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Petroliam Nasional Berhad, Malaysia

PP 2986/01/2010(023290)

3/2009

BIOREMEDIATIONIN THE SUDAN

dual-IconsNEW PERSPECTIVES

AND FACETS OF THE

PETRONAS

TWIN TOWERS

NEW PERSPECTIVES

AND FACETS OF THE

PETRONAS

TWIN TOWERS

PETRONAS INTURKMENISTAN

A MUTUALLY BENEFICIALPARTNERSHIP

PETRONAS INTURKMENISTANA MUTUALLY BENEFICIAL

PARTNERSHIP

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CONTENTSIN THIS ISSUE OF NADA PETRONAS

4 18PETRONAS in Turkmenistan

A Mutually Beneficial

Partnership

Bioremediation in the Sudan

A natural and biodiversity-friendly

way to treat produced water

main story environment

25 Corporate Roundup

Notable events in PETRONAS

10 dual-Icons

New perspectives and facets of

the PETRONAS Twin Towers

pictorial

14 Collaboration Key to

Enhancing OPI Initiatives

Increasing efficiency collectively

focus

12 A Sustainable Energy System

The role of natural gas

and the way forward

focus

16 PETRONAS PRIMAX 95

Better fuel economy andefficiency

focus

21 PETRONAS’ Education

Sponsorships

Paving the way for promising careers

community

24 PETRONAS Sustainability Report

2009

10 18

4

21

16

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editorial note

YOUR SAY...

Cover: Soaring above the Kuala Lumpur skyline, the

PETRONAS Twin Towers are last ing monuments to

the ambition and achievements of a nation on themove, as it marches into the future. The Twin Towers

are featured in the PETRONAS Corporate Calendar

2010.

Nada PETRONAS is the corporate newsletter of thePETRONAS Group of Companies published quarterly by the Corporate Communicat ions Department ofthe Legal and Corporate Affairs Division. Opinionsexpressed in the newsletter do not necessarily reflect

the official views of PETRONAS and its Group ofCompanies.

PRINTED BYCetakrapi Sdn Bhd

© 2009 PETROLIAM NASIONAL BERHAD (PETRONAS)All rights reser ved. PETRONAS makes no representation orwarranty, whether express or implied, as to the accuracy orcompleteness of the facts presented. PETRONAS disclaimsresponsibility from any liability arising out of reliance on

the contents of this publication.

Send us your feedback on what you want to see infuture issues. We also welcome your views on storiesfeatured in the current issue. To share your opinionsor contribute articles, please write to:

The EditorNada PETRONASCorporate Communications Department Level 70, Tower 1, Petronas Twin TowersKuala Lumpur City Centre, 50080 Kuala LumpurMalaysia

IN this edition of Nada, the main story features PETRONAS’ effortsin developing the petroleum industry in Turkmenistan. Read howPETRONAS is involved in the ongoing development of the Caspianregion.

Also in this edition of Nada, we feature some new perspectivesand facets of the PETRONAS Twin Towers in pictorial form. Thesepictures are also showcased in PETRONAS' Corporate Calendar for2010.

In the Focus section, read about PETRONAS' ongoing effortsto achieve operational excellence through Operating Performance

Improvement (OPI) initiatives. Recently, PETRONAS organised theOPI Forum 2009 to promote collaboration in OPI initiatives for boththe upstream and downstream sectors.

We also feature a story on the recently launched PETRONASPRIMAX 95. In support of the Malaysian government's aspiration toprovide quality petrol at a reasonable price, PETRONAS was the firstto introduce a RON 95 fuel in Malaysia, the PETRONAS PRIMAX 95.

In the Environment section, read about how PETRONAS’ bioremediation in the Sudan transforms produced water from ouroperations into safe, clean water for agricultural use. It is also helpingto create a sanctuary for animals and plants.

Last but not least, read our Community section on howPETRONAS' education sponsorship at Universiti TeknologiPETRONAS resulted in life changing experiences for three Vietnamesegraduates.

Nada Editorial Team

BUILDING AND SUSTAININGLONG-TERM PARTNERSHIP

PetroliamNasionalBerhad,MalaysiaPP2986/01/2010(023290)

3/2009

BIOREMEDIATIONIN THE SUDAN

dual-IconsNEW PERSPECTIVES

AND FACETS OFTHE

PETRONAS

TWINTOWERS

NEW PERSPECTIVES

AND FACETS OFTHE

PETRONAS

TWINTOWERS





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cover story

4 PIONEERING PARTNERSHIP

TURKMENISTAN is an

important player in theglobal energy market dueto its vast oil and gasreserves and its strategiclocation in Central Asia.

The country representsnot only a substantialsource of oil and gas butalso a growing investmentopportunity.

petronas inturkmenistana mutually beneficialpartnership

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5PIONEERING PARTNERSHIP

As Turkmenistan looks to increase and diversify its oil

and gas exports to foreign markets, it has taken a series

of economic reforms to encourage collaboration with

foreign investors, especially in the oil and gas industry.In recognising Turkmenistan’s huge oil and gas

potential in Central Asia early on, PETRONAS signed

the nation’s first Production Sharing Contract (PSC) for

Block 1 in 1996.

The various challenges in setting up operations

in Block 1 in the landlocked Caspian region aided

PETRONAS in laying the foundations for a long

term partnership with Turkmenistan in the field of

exploration and production, as well as infrastructure

and capability building.

Thirteen years on, this partnership has grown

in line with Turkmenistan’s national aspirations.

Through the application of technology, infrastructure

development, and the sharing of knowledge and

expertise, PETRONAS’ venture in Turkmenistan’s

petroleum industry has resulted in a mutually beneficial

collaboration for both PETRONAS and Turkmenistan.

In preparation for gas operations in the Magtymguly

field of Block 1, PETRONAS Carigali (Turkmenistan)

Sdn Bhd (PC(T)SB) took ownership, in July this year,

of the mobile offshore production unit (MOPU)

Saparmyrat Turkmenbasy and the floating storage and

offloading (FSO) vessel Ozughan from Single Buoy

Moorings Inc.

