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Tower 1, PETRONAS Twin Towers, Kuala Lumpur City Centre, 50088 Kuala Lumpur, MalaysiaTelephone: (603) 2331 5000 / 2331 0022 / 2331 0088

Telefax: (603) 2026 5050 / 2026 5055www.petronas.com.my

Design: Johan Design Associates, Malaysia.

V I S I O N S TA T E M E N T

To Be A Leading Oil And Gas Multinational Of Choice

M I S S I O N S TA T E M E N T

We Are A Business Entity

Petroleum Is Our Core Business

Our Primary Responsibility Is To Develop And Add Value To This National Resource

Our Objective Is To Contribute To The Well Being OfThe People And The Nation

S H A R E D V A L U E S

LoyaltyLoyal To Nation And Corporation

ProfessionalismCommitted, Innovative And Proactive And AlwaysStriving For Excellence

IntegrityHonest And Upright

CohesivenessUnited In Purpose And Fellowship

C O R P O R A T E

s t a t e m e n t s

P E T R O L I A M N A S I O N A L B E R H A D 1

2 Company Profile

4 Corporate Information

5 Board Of Directors

6 Management Committee

8 PETRONAS Group Of Companies

1 0 Chairman’s Statement

1 6 The Year In Review 4 4 Five-Year Financial Highlights

4 6 The Year’s Highlights

5 0 Malaysia’s Contract Areas And Oil And Gas Fields

c o n t e n t s

P E T R O L I A M N A S I O N A L B E R H A D 32

PETRONAS, the acronym for Petroliam Nasional Berhad, is Malaysia’s

national petroleum corporation. Incorporated on 17 August 1974 under

the Companies A c t , 1 9 6 5 , it is wholly owned by the Malay s i a n

Government. The Petroleum Development Act, 1974 vests in PETRONAS

the entire ownership and control of the petroleum resources in Malaysia.

RANKED among the Fortune Global 500 companies, PETRONAS is an

integrated international oil and gas company with business interests in

more than 30 countries. As at end March 2002, the PETRONAS Group

comprised 72 wholly - o w n e d , 21 partly-owned subsidiaries and

47 associated companies.

THE GROUP is engaged in a wide range of activities, including upstream

exploration and production of oil and gas to downstream oil refining;

marketing and distribution of petroleum products; trading; gas

processing and liquefaction; gas transmission pipeline network

o p e r ations; marketing of liquefied natural gas; petrochemical

manufacturing and marketing; shipping and property investment.

p r o f i l eC O M P A N Y

P E T R O L I A M N A S I O N A L B E R H A D 32

PETRONAS, the acronym for Petroliam Nasional Berhad, is Malaysia’s

national petroleum corporation. Incorporated on 17 August 1974 under

the Companies A c t , 1 9 6 5 , it is wholly owned by the Malay s i a n

Government. The Petroleum Development Act, 1974 vests in PETRONAS

the entire ownership and control of the petroleum resources in Malaysia.

RANKED among the Fortune Global 500 companies, PETRONAS is an

integrated international oil and gas company with business interests in

more than 30 countries. As at end March 2002, the PETRONAS Group

comprised 72 wholly - o w n e d , 21 partly-owned subsidiaries and

47 associated companies.

THE GROUP is engaged in a wide range of activities, including upstream

exploration and production of oil and gas to downstream oil refining;

marketing and distribution of petroleum products; trading; gas

processing and liquefaction; gas transmission pipeline network

o p e r ations; marketing of liquefied natural gas; petrochemical

manufacturing and marketing; shipping and property investment.

p r o f i l eC O M P A N Y

P E T R O L I A M N A S I O N A L B E R H A D 54

Chairman

Tan Sri Dato’ Seri Azizan Zainul Abidin

Members

Tan Sri Dato’ Mohd. Hassan Marican

Tan Sri Dato’ Dr. Samsudin Hitam

Dato’ Seri Dr. Zainul Ariff Haji Hussain

Tan Sri Dato’ Zaki Tun Azmi

Dato’ Iskandar Dzakurnain Badarudin

Dato’ Mohamad Idris Mansor

Datuk Ishak Imam Abas

Haji Ithnin Haji Hassan

(Alternate to Tan Sri Dato’ Dr. Samsudin Hitam)

Haji Mohd. Zarif Mohd. Zaman

(Alternate to Dato’ Iskandar Dzakurnain Badarudin)

Company Secretary

Mohammed Azhar Osman Khairuddin

Registered Office

Tower 1

PETRONAS Twin Towers

Kuala Lumpur City Centre

50088 Kuala Lumpur

Malaysia

Telephone : (03) 2331-5000

Telefax : (03) 2026-5050

Website : www.petronas.com.my

i n f o r m a t i o nB O A R D O F

d i r e c t o r s

Seated From Left:

Dato’ Seri Dr. Zainul Ariff Haji Hussain, Tan Sri Dato’ Seri Azizan Zainul Abidin, Tan Sri Dato’ Zaki Tun Azmi, Tan Sri Dato’ Mohd.Hassan Marican

Standing From Left:

Dato’ Iskandar Dzakurnain Badarudin,Haji Ithnin Haji Hassan,Datuk Ishak Imam Abas,Dato’ Mohamad Idris Mansor, Mohammed Azhar Osman Khairuddin

C O R P O R A T E

P E T R O L I A M N A S I O N A L B E R H A D 54

Chairman

Tan Sri Dato’ Seri Azizan Zainul Abidin

Members

Tan Sri Dato’ Mohd. Hassan Marican

Tan Sri Dato’ Dr. Samsudin Hitam

Dato’ Seri Dr. Zainul Ariff Haji Hussain

Tan Sri Dato’ Zaki Tun Azmi

Dato’ Iskandar Dzakurnain Badarudin

Dato’ Mohamad Idris Mansor

Datuk Ishak Imam Abas

Haji Ithnin Haji Hassan

(Alternate to Tan Sri Dato’ Dr. Samsudin Hitam)

Haji Mohd. Zarif Mohd. Zaman

(Alternate to Dato’ Iskandar Dzakurnain Badarudin)

Company Secretary

Mohammed Azhar Osman Khairuddin

Registered Office

Tower 1

PETRONAS Twin Towers

Kuala Lumpur City Centre

50088 Kuala Lumpur

Malaysia

Telephone : (03) 2331-5000

Telefax : (03) 2026-5050

Website : www.petronas.com.my

i n f o r m a t i o nB O A R D O F

d i r e c t o r s

Seated From Left:

Dato’ Seri Dr. Zainul Ariff Haji Hussain, Tan Sri Dato’ Seri Azizan Zainul Abidin, Tan Sri Dato’ Zaki Tun Azmi, Tan Sri Dato’ Mohd.Hassan Marican

Standing From Left:

Dato’ Iskandar Dzakurnain Badarudin,Haji Ithnin Haji Hassan,Datuk Ishak Imam Abas,Dato’ Mohamad Idris Mansor, Mohammed Azhar Osman Khairuddin

C O R P O R A T E

P E T R O L I A M N A S I O N A L B E R H A D 76

Tan Sri Dato’ Mohd.Hassan MaricanPresident & Chief Executive Officer

Dato’ Mohamad Idris MansorSenior Vice-President,Exploration & Production Business

Datuk Ishak Imam AbasSenior Vice-President, Finance

Dato’ Haji Mohd.Ali Haji YasinVice-President, Logistics & Maritime Business

Dato’ Shamsul Azhar AbbasVice-President, Oil Business

Muri MuhammadVice-President,Gas Business

Dato’ Abdul Rahim Abu BakarVice-President, Petrochemical Business

Abdul Rahim Haji HashimVice-President, Human Resource Management

Mariam Rahimah Haji MukhtarVice-President,Education

Abdul Hamid IbrahimManaging Director/Chief Executive Officer,PETRONAS Gas Bhd

Anuar AhmadManaging Director/Chief Executive Officer,PETRONAS Dagangan Bhd

Abdullah KarimManaging Director/Chief Executive Officer,Malaysia LNG Sdn. Bhd.

Mohammed Azhar Osman KhairuddinSenior General Manager,Legal & Corporate Affairs Division

Nasarudin Md. IdrisSenior General Manager,Corporate Planning & Development Division

Mohamad Johari DasriManaging Director/Chief Executive Officer,PETRONAS Carigali Sdn.Bhd.

Faridah Haris HamidSecretary

Seated From Left:

Dato’ Mohamad Idris Mansor, Tan Sri Dato’ Mohd.Hassan Marican,Datuk Ishak Imam Abas

Standing From Left:

Mohamad Johari Dasri,Abdullah Karim,Mohammed Azhar Osman Khairuddin,Abdul Rahim Haji Hashim,Nasarudin Md.Idris,Dato’ Abdul Rahim Abu Bakar,

Dato’ Haji Mohd.Ali Haji Yasin,Dato’ Shamsul Azhar Abbas,Mariam Rahimah Haji Mukhtar, Muri Muhammad,Abdul Hamid Ibrahim,Faridah Haris Hamid,Anuar Ahmad

c o m m i t t e eM A N A G E M E N T

P E T R O L I A M N A S I O N A L B E R H A D 76

Tan Sri Dato’ Mohd.Hassan MaricanPresident & Chief Executive Officer

Dato’ Mohamad Idris MansorSenior Vice-President,Exploration & Production Business

Datuk Ishak Imam AbasSenior Vice-President, Finance

Dato’ Haji Mohd.Ali Haji YasinVice-President, Logistics & Maritime Business

Dato’ Shamsul Azhar AbbasVice-President, Oil Business

Muri MuhammadVice-President,Gas Business

Dato’ Abdul Rahim Abu BakarVice-President, Petrochemical Business

Abdul Rahim Haji HashimVice-President, Human Resource Management

Mariam Rahimah Haji MukhtarVice-President,Education

Abdul Hamid IbrahimManaging Director/Chief Executive Officer,PETRONAS Gas Bhd

Anuar AhmadManaging Director/Chief Executive Officer,PETRONAS Dagangan Bhd

Abdullah KarimManaging Director/Chief Executive Officer,Malaysia LNG Sdn. Bhd.

Mohammed Azhar Osman KhairuddinSenior General Manager,Legal & Corporate Affairs Division

Nasarudin Md. IdrisSenior General Manager,Corporate Planning & Development Division

Mohamad Johari DasriManaging Director/Chief Executive Officer,PETRONAS Carigali Sdn.Bhd.

Faridah Haris HamidSecretary

Seated From Left:

Dato’ Mohamad Idris Mansor, Tan Sri Dato’ Mohd.Hassan Marican,Datuk Ishak Imam Abas

Standing From Left:

Mohamad Johari Dasri,Abdullah Karim,Mohammed Azhar Osman Khairuddin,Abdul Rahim Haji Hashim,Nasarudin Md.Idris,Dato’ Abdul Rahim Abu Bakar,

Dato’ Haji Mohd.Ali Haji Yasin,Dato’ Shamsul Azhar Abbas,Mariam Rahimah Haji Mukhtar, Muri Muhammad,Abdul Hamid Ibrahim,Faridah Haris Hamid,Anuar Ahmad

c o m m i t t e eM A N A G E M E N T

P E T R O L I A M N A S I O N A L B E R H A D 98

Polyethylene Malaysia Sdn. Bhd. (40%)

** 25% interest each held by PCM I & PCM III

*** Via 51% interest held by PICL & 49% interest held by PETRONAS (Thailand) Co. Ltd.

Carigali-PTTEPI Operating Co. Sdn. Bhd. (50%)

Tchad Oil Transportation S.A. (29.75%)

BASF PETRONAS Chemicals Sdn. Bhd. (40%)

BP PETRONAS Acetyls Sdn. Bhd. (30%)

Premier Oil PLC. (25%)

Petlin (Malaysia) Sdn. Bhd. (40%)

Advanced Engine Research Sdn. Bhd. (50%)

Putrajaya Holdings Sdn. Bhd. (40%)

Labuan Reinsurance (L) Ltd. (10%)

Thang Long LPG JV Company (49%)

Cameroon Oil Transportation S.A. (30.27%)

P.T. Asean Aceh Fertilizer (13%)

Shell MDS (Malaysia) Sdn. Bhd. (6.86%)Malaysian Technology Development Corp. Sdn. Bhd. (5.24%)

Phu My Plastics And Chemical Company Ltd. (50%)

Australian Pipeline Trust Ltd. (10%)Gasinvest S.A. (18.3%)

Zhenjiang Zhonghai PETRONAS NIC Oil and Gas Co. Ltd. (20%)

Guangdong Yangjiang Hailing (SINOPEC-PETRONAS-NIC)Petro-Chemical Co. Ltd. (30%)

Carigali-Triton Operating Co. Sdn. Bhd. (50%)

Optimal Chemicals (Malaysia) Sdn. Bhd. (50%)

Idemitsu SM (Malaysia) Sdn. Bhd. (30%)

PS Terminal Sdn. Bhd. (50%)

Lub Dagangan Sdn. Bhd. (20%)

PS Pipeline Sdn. Bhd. (50%)

Petrofibre Network (M) Sdn. Bhd. (40%)(formerly known as Celcom PETRO NETWORK (M) SDN. BHD.)

Malaysian Maritime Academy Sdn. Bhd. (30%)

Sauber PETRONAS Engineering AG (40%)

PETRONAS Carigali Sdn. Bhd.

PETRONAS Hartabina Sdn. Bhd.

PETRONAS Penapisan (Terengganu) Sdn. Bhd.

PETRONAS Penapisan (Melaka) Sdn. Bhd.

PETRONAS Management Training Sdn. Bhd.

PETRONAS Methanol (Labuan) Sdn. Bhd.

PETRONAS Gas Supply (Labuan) Sdn. Bhd.

MTBE Malaysia Sdn. Bhd.

Polypropylene Malaysia Sdn. Bhd.

PETRONAS Carigali (JDA) Sdn. Bhd.

PETRONAS Carigali Overseas Sdn. Bhd.PARSI International Ltd.

PETRONAS Carigali Myanmar II Inc.PETRONAS Carigali Chad Exploration & Production Inc.

PETRONAS Carigali (Dai Hung) Sdn. Bhd.

