.
PETRONAS trains and innovative program provided in University Technology
PETRONAS.
This all PETRONAS weakness high dependability on the PETRONAS Group for supply
on natural gas processed gas feedstock so reduce it .Next is Dependability on a few key
suppliers to provide the electricity and water to avoid relying on suppliers. Significant
CAPEX and financing requirements need to be explained. Not around the world
PETRONAS need to extend to the world.
I learned from this assignment is many the history we do not know about a business .
Every business must have the advantages and disadvantages of each. I also learned how the
business grew and needed a lot of sacrifice.