In infrastructure development, Malaysia Marine

and Heavy Engineering Sdn Bhd (MMHE), a wholly

owned company of PETRONAS’ shipping subsidiary

MISC Berhad, is the engineering, procurement,

construction, installation and commissioning (EPCIC)

main contractor for the ongoing construction of the Oil

and Gas Terminal (OGT) in Kiyanly on the coast of the

Caspian Sea to receive gas from the Magtymguly field.

Through MMHE, PETRONAS is working closely with

local Turkmenistan contractors in constructing the OGT.

MMHE also constructed the first fabrication yard

in Kiyanly to facilitate the construction of offshore

MMHE ALSO CONSTRUCTED THE FIRST FABRICATION

YARD IN KIYANLY TO FACILITATE THE CONSTRUCTION

OF OFFSHORE PLATFORMS TO BE DEPLOYED IN BLOCK 1.

ONE SUCH PLATFORM IS THE MAGTYMGULY COLLECTOR

AND RISER PLATFORM, THE MCR-A, AN OFFSHORE GAS

PLATFORM WHICH IS UNDER CONSTRUCTION.

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platforms to be deployed in Block 1. One such

platform is the Magtymguly collector and riser

platform, the MCR-A, an offshore gas platform which

is under construction.

In the future, the fabrication yard will be used to

construct offshore platforms for other projects in the

Caspian region. The fabrication yard will also be the

first facility in Tukmenistan to service offshore drilling

units, enhancing Turkmenistan’s position as a leading

fabrication and service centre.

The OGT and the fabrication yard in Kiyanly are

also expected to increase the economic activity in and

around Kiyanly, resulting in the creation of new jobs.

Education and Capability Development

As Turkmenistan’s economic policy is ultimately

geared towards the welfare of its people and the

prosperity of the nation, its government pays special

attention to education and capability development.

Collaborating on this common objective,

PETRONAS together with the Turkmenistan

government implemented various initiatives that focus

on education and capability building to further develop

Turkmenistan’s oil and gas sector workforce.

In support of the government’s efforts to develop

Turkmenistan’s best and brightest students into

engineers in various fields, a sponsorship programme

was established for these students to attend

undergraduate and postgraduate courses at Universiti

Teknologi PETRONAS (UTP) in Malaysia. Fifty-two

Turkmenistan students have graduated from UTP since

A TECHNICIAN TRAINING CENTRE HAS BEEN ESTABLISHED IN

TURKMENBASHY IN COLLABORATION WITH INSTITUT TEKNOLOGI

PETROLEUM PETRONAS (INSTEP), WHERE TURKMENISTAN TECHNICIANS

SPEND ABOUT A YEAR AT THE TRAINING CENTRE AND FURTHER THEIR

TRAINING IN PETRONAS’ MALAYSIAN OPERATIONS.

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the first sponsorship in 1998, while 43 Turkmenistan

students are currently studying in UTP.

Also, a Technician Training Centre has been

established in Turkmenbashy in collaboration with

Institut Teknologi Petroleum PETRONAS (INSTEP),

where Turkmenistan technicians spend about a year

at the Training Centre and further their training

in PETRONAS’ Malaysian operations. Eighty-

five technicians have completed their training in

Turkmenbashy and are currently attending on-the-

job training at various locations in Malaysia.

Various activities are conducted on a regular basis

through PC(T)SB in the form of welfare, cultural as

well as sports programmes. For example, PETRONAS

supported the Children’s Fund of Turkmenistan by

providing books to a children’s library in the capital

Ashgabat, benefitting 64 schools and more than150 institutions of learning. In 2008, PC(T)SB’s

staff organised a programme for underprivileged

children in conjunction with the holy month of

Ramadan. In that same year, PC(T)SB, together

with the PETRONAS Adventure Team, participated

in the government’s Green Belt Programme, where

trees were planted in Turkmenbashy to encourage

environmental awareness.

These activities also play a role in enhancing

good relations and networking, promoting cultural

understanding and communication among

PETRONAS’ employees in Turkmenistan.Cultural performances were also organised in

Ashgabat to share Malaysian culture with the people

of Turkmenistan.

Going forward, PETRONAS is committed in

helping to further develop Turkmenistan’s oil and

gas industry, which is playing an increasing role in

addressing global energy needs.

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COUNTRY FACTS

Total area488,100 sq km (Roughly the size of the United

Kingdom)

Population4.89 million (mid-2009 estimate; US Census Bureau)

CapitalAshgabat

ClimateContinental desert; summer temperatures regularly

reach 45-50°C

LanguagesTurkmen is the state language; Russian is widely spoken

in the towns and Uzbek is spoken by the ethnic Uzbek

minority, mainly in northern Turkmenistan

CurrencyManat (USD$1 = approx 2.85 Manat)

TimeFive hours ahead of GMT

Fiscal yearCalendar year

Major public holidaysJanuary 12th (Memorial Day); February 19th (Turkmen Flag

Day); March 21st-22nd (Spring holiday); May 9th (Victory

Day); May 18th (Revival and Unity Day); October 2nd (end of

Ramadan); October 6th (Remembrance Day for the victims of

the 1948 earthquake); October 27th-28th (Independence Day);

December 8th-10th (Kurban Bairam ); December 12th (Day ofNeutrality of Turkmenistan)

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1996

• PC(T)SB was awarded Block 1 by the

Turkmenistan government through thesigning of the country’s first offshore PSC.