PETRONAS Carigali (Vietnam) Sdn. Bhd.

PETRONAS Carigali International Sdn. Bhd.

PETRONAS Carigali (Turkmenistan) Sdn. Bhd.

PETRONAS Carigali Overseas (UK) Ltd.

PETRONAS Carigali (Sudan) Sdn. Bhd.

PETRONAS Carigali (Pasemah) Ltd.

PETRONAS Carigali (Ketapang) Ltd.

PETRONAS Carigali (Pakistan) Ltd.

PETRONAS Carigali White Nile (5B) Ltd.

PETRONAS Carigali Nigeria Ltd.

PETRONAS Carigali Niger Exploration & Production Ltd.

PETRONAS Carigali Mozambique E & P Ltd.

PETRONAS Carigali Bahrain Ltd.

White Nile (5B) Petroleum Operating Co. Ltd.

PETRONAS Carigali (Chad EP) Inc.Seerat Refinery Investment Inc.Doba Pipeline Investment Inc.PETRONAS Chad Marketing Inc.

PETRONAS Philippines Inc.

PETRONAS (Thailand) Co. Ltd.

PETRONAS Argentina S.A.

PETRONAS Australia Pty. Ltd.

East Australian Pipeline Marketing Pty. Ltd.

PETRONAS NGV Sdn. Bhd.

PETRONAS South Africa (Pty.) Ltd.

PETRONAS China Company Ltd.PETRONAS Ammonia Sdn. Bhd.PETRONAS International Corporation Ltd.

PETRONAS Carigali Myanmar Inc.

PETRONAS Carigali Myanmar III Inc.

*** PETRONAS Marketing (Thailand) Co. Ltd.

PETRONAS India (Holdings) Company Pte. Ltd.

Styrene Monomer (Malaysia) Sdn. Bhd.

PETRONAS Maritime Services Sdn. Bhd.

Sungai Udang Port Sdn. Bhd.

Kertih Port Sdn. Bhd.

Malaysian International Trading Corporation Sdn. Bhd.

Malaysian International Trading Corporation (Japan) Sdn. Bhd.

PETRONAS Technical Services Sdn. Bhd.

PETRONAS Research & Scientific Services Sdn. Bhd.

Kuantan Terminal Sdn. Bhd.

Institute of Technology PETRONAS Sdn. Bhd.

PETRONAS Cambodia Co. Ltd.

PETRONAS Cambodia Tankage Co. Ltd.

PETRONAS Fertilizer (Kedah) Sdn. Bhd.

Sanzbury Stead Sdn. Bhd.

PETRONAS Trading Corporation Sdn. Bhd.

Asean Bintulu Fertilizer Sdn. Bhd. (63.5%)

Ethylene Malaysia Sdn. Bhd. (72.5%)Malaysia LNG Dua Sdn. Bhd. (60%)

Gas District Cooling (Putrajaya) Sdn. Bhd. (100%)

Gas District Cooling (KLIA) Sdn. Bhd. (60%)

Aromatics Malaysia Sdn. Bhd. (70%)

Gas District Cooling (M) Sdn. Bhd. (95.83%)

Malaysia LNG Sdn. Bhd. (65%)

PETRONAS Dagangan Bhd. (69.86%)

PETRONAS Gas Berhad (60.63%)

Kuala Lumpur Aviation Fuelling System Sdn. Bhd. (65%)

Japan Malaysia LNG Co. Ltd. (70%)

PETRONAS Carigali (Tanjung Aru) Ltd.

PETRONAS Carigali Vietnam (Blocks 10 & 11-1) Ltd.

PETRONAS Myanmar Ltd.

Perecom Industries Sdn. Bhd.Myanmar PETRONAS Trading Co. Ltd.

Petrosains Sdn. Bhd.

PETRONAS Assets Sdn. Bhd.

PETRONAS Energy Philippines Inc. (60%)

KLCC (Holdings) Bhd. (49.5%)

Gas District Cooling (UTP) Sdn. Bhd. (100%)

Gas Malaysia Sdn. Bhd. (20%)

Optimal Glycols (Malaysia) Sdn. Bhd. (50%)

Trans Thai-Malaysia (Thailand) Ltd. (50%)

Trans Thai-Malaysia (Malaysia) Sdn Bhd. (50%)

IndianOil Petronas Pvt. Ltd. (50%)

Composites Technology Research Malaysia Sdn. Bhd. (10%)

Perusahaan Otomobil Nasional Berhad (11.7%)

Bintulu Port Holdings Berhad (22.79%)

Transportadora De Gas Mercosur (14.6%)

Duta Inc. (40%)

Bataan Polyethylene Corporation (38.6%)

Kertih Terminal Sdn. Bhd. (40%)

CS Mutiara Petroleum Company Sdn. Bhd. (50%)

Midciti Resources Sdn. Bhd. (49.5%)

Malaysian Refining Company Sdn Bhd. (53%)

Malaysia International Shipping Corporation Berhad (62.44%)

Malaysia LNG Tiga Sdn. Bhd. (60%)OGP Technical Services Sdn. Bhd. (60%)

Vinyl Chloride (Malaysia) Sdn. Bhd. (60%)Optimal Olefins (Malaysia) Sdn. Bhd. (64.25%)

Greater Nile Petroleum Operating Company (30%)SIRRI International Ltd.

PETRONAS Carigali Nile Ltd.

OTHER COMPANIESPARTLY-OWNED SUBSIDIARIESWHOLLY-OWNED SUBSIDIARIES

** Global Resources Ltd. (50%)

Taninthayi Pipeline Co. LLC (30%)

Engen Limited (80%)

c o m p a n i e s at 31 March 2002

P E T R O N A S G R O U P O F

P E T R O L I A M N A S I O N A L B E R H A D 98

Polyethylene Malaysia Sdn. Bhd. (40%)

** 25% interest each held by PCM I & PCM III

*** Via 51% interest held by PICL & 49% interest held by PETRONAS (Thailand) Co. Ltd.

Carigali-PTTEPI Operating Co. Sdn. Bhd. (50%)

Tchad Oil Transportation S.A. (29.75%)

BASF PETRONAS Chemicals Sdn. Bhd. (40%)

BP PETRONAS Acetyls Sdn. Bhd. (30%)

Premier Oil PLC. (25%)

Petlin (Malaysia) Sdn. Bhd. (40%)

Advanced Engine Research Sdn. Bhd. (50%)

Putrajaya Holdings Sdn. Bhd. (40%)

Labuan Reinsurance (L) Ltd. (10%)

Thang Long LPG JV Company (49%)

Cameroon Oil Transportation S.A. (30.27%)

P.T. Asean Aceh Fertilizer (13%)

Shell MDS (Malaysia) Sdn. Bhd. (6.86%)Malaysian Technology Development Corp. Sdn. Bhd. (5.24%)

Phu My Plastics And Chemical Company Ltd. (50%)

Australian Pipeline Trust Ltd. (10%)Gasinvest S.A. (18.3%)

Zhenjiang Zhonghai PETRONAS NIC Oil and Gas Co. Ltd. (20%)

Guangdong Yangjiang Hailing (SINOPEC-PETRONAS-NIC)Petro-Chemical Co. Ltd. (30%)

Carigali-Triton Operating Co. Sdn. Bhd. (50%)

Optimal Chemicals (Malaysia) Sdn. Bhd. (50%)

Idemitsu SM (Malaysia) Sdn. Bhd. (30%)

PS Terminal Sdn. Bhd. (50%)

Lub Dagangan Sdn. Bhd. (20%)

PS Pipeline Sdn. Bhd. (50%)

Petrofibre Network (M) Sdn. Bhd. (40%)(formerly known as Celcom PETRO NETWORK (M) SDN. BHD.)

Malaysian Maritime Academy Sdn. Bhd. (30%)

Sauber PETRONAS Engineering AG (40%)

PETRONAS Carigali Sdn. Bhd.

PETRONAS Hartabina Sdn. Bhd.

PETRONAS Penapisan (Terengganu) Sdn. Bhd.

PETRONAS Penapisan (Melaka) Sdn. Bhd.

PETRONAS Management Training Sdn. Bhd.

PETRONAS Methanol (Labuan) Sdn. Bhd.

PETRONAS Gas Supply (Labuan) Sdn. Bhd.

MTBE Malaysia Sdn. Bhd.

Polypropylene Malaysia Sdn. Bhd.

PETRONAS Carigali (JDA) Sdn. Bhd.

PETRONAS Carigali Overseas Sdn. Bhd.PARSI International Ltd.

PETRONAS Carigali Myanmar II Inc.PETRONAS Carigali Chad Exploration & Production Inc.

PETRONAS Carigali (Dai Hung) Sdn. Bhd.

PETRONAS Carigali (Vietnam) Sdn. Bhd.

PETRONAS Carigali International Sdn. Bhd.

PETRONAS Carigali (Turkmenistan) Sdn. Bhd.

PETRONAS Carigali Overseas (UK) Ltd.

PETRONAS Carigali (Sudan) Sdn. Bhd.

PETRONAS Carigali (Pasemah) Ltd.

PETRONAS Carigali (Ketapang) Ltd.

PETRONAS Carigali (Pakistan) Ltd.

PETRONAS Carigali White Nile (5B) Ltd.

PETRONAS Carigali Nigeria Ltd.

PETRONAS Carigali Niger Exploration & Production Ltd.

PETRONAS Carigali Mozambique E & P Ltd.

PETRONAS Carigali Bahrain Ltd.

White Nile (5B) Petroleum Operating Co. Ltd.

PETRONAS Carigali (Chad EP) Inc.Seerat Refinery Investment Inc.Doba Pipeline Investment Inc.PETRONAS Chad Marketing Inc.

PETRONAS Philippines Inc.

PETRONAS (Thailand) Co. Ltd.

PETRONAS Argentina S.A.

PETRONAS Australia Pty. Ltd.

East Australian Pipeline Marketing Pty. Ltd.

PETRONAS NGV Sdn. Bhd.

PETRONAS South Africa (Pty.) Ltd.

PETRONAS China Company Ltd.PETRONAS Ammonia Sdn. Bhd.PETRONAS International Corporation Ltd.

PETRONAS Carigali Myanmar Inc.

PETRONAS Carigali Myanmar III Inc.

*** PETRONAS Marketing (Thailand) Co. Ltd.

PETRONAS India (Holdings) Company Pte. Ltd.

Styrene Monomer (Malaysia) Sdn. Bhd.

PETRONAS Maritime Services Sdn. Bhd.

Sungai Udang Port Sdn. Bhd.

Kertih Port Sdn. Bhd.

Malaysian International Trading Corporation Sdn. Bhd.

Malaysian International Trading Corporation (Japan) Sdn. Bhd.

PETRONAS Technical Services Sdn. Bhd.

PETRONAS Research & Scientific Services Sdn. Bhd.

Kuantan Terminal Sdn. Bhd.

Institute of Technology PETRONAS Sdn. Bhd.

PETRONAS Cambodia Co. Ltd.

PETRONAS Cambodia Tankage Co. Ltd.

PETRONAS Fertilizer (Kedah) Sdn. Bhd.

Sanzbury Stead Sdn. Bhd.

PETRONAS Trading Corporation Sdn. Bhd.

Asean Bintulu Fertilizer Sdn. Bhd. (63.5%)

Ethylene Malaysia Sdn. Bhd. (72.5%)Malaysia LNG Dua Sdn. Bhd. (60%)

Gas District Cooling (Putrajaya) Sdn. Bhd. (100%)

Gas District Cooling (KLIA) Sdn. Bhd. (60%)

Aromatics Malaysia Sdn. Bhd. (70%)

Gas District Cooling (M) Sdn. Bhd. (95.83%)

Malaysia LNG Sdn. Bhd. (65%)

PETRONAS Dagangan Bhd. (69.86%)

PETRONAS Gas Berhad (60.63%)

Kuala Lumpur Aviation Fuelling System Sdn. Bhd. (65%)

Japan Malaysia LNG Co. Ltd. (70%)

PETRONAS Carigali (Tanjung Aru) Ltd.

PETRONAS Carigali Vietnam (Blocks 10 & 11-1) Ltd.

PETRONAS Myanmar Ltd.

Perecom Industries Sdn. Bhd.Myanmar PETRONAS Trading Co. Ltd.

Petrosains Sdn. Bhd.

PETRONAS Assets Sdn. Bhd.

PETRONAS Energy Philippines Inc. (60%)

KLCC (Holdings) Bhd. (49.5%)

Gas District Cooling (UTP) Sdn. Bhd. (100%)

Gas Malaysia Sdn. Bhd. (20%)

Optimal Glycols (Malaysia) Sdn. Bhd. (50%)

Trans Thai-Malaysia (Thailand) Ltd. (50%)

Trans Thai-Malaysia (Malaysia) Sdn Bhd. (50%)

IndianOil Petronas Pvt. Ltd. (50%)

Composites Technology Research Malaysia Sdn. Bhd. (10%)

Perusahaan Otomobil Nasional Berhad (11.7%)

Bintulu Port Holdings Berhad (22.79%)

Transportadora De Gas Mercosur (14.6%)

Duta Inc. (40%)

Bataan Polyethylene Corporation (38.6%)

Kertih Terminal Sdn. Bhd. (40%)

CS Mutiara Petroleum Company Sdn. Bhd. (50%)

Midciti Resources Sdn. Bhd. (49.5%)

Malaysian Refining Company Sdn Bhd. (53%)

Malaysia International Shipping Corporation Berhad (62.44%)

Malaysia LNG Tiga Sdn. Bhd. (60%)OGP Technical Services Sdn. Bhd. (60%)

Vinyl Chloride (Malaysia) Sdn. Bhd. (60%)Optimal Olefins (Malaysia) Sdn. Bhd. (64.25%)

Greater Nile Petroleum Operating Company (30%)SIRRI International Ltd.

PETRONAS Carigali Nile Ltd.