It is 100 per cent operated by PC(T)SB with

a production period of 20 years. Block 1

is a 1,900 sq km area in the Caspian Sea,

comprising the Magtymguly (East Livanov),

Owez (Central Livanov) and Diyarbekir

(Barinov) fields

1997

• Completed the first acquisition of 1,749 line

km of 2D and 81,706 line km of 3D seismic

data in the Block 1 contract area

1998

• PC(T)SB spudded its first well, Magtymguly –

1X (East Livanov), making it the first offshore

exploration well drilled in Turkmenistan since

the country’s independence in 1991

1999

• Completed drilling of second commitment

well, Diyarbekir -1A (Barinov), in March

2001

• Owez-1X (Central Livanov) commitment well

was spudded on 24 October

2002

• PC(T)SB completed drilling its fourth well,

Magtymguly 2A (East Livanov), offshore

Block 1. It completed all its well commitments

under Block 1 PSC, including drilling of the

fourth well

2004

• The MOPU and FSO fabrication works began at Lamprell Energy Limited yard in

Jebel Ali, United Arab Emirates (UAE) and

Maritime Industrial Services yard in Sharjah,

UAE respectively

2005

• PETRONAS successfully transported the

MOPU and FSO to the Caspian Sea for the

Diyarbekir field Extended Well Test (EWT).

This marked the first offshore EWT method

in Turkmenistan, an innovative concept to

develop small hydrocarbon facilities in thecountry

2006

• The inaugural lifting of 40,000 barrels of

Diyarbekir crude oil took place successfully,

marking a significant milestone in the

partnership between the Turkmenistan

government and PETRONAS

2007

• Heads of Agreement (HOA) for the Gas

Development Project was signed on 10

March.

• The Turkmenistan Development Project

surpassed two million man hours worked

without Lost Time Incident

• Turkmenistan President, His Excellency Mr

Gurbanguly Berdimuhamedov, officiated

the ground breaking ceremony of PC(T)SB’s

fabrication yard at Kiyanly

2008

• PC(T)SB discovered significant oil and

gas from the South Mashrykov-1 wellsituated in the South Flank of Block 1.

It is part of an exploration programme

to assess and prove up additional

hydrocarbon resources to support the

overall oil and gas development in Block 1

• The installation of Magtymguly Drilling

Platform (MDP-A) was completed

2009

• The MOPU Saparmyrat Turkemenbasy

and FSO vessel Ozughan were acquired

from Single Buoy Moorings Inc• The first shipment of linepipes was

transported from Kuantan, Malaysia to

Kiyanly

• Construction of the two hulls of the

Derrick Lay Barge in Singapore was

completed. Joining of the two hulls

would be done in the Caspian

EXPLORATION, DEVELOPMENT AND PRODUCTION OF BLOCK 1

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10 DUAL- ICONS

SOARING above the Kuala Lumpur skyline, the

PETRONAS Twin Towers are lasting monuments to

the ambition and achievements of a nation on the

move, as it marches into the future.

A singular idea expressed in two mirror-image

structures, the inception and completion of the

PETRONAS Twin Towers firmly placed Malaysia on the world

architectural map as the home to a distinctive contemporary marvel,

expressing through its construction the dynamic ideas of a country

aspiring to new heights.

Behind the completion of this contemporary architectural marvel

is the National Oil Company PETRONAS, which has come a long way

from its humble beginnings in 1974 to emerge as a global corporation.

The PETRONAS Twin Towers express of the Corporation’s

determination to overcome challenges to succeed in an increasinglycompetitive world.

From the rudimentary sketches on paper to its final manifestation

in glass and steel, gleaming in the equatorial sun, the PETRONAS

“THEY ARE UNIQUELY MALAYSIAN

BUILDINGS BUT THEIR IMAGES BELONG

TO THE WORLD, IN THE SAME MANNER

THAT THE PYRAMIDS OF EGYPT AND

THE EIFFEL TOWER ALSO DO”CESAR PELLI

– Architect of the PETRONAS Twin Towers

The design of the PETRONASTwin Towers is inspired by Islamic

culture, Kuala Lumpur’s equatorial

climate and Malaysia’s traditional

craft and design

dual-Icons

pictorial

Twin Towers have lived up to the aspirations of the visionaries

behind it, capturing the world’s admiration. The twin structures

are not merely architectural icons but also embodiments of a

nation’s determination and resilience.

For this edition of Nada, we provide some images featured in

the PETRONAS Corporate Calendar 2010 themed dual-Icons -

The PETRONAS Twin Towers.

NEW PERSPECTIVESAND FACETS OF THEPETRONAS TWINTOWERS

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11DUAL- ICONS

The motive of the lobby floors

and walls were inspired by similar

designs found on traditional

‘mengkuang’ mats and ‘bertam’ fibre

walls in traditional homes

The Dewan Filharmonik

PETRONAS, home to the

Malaysian Philharmonic

Orchestra

The As-Syakirin

Mosque, a place of

worship, reflection and

contemplation

Elegance - the Malaysian Petroleum

Club offers diners a unique experience toremember

The Galeri PETRONAS

contributes to the preservation, development

and promotion of art and

culture

• Standing at the height of about 452

metres above street level, with 88 storeys,the PETRONAS Twin Towers are the tallest

twin structures in the world.

• The construction utilised 300,000 tonnes of

steel per tower and 77,000 square metres of

glass.

• The two halves of the PETRONAS Twin Towers

are linked by a two-storey ‘Sky Bridge’ added at

the 41 and 42 oors, which also doubles as an

exit during emergency evacuations.

• Occupants are ferried by 29 double-decker

high speed passenger lifts and 10 escalators

in each tower.

• The building’s basement parking

accommodates 5,400 parking bays

spread over ve levels.

INTERESTING FACTS ABOUTTHE PETRONAS TWIN TOWERS

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a sustainable

energy systemTHE ROLE OF NATURAL GASAND THE WAY FORWARD

IN light of the issue of climate change and the increasing push for

lower global carbon emissions, industry players at the 24th World

Gas Conference (WGC) in Buenos Aires, Argentina, said that

natural gas, being abundant and the cleanest-burning fossil fuel,

would be a strong candidate to bridge current carbon-intensivefossil fuel with non-fossil energy of the future.

Fourteen keynote speakers including heads of energy

companies and government representatives identified several key

elements and measures to be taken by the industry, policy makers

and stakeholders to propel the attractiveness of natural gas in a

sustainable energy system.