OTHER COMPANIESPARTLY-OWNED SUBSIDIARIESWHOLLY-OWNED SUBSIDIARIES

** Global Resources Ltd. (50%)

Taninthayi Pipeline Co. LLC (30%)

Engen Limited (80%)

c o m p a n i e s at 31 March 2002

P E T R O N A S G R O U P O F

P E T R O L I A M N A S I O N A L B E R H A D 1110

T H E 2 0 0 2 F I N A N C I A L Y E A R WA S A C H A L L E N G I N G P E R I O D F O R T H E P E T R O N A S G R O U P O F C O M PA N I E S. D U R I N G T H E

Y E A R, W O R L D E N E R G Y D E M A N D C O N T R A C T E D A N D C RU D E O I L P R I C E S P L U N G E D S T E E P LY U N D E R T H E P R E S S U R E O F

A D E P R E S S E D G L O B A L E C O N O M Y A G G R AVAT E D B Y A F T E R M AT H O F T H E E V E N T S O F T H E S E P T E M B E R 1 1 , 2 0 0 1 I N

T H E U N I T E D S TAT E S.

Amidst the difficult business environment , the Group managed to chalk up a revenue of RM67.2 billion for the

y e a r, a drop of 8.4% from RM73.4 billion in the previous years. The reduction in revenue was due mainly to the

sharp decline in the prices of crude oil, petroleum products and petrochemicals which negated the increases

in sales volume achieved in almost all the business sectors of the Group. The impact on group profit was a

reduction in pre-tax profit by 16% from RM29.0 billion to RM24.3 billion while group profit after tax and minority

interest decreased to RM14.6 billion from RM16.5 billion achieved in the previous year.

The strat e gy pursued by PETRONAS in developing the company as an integr ated and global corporation has,

to some extent, helped mitigate the adverse impact of the global economic downturn on the Group’s financial

p e r fo r m a n c e . PETRONAS’ international business, including exports contributed 76.2% or RM51.2 billion of the

G r o u p ’s total revenue, of which RM30.8 billion was from exports.

The Group’s global operations grew further with the addition of 15 new upstream ventures, comprising seven

new production sharing contracts (PSCs) and eight farm-in agr e e m e n t s . The Group’s international explorat i o n

and production portfolio increased to 39 ventures in 21 countries in A s i a , Middle East and A f r i c a . Seven of the

new ventures concluded are in A f r i c a . PETRONAS’ entry into Bahrain and Yemen marked a new thrust made by

the Group in the Middle East.

In the downstream sector, the LPG terminal in Haldia, a joint venture between India Oil and PETRONAS, c a m e

on-stream in January 2002. The US$60 Million LPG terminal, PETRONAS’ first joint venture in India, has a

handling capacity of 600,000 tonnes per year. In V i e t n a m , the Phu My Plastics and Chemicals plant, a joint

venture between PETRONAS, Petro Vietnam and Tr a m atsuco is nearing completion with its commissioning

scheduled for October 2002.

During the financial year, two new country off i c e s , one in New Delhi and the other in Jakarta, were opened to

support the Group’s operations in India and Indonesia respectively. These offices will oversee the effective and

e fficient implementation of PETRONAS’ business activities while helping to strengthen the Group’s presence in

these two countries. An important milestone was charted on 9 september 2001 when the Group celebrated its

10th A n n i v e r s a ry in V i e t n a m , the first host country for PETRONAS as an upstream operator overseas.

C H A I R M A N ’ S

s t a t e m e n t Tan Sri Dato’ Seri Azizan Zainul A b i d i nC H A I R M A N

P E T R O L I A M N A S I O N A L B E R H A D 1110

T H E 2 0 0 2 F I N A N C I A L Y E A R WA S A C H A L L E N G I N G P E R I O D F O R T H E P E T R O N A S G R O U P O F C O M PA N I E S. D U R I N G T H E

Y E A R, W O R L D E N E R G Y D E M A N D C O N T R A C T E D A N D C RU D E O I L P R I C E S P L U N G E D S T E E P LY U N D E R T H E P R E S S U R E O F

A D E P R E S S E D G L O B A L E C O N O M Y A G G R AVAT E D B Y A F T E R M AT H O F T H E E V E N T S O F T H E S E P T E M B E R 1 1 , 2 0 0 1 I N

T H E U N I T E D S TAT E S.

Amidst the difficult business environment , the Group managed to chalk up a revenue of RM67.2 billion for the

y e a r, a drop of 8.4% from RM73.4 billion in the previous years. The reduction in revenue was due mainly to the

sharp decline in the prices of crude oil, petroleum products and petrochemicals which negated the increases

in sales volume achieved in almost all the business sectors of the Group. The impact on group profit was a

reduction in pre-tax profit by 16% from RM29.0 billion to RM24.3 billion while group profit after tax and minority

interest decreased to RM14.6 billion from RM16.5 billion achieved in the previous year.

The strat e gy pursued by PETRONAS in developing the company as an integr ated and global corporation has,

to some extent, helped mitigate the adverse impact of the global economic downturn on the Group’s financial

p e r fo r m a n c e . PETRONAS’ international business, including exports contributed 76.2% or RM51.2 billion of the

G r o u p ’s total revenue, of which RM30.8 billion was from exports.

The Group’s global operations grew further with the addition of 15 new upstream ventures, comprising seven

new production sharing contracts (PSCs) and eight farm-in agr e e m e n t s . The Group’s international explorat i o n

and production portfolio increased to 39 ventures in 21 countries in A s i a , Middle East and A f r i c a . Seven of the

new ventures concluded are in A f r i c a . PETRONAS’ entry into Bahrain and Yemen marked a new thrust made by

the Group in the Middle East.

In the downstream sector, the LPG terminal in Haldia, a joint venture between India Oil and PETRONAS, c a m e

on-stream in January 2002. The US$60 Million LPG terminal, PETRONAS’ first joint venture in India, has a

handling capacity of 600,000 tonnes per year. In V i e t n a m , the Phu My Plastics and Chemicals plant, a joint

venture between PETRONAS, Petro Vietnam and Tr a m atsuco is nearing completion with its commissioning

scheduled for October 2002.

During the financial year, two new country off i c e s , one in New Delhi and the other in Jakarta, were opened to

support the Group’s operations in India and Indonesia respectively. These offices will oversee the effective and

e fficient implementation of PETRONAS’ business activities while helping to strengthen the Group’s presence in

these two countries. An important milestone was charted on 9 september 2001 when the Group celebrated its

10th A n n i v e r s a ry in V i e t n a m , the first host country for PETRONAS as an upstream operator overseas.

C H A I R M A N ’ S

s t a t e m e n t Tan Sri Dato’ Seri Azizan Zainul A b i d i nC H A I R M A N

P E T R O L I A M N A S I O N A L B E R H A D 1312

PETRONAS’ strategic

globalisation programme

has ensured the Group’s

resilience

On the domestic front, PETRONAS’ continuous efforts in promoting exploration and production activities

s aw a significant increase in upstream investment in the country and the conclusion of one new PSC during

the year. Ten new discoveries were made, adding 135.4 million stock tank barrels of oil and 1.6 trillion

standard cubic feet of gas to the country ’s reserv e s . The Larut oil field offshore Te r e n gg a n u , o p e r ated by

the Group’s wholly-owned exploration and production subsidiary, PETRONAS Carigali Sdn Bhd was brought

o n - s t r e a m , b r i n ging the total number of domestic producing fields to 56. Another upstream achievement

was PETRONAS Carigali’s first oil production from its Angsi field, six months ahead of schedule.

In pursuit of its business integr ation and value adding strat e gy, PETRONAS further expanded and diversified

its downstream operat i o n s . E fforts continued to be focused on the development and promotion of gas

u t i l i s ation in the country to optimise the utilisation of Malay s i a ’s substantial gas reserv e s . With the full

completion of the three-phase Peninsular Gas Utilisation (PGU) project in the last financial year, the system

now has the capacity to process and deliver 2 billion standard cubic feet per day of sales gas.

In its planning, PETRONAS sees the PGU system as an important component of the proposed Tr a n s - A S E A N

Gas Pipeline (TAGP) project. The TAGP will link the natural gas sources and pipeline infrastructures of

ASEAN member countries to enable gas to be transported across the borders to meet regional demand.

Since early 2001, PETRONAS’ associated company Premier Oil Plc has begun supplying gas to Singap o r e

from West Nat u n a . The Cakerawala project in the Malaysian-Thai Joint Development Area will, in the

coming year, be ready to start supplying gas to Malay s i a .

The increasing av a i l ability of feedstock from the PGU system had enabled the Malaysian petrochemical

i n d u s t ry to continue to expand. Several new petrochemical plants were opened including the BASF

PETRONAS Chemical Sdn Bhd’s (BPC) integr ated complex in Gebeng, K u a n t a n . A joint venture between

PETRONAS and German petrochemical gi a n t , BASF A G , the BPC complex, which comprises 12 plants

producing acrylic monomers, oxo products and butanediol, constitutes an integral part of PETRONAS’

development of the integr ated petrochemical complexes (IPC) in Kertih, Te r e n gganu and Gebeng, P a h a n g .

The IPCs have been developed to ensure a systematic and efficient development of the country ’s

petrochemical industry, in line with PETRONAS’ objective of transforming Malaysia into a regi o n a l

petrochemical hub. Besides the BPC plants, PETRONAS’ petrochemical projects that have progr e s s i v e ly

come on-stream within these two IPCs include an acetic acid plant developed jointly with BP Chemicals in

K e r t i h , an aromatics plant producing paraxylene and benzene, with Mitsubishi Corporation and a viny l

chloride monomer plant with Mitsui VCM Holdings.

P E T R O L I A M N A S I O N A L B E R H A D 1312

PETRONAS’ strategic

globalisation programme

has ensured the Group’s

resilience

On the domestic front, PETRONAS’ continuous efforts in promoting exploration and production activities

s aw a significant increase in upstream investment in the country and the conclusion of one new PSC during

the year. Ten new discoveries were made, adding 135.4 million stock tank barrels of oil and 1.6 trillion

standard cubic feet of gas to the country ’s reserv e s . The Larut oil field offshore Te r e n gg a n u , o p e r ated by

the Group’s wholly-owned exploration and production subsidiary, PETRONAS Carigali Sdn Bhd was brought

o n - s t r e a m , b r i n ging the total number of domestic producing fields to 56. Another upstream achievement

was PETRONAS Carigali’s first oil production from its Angsi field, six months ahead of schedule.

In pursuit of its business integr ation and value adding strat e gy, PETRONAS further expended and diversified

its downstream operat i o n s . E fforts continued to be focused on the development and promotion of gas

u t i l i s ation in the country to optimise the utilisation of Malay s i a ’s substantial gas reserv e s . With the full

completion of the three-phase Peninsular Gas Utilisation (PGU) project in the last financial year, the system

now has the capacity to process and deliver 2 billion standard cubic feet per day of sales gas.

In its planning, PETRONAS sees the PGU system as an important component of the proposed Tr a n s - A S E A N

Gas Pipeline (TAGP) project. The TAGP will link the natural gas sources and pipeline infrastructures of

ASEAN member countries to enable gas to be transported across the borders to meet regional demand.

Since early 2001, PETRONAS’ associated company Premier Oil Plc has begun supplying gas to Singap o r e

from West Nat u n a . The Cakerawala project in the Malaysian-Thai Joint Development Area will, in the

coming year, be ready to start supplying gas to Malay s i a .

The increasing av a i l ability of feedstock from the PGU system had enabled the Malaysian petrochemical

i n d u s t ry to continue to expand. Several new petrochemical plants were opened including the BASF

PETRONAS Chemical Sdn Bhd’s (BPC) integr ated complex in Gebeng, K u a n t a n . A joint venture between

PETRONAS and German petrochemical gi a n t , BASF A G , the BPC complex, which comprises 12 plants

producing acrylic monomers, oxo products and butanediol, constitutes an integral part of PETRONAS’

development of the integr ated petrochemical complexes (IPC) in Kertih, Te r e n gganu and Gebeng, P a h a n g .

The IPCs have been developed to ensure a systematic and efficient development of the country ’s

petrochemical industry, in line with PETRONAS’ objective of transforming Malaysia into a regi o n a l

petrochemical hub. Besides the BPC plants, PETRONAS’ petrochemical projects that have progr e s s i v e ly

come on-stream within these two IPCs include an acetic acid plant developed jointly with BP Chemicals in

K e r t i h , an aromatics plant producing paraxylene and benzene, with Mitsubishi Corporation and a viny l

chloride monomer plant with Mitsui VCM Holdings.

P E T R O L I A M N A S I O N A L B E R H A D 1514

PETRONAS continues

with its human

resource development

to maintain its

competitive edge.

During the period under review, PETRONAS’ investment in strat e gic national projects saw an increase in the

G r o u p ’s shareholding in Putrajaya Holdings, the project developer of the new Federal Government

A d m i n s i t r ative Centre, from 40% to 64.4%. The increase in shareholding by PETRONAS was the result of

transferring part of PETRONAS’ interest in Perusahaan Otomobil Nasional Berhad (PROTON) to Khazah Nasional

B e r h a d . This eff e c t i v e ly reduced PETRONAS’ interest in PROTON to 11.7%. H o w e v e r, PETRONAS will continue

to provide the necessary support to PROTON to help enhance local expertise to further accelerate the integr at e d

development of Malay s i a ’s automotive industry.

As the Group moves fo r w a r d , the 2003 financial year is expected to be even more challenging with the US

e c o n o my yet to show clear signs of the much awaited recovery. At the same time, the increasing pace of

g l o b a l i s ation and economic liberalisat i o n , while opening up new opportunities for growth in world trade, w i l l

s p awn heightened international competition especially with the recent admission of China and Taiwan into the

World Trade Organisat i o n .

Under this dynamic business environment, PETRONAS will pursue its globalisation programme with gr e at e r

v i g o u r, while building on its cap abilities and strengths to face the challenges and to capitalise on the

opportunities that present themselves. To this end, PETRONAS will increasingly invest in the development of its

t e c h n o l o gical cap abilities and human resources while at the same time, focus its efforts on sustaining a strong

p e rvasive PETRONAS Quality Culture, driven by its shared values, c o r p o r ate mission and brand values to sustain

and enhance its competitive edge.

I would like to take this opportunity to thank all PETRONAS staff for their contribution to the achievements of

the Group during the year.

TAN SRI DATO’ SERI AZIZAN ZAINUL ABIDIN

C h a i r m a n

P E T R O L I A M N A S I O N A L B E R H A D 1514

PETRONAS continues

with its human

resource development

to maintain its

competitive edge.

During the period under review, PETRONAS’ investment in strat e gic national projects saw an increase in the

G r o u p ’s shareholding in Putrajaya Holdings, the project developer of the new Federal Government

A d m i n s i t r ative Centre, from 40% to 64.4%. The increase in shareholding by PETRONAS was the result of

transferring part of PETRONAS’ interest in Perusahaan Otomobil Nasional Berhad (PROTON) to Khazah Nasional

B e r h a d . This eff e c t i v e ly reduced PETRONAS’ interest in PROTON to 11.7%. H o w e v e r, PETRONAS will continue

to provide the necessary support to PROTON to help enhance local expertise to further accelerate the integr at e d

development of Malay s i a ’s automotive industry.

As the Group moves fo r w a r d , the 2003 financial year is expected to be even more challenging with the US

e c o n o my yet to show clear signs of the much awaited recovery. At the same time, the increasing pace of

g l o b a l i s ation and economic liberalisat i o n , while opening up new opportunities for growth in world trade, w i l l

s p awn heightened international competition especially with the recent admission of China and Taiwan into the

World Trade Organisat i o n .

Under this dynamic business environment, PETRONAS will pursue its globalisation programme with gr e at e r

v i g o u r, while building on its cap abilities and strengths to face the challenges and to capitalise on the

opportunities that present themselves. To this end, PETRONAS will increasingly invest in the development of its

t e c h n o l o gical cap abilities and human resources while at the same time, focus its efforts on sustaining a strong

p e rvasive PETRONAS Quality Culture, driven by its shared values, c o r p o r ate mission and brand values to sustain

and enhance its competitive edge.

I would like to take this opportunity to thank all PETRONAS staff for their contribution to the achievements of

the Group during the year.

TAN SRI DATO’ SERI AZIZAN ZAINUL ABIDIN

C h a i r m a n

P E T R O L I A M N A S I O N A L B E R H A D 1716

T H E Y E A R I N

r e v i e wTan Sri Dato’ Mohd Hassan MaricanPRESIDENT AND CHIEF EXECUTIVE OFFICER

IT GIVES ME GREAT PLEASURE TO PRESENT THIS REVIEW ON THE ACTIVITIES OF THE PETRONAS GROUP OF

COMPANIES FOR THE FINANCIAL YEAR ENDED 31 MARCH 2002.

DURING THE PERIOD UNDER REVIEW, SEVERAL SIGNIFICANT WORLD EVENTS HAD OCCURRED AND BROUGHT ABOUT

FAR-REACHING IMPACT ON GLOBAL POLITICAL AND ECONOMIC STABILITY, MOST NOTABLE OF WHICH WAS THE

SEPTEMBER 11 TERRORIST ATTACKS ON THE UNITED STATES OF AMERICA. THIS UNPRECEDENTED EVENT HAD

ACCELERATED A US-LED GLOBAL RECESSION AND EXPOSED THE VULNERABILITY OF THE GLOBALLY-INTEGRATED

OPEN ECONOMIES OF THE WORLD. THE CONSEQUENT PROLONGED SLOWDOWN AND DELAYED RECOVERY OF THE

GLOBAL ECONOMY IN THE AFTERMATH OF THE TRAGEDY HAD LED TO A CONTRACTION OF WORLD ENERGY

DEMAND. AMIDST THE TOUGH AND INCREASINGLY COMPETITIVE BUSINESS ENVIRONMENT, PETRONAS CONTINUED

TO PURSUE ITS GLOBALISATION, INTEGRATION AND VALUE ADDING STRATEGIES TO FURTHER STRENGTHEN ITS

RESILIENCE AND ENSURE ITS CONTINUOUS SUCCESS IN THE FUTURE.

FINANCIAL PERFORMANCE

Whilst PETRONAS’ operations are generally sensitive to the three major factors of global crude oil prices,sales

volume and exchange rates,the last factor did not have much material effect due to the current fixed peg of

the Malaysian Ringgit to the US Dollar. The downward movement of world crude oil prices, however, had a

toll on the Group’s performance. The fall in world crude oil prices had resulted in a sharp decline of Malaysian

crude oil’s weighted average price by 22.2% from US$29.86 per barrel to US$23.24 per barrel in 2002.

Accordingly, the weighted average price of petroleum products fell by 16.7% to US$24.38 per barrel from

US$29.27 per barrel in the previous financial year while the weighted average price for liquefied natural gas

(LNG) was 8.6% lower at US$4.28 per million British thermal unit (mmbtu).

P E T R O L I A M N A S I O N A L B E R H A D 1716

T H E Y E A R I N

r e v i e wTan Sri Dato’ Mohd Hassan MaricanPRESIDENT AND CHIEF EXECUTIVE OFFICER

IT GIVES ME GREAT PLEASURE TO PRESENT THIS REVIEW ON THE ACTIVITIES OF THE PETRONAS GROUP OF

COMPANIES FOR THE FINANCIAL YEAR ENDED 31 MARCH 2002.

DURING THE PERIOD UNDER REVIEW, SEVERAL SIGNIFICANT WORLD EVENTS HAD OCCURRED AND BROUGHT ABOUT

FAR-REACHING IMPACT ON GLOBAL POLITICAL AND ECONOMIC STABILITY, MOST NOTABLE OF WHICH WAS THE

SEPTEMBER 11 TERRORIST ATTACKS ON THE UNITED STATES OF AMERICA. THIS UNPRECEDENTED EVENT HAD

ACCELERATED A US-LED GLOBAL RECESSION AND EXPOSED THE VULNERABILITY OF THE GLOBALLY-INTEGRATED

OPEN ECONOMIES OF THE WORLD. THE CONSEQUENT PROLONGED SLOWDOWN AND DELAYED RECOVERY OF THE

GLOBAL ECONOMY IN THE AFTERMATH OF THE TRAGEDY HAD LED TO A CONTRACTION OF WORLD ENERGY

DEMAND. AMIDST THE TOUGH AND INCREASINGLY COMPETITIVE BUSINESS ENVIRONMENT, PETRONAS CONTINUED

TO PURSUE ITS GLOBALISATION, INTEGRATION AND VALUE ADDING STRATEGIES TO FURTHER STRENGTHEN ITS

RESILIENCE AND ENSURE ITS CONTINUOUS SUCCESS IN THE FUTURE.

FINANCIAL PERFORMANCE

Whilst PETRONAS’ operations are generally sensitive to the three major factors of global crude oil prices,sales

volume and exchange rates,the last factor did not have much material effect due to the current fixed peg of

the Malaysian Ringgit to the US Dollar. The downward movement of world crude oil prices, however, had a

toll on the Group’s performance. The fall in world crude oil prices had resulted in a sharp decline of Malaysian

crude oil’s weighted average price by 22.2% from US$29.86 per barrel to US$23.24 per barrel in 2002.

Accordingly, the weighted average price of petroleum products fell by 16.7% to US$24.38 per barrel from

US$29.27 per barrel in the previous financial year while the weighted average price for liquefied natural gas

(LNG) was 8.6% lower at US$4.28 per million British thermal unit (mmbtu).

P E T R O L I A M N A S I O N A L B E R H A D 1918

P E T R O N A S ... integrating

its operations in pursuit

of becoming a leading

oil and gas multinational

of choice.

In tandem with the price downtrend, the Group’s crude oil revenue decreased by 18.9% to RM14,531 million

despite an increase in sales volume of 2.2 million barrels to 164.5 million barrels from 162.3 million barrels

in the previous year. Refined petroleum products which remained the largest contributor to the Group’s

revenue saw a 5.3% drop in revenue to RM23,034 million although sales volume increased by 13.3% to

186.5 million barrels. On the other hand, revenue from the sale of petrochemical products increased by

13.7% to RM3,401 million, generated from a 24.8% increase in sales volume to 4 million tonnes. Sales

volume of natural gas expanded by 58.6%,turning in a 60.0% higher revenue of RM529.1 million,compared

to RM330.7 million in the previous year. The significant growth in natural gas sales could be attributed to

increased demand from the domestic power sector.

International business including exports continued to account for a major share of 76.2% or RM51,171 million

of the Group’s total revenue, compared to 79.7% or RM58,447 in the previous year. The slightly reduced

revenue share was due to a 13.1% and 11.3% drop in export and international revenue to RM30,808 million

and RM20,363 million respectively.

O v e r a l l , group revenue contracted by 8.4% to RM67,181 million from RM73,351 million in the previous year

under the dampening influence of the soft international market and weak prices. Group profit before tax

decreased by 16.2% to RM24,318 million from RM29,029 million while group profit after tax and minority

interest for the year decreased by 11.6% to RM14,568 million from RM16,488 million in the previous year.

The Group’s balance sheet remained strong, presenting a larger total asset base of RM144,128 million, an

increase of 3.7% from last year. Shareholders’ funds increased by 20.0% from RM53,934 million to

RM64,696 million. As at 31 March 2002, the Group’s total borrowings stood at RM40,372 million compared

to RM40,618 million in 2001. The Group’s cash and fund investment balance was marginally lower at

RM42,762 million, a decrease of 3.5% from the previous year’s RM44,335 million.

P E T R O L I A M N A S I O N A L B E R H A D 1918

P E T R O N A S ... integrating

its operations in pursuit

of becoming a leading

oil and gas multinational

of choice.

In tandem with the price downtrend, the Group’s crude oil revenue decreased by 18.9% to RM14,531 million

despite an increase in sales volume of 2.2 million barrels to 164.5 million barrels from 162.3 million barrels

in the previous year. Refined petroleum products which remained the largest contributor to the Group’s

revenue saw a 5.3% drop in revenue to RM23,034 million although sales volume increased by 13.3% to

186.5 million barrels. On the other hand, revenue from the sale of petrochemical products increased by

13.7% to RM3,401 million, generated from a 24.8% increase in sales volume to 4 million tonnes. Sales

volume of natural gas expanded by 58.6%,turning in a 60.0% higher revenue of RM529.1 million,compared

to RM330.7 million in the previous year. The significant growth in natural gas sales could be attributed to

increased demand from the domestic power sector.

International business including exports continued to account for a major share of 76.2% or RM51,171 million

of the Group’s total revenue, compared to 79.7% or RM58,447 in the previous year. The slightly reduced

revenue share was due to a 13.1% and 11.3% drop in export and international revenue to RM30,808 million

and RM20,363 million respectively.

O v e r a l l , group revenue contracted by 8.4% to RM67,181 million from RM73,351 million in the previous year

under the dampening influence of the soft international market and weak prices. Group profit before tax

decreased by 16.2% to RM24,318 million from RM29,029 million while group profit after tax and minority

interest for the year decreased by 11.6% to RM14,568 million from RM16,488 million in the previous year.

The Group’s balance sheet remained strong, presenting a larger total asset base of RM144,128 million, an

increase of 3.7% from last year. Shareholders’ funds increased by 20.0% from RM53,934 million to

RM64,696 million. As at 31 March 2002, the Group’s total borrowings stood at RM40,372 million compared

to RM40,618 million in 2001. The Group’s cash and fund investment balance was marginally lower at

RM42,762 million, a decrease of 3.5% from the previous year’s RM44,335 million.

P E T R O L I A M N A S I O N A L B E R H A D 2120

Promoting ex p l o r a t i o n

and production activities

to augment the

c o u n t ry ’s petroleum

r e s e rv e s .

DOMESTIC EXPLORATION & PRODUCTION

As at 1 January 2002, Malaysia’s crude oil reserves stood at 3.2 billion barrels, compared to 3.4 billion

barrels in 2001. Natural gas reserves increased from 82.5 trillion standard cubic feet (tscf) to 87.5 tscf which

remained about four times the size of oil reserves. Based on the current rate of production, the oil reserves

are expected to have an average life of 15 years while gas reserves have 34 years, taking into account gas

production increase in future years.

The number of production sharing contracts (PSCs) in operation was maintained at 41,with the signing of one

new PSC in the period under review. Total investment expended during the year to finance domestic upstream

activities,including those carried out by PETRONAS’ exploration and production arm, PETRONAS Carigali Sdn

Bhd, increased by 35.1% to RM8.46 billion from RM6.26 billion in the previous year. Most of the investment

was incurred on new development projects. A total of 438,702 line km of seismic data were acquired and

31 exploration wells drilled. The exploration activities resulted in 10 new discoveries which added 135.4

million stock tank barrels (mmstb) of oil and 1.6 tscf of gas to the country’s reserves.

Production of crude oil and condensates in the country decreased slightly to 245.7 million barrels from 246.5

million barrels in the previous year. PETRONAS’ share of total production also decreased from 77.6% to

75.1% on the back of lower oil prices and higher cost oil entitlement for the PSC Contractors. Natural gas

production for the year increased from 2.01 tcsf to 2.02 tcsf.

The total number of domestic producing fields increased from 53 last year to 56. Of these, 45 are oil fields

and 11 gas fields. Twenty seven of these fields are operated by PETRONAS Carigali.

The year also saw the first oil production from the Angsi field, with an initial flow of 15,000 bpd of oil, six

months ahead of schedule. The field which was jointly developed by PETRONAS Carigali,the operator of the

field,and ExxonMobil produced its first gas on 21 February 2002 at an initial rate of 60 million standard cubic

u p s t r e a m

P E T R O L I A M N A S I O N A L B E R H A D 2120

Promoting ex p l o r a t i o n

and production activities

to augment the

c o u n t ry ’s petroleum

r e s e rv e s .

DOMESTIC EXPLORATION & PRODUCTION

As at 1 January 2002, Malaysia’s crude oil reserves stood at 3.2 billion barrels, compared to 3.4 billion

barrels in 2001. Natural gas reserves increased from 82.5 trillion standard cubic feet (tscf) to 87.5 tscf which

remained about four times the size of oil reserves. Based on the current rate of production, the oil reserves

are expected to have an average life of 15 years while gas reserves have 34 years, taking into account gas

production increase in future years.