Focusing on the WGC theme, “The Global Energy Challenge:

Reviewing the Strategies for Natural Gas”, speakers highlighted

that as living standards rise and urban populations expand,

satisfying ever-growing energy demand in a sustainable way has

become probably the world’s biggest challenge. It is one that is

political, practical and economic.

PETRONAS President and Chief Executive Officer Tan

Sri Mohd Hassan Marican, in his keynote address titled

“Contribution of the Natural Gas Industry to a Sustainable

Energy System”, added that although natural gas was well placed

to play a vital role in any emergent sustainable energy system, it

needed to be sustained through innovation, technology, credible

partnerships amongst all stakeholders, underpinned by the

adequate availability of skilled talent.

“While natural gas may clearly be today’s forerunner in an

emergent sustainable energy system, concerted efforts on the

part of the industry is still required to ensure that it remains safe,

reliable and above all affordable,” Tan Sri Hassan said.

In spurring gas utilisation within the context of developinggas markets, the elements needed to sustain and enhance the

contribution of natural gas in a sustainable system includes

careful and coordinated planning, successful partnerships

between National Oil Companies

and International Oil Companies,

coherent policies to ensure adequate

and timely investments in both physical

infrastructure and human capital, as wellas the steady application of technology to

constantly add value to gas resources, he added.

Efforts to discover new resources will be essential not only

to ensure adequate supplies to meet rising demand, but also to

open up a more diverse array of supply options, to the extent

that they exist closer to market, can be marketed more affordably

and contribute towards overall energy security objectives, Tan Sri

Hassan elaborated.

Floating Liquefied Natural Gas technology that influences the

threshold field size that can be commercialised as well as combined

cycle gas turbine (CCGT) technologies that expand conversion and

end-user technologies would help enhance the attractiveness of

natural gas as a fuel of choice for power generation, undoubtedlyincreasing the competitive edge of natural gas over other fuels such

as coal.

“In some cases, particularly where gas has to be transported

over large distances, small markets may be unable to support the

full potential of natural gas, requiring collaborative region-wide

approaches that forge a fully-functioning integrated gas market,

backed by a programme of inter-governmental cooperation and

mutually coherent energy policies, to generate the necessary

economies of scale,” he added.

An actively tradable international natural gas market was also

highlighted by several keynote speakers as an important element

in sustaining the healthy development of the gas industry, as this would facilitate the true economic value of the resource, achieving

efficient resource allocation and help drive natural gas as a

sustainable energy source.

12 WG C

focus

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Tan Sri Hassan elaborated that

where price discovery could not be

achieved through an actively tradable

market, then the best mechanism

may still be the “netback market value

approach”, with gas priced in relation to competing fuels within the

framework of long-term contracts.

Another key element he referred to was the human capital

dimension with a need for more collaborative efforts to forge a sound

collective position for effective solutions that address both short-

term imbalances and lay the foundations for the industry’s long-term

sustainability.

BP Group Chief Executive Mr Tony Hayward, in his keynote

address titled “The Role of Gas in the Future of Energy”, summed

up the drive for natural gas as “an evolution – not a revolution in

the energy mix” that required a roadmap for this transition to be

built around a clear and realistic understanding of the existing

infrastructure, changing technology, economic incentives and the

inevitable policy trade-offs that industry players would face along the

way.

The share of renewable energy in the world’s energy mix would

undoubtedly increase, with alternatives such as wind power and

nuclear energy fast gaining ground in the world. “We need to take carbon out of the energy mix today and we need

to be realistic about achieving that. The technology, infrastructure

and regulatory framework for those alternative energies are expected

to take decades to be deployed at scale. Gas is the fuel that

offers the greatest potential to provide the largest reductions at

the lowest cost – and all that by using technology that’s availabletoday,” Mr Hayward said.

In addressing security of supply and related investments, Mr

Alexey B Miller, Deputy Chairman of the Board of Directors and

Chairman of the Management Committee of GAZPROM, was

of the view that strengthening the trust among market players

through a variety of cooperative and coordinative measures

played a positive factor in ensuring gas market safety.

For example, the activities of the Gas Exporting Countries

Forum (currently engaged in forming a permanent organisational

structure) include joint analysis of supply and demand trends of

the global gas market, pricing issues, investment programmes and

coordination of major projects.

Mr Miller explained that despite the obvious benefits ofnatural gas compared to other fuels, the role of gas in the global

energy balance was not guaranteed and further integration of

efforts by natural gas market stakeholders was still needed.

“We (GAZPROM) believe that all of us who are interested

in developing the natural gas industry, namely the International

Gas Union, should be more active in shaping the world energy

development model,” Mr Miller added.

He referred to the Russian government’s initiative to adopt a

new international energy treaty, that would also effectively protect

the interests of those countries that produce and consume energy

resources and to prevent future transit crises.

The keynote speakers shared their views on the gas industryat the forum that brought together more than 3,500 participants

from over 83 countries. The forum was held from 5 – 9 October

2009.

13WG C

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14 OP I

OPERATIONAL Performance Improvement (OPI) enables the

upstream and downstream sectors to manage their operations

more efficiently as well as confront and resolve emerging issues,

which will have a bearing on how well people and assets perform

to meet expectations.

With this upfront planning, there is an opportunity to

minimise cost overruns, while keeping equipment operating atmaximum capacity.

OPI strongly promotes the prudent management of costs,

in line with the industry’s best practices in today’s challenging

environment.

Using OPI, industry players can look closely at the links in the

performance chain, such as procurement practice, systems and

processes, and discover means for maximising production and

maintaining overall integrity.

In practising OPI, people also play a crucial role in ensuring

sustainable OPI performance at the operational level. Proper

succession planning must be put in place to maintain teams of

practitioners who would carry on their responsibilities, to further

improve overall OPI capability.

With new issues and challenges, there will be solutions that

need to be adopted, which would defy the conventional way of

doing things. This is only possible with some mindset change.

PETRONAS’ own experience shows that OPI initiatives can

generate substantial value. For example, at the end of Financial

Year 2009, the average Overall Equipment Effectiveness (OEE) at

PETRONAS’ downstream sector is 93 per cent, representing an

increase of 11 per cent from Financial Year 2005.