The number of production sharing contracts (PSCs) in operation was maintained at 41,with the signing of one

new PSC in the period under review. Total investment expended during the year to finance domestic upstream

activities,including those carried out by PETRONAS’ exploration and production arm, PETRONAS Carigali Sdn

Bhd, increased by 35.1% to RM8.46 billion from RM6.26 billion in the previous year. Most of the investment

was incurred on new development projects. A total of 438,702 line km of seismic data were acquired and

31 exploration wells drilled. The exploration activities resulted in 10 new discoveries which added 135.4

million stock tank barrels (mmstb) of oil and 1.6 tscf of gas to the country’s reserves.

Production of crude oil and condensates in the country decreased slightly to 245.7 million barrels from 246.5

million barrels in the previous year. PETRONAS’ share of total production also decreased from 77.6% to

75.1% on the back of lower oil prices and higher cost oil entitlement for the PSC Contractors. Natural gas

production for the year increased from 2.01 tcsf to 2.02 tcsf.

The total number of domestic producing fields increased from 53 last year to 56. Of these, 45 are oil fields

and 11 gas fields. Twenty seven of these fields are operated by PETRONAS Carigali.

The year also saw the first oil production from the Angsi field, with an initial flow of 15,000 bpd of oil, six

months ahead of schedule. The field which was jointly developed by PETRONAS Carigali,the operator of the

field,and ExxonMobil produced its first gas on 21 February 2002 at an initial rate of 60 million standard cubic

u p s t r e a m

P E T R O L I A M N A S I O N A L B E R H A D 2322

Enhancing ex p l o r a t i o n

efforts through

continuous development

of new technology.

feet per day (mmscfd). At its peak, the Angsi field is expected to produce about 65,000 bpd of oil and 450

mmscfd of gas. The Angsi Project which began in late 1997 comprises an integrated oil and gas central

processing platform connected to a 52-well drilling platform and a 32-well satellite drilling platform,making the

complex the biggest integrated oil and gas platforms in the South China Sea.

Other major development projects being undertaken in Peninsular Malaysia which are scheduled to come on-

stream in the first quarter of 2003, include the Tapis-F oil development and Bintang gas development projects,

both operated by ExxonMobil. The Bunga Kekwa East & West, Bunga Raya, Bunga Seroja and NW Bunga Raya

gas fields being developed by Canadian-based company, Lundin (now known as Talisman) in Block PM3 under

PETRONAS’ Commercial Arrangement with Vietnam,is also expected to come on-stream in the same year, with

first gas production targeted for September 2003.

Meanwhile, greater exploration efforts are being pursued, including deepwater exploration and the application

of new technology to sustain and enhance the country’s reserves, which are declining. To this end, 45

exploration wells, of which 12 are deepwater wells have been planned for the coming financial year. To date, a

total of seven deepwater wells have been drilled in Sabah and Sarawak since 1995. In line with its continuous

efforts to enhance the prospectivity of Malaysia's acreages, PETRONAS has embarked on a multiclient seismic

survey in the deepwater area offshore Sarawak. Another enhanced oil recovery project known as the Water

Alternate Gas pilot project at Dulang is expected to start up in early August 2002.

Driving the success of all these exploration and development efforts are the Cost Reduction Alliance (CORAL)

i n i t i atives spearheaded by PETRONAS which have helped the domestic petroleum industry achieve unit production

and development cost savings of between 40% and 48% over the years since 1995. The encouraging result has

spurred PETRONAS to launch the CORAL Next Wave in October 2000 with a new thrust that focuses on

C o m p e t i t i v e n e s s , Value Creation and Alliancing which would position industry players to better compete regi o n a l ly

and internat i o n a l ly in the open market environment. CORAL Next Wav e ’s target is to create a total value of RM2.5

billion over the five-year period from 2001 to 2005, aimed at promoting business opportunities in the industry.

U P S T R E A M

P E T R O L I A M N A S I O N A L B E R H A D 23

P E T R O L I A M N A S I O N A L B E R H A D 25

PETRONAS’ ex p a n d i n g

global upstream

operations continue to

yield positive results.

GLOBAL EXPLORATION AND PRODUCTION

Internationally, PETRONAS continued to expand its upstream business with the signing of seven new PSCs

and eight farm-in agreements, enlarging its international E&P portfolio to 39 ventures in 21 countries in

Asia, Middle East and the African region. One of the most significant achievements for PETRONAS during

the year was its new inroad into the Middle East with its award of two blocks in Bahrain and one block in

Yemen.

Overseas exploration activities saw a total of 45 exploration wells drilled which resulted in 12 discoveries

yielding 444 million barrels of oil equivalent (boe) of potential reserves in Sudan, Chad, Turkmenistan,

Pakistan, Vietnam and Indonesia. To date, PETRONAS has accumulated international reserves of 3.71

billion barrels of oil equivalent (boe), including its share of reserves in the Malaysia-Thailand Joint

Development Area. These reserves account for 22% of PETRONAS' total reserves of 16.82 billion boe.

During the year, PETRONAS’ overseas production averaged 101,300 boe per day, constituting about 9% of

PETRONAS’ total domestic and international oil and gas production of 1.145 million boe per day. Sudan

contributed the biggest share of the overseas production.

In Iran, PETRONAS successfully completed its second project, i.e. Phase Two and Three of the South Pars

gas development project, with commercial first gas-in scheduled for June 2002. Another major

achievement was the conclusion of the gas import arrangement from Indonesia's West Natuna Block B via

PETRONAS Carigali’s Duyong facilities to complement the Company’s long term gas supply to Peninsular

Malaysia. The project started in the first quarter of 2001 and first gas import is expected to begin in August

2002. In the Malaysia-Thailand Joint Development Area, the Cakerawala field development project is

scheduled to commence gas supply by mid-2002 while further development is being undertaken at the

Yetagun field to enhance its gas production capacity to 400 mmscfd by April 2004 to meet the supply

requirements in Thailand.

U P S T R E A M

24

P E T R O L I A M N A S I O N A L B E R H A D 25

P E T R O L I A M N A S I O N A L B E R H A D 2726

Engen ... springboard

into the Sub-Saharan

m a r k e t .

In line with its integration and value adding strategy, PETRONAS continued to expand and diversify its

downstream manufacturing operations as new projects are being developed and new plants brought on-

stream to further grow its business value chain during the year under review.

OIL BUSINESS

Despite the less favourable business environment and competition,PETRONAS managed to increase its share

of the petroleum products market in Malaysia to assume the leading position. It also expanded its nationwide

network of service stations to a total of 591 stations,with the opening of 39 new service stations. Marketing

and refining margins remained tight during the year. In the financial year, PETRONAS increased its stake in

Malaysian Refining Company’s refinery in Melaka to 53% by acquiring an additional 8% equity from Statoil.

PETRONAS today has a total net refining capacity of 361,500 bpd through its refineries in Kertih and Melaka

in Peninsular Malaysia and Durban in South Africa.

In South Africa,its subsidiary, Engen recorded a significant increase of 87% in its sale of PETRONAS’ synthetic

motor oil, Syntium from the previous year’s 17,000 litres to 31, 806 litres. Engen’s share of the synthetic

lubricant market in South Africa presently stands at 15%. PETRONAS also operates service stations in

Cambodia and Thailand. During the year, PETRONAS’ liquefied petroleum gas (LPG) terminal in Haldia, India

commenced operation. A joint venture project with Indian Oil Corporation, it is PETRONAS’ first refrigerated

LPG terminal outside of Malaysia. Besides India, PETRONAS also has LPG operations in Vietnam, the

Philippines and China.

d o w n s t r e a m

P E T R O L I A M N A S I O N A L B E R H A D 27

P E T R O L I A M N A S I O N A L B E R H A D 2928

Gas processing plants -

harnessing the country ’s

rich gas reserv e s .

GAS BUSINESS

LNG represented the third largest revenue earner for the Group. A total of 15.3 million tonnes of LNG was

exported during the year, of which 74% was sold to Japan, 15% to Taiwan and 11% to Korea. The country’s

LNG export is expected to increase with the coming on-stream of PETRONAS’ third LNG joint venture, the

Malaysia LNG Tiga project in Bintulu, Sarawak by 2003. With this new plant in operation,the total production

capacity of the Bintulu LNG complex will be increased to 23 million tonnes per annum, making it the world’s

largest LNG plant in a single location.

In Peninsular Malaysia, PETRONAS’ Peninsular Gas Utilisation system transported an average of 1,731

mmscfd of processed gas compared to 1,672 mmscfd in the previous year. Of this, about 7% was exported

to Singapore. The increase was due to a higher demand from the domestic power sector which accounted

for 74% of total domestic sales gas delivered during the year, accounting for about 80% of the power

generation fuel mix in the country. The balance 26% was sold to industrial, petrochemical and other users.

During the year, PETRONAS’ subsidiary, Gas District Cooling (M) Sdn Bhd signed a power purchase agreement

to supply between 10MW and 20MW of electricity to Tenaga Nasional Berhad during peak demand period. It

signed another agreement with the Government of Malaysia to supply chilled water for air-conditioning to the

government offices in Putrajaya.

On the international front, the Group holds interests in gas transmission pipeline projects in Australia and

Argentina. Its joint venture Papua New Guinea-Queensland gas transmission pipeline is expected to

commence gas supply by 2006. At the regional level, the Trans-ASEAN Gas Pipeline (TAGP) project led by

D O W N S T R E A M

P E T R O L I A M N A S I O N A L B E R H A D 2928

Gas processing plants -

harnessing the country ’s

rich gas reserv e s .

GAS BUSINESS

LNG represented the third largest revenue earner for the Group. A total of 15.3 million tonnes of LNG was

exported during the year, of which 74% was sold to Japan, 15% to Taiwan and 11% to Korea. The country’s

LNG export is expected to increase with the coming on-stream of PETRONAS’ third LNG joint venture, the

Malaysia LNG Tiga project in Bintulu, Sarawak by 2003. With this new plant in operation,the total production

capacity of the Bintulu LNG complex will be increased to 23 million tonnes per annum, making it the world’s

largest LNG plant in a single location.

In Peninsular Malaysia, PETRONAS’ Peninsular Gas Utilisation system transported an average of 1,731

mmscfd of processed gas compared to 1,672 mmscfd in the previous year. Of this, about 7% was exported

to Singapore. The increase was due to a higher demand from the domestic power sector which accounted

for 74% of total domestic sales gas delivered during the year, accounting for about 80% of the power

generation fuel mix in the country. The balance 26% was sold to industrial, petrochemical and other users.

During the year, PETRONAS’ subsidiary, Gas District Cooling (M) Sdn Bhd signed a power purchase agreement

to supply between 10MW and 20MW of electricity to Tenaga Nasional Berhad during peak demand period. It

signed another agreement with the Government of Malaysia to supply chilled water for air-conditioning to the

government offices in Putrajaya.

On the international front, the Group holds interests in gas transmission pipeline projects in Australia and

Argentina. Its joint venture Papua New Guinea-Queensland gas transmission pipeline is expected to

commence gas supply by 2006. At the regional level, the Trans-ASEAN Gas Pipeline (TAGP) project led by

D O W N S T R E A M

P E T R O L I A M N A S I O N A L B E R H A D 3130

Development of the IPCs

... realising national

aspirations to be a

regional petrochemical

h u b.

PETRONAS made some progress with the completion and endorsement of the TAGP Conceptual Master Plan

by the ASEAN Council on Petroleum (ASCOPE). Other ongoing regional gas initiatives include the proposed

establishment of the ASCOPE Gas Centre and the ASEAN Gas Consultative Committee.

PETROCHEMICALS

Demand growth of petrochemicals and polymers weakened during the year in review due to the global

economic slowdown, creating an excess in supply, which resulted in the decline in product prices by more

than 20%.

The Group however, increased its petrochemical sales by 25% to four million tonnes, generating a revenue of

RM3,401 million.

A major development during the year was the coming on-stream of five new world scale plants with a

combined capacity of 1.9 million tonnes in both the Integrated Petrochemical Complexes (IPCs) at Kertih,

Terengganu and Gebeng in Kuantan,Pahang. This has taken Malaysia a step closer to realising its aspiration

to be a major petrochemical hub in the region. These petrochemical projects are in joint venture with The

Dow Chemical Company, BASF, Sasol and DSM for the production of ethylene, propylene, oxo-alcohols,

ethylene oxide, ethylene glycol and low density polyethylene.

Overseas, the joint venture with PETROVIETNAM and Tramatsuco of Vietnam, Phu My Plastics And Chemical

Co Ltd, to develop a polyvinyl chloride (PVC) plant is expected to come onstream in October 2002. This

100,000 tonne capacity plant will obtain its feedstock, vinyl chloride monomer (VCM) from PETRONAS’ joint

venture VCM plant in Kertih.

D O W N S T R E A M

P E T R O L I A M N A S I O N A L B E R H A D 3130

Development of the IPCs

... realising national

aspirations to be a

regional petrochemical

h u b.

PETRONAS made some progress with the completion and endorsement of the TAGP Conceptual Master Plan

by the ASEAN Council on Petroleum (ASCOPE). Other ongoing regional gas initiatives include the proposed

establishment of the ASCOPE Gas Centre and the ASEAN Gas Consultative Committee.

PETROCHEMICALS

Demand growth of petrochemicals and polymers weakened during the year in review due to the global

economic slowdown, creating an excess in supply, which resulted in the decline in product prices by more

than 20%.

The Group however, increased its petrochemical sales by 25% to four million tonnes, generating a revenue of

RM3,401 million.

A major development during the year was the coming on-stream of five new world scale plants with a

combined capacity of 1.9 million tonnes in both the Integrated Petrochemical Complexes (IPCs) at Kertih,

Terengganu and Gebeng in Kuantan,Pahang. This has taken Malaysia a step closer to realising its aspiration

to be a major petrochemical hub in the region. These petrochemical projects are in joint venture with The

Dow Chemical Company, BASF, Sasol and DSM for the production of ethylene, propylene, oxo-alcohols,

ethylene oxide, ethylene glycol and low density polyethylene.

Overseas, the joint venture with PETROVIETNAM and Tramatsuco of Vietnam, Phu My Plastics And Chemical

Co Ltd, to develop a polyvinyl chloride (PVC) plant is expected to come onstream in October 2002. This

100,000 tonne capacity plant will obtain its feedstock, vinyl chloride monomer (VCM) from PETRONAS’ joint

venture VCM plant in Kertih.

D O W N S T R E A M

P E T R O L I A M N A S I O N A L B E R H A D 31

P E T R O L I A M N A S I O N A L B E R H A D 3332

Formula One (F1) ...

platform for PETRONAS’

development of

automotive engineering

capabilities for the

n a t i o n .

As a technology driven company, PETRONAS continues to place utmost importance on research and

technology development to support its businesses in creating and adding value while enhancing its

competitiveness in the international arena.

RESEARCH AND DEVELOPMENT

To this end, the Group’s research and development (R&D) arm, PETRONAS Research & Scientific Services

Sdn. Bhd (PRSS) is fully geared as a high-performance business-driven R&D company to meet the research

and technology needs of not only the PETRONAS Group of companies but also other petroleum companies,

both in Malaysia and abroad. It has undertaken R&D projects in Sudan,Algeria, Chad and Syria.

PETRONAS’ involvement in automotive engineering has seen the successful development and completion of

its first prototype four-stroke, three-cylinder 989cc motorcycle racing engine known as the GP1 which was

launched in October 2001. The engine will be developed to race in the World Superbike Championship.

TECHNICAL SERVICES

PETRONAS’ project management and engineering services subsidiary, OGP Technical Services Sdn Bhd

continued to expand its presence overseas. Backed by its international experience in undertaking various

project management and engineering projects in Sudan,Vietnam and Brunei, OGP expanded its business to

Chad and Cameroon by supplying the technical manpower required for the Chad/Cameroon Development

project, which spans the two countries. In July 2001,Phu My Plastics And Chemical (PMPC) appointed OGP

to manage and provide training services for local Vietnamese staff to operate and maintain PMPC’s PVC plant

in Vietnam.

In Malaysia, OGP has been involved in numerous projects providing services ranging from designing and

engineering, construction and operation of oil and gas pipelines and process plants to turnaround

management services of various facilities as well as plant maintenance. During the year, OGP completed

seven plant and pipeline projects, 10 turnaround and five material and inventory management projects. A

major achievement for the Company was the rejuvenation work carried out for Sarawak Shell, the first

upstream project management contract secured by OGP.

d e v e l o p m e n tT E C H N O L O G Y

P E T R O L I A M N A S I O N A L B E R H A D 3332

Formula One (F1) ...

platform for PETRONAS’

development of

automotive engineering

capabilities for the

n a t i o n .

As a technology driven company, PETRONAS continues to place utmost importance on research and

technology development to support its businesses in creating and adding value while enhancing its

competitiveness in the international arena.

RESEARCH AND DEVELOPMENT

To this end, the Group’s research and development (R&D) arm, PETRONAS Research & Scientific Services

Sdn. Bhd (PRSS) is fully geared as a high-performance business-driven R&D company to meet the research

and technology needs of not only the PETRONAS Group of companies but also other petroleum companies,

both in Malaysia and abroad. It has undertaken R&D projects in Sudan,Algeria, Chad and Syria.

PETRONAS’ involvement in automotive engineering has seen the successful development and completion of

its first prototype four-stroke, three-cylinder 989cc motorcycle racing engine known as the GP1 which was

launched in October 2001. The engine will be developed to race in the World Superbike Championship.

TECHNICAL SERVICES

PETRONAS’ project management and engineering services subsidiary, OGP Technical Services Sdn Bhd

continued to expand its presence overseas. Backed by its international experience in undertaking various

project management and engineering projects in Sudan,Vietnam and Brunei, OGP expanded its business to

Chad and Cameroon by supplying the technical manpower required for the Chad/Cameroon Development

project, which spans the two countries. In July 2001,Phu My Plastics And Chemical (PMPC) appointed OGP

to manage and provide training services for local Vietnamese staff to operate and maintain PMPC’s PVC plant

in Vietnam.

In Malaysia, OGP has been involved in numerous projects providing services ranging from designing and

engineering, construction and operation of oil and gas pipelines and process plants to turnaround

management services of various facilities as well as plant maintenance. During the year, OGP completed

seven plant and pipeline projects, 10 turnaround and five material and inventory management projects. A

major achievement for the Company was the rejuvenation work carried out for Sarawak Shell, the first

upstream project management contract secured by OGP.

d e v e l o p m e n tT E C H N O L O G Y

P E T R O L I A M N A S I O N A L B E R H A D 3534

Improved operating

efficiencies contributed

to the commendable

performance of

PETRONAS’ maritime and

logistics business.

The Group’s Maritime and Logistics Business achieved good operating results despite the global economic

slowdown that has led to over-capacity, intense competition and depressed freight rates. Its commendable

performance was due to tighter business controls,improved operational efficiencies and positive results of its

ongoing transformation process, further reinforced by the Group’s stable profits derived from LNG shipping

and petroleum transportation businesses.

PETRONAS’ shipping subsidiary, Malaysia International Shipping Corporation Berhad (MISC) achieved a major

breakthrough during the year by securing its first third party LNG time charter with Gaz de France. This

contract serves as a springboard for MISC to penetrate the Northern Europe-Mediterranean-Africa LNG

shipping market and eventually into the North American market.

Another significant achievement was MISC’s entry into the VLCC market through a time charter contract with

PETRONAS for the transportation of Arabian crude oil to PETRONAS’ refinery in Melaka. The in-chartered

vessel to be used initially for this purpose will be replaced with MISC’s own 298,000 dwt vessel which is

currently under construction in Japan. Besides PETRONAS, MISC’s customers include most of the oil majors

such as ExxonMobil, Shell, ChevronTexaco and Pertamina. MISC will continue to build on these relationships,

cultivate new ones and leverage on PETRONAS' overseas presence to expand its petroleum tanker presence

beyond the Arabian Gulf-Far East region, into the Mediterranean and North Europe.

l o g i s t i c sM A R I T I M E A N D

P E T R O L I A M N A S I O N A L B E R H A D 35

P E T R O L I A M N A S I O N A L B E R H A D 3736

Top priority is given to

e n v i r o n m e n t a l

c o n s e rvation to ensure

sustainable development

for the future

HEALTH SAFETY AND ENVIRONMENT

PETRONAS continues to focus its efforts on the effective implementation of the PETRONAS HSE

management system (HSEMS) groupwide to meet the requirements of the ISO 14001 (EMS), the

Occupational Safety and Health Assurance System (OSHAS) 18001 standards and other industry best

practices. To achieve this, comprehensive training and audits are being carried out using both external

and internal HSE skill group resources. To date, the PETRONAS subsidiaries which are accredited with

the ISO 14001 certification, include the ASEAN Bintulu Fertilizer (ABF) plant, PETRONAS’ refineries in

Melaka and Terengganu, PETRONAS’ Sungei Udang Port in Melaka. ABF has also been awarded the

OSHAS 18001.

During the year, several PETRONAS subsidiaries were recognised with the annual industry safety

excellence awards by the Malaysian Society for Occupational Safety and Health. Ethylene Malaysia Sdn

Bhd won the Grand Industry Award while PETRONAS Carigali, PETRONAS Gas Berhad and OGP

received the Gold Awards. At the international level,ABF and PETRONAS Carigali were recognised by

the UK-based Royal Society Of Prevention of Accidents with its Occupational Safety Gold Award.

a c t i v i t i e sO T H E R

P E T R O L I A M N A S I O N A L B E R H A D 3736

Top priority is given to

e n v i r o n m e n t a l

c o n s e rvation to ensure

sustainable development

for the future

HEALTH SAFETY AND ENVIRONMENT

PETRONAS continues to focus its efforts on the effective implementation of the PETRONAS HSE

management system (HSEMS) groupwide to meet the requirements of the ISO 14001 (EMS), the

Occupational Safety and Health Assurance System (OSHAS) 18001 standards and other industry best

practices. To achieve this, comprehensive training and audits are being carried out using both external

and internal HSE skill group resources. To date, the PETRONAS subsidiaries which are accredited with

the ISO 14001 certification, include the ASEAN Bintulu Fertilizer (ABF) plant, PETRONAS’ refineries in

Melaka and Terengganu, PETRONAS’ Sungei Udang Port in Melaka. ABF has also been awarded the

OSHAS 18001.

During the year, several PETRONAS subsidiaries were recognised with the annual industry safety

excellence awards by the Malaysian Society for Occupational Safety and Health. Ethylene Malaysia Sdn

Bhd won the Grand Industry Award while PETRONAS Carigali, PETRONAS Gas Berhad and OGP

received the Gold Awards. At the international level,ABF and PETRONAS Carigali were recognised by

the UK-based Royal Society Of Prevention of Accidents with its Occupational Safety Gold Award.

a c t i v i t i e sO T H E R

P E T R O L I A M N A S I O N A L B E R H A D 39

Contributing to nation

building through

promotion of education

and intellectual

d e v e l o p m e n t .

EDUCATION AND HUMAN RESOURCE

As part of its corporate objective to contribute to nation building, PETRONAS is committed to help

promote educational excellence and the development of intellectual capital especially to meet the human

resources needs of the petroleum industry in the country.

To this end, PETRONAS has put in place various long term educational and skill training programmes

implemented through its educational facilities.

During the year under review, the Education Division launched a new initiative, the eLearning Project

which leverages on the state-of-the-art Information and Communication Technology to promote a

learning culture within the Group and enable staff to acquire learning experience anytime, anywhere.

PETRONAS will continue to play an important role in developing, upgrading and enhancing the technical

skills and competencies of the employees within the Group as well as in the industry.

Recognising that the continued success of its business hinges on the knowledge, innovative skills and

talents of its people, PETRONAS places great importance on efforts to promote a strong learning culture

throughout the organisation to build a versatile, multidisciplinary and competent workforce that is

capable of propelling the Group to greater heights in the increasingly challenging global business

O T H E R A C T I V I T I E S

38

P E T R O L I A M N A S I O N A L B E R H A D 39

Contributing to nation

building through

promotion of education

and intellectual

d e v e l o p m e n t .

EDUCATION AND HUMAN RESOURCE

As part of its corporate objective to contribute to nation building, PETRONAS is committed to help

promote educational excellence and the development of intellectual capital especially to meet the human

resources needs of the petroleum industry in the country.

To this end, PETRONAS has put in place various long term educational and skill training programmes

implemented through its educational facilities.

During the year under review, the Education Division launched a new initiative, the eLearning Project

which leverages on the state-of-the-art Information and Communication Technology to promote a

learning culture within the Group and enable staff to acquire learning experience anytime, anywhere.

PETRONAS will continue to play an important role in developing, upgrading and enhancing the technical

skills and competencies of the employees within the Group as well as in the industry.

Recognising that the continued success of its business hinges on the knowledge, innovative skills and

talents of its people, PETRONAS places great importance on efforts to promote a strong learning culture

throughout the organisation to build a versatile, multidisciplinary and competent workforce that is

capable of propelling the Group to greater heights in the increasingly challenging global business

O T H E R A C T I V I T I E S

38

P E T R O L I A M N A S I O N A L B E R H A D 4140

Human resource ... key

to PETRONAS’ success.

environment. This is achieved through the development of both technical knowledge and skills which

form the foundation for technological excellence, complemented by the necessary leadership capability.

In its ongoing journey towards instilling a common quality culture across the Group, the PETRONAS

Quality Culture Process based on its Five Quality Principles (5QPs) reached a significant milestone during

the year. In October 2001, PETRONAS became the first Asian company to receive the Philip Crosby

Beacon Award in recognition of its commitment to quality management and its efforts to improve quality

in its operational units. PETRONAS’ 5QPs will continue to be the key driver in ensuring the inculcation

of a strong quality culture throughout the Group.

O T H E R A C T I V I T I E S

P E T R O L I A M N A S I O N A L B E R H A D 4140

Human resource ... key

to PETRONAS’ success.

environment. This is achieved through the development of both technical knowledge and skills which

form the foundation for technological excellence, complemented by the necessary leadership capability.

In its ongoing journey towards instilling a common quality culture across the Group, the PETRONAS

Quality Culture Process based on its Five Quality Principles (5QPs) reached a significant milestone during

the year. In October 2001, PETRONAS became the first Asian company to receive the Philip Crosby

Beacon Award in recognition of its commitment to quality management and its efforts to improve quality

in its operational units. PETRONAS’ 5QPs will continue to be the key driver in ensuring the inculcation

of a strong quality culture throughout the Group.

O T H E R A C T I V I T I E S

P E T R O L I A M N A S I O N A L B E R H A D 4342

CONCLUSION

The 2001/2002 financial year was indeed an eventful and challenging year as the world landscape

was suddenly changed by the September 11 incident in the US last year. Having just emerged from

the 1997/98 financial crisis, the world’s economic stability was again thrown into turmoil after this

tragic event which has caused great uncertainty and delay in the recovery of the US, the world’s

biggest economy which sets the pace of global economic growth. With strong signs of the much

anticipated recovery of the US economy and subsequently the global economy still unclear, coupled

with the rapid pace of globalisation and economic liberalisation leading to more intense international

competition, the year ahead promises to be even more challenging. Against this backdrop,

PETRONAS will continue to build on its strong foundation laid by investing in the development of its

key resources and capabilities to gear itself to meet the daunting challenges ahead while at the same

time capitalise on the vast opportunities offered by the more liberalised global environment.

Finally, I would like to take this opportunity to thank all PETRONAS staff for their hard work and

contribution that have made our success today possible. I would also like to express my appreciation

to the Government of Malaysia and the Governments of PETRONAS’ host countries for their continuous

support as well as the Chairman and the Board of Directors for their support, council and guidance.