In the upstream sector, the successes of OPI were reflected

in the average OEE performance of 94 per cent in Financial Year

2009, representing an increase of nine per cent from 2006.

“I believe our PSC partners will agree that the OPI tools and

methodology introduced under this effort have been useful in

improving operational efficiency, as well as opening up a new

front for our mutual cooperation towards achieving common

goals,” said Datuk Anuar Ahmad, PETRONAS' Vice President of

Human Resource Management Division, during an OPI forum

held recently in Kuala Lumpur.

In the Keynote Address, which he delivered on behalf ofPETRONAS President and Chief Executive Officer Tan Sri Mohd

Hassan Marican, Datuk Anuar said, OPI in the upstream sector

has progressed from the awareness phase to the sustainability

phase.

In one of the forum’s panel discussions, panellist En

Mohamad Anuar Taib, Vice President, Malaysia for Shell

Upstream International Asia said that an area PS Contractors

could collaborate well was in technology. Sharing Shell’s

experience with its Real Time Operation Centre used in its well

engineering and completion group, he said the collaborative

efforts between offshore and onshore staff utilising the system’s

technology in all stages of a well delivery process resulted in

response time reduction from 15 days to just one day.On the issue of cost, panellist Pn Wan Noor Aini M Noor,

Senior General Manager, Group Supply Chain Management

(GSCMD), PETRONAS, cited examples of GSCMD’s

collaboration with a number of partners to bring about cost

optimisation.

For instance, GSCMD collaborated with partners

and Original Equipment Manufacturers in standardising

requirements and renegotiating shared services, resulting in

substantial reduction of cost.

Cost optimisation is especially relevant in the current high

operating cost environment. OPI facilitates planning initiatives to

minimise cost overruns.

COLLABORATION

KEY TO ENHANCINGOPI INITIATIVES

The oil and gas industry is facing very challenging times, as highly volatile oil prices

and high operating costs have adversely impacted the industry. In order to address thissituation, the industry needs to increase efficiency collectively and one of the best ways

to do this is by collaborating on operational excellence.

focus

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Mr Hugh W Thompson, Chairman, ExxonMobil Exploration

& Production Malaysia Inc (ExxonMobil) said he believed that

the downstream sector had a lot to offer in terms of cost focus,

operational excellence, mindset change and safety performance,

which the upstream sector can leverage on.

PETRONAS organised the 4th OPI Forum themed “Enhancing

Collaboration in Achieving and Sustaining Operational Excellence”in Kuala Lumpur, from 8 - 10 November 2009. For the first time, the

annual forum’s participation was extended beyond the OPI fraternity

within PETRONAS to also include representatives from PETRONAS’

operating units and partners in the Production Sharing Contracts

(PSCs), namely ExxonMobil, Murphy Oil, Newfield, Nippon Oil,

Petrofac, Shell, Talisman and PETRONAS Carigali Sdn Bhd.

In accordance with the forum’s theme, the presentations and

discussions focused on the sharing of best practices, lessons learnt

and application of technologies, among others.

WHAT IS OPI?

In PETRONAS, Operating Performance Improvement

(OPI) provides a set of tools and methodologies that

emphasise on instilling operational discipline, with the

aim of improving operational excellence of PETRONAS’

producing assets. Through proper application of the

OPI methodology and tools, these assets will be able to

operate at maximum capacity, with minimal downtime.

OPI was initiated as part of a ‘change programme’

mooted in PETRONAS’ Corporate Strategic Study

(CSS) in 2002. Its implementation stage began in 2003,

when OPI was first rolled out to PETRONAS refineries

and petrochemical plants in the downstream sector.

The original intent of the OPI initiative was to seize

opportunities in the performance of the plants by

identifying gaps and undertaking appropriate initiatives to

address these gaps.

Subsequently in 2004, the OPI programme was

extended to PETRONAS’ upstream business where it was

first piloted by PETRONAS Carigali Sdn Bhd at the Bekok

fields and the Onshore Gas Terminal (OGT) in Kertih.

The OPI initiative has helped to identify opportunities

for operating improvement and the significant success

achieved has further encouraged PETRONAS to introduceit to other Production Sharing Contractors in mid 2006.

Today, PETRONAS continues to implement OPI at other

Operating Units in Malaysia and internationally. It is seen

as the catalyst for the inculcation of the performance

improvement culture across the PETRONAS Group, such

that all wholly-owned Operating Units in Malaysia as well

as three overseas have successfully embarked on the OPI

journey.

PETRONAS’ Group Technology Solutions (GTS)

of Research & Technology Division is driving the

implementation of OPI initiatives Group-wide, working

closely with Operating Units at both the upstream anddownstream sectors to close performance gaps.

15OP I

“OPI IN THE UPSTREAM SECTOR HAS

PROGRESSED FROM THE AWARENESS PHASETO THE SUSTAINABILITY PHASE.”

- DATUK ANUAR AHMAD

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16 PRIMAX 95

PETRONAS PRIMAX 95 (PRIMAX 95) MADE ITS DEBUT

IN THE MALAYSIAN MARKET MONTHS AHEAD OF THE

OFFICIAL LAUNCH OF RESEARCH OCTANE NUMBER (RON)

95 PETROL NATIONWIDE. SEVERAL MONTHS LATER, IT

HAS BECOME THE PREFERRED FUEL OF CHOICE FOR MANY.

by the honourable Prime Minister Dato' Sri Mohd Najib bin Tun Haji

Abdul Razak, themed "people first, performance now”.

In his speech, Datuk Seri Ismail commended PETRONAS for

introducing this new fuel almost four months ahead of schedule.

He mentioned that the support from the industry players is core to

making the government's aspiration a success.

RON 95 replaced RON 92 fuel beginning 1 September. From

2000-2008, RON 92 fuel was not widely utilised and comprised only

between five and 10 per cent of total petrol consumption in Malaysia.