TAN SRI DATO’ MOHD HASSAN MARICAN

President and Chief Executive Officer

P E T R O L I A M N A S I O N A L B E R H A D 4342

CONCLUSION

The 2001/2002 financial year was indeed an eventful and challenging year as the world landscape

was suddenly changed by the September 11 incident in the US last year. Having just emerged from

the 1997/98 financial crisis, the world’s economic stability was again thrown into turmoil after this

tragic event which has caused great uncertainty and delay in the recovery of the US, the world’s

biggest economy which sets the pace of global economic growth. With strong signs of the much

anticipated recovery of the US economy and subsequently the global economy still unclear, coupled

with the rapid pace of globalisation and economic liberalisation leading to more intense international

competition, the year ahead promises to be even more challenging. Against this backdrop,

PETRONAS will continue to build on its strong foundation laid by investing in the development of its

key resources and capabilities to gear itself to meet the daunting challenges ahead while at the same

time capitalise on the vast opportunities offered by the more liberalised global environment.

Finally, I would like to take this opportunity to thank all PETRONAS staff for their hard work and

contribution that have made our success today possible. I would also like to express my appreciation

to the Government of Malaysia and the Governments of PETRONAS’ host countries for their continuous

support as well as the Chairman and the Board of Directors for their support, council and guidance.

TAN SRI DATO’ MOHD HASSAN MARICAN

President and Chief Executive Officer

P E T R O L I A M N A S I O N A L B E R H A D 4544

Shareholders' FundsGROUPAs at 31 March (Million RM)

12,500

25,000

37,500

50,000

0

62,500

75,000

0298 99 00 01

COMPANYAs at 31 March (Million RM)

Shareholders' Funds

10,000

20,000

30,000

40,000

0

50,000

60,000

25,4

50 28,7

21 32,0

60

39,6

14

46,7

35

34,0

13

36,8

71 40,2

59

53,9

34

0298 99 00 01

Net Profit for the Year

0

3,500

7,000

10,500

14,000

17,500

21,000

9,94

5

6,80

8

12,6

04

16,4

88

0298 99 00 01

14,5

68

Revenue

0

15,000

30,000

45,000

60,000

75,000

90,000

35,0

09 42,3

06

60,6

28

73,3

51

67,1

81

0298 99 00 01

Total Assets Employed

0

30,000

60,000

90,000

120,000

150,000

180,000

0298 99 00 01

81,6

90

99,4

98

121,

571

139,

040

144,

128

Profit Before Taxation

0298 99 00 01

0

6,000

12,000

18,000

24,000

30,000

36,000

15,8

23

11,8

44

21,6

11

29,0

29

24,3

18

64,6

96

Net Profit for the Year

0

2,500

5,000

7,500

10,000

12,500

15,000

7,30

4

7,37

1

9,64

4

11,2

44

10,4

73

0298 99 00 01

Revenue

0

7,500

15,000

22,500

30,000

37,500

45,000

20,1

37

19,6

20

28,3

62

36,9

65

31,9

63

0298 99 00 01

Total Assets Employed

0

18,000

36,000

54,000

72,000

90,000

108,000

58,1

51 63,9

26

74,2

08

84,1

11

86,2

33

0298 99 00 01

Profit Before Taxation

0

3,500

7,000

10,500

14,000

17,500

21,000

10,4

78

10,3

92

13,6

53

17,9

92

16,3

22

0298 99 00 01

high l ights at 31 March 2002

F I V E - Y E A R F I N A N C I A L

P E T R O L I A M N A S I O N A L B E R H A D 4544

Shareholders' FundsGROUPAs at 31 March (Million RM)

12,500

25,000

37,500

50,000

0

62,500

75,000

0298 99 00 01

COMPANYAs at 31 March (Million RM)

Shareholders' Funds

10,000

20,000

30,000

40,000

0

50,000

60,000

25,4

50 28,7

21 32,0

60

39,6

14

46,7

35

34,0

13

36,8

71 40,2

59

53,9

34

0298 99 00 01

Net Profit for the Year

0

3,500

7,000

10,500

14,000

17,500

21,000

9,94

5

6,80

8

12,6

04

16,4

88

0298 99 00 01

14,5

68

Revenue

0

15,000

30,000

45,000

60,000

75,000

90,000

35,0

09 42,3

06

60,6

28

73,3

51

67,1

81

0298 99 00 01

Total Assets Employed

0

30,000

60,000

90,000

120,000

150,000

180,000

0298 99 00 01

81,6

90

99,4

98

121,

571

139,

040

144,

128

Profit Before Taxation

0298 99 00 01

0

6,000

12,000

18,000

24,000

30,000

36,000

15,8

23

11,8

44

21,6

11

29,0

29

24,3

18

64,6

96Net Profit for the Year

0

2,500

5,000

7,500

10,000

12,500

15,000

7,30

4

7,37

1

9,64

4

11,2

44

10,4

73

0298 99 00 01

Revenue

0

7,500

15,000

22,500

30,000

37,500

45,000

20,1

37

19,6

20

28,3

62

36,9

65

31,9

63

0298 99 00 01

Total Assets Employed

0

18,000

36,000

54,000

72,000

90,000

108,000

58,1

51 63,9

26

74,2

08

84,1

11

86,2

33

0298 99 00 01

Profit Before Taxation

0

3,500

7,000

10,500

14,000

17,500

21,000

10,4

78

10,3

92

13,6

53

17,9

92

16,3

22

0298 99 00 01

high l ights at 31 March 2002

F I V E - Y E A R F I N A N C I A L

P E T R O L I A M N A S I O N A L B E R H A D 4746

200116 April

Malaysia LNG Tiga Sdn Bhd (MLNG Tiga), a

joint venture subsidiary of PETRONAS signed

a Sale and Purchase Agreement with Tohoku

Electric Power Co Inc to supply up to

900,000 tonnes of liquefied natural gas

(LNG) per year for 20 years beginning 2005.

With this agreement, Tohoku Electric’s import

of LNG from Malaysia will increase to 1.4

million tonnes per year.

26 April

PETRONAS Carigali Sdn Bhd made two gas

discoveries offshore Sarawak, one in Block

SK310, an open acreage in the Central

Luconia Province, about 160 km north of

Bintulu and the other in Block SK308, about

200 km west of Miri.

27 April

MLNG Tiga signed agreements for two loans

comprising a US$651 million 13-year from

the Japan Bank for International Cooperat i o n

and a US$165 million 8.5-year Term Loan

Facility from a syndicate of seven internat i o n a l

commercial banks to part finance the

construction of its two-train LNG plant and

r e l ated facilities in Bintulu, S a r aw a k .

3 May

PETRONAS, together with Sudapet Ltd, IPC

Sudan and OMV Aktiengesselshaft was

awarded the exploration and production

contract for Block 5B onshore Sudan by the

Government of the Republic of Sudan.

PETRONAS holds a 41% participating interest

in the block through its wholly-owned

subsidiary PETRONAS Carigali Overseas Sdn

Bhd.

31 May

PETRONAS’ office in Jakarta, Indonesia was

officially opened by Prime Minister of Malaysia

Dato Seri Dr Mahathir Bin Mohamad. The new

office would oversee the PETRONAS Group’s

operations in Indonesia, both in the upstream

and downstream sectors, and would also

house its subsidiaries, Malaysia International

Shipping Corporation and Malaysia

International Trading Company.

T H E Y E A R ’ S

h i g h l i g h t s1 June

PETRONAS, through its subsidiary

PETRONAS NGV Sdn Bhd, signed a

three-year Memorandum of

Understanding with Petroleum Authority

of Thailand for the introduction of its

natural gas-powered vehicles, the Enviro

2000 , in Thailand.

25 June

PETRONAS signed a production sharing

contract (PSC) with Sabah Shell

Petroleum Company Ltd, Shell Sabah

Selatan Sdn Bhd and PETRONAS Carigali

for Block SB 303, offshore Sabah.

PETRONAS Carigali has a 40% stake in

the block which is located about 100 km

off the coast of Kota Kinabalu.

29 June

Phu My Plastics And Chemical Co Ltd

(PMPC), a joint venture between

PETRONAS, PetroVietnam and

Tramatsuco commenced construction of

its US$70 million polyvinyl chloride (PVC)

plant in the Phu My Industrial Area in

Vietnam.

2 July

OGP Technical Services Sdn Bhd, a

subsidiary of PETRONAS, received a

Letter of Intent from PMPC for its

appointment to manage and provide

training services for a group of

Vietnamese to operate and maintain

PMPC’s PVC plant in Vietnam.

23 July

PETRONAS acquired an additional

8% equity in Malaysian Refining

Company Sdn Bhd (MRC) from Dan

Norske Statsoljeseskep AS (Statoil),

bringing its total shareholding in MRC

to 53%.

7 August

The consortium comprising

PETRONAS Carigali (Pakistan) Ltd,

Lasmo Oil Pakistan Limited and

Government Holdings (Pvt) Ltd made

its first gas discovery in onshore

Block 2769-4 (Mubarak Block) in the

Sindh Province, Pakistan. PETRONAS

Carigali is the operator of the block

with an equity of 57%.

16 April 2001

27 April 2001

1 June 2001

29 June 2001

2 July 2001

23 July 2001

P E T R O L I A M N A S I O N A L B E R H A D 4746

200116 April

Malaysia LNG Tiga Sdn Bhd (MLNG Tiga), a

joint venture subsidiary of PETRONAS signed

a Sale and Purchase Agreement with Tohoku

Electric Power Co Inc to supply up to

900,000 tonnes of liquefied natural gas

(LNG) per year for 20 years beginning 2005.

With this agreement, Tohoku Electric’s import

of LNG from Malaysia will increase to 1.4

million tonnes per year.

26 April

PETRONAS Carigali Sdn Bhd made two gas

discoveries offshore Sarawak, one in Block

SK310, an open acreage in the Central

Luconia Province, about 160 km north of

Bintulu and the other in Block SK308, about

200 km west of Miri.

27 April

MLNG Tiga signed agreements for two loans

comprising a US$651 million 13-year from

the Japan Bank for International Cooperat i o n

and a US$165 million 8.5-year Term Loan

Facility from a syndicate of seven internat i o n a l

commercial banks to part finance the

construction of its two-train LNG plant and

r e l ated facilities in Bintulu, S a r aw a k .

3 May

PETRONAS, together with Sudapet Ltd, IPC

Sudan and OMV Aktiengesselshaft was

awarded the exploration and production

contract for Block 5B onshore Sudan by the

Government of the Republic of Sudan.

PETRONAS holds a 41% participating interest

in the block through its wholly-owned

subsidiary PETRONAS Carigali Overseas Sdn

Bhd.

31 May

PETRONAS’ office in Jakarta, Indonesia was

officially opened by Prime Minister of Malaysia

Dato Seri Dr Mahathir Bin Mohamad. The new

office would oversee the PETRONAS Group’s

operations in Indonesia, both in the upstream

and downstream sectors, and would also

house its subsidiaries, Malaysia International

Shipping Corporation and Malaysia

International Trading Company.

T H E Y E A R ’ S

h i g h l i g h t s1 June

PETRONAS, through its subsidiary

PETRONAS NGV Sdn Bhd, signed a

three-year Memorandum of

Understanding with Petroleum Authority

of Thailand for the introduction of its

natural gas-powered vehicles, the Enviro

2000 , in Thailand.

25 June

PETRONAS signed a production sharing

contract (PSC) with Sabah Shell

Petroleum Company Ltd, Shell Sabah

Selatan Sdn Bhd and PETRONAS Carigali

for Block SB 303, offshore Sabah.

PETRONAS Carigali has a 40% stake in

the block which is located about 100 km

off the coast of Kota Kinabalu.

29 June

Phu My Plastics And Chemical Co Ltd

(PMPC), a joint venture between

PETRONAS, PetroVietnam and

Tramatsuco commenced construction of

its US$70 million polyvinyl chloride (PVC)

plant in the Phu My Industrial Area in

Vietnam.

2 July

OGP Technical Services Sdn Bhd, a

subsidiary of PETRONAS, received a

Letter of Intent from PMPC for its

appointment to manage and provide

training services for a group of

Vietnamese to operate and maintain

PMPC’s PVC plant in Vietnam.

23 July

PETRONAS acquired an additional

8% equity in Malaysian Refining

Company Sdn Bhd (MRC) from Dan

Norske Statsoljeseskep AS (Statoil),

bringing its total shareholding in MRC

to 53%.

7 August

The consortium comprising

PETRONAS Carigali (Pakistan) Ltd,

Lasmo Oil Pakistan Limited and

Government Holdings (Pvt) Ltd made

its first gas discovery in onshore

Block 2769-4 (Mubarak Block) in the

Sindh Province, Pakistan. PETRONAS

Carigali is the operator of the block

with an equity of 57%.

16 April 2001

27 April 2001

1 June 2001

29 June 2001

2 July 2001

23 July 2001

P E T R O L I A M N A S I O N A L B E R H A D 4948

9 September

PETRONAS celebrated its 10th

Anniversary in Vietnam,marking a

decade of successful operations in the

country since the signing of its first PSC

with PetroVietnam, the national oil

corporation of Vietnam in 1991.

18 September

PETRONAS secured its third exploration

block in Indonesia, the Tanjung Aru

Block located in the highly prospective

Kutei Basin in the Makassar Straits,

offshore Kalimantan.

20 September

PETRONAS made a new oil discovery

through the Topaz North-1X exploration

well in Blocks 01 and 02, offshore

Vietnam.

4 October

BASF PETRONAS Chemicals Sdn Bhd’s

world-scale integrated chemical

complex in Gebeng, Pahang was

officially opened by Prime Minister Dato

Seri Dr Mahathir Bin Mohamad. The

150-hectare Verbund (fully integrated)

site comprises 12 plants developed in

three stages to produce acrylic

monomers, oxo products and

butanediol.

18 October

PETRONAS rolled out its high

performance prototype motorcycle

engine, GP1 at the Sepang F-1 Circuit,

prior to the start of the Malaysian leg of

the 2001 FIM World Motorcycle Grand

Prix (Moto GP).

1 November

PETRONAS signed two Exploration and

Production Sharing Agreements with

the Ministry of Oil of Bahrain.

PETRONAS Carigali Overseas, is the

operator with a 100 per cent equity in

both offshore Blocks IV and VI.

21 December

The first oil production from the Angsi

field, jointly developed by PETRONAS

Carigali and ExxonMobil Exploration and

Production Inc, commenced.

20028 January

PETRONAS signed a Petroleum Contract with

PetroVietnam and Pertamina to jointly explore

and develop hydrocarbon resources in Blocks

10 and 11.1 offshore V i e t n a m . Under the

c o n t r a c t , the three national oil companies will

form a joint venture company to operate the

b l o c k s , the first such alliance, within the ambit

of the Tripartite Cooperation A r r a n g e m e n t .

18 January

IndianOil PETRONAS Private Limited’s

liquefied petroleum gas (LPG) terminal, a

50:50 joint venture between Indian Oil

C o r p o r ation and PETRONAS was off i c i a l ly

l a u n c h e d . The US$60 million LPG terminal,

with an annual capacity of 600,000 tonnes

per year, is expected to meet some of the LPG

s h o r t age faced by the eastern market of India.

4 February

PETRONAS, together with its partners

GEPetrol,OCEAN Equatorial Guinea

Corporation and VANCO Equatorial Guinea

Limited signed a PSC with the Government

of the Republic of Equatorial Guinea for the

offshore Corisco Bay Block. PETRONAS

Carigali Overseas is the operator of the

block, with a 60 per cent interest.

19 February

MLNG Tiga signed a sale and purchase

agreement for the supply of up to 1.6

million tonnes of LNG a year to a

consortium comprising Tokyo Gas Co Ltd,

Toho Gas Co Ltd and Osaka Gas Co Ltd for

20 years beginning from 2004.

8 March

Malaysia LNG signed a Memorandum of

Agreement with The Tokyo Electric Power

Company Inc and Tokyo Gas Company Ltd

to supply up to 7.4 million tonnes of LNG

per annum for 15 years beginning 2003,

with an option for a five-year extension.

18 March

PETRONAS and its partners TotalFinaElf

and Gazprom brought on-stream Phases 2

and 3 of the South Pars gas field in the

Persian Gulf offshore Iran, which is

expected to produce two billion cubic feet

of gas and 80,000 barrels of condensate

per day from 20 wells through two

unmanned platforms.

18 October 2001

4 Fe b r u a ry 2002

18 January 2002

8 March 2002

4 October 2001

9 September 2001

P E T R O L I A M N A S I O N A L B E R H A D 4948

9 September

PETRONAS celebrated its 10th

Anniversary in Vietnam,marking a

decade of successful operations in the

country since the signing of its first PSC

with PetroVietnam, the national oil

corporation of Vietnam in 1991.

18 September

PETRONAS secured its third exploration

block in Indonesia, the Tanjung Aru

Block located in the highly prospective

Kutei Basin in the Makassar Straits,

offshore Kalimantan.

20 September

PETRONAS made a new oil discovery

through the Topaz North-1X exploration

well in Blocks 01 and 02, offshore

Vietnam.

4 October

BASF PETRONAS Chemicals Sdn Bhd’s

world-scale integrated chemical

complex in Gebeng, Pahang was

officially opened by Prime Minister Dato

Seri Dr Mahathir Bin Mohamad. The

150-hectare Verbund (fully integrated)

site comprises 12 plants developed in

three stages to produce acrylic

monomers, oxo products and

butanediol.

18 October

PETRONAS rolled out its high

performance prototype motorcycle

engine, GP1 at the Sepang F-1 Circuit,

prior to the start of the Malaysian leg of

the 2001 FIM World Motorcycle Grand

Prix (Moto GP).

1 November

PETRONAS signed two Exploration and

Production Sharing Agreements with

the Ministry of Oil of Bahrain.

PETRONAS Carigali Overseas, is the

operator with a 100 per cent equity in

both offshore Blocks IV and VI.

21 December

The first oil production from the Angsi

field, jointly developed by PETRONAS

Carigali and ExxonMobil Exploration and

Production Inc, commenced.

20028 January

PETRONAS signed a Petroleum Contract with

PetroVietnam and Pertamina to jointly explore

and develop hydrocarbon resources in Blocks

10 and 11.1 offshore V i e t n a m . Under the

c o n t r a c t , the three national oil companies will

form a joint venture company to operate the

b l o c k s , the first such alliance, within the ambit

of the Tripartite Cooperation A r r a n g e m e n t .

18 January

IndianOil PETRONAS Private Limited’s

liquefied petroleum gas (LPG) terminal, a

50:50 joint venture between Indian Oil

C o r p o r ation and PETRONAS was off i c i a l ly

l a u n c h e d . The US$60 million LPG terminal,

with an annual capacity of 600,000 tonnes

per year, is expected to meet some of the LPG

s h o r t age faced by the eastern market of India.

4 February

PETRONAS, together with its partners

GEPetrol,OCEAN Equatorial Guinea

Corporation and VANCO Equatorial Guinea

Limited signed a PSC with the Government

of the Republic of Equatorial Guinea for the

offshore Corisco Bay Block. PETRONAS

Carigali Overseas is the operator of the

block, with a 60 per cent interest.

19 February

MLNG Tiga signed a sale and purchase

agreement for the supply of up to 1.6

million tonnes of LNG a year to a

consortium comprising Tokyo Gas Co Ltd,

Toho Gas Co Ltd and Osaka Gas Co Ltd for

20 years beginning from 2004.

8 March

Malaysia LNG signed a Memorandum of

Agreement with The Tokyo Electric Power

Company Inc and Tokyo Gas Company Ltd

to supply up to 7.4 million tonnes of LNG

per annum for 15 years beginning 2003,

with an option for a five-year extension.

18 March

PETRONAS and its partners TotalFinaElf

and Gazprom brought on-stream Phases 2

and 3 of the South Pars gas field in the

Persian Gulf offshore Iran, which is

expected to produce two billion cubic feet

of gas and 80,000 barrels of condensate

per day from 20 wells through two

unmanned platforms.

18 October 2001

4 Fe b r u a ry 2002

18 January 2002

8 March 2002

4 October 2001

9 September 2001

P E T R O L I A M N A S I O N A L B E R H A D 5150

Producing Fields

Peninsular Gas Utilisation Pipeline System

OIL

Phase 1 PGU Loop I

Phase 2

GAS

Phase 3

PGU Loop II

Domestic Operations IndicatorsPRODUCTION SHARING CONTRACT (PSC) AREAS

PETRONAS Carigali Sdn Bhd (PETRONAS Carigali)

PETRONAS Carigali/ Esso Production Malaysia Inc

Sabah Shell Pet Co/Shell Sabah Selatan/PETRONAS Carigali

PETRONAS Carigali/SEPM(Shell Exploration & Production Malaysia B.V.)

Talisman Malaysia Ltd/Sands Malaysia AB/PVEP/PETRONAS Carigali

Under Technical Arrangement with SEPM B.V.Under PM303 PSC

Esso Production Malaysia Inc./PETRONAS Carigali

PETRONAS Carigali/ Sarawak Shell Bhd

Amerada Hess (Malaysia - PM 304) & (Malaysia - SK306) Ltd/KUFPEC/PIDC/PETRONAS Carigali

Sabah Shell Pet Co Ltd/Shell Sabah Selatan/Conoco Sabah Ltd/PETRONAS Carigali

Amerada Hess (Malaysia - SB302) Ltd/PETRONAS CarigaliPM301, PM302

PM3

Talisman Malaysia Ltd/PETRONAS Carigali PM305

PM320, PM322

SEPM (Shell Exploration & Production Malaysia B.V.) /PETRONAS CarigaliPM303

Sarawak Shell Bhd/PETRONAS Carigali SK308, SK312

Sabah Shell Pet Co Ltd/Shell Sabah Selatan/PETRONAS Carigali

SB301, SB303

SK307

PM304, SK306

Deepwater G & J

SB302

Amerada Hess (Malaysia - Block F) Ltd/ PETRONAS CarigaliDeepwater F

Sarawak Shell Bhd./ Diamond Gas/PETRONAS CarigaliDeepwater EYPF Malaysia Ltd/Mitsubishi Corp/PETRONAS Carigali

Murphy Sarawak Oil Co Ltd/PETRONAS Carigali

SK 301

SK309, SK311

Murphy Sabah Oil Co Ltd/PETRONAS Carigali

PETRONAS Carigali Sdn Bhd

Deepwater H & K

PM306, PM307

N

CelebesSeaStraits of M

elaka MA

LA

YS

IA

IND

ON

ES

IA

PHILIPPINES

MALAYSIA

IND

ON

ES

IAM

ALA

YS

IA

South China SeaSulu Sea

PHILIPPINES

PM3

P. Timbun MataF23F6

E11

D18D35

M1

M3

Commercial Arrangement Area

Malaysia / ThailandJoint Development Area

PM322

MALA

YSIA

INDO

NESIA

THAILAND

MALAYSIA

PM320

Temana

Bayan

LawitBunga KekwaJernehResakDulangSemangkokLarutTabuGuntongPalasTiong

North RayaKepong

TH

AIL

AN

DM

ALA

YS

IA

BartonS. FuriousSt. JosephTembungo

Erb WestSamarang

Kinabalu

Fairley BaramBakau

Baram

W. LutongBaronia

BettyBokorTukauSikauSiwa

DuyongBekokTapisAndingIrong BaratAngsiMalongSotong

Yong

TinggiSeligiPulai

SINGAPORE

SUMATRA

THAILAND

VIETNAM

KALIMANTAN

PENINSULAR MALAYSIA

SARAWAK

SABAH

BRUNEIDARUSSALAM

PM301

PM 302

PM306

PM303

PM307

PM304

PM305

GJ

K

H

SB301

E

SK312

SK308SK306

SK301

SK309

SK307

SK311

F

SB302

SB303

PulauLangkawi

Pulau Pinang

KUALA LUMPUR

Port DicksonSepang

DengkilPort Klang

Meru

Kuantan

Kertih

Tok Arun

KualaTerengganu

Ipoh

P. Tioman

Butterworth

Kangar

GurunKotaBharu

JohorBahru

Pasir Gudang

Sandakan

Kuching

Bintulu

Melaka

Segamat

Miri

Lutong

P. Labuan

Kota Kinabalu

contract areas AND OIL AND GAS FIELDS

MALAYSIA’S

P E T R O L I A M N A S I O N A L B E R H A D 5150

Producing Fields

Peninsular Gas Utilisation Pipeline System

OIL

Phase 1 PGU Loop I

Phase 2

GAS

Phase 3

PGU Loop II

Domestic Operations IndicatorsPRODUCTION SHARING CONTRACT (PSC) AREAS

PETRONAS Carigali Sdn Bhd (PETRONAS Carigali)

PETRONAS Carigali/ Esso Production Malaysia Inc

Sabah Shell Pet Co/Shell Sabah Selatan/PETRONAS Carigali

PETRONAS Carigali/SEPM(Shell Exploration & Production Malaysia B.V.)

Talisman Malaysia Ltd/Sands Malaysia AB/PVEP/PETRONAS Carigali

Under Technical Arrangement with SEPM B.V.Under PM303 PSC

Esso Production Malaysia Inc./PETRONAS Carigali

PETRONAS Carigali/ Sarawak Shell Bhd

Amerada Hess (Malaysia - PM 304) & (Malaysia - SK306) Ltd/KUFPEC/PIDC/PETRONAS Carigali

Sabah Shell Pet Co Ltd/Shell Sabah Selatan/Conoco Sabah Ltd/PETRONAS Carigali

Amerada Hess (Malaysia - SB302) Ltd/PETRONAS CarigaliPM301, PM302

PM3

Talisman Malaysia Ltd/PETRONAS Carigali PM305

PM320, PM322

SEPM (Shell Exploration & Production Malaysia B.V.) /PETRONAS CarigaliPM303

Sarawak Shell Bhd/PETRONAS Carigali SK308, SK312

Sabah Shell Pet Co Ltd/Shell Sabah Selatan/PETRONAS Carigali

SB301, SB303

SK307

PM304, SK306

Deepwater G & J

SB302

Amerada Hess (Malaysia - Block F) Ltd/ PETRONAS CarigaliDeepwater F

Sarawak Shell Bhd./ Diamond Gas/PETRONAS CarigaliDeepwater EYPF Malaysia Ltd/Mitsubishi Corp/PETRONAS Carigali

Murphy Sarawak Oil Co Ltd/PETRONAS Carigali

SK 301

SK309, SK311

Murphy Sabah Oil Co Ltd/PETRONAS Carigali

PETRONAS Carigali Sdn Bhd

Deepwater H & K

PM306, PM307

N

CelebesSeaStraits of M

elaka MA

LA

YS

IA

IND

ON

ES

IA

PHILIPPINES

MALAYSIA

IND

ON

ES

IAM

ALA

YS

IA

South China SeaSulu Sea

PHILIPPINES

PM3

P. Timbun MataF23F6

E11

D18D35

M1

M3

Commercial Arrangement Area

Malaysia / ThailandJoint Development Area

PM322

MALA

YSIA

INDO

NESIA

THAILAND

MALAYSIA

PM320

Temana

Bayan

LawitBunga KekwaJernehResakDulangSemangkokLarutTabuGuntongPalasTiong

North RayaKepong

TH

AIL

AN

DM

ALA

YS

IA

BartonS. FuriousSt. JosephTembungo

Erb WestSamarang

Kinabalu

Fairley BaramBakau

Baram

W. LutongBaronia

BettyBokorTukauSikauSiwa

DuyongBekokTapisAndingIrong BaratAngsiMalongSotong

Yong

TinggiSeligiPulai

SINGAPORE

SUMATRA

THAILAND

VIETNAM

KALIMANTAN

PENINSULAR MALAYSIA

SARAWAK

SABAH

BRUNEIDARUSSALAM

PM301

PM 302

PM306

PM303

PM307

PM304

PM305

GJ

K

H

SB301

E

SK312

SK308SK306

SK301

SK309

SK307

SK311

F

SB302

SB303

PulauLangkawi

Pulau Pinang

KUALA LUMPUR

Port DicksonSepang

DengkilPort Klang

Meru

Kuantan

Kertih

Tok Arun

KualaTerengganu

Ipoh

P. Tioman

Butterworth

Kangar

GurunKotaBharu

JohorBahru

Pasir Gudang

Sandakan

Kuching

Bintulu

Melaka

Segamat

Miri

Lutong

P. Labuan

Kota Kinabalu

contract areas AND OIL AND GAS FIELDS

MALAYSIA’S