What is more, switching to RON 95 fuel is friendlier to the

environment, as it is based on the Euro 2-M petrol standards, which

focuses on reducing harmful emissions. Under these standards, total

sulphur and benzene emissions do not exceed 500 parts per million

and five per cent respectively, among others.In support of the Malaysian government's aspiration, PETRONAS

had been the first to introduce its RON 95 fuel, PRIMAX 95. At the

same time, PRIMAX 95 has been produced to satisfy the Malaysian

ON 1 September 2009, PRIMAX 95 became available at PETRONAS’ retail

stations nationwide at the cost of RM1.80 per litre. Given its many attractive

attributes, especially its easy compatibility or suitability with most cars, it was

well received by motorists.

Initially, following the launch, some motorists were concerned that RON

95 fuel may not be compatible with their vehicles.

In anticipation of these concerns, PETRONAS raised awareness of RON

95 through advertisements and brochures. These highlighted the advantages

of switching to RON 95 fuel, its compatibility with different engines, as well

as the need to ascertain the recommended octane rating fuel for a vehicle,

among others.

When speaking at the launch ceremony of PRIMAX 95 in May 2009 at

PETRONAS retail station located at Precinct 9, Putrajaya, the honourable

Minister for Domestic Trade, Cooperative and Consumerism Datuk SeriIsmail Sabri Yaakob said that the introduction of RON 95 was in line with

the government's aspiration to provide consumers with quality petrol at a

reasonable price. It also complements the "1 Malaysia" concept introduced

PETRONASPRIMAX 95BETTER FUEL ECONOMYAND EFFICIENCY

focus

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17PRIMAX 95

feature

Choosing the best RONRON stands for Research Octane Number,

which is the measurement of the combustion

properties of a fuel. Fuel used by any vehicle

needs to meet the minimum RON requirement

to ensure optimum engine performance.

PETRONAS DYNAMIC DIESEL FOR LOWER EMISSIONS

PETRONAS introduced the PETRONAS Dynamic Diesel

(Dynamic Diesel) on 20 August 2009, the first diesel fuel in

Malaysia to meet the Euro 2-M diesel standards.

Dynamic Diesel is specially formulated with the SINAR D-07

additive that cleans and maintains the cleanliness of a diesel

engine, resulting in better fuel economy and lower exhaust

emission. The additive’s anti-foaming property effectively

prevents foam build-up during refueling and its ‘de-hazer’

component prevents the formation of fuel-water emulsion, giving

Dynamic Diesel better stability and appearance.

The development of the fuel involved extensive tests and

research. This included field tests using different types of diesel

powered vehicles.

The results obtained exceeded the standard of the World Wide

Fuel Charter's (WWFC) most stringent category of engine tests.

On 1 September 2009, this more environment friendly diesel

became available to motorists at PETRONAS retail stations

nationwide.

motorists' demand for better engine performance and

efficiency, which results in better fuel economy.

PRIMAX 95 has been formulated with advanced

additives for greater performance. A friction modifier

protects engine components, while a combustion

improver enhances overall engine efficiency.

To clean and prevent the build-up of deposits that

degrade engine performance, detergents are also added

to the fuel.

For motorists who need to use RON 97 fuel because

their vehicles have high-powered engines, PETRONAS

continues to make PRIMAX 3 available at selected

stations nationwide. For a listing of PETRONAS retail

stations that offer PRIMAX 3, visit www.mymesra.com.

my.

PETRONAS Dagangan Berhad (PDB), PETRONAS'

domestic retail arm, operates more than 900 retail

stations nationwide. Apart from offering quality fuel, it

also offers various facilities and products to its customersthrough its convenience store, Kedai Mesra.

In 2009, PDB was accorded the Readers' Digest

Trusted Gold Brand Award for the eighth consecutive

year for its retail operations in Malaysia.

INTERESTING RON 95 FACTS• The octane rating was developed by chemist Russell Marker at

the Ethyl Corporation, a fuel additive company headquartered

in Richmond, Virginia, around the mid 1920s.

• The octane number is determined by evaluating the knock

intensity of the fuel under standard conditions with the blends

of two reference fuels - iso-octane, which resists knocking and

heptane, which knocks readily.

• A good quality petrol is not necessarily one with a higher

RON value but one which suits the needs of the engine.

• RON 95 is widely used globally. It is sold in Australia, Europe,

Ireland and the United Kingdom, among others. In Europe, it

constitutes more than 84 per cent of petrol usage.

• RON 95 petrol is also used widely in major car manufacturing

countries like Japan and the United States.

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18 BIOREMEDIATION

– A NATURAL AND BIODIVERSITY-FRIENDLY WAY

TO TREAT PRODUCED WATER

bioremediationin the sudan

environment

IN THE VAST EXPANSE OF THE MUGLAD BASIN IN THE WESTERN UPPER NILE AREA

OF THE SUDAN, A HUMBLE NATIVE REED PITTED AGAINST THOUSANDS OF CUBIC

METRES OF 'PRODUCED WATER'* MAY BE LIKENED TO DAVID BATTLING GOLIATH. IT

IS ALL IN A DAY’S WORK FOR THE MODEST PHRAGMITES AUSTRALIS, THE COMMON

REED, AS THE MILLIONS OF MICROBES IN ITS ROOT SYSTEM SYSTEMATICALLYDEVOUR EFFLUENTS IN THE WATER, MAKING IT SAFE FOR AGRICULTURAL USE.

IN the Sudan, PETRONAS' first bioremediation project began

in 2003 through the joint operating company Greater Nile

Petroleum Operating Company (GNPOC) as a means to treat

produced water efficiently through a natural and biodiversity-

friendly process.

The bioremediation project covers a 600-hectare area

surrounding PETRONAS operations in the Heglig field within

the Muglad Basin in the Western Upper Nile area and treats

more than 361,000 barrels of produced water per day.

The treated water is subsequently used for irrigation,

creating a sanctuary for birds, reptiles, mammals and plants.

As such, the diversity and abundance of birds have been

observed to have risen significantly over the past six years, in

that over 100 species of birds have been recorded in the area.

The avian population is expected to rise further in concurrence

with the maturing of the sanctuary’s ecosystem.

There has been an observable increase in the sanctuary’s

reptilian population, with the most visible being the Nile

monitor lizard and the red-headed rock agama – they feed onthe increasing number of insects, birds and amphibians.

Similarly, the mammalian population in the Heglig field has

shown signs of increase, along with the greater diversity of mammals

being observed. They include the serval cat, Thomson’s gazelle and

banded mongoose.

Such developments have been so encouraging that GNPOC

aims to have all produced water from the Heglig field treated by

bioremediation. Seven other bioremediation projects are underway

to enable GNPOC to meet this target.

Similarly for the Thar Jath field of the Muglad Basin, PETRONAS'

second bioremediation project is being carried out through the

White Nile Petroleum Operating Company. Once in place, the reeds

are expected to take six months to grow, and from there, another

six months are needed for the bioremediation system to stabilise

through monitoring and adjustments.

Overall, the Thar Jath bioremediation system is expected to take

a year-and-a-half to fully establish itself. Once established, the Thar

Jath system would be able to treat an estimated 110,000 barrels of

produced water a day, which would be used in the region’s forest.

Bioremediation is part of PETRONAS’ initiatives to promotesustainability through efficient use of natural resources. For

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19BIOREMEDIATION

THE TREATED WATER IS

SUBSEQUENTLY USED FOR

IRRIGATION, CREATING A SANCTUARY

FOR BIRDS, REPTILES, MAMMALS

AND PLANTS.

*When oil is extracted from the ground in the form of an oil/water fluid

mix, it is treated to separate the oil from the water. After processing, the oil is

removed, leaving the water with dissolved hydrocarbons. This by-product iscalled 'produced water'.

PETRONAS, sustainability means carrying out business in a

socially responsible and holistic manner to ensure continued

growth and success for the benefit of both the present and future

generations.

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20 BIOREMEDIATION

AN ENVIRONMENTALLY

FRIENDLY TECHNOLOGY

Bioremediation is a well-established method for treating organic wastewater using a living system. It

is widely used in many countries, such as Australia,

New Zealand, the United Kingdom (UK) and the

United States.

PETRONAS partnered Oceans-Altakamul, a

UK-based bioremediation consultant, to set up the

Heglig system, the first in the Sudan and the largest

bioremediation project in the world. David Knapp,

Project Manager for Oceans-Altakamul says, “The

Heglig system is just enhancing a natural process,

which is why bioremediation using reed beds is

such an environmentally friendly technology, as noextensive infrastructure is required.”

The produced water first undergoes mechanical

treatment to remove impurities like oil, grease and

suspended solids. The effluent is then pumped

to a series of reed bed lagoons planted with the

commonly found local reed, phragmites australis.

As the effluent flows through the soil mass rooted

with the reeds, hydrocarbons and other chemicals

are devoured by indigenous microbes that live in the

soil, resulting in clean water.

The reeds also use some of the carbon and

nitrogen contained in the water to synthesise their

own cellular material. As the roots grow and extend themselves throughout the soil mass, the porosity of

the soil increases, allowing for better percolation of

the effluent.

The reeds also pump oxygen into the soil via its

root system. Microbes along the root mass then use

the oxygen to digest and break down the effluents.

The biggest challenge once the reeds are planted,

says Knapp, is to keep weed reeds at bay. Due to

their rapid growth rates, regular monitoring is carried

out to ensure that such reeds do not hinder the

growth of phragmites australis reeds.

This includes daily analysis of pH, conductivity, temperature and free oil content for a number

of monitoring points within the system. Effluent

samples are also routinely analysed for petroleum

hydrocarbon, nutrient, dissolved solids and heavy

metals.

So far, the established reed beds in Heglig’s

bioremediation system have proven to be effective.

The water monitoring results show the quality of

the discharge exceeds Sudan’s environmental

requirements.

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AS A RESPONSIBLE CORPORATE CITIZEN, PETRONAS CONTINUES

TO BE COMMITTED TO THE SUSTAINABLE DEVELOPMENT OF

PEOPLE IN PLACES WHERE WE OPERATE. AS HUMAN TALENT IS

AN IMPORTANT ELEMENT OF SUSTAINABILITY, THE CORE FOCUS

OF OUR CONTRIBUTION TO COMMUNITY DEVELOPMENT IS ON

EDUCATION AND CAPABILITY BUILDING. EVERY YEAR, WE SPONSOR

INTERNATIONAL STUDENTS TO PURSUE TERTIARY EDUCATION AT

UNIVERSITI TEKNOLOGI PETRONAS (UTP ) IN TRONOH, MALAYSIA. THE

SPONSORSHIPS HAVE RESULTED IN LIFE-CHANGING EXPERIENCES FOR

MANY, THE KIND THAT PAVES THE WAY FOR PROMISING CAREERS.

IN THIS EDITION OF NADA, WE FEATURE THE STORIES OF THREE

VIETNAMESE GRADUATES OF UTP.

Broadening of Horizons

WHAT can one see, standing on the shoulders of giants? This is a

question that has inspired Nguyen Huu Phuoc Nguyen to imagine a life

very different from the reality of his surroundings.

Growing up in the industrial province of Nghe An, Phuoc Nguyen

did not have access to the educational resources available in Hanoi, a

city 300 km away from his provincial hometown surrounded by hills

and mountains. Nonetheless, he never gave up on his ambition to

further his studies and broaden his horizons.

Through his perseverance and belief, he obtained PETRONAS

sponsorship to study Mechanical Engineering at UTP in 2002.

He is now pursuing his doctorate in the US, specialising in

nanotechnology, and living in a modern American city with countless

opportunities.

“I heard about the UTP sponsorship programme during my first

year at university in Hanoi. My ambition was to find sponsorshipto study abroad, because I knew that it was the best option for my

PETRONAS’ EDUCATIONSPONSORSHIPS

PAVING THE WAY FORPROMISING CAREERS

community

education and future,” he says.

However, Phuoc Nguyen was not fluent in English and did not have

as much knowledge as those from Hanoi or other cities. So, he studied

very hard to make up for those limitations, in order to be prepared for

any opportunities that came his way.

His effort was rewarded when he obtained a PETRONAS

sponsorship. He was part of the third batch of Vietnamese students

given a sponsorship to study at the university.

Phuoc Nguyen, who is the President of the Vietnamese UTP Alumni,

now credits his UTP experience with equipping him to deal with the

rigours of postgraduate education in the United States.

“My UTP experience has been very valuable to my personal

development and career success so far. Academically, I had been exposed

to a well-designed programme with an international flavour. I was able

to use international textbooks and modern facilities in an English-

speaking environment,” says the 26 year old.“There is not much difference between the University of Michigan at

21PETRONAS SPONSORSHIP

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Ann Arbor and UTP. Sometimes, I think that UTP has better facilities

than my current university, which is a highly respected school for

Mechanical Engineering,” he says with a smile.

Socially, the experience in UTP broadened his mind, as he was

exposed to different cultures. This helped Phuoc Nguyen adapt to new

environments and made his learning experience more meaningful.

“I've been inspired by the difficulties I experienced in my childhood,

and wish to help people as much as I can, while fully realising my

potential. In that regard, the UTP sponsorship really helped me to be

where I am now, as it has given me an opportunity to enrich myself

greatly, both academically and socially,” he says.

Achieving Balance

The opportunity to experience life in a different country motivated

Le Phuong Anh to strive hard in obtaining a PETRONAS sponsorshipto pursue her studies in Business Information Systems at UTP.

“I really enjoyed my time at UTP, and in Malaysia overall. I always

ensured there was a balance between studying and socialising," she says.

"I only had four years at UTP, so I didn't want to waste a second.

I joined almost all the cultural events organised by the International

Students Committee and also by the Vietnamese Association. All those

experiences are things I will never forget,” she adds.

Indeed, Phuong Anh did not neglect her studies and was on the

Dean’s List every semester. She also received the Silver Medal for Best

Final Year Project.

“I think if a student just concentrates on studying or entertainment

alone, it will not be good. Life should be balanced,” she says.

After graduating from UTP, the 24 year old worked with the United

Nations Development Programme (UNDP) before assuming her

present position at Reuters as a Market Data Analyst. She is also the

Secretary of the Vietnamese UTP Alumni and has been offered an

Erasmus Mundus sponsorship to further her studies this year.“UTP has given me a strong foundation, so that I can dream of

22 PETRONAS SPONSORSHIP

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23PETRONAS SPONSORSHIP

PETRONAS SPONSORSHIP PROGRAMME FOR

VIETNAMESE STUDENTS

The PETRONAS sponsorship programme for Vietnamese students began in 2000

with assistance and support from the Vietnam government through the Vietnam

Ministry of Education & Training (MOET). Vietnamese students are sponsored to

pursue studies at UTP for four to five years.

Candidates are shortlisted from various leading universities in Vietnam with

assistance from MOET. They are normally first or second year students.

Since the programme’s implementation, PETRONAS has sponsored 84

Vietnamese students and 48 have graduated.

After graduation, they either continue with postgraduate studies or begin

working life.

almost anything and make my dream come true. The sponsorship has really changed my life,”

she says emphatically.

“It’s not only about finances, but also about pride and reputation. I believe that anyone who

takes this opportunity to study at UTP and tries his or her best will achieve almost anything,”

she adds.

Pioneering SuccessNguyen My Anh Hoa left her comfort zone when she successfully became part of the

pioneer batch of sponsored Vietnamese students to pursue tertiary education at UTP in 2000.

She was a first year student at the University of Technology, Ho Chi Minh City, when the

sponsorship announcement was made. She applied for it and was successful, but she had some

misgivings.

“I was happy when I got the sponsorship offer because my efforts were finally rewarded,

but I was also nervous because no one I knew had been given this sponsorship before,” she

explained.

As a result, the idea of studying abroad and leaving her family and hometown for the first

time made Anh Hoa anxious.

Nevertheless, she made the decision to leave home and take up the sponsorship. Little did

she know of the profound change that would take place in her life because of it.“The sponsorship has changed my life indeed. It was a big turning point for me, as I went

from being timid to an open and intrepid person,” she says.

Challenging situations are usually opportunities for personal growth and Anh Hoa realised

that, once she decided to try new things, her life would be enriched in many ways. She decided

not to let her initial difficulties in conversing in English stop her from interacting with others

for instance.

“I was quite shy and sometimes did not have enough courage to speak up. However, at UTP,

students have to participate in group projects, assignments and presentations, as well as other

university activities, such as design exhibitions, cultural shows and student club activities.

Through participation in and contributions to these activities, I spurred myself on to be more

active and have been successful in articulating my thoughts,” she says.

She has also made many friends and says that she has learnt about other cultures throughthem.

After graduating with a degree in Chemical Engineering, Anh Hoa leapt at the opportunity

to work with PETRONAS.

“As with UTP, PETRONAS provides many opportunities to develop your skills and that’s

the reason I wanted to work with PETRONAS. I’m a Process Engineer with the Vietnam

Development Project department at PETRONAS Carigali Sdn Bhd. I love my job, as I have

been given many opportunities to develop myself,” she says.Nguyen My Anh Hoa

Phuoc Nguyen

Phuong Anh

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SINCE PETRONAS’ INCEPTION IN 1974 AS THE OWNER AND CUSTODIANOF MALAYSIA’S PETROLEUM RESOURCES, WE HAVE BEEN COMMITTED TOCONDUCTING OUR BUSINESS IN AN ETHICALLY, ENVIRONMENTALLY AND SOCIALLYRESPONSIBLE MANNER. OUR LATEST SUSTAINABILITY REPORT CAPTURES OURCONTINUING COMMITMENT TO SUSTAINABLE DEVELOPMENT.

PETRONAS' Sustainability Report 2009 features the Group’s

performance in the economic, environmental and social spheres.

The reporting framework for 2009 was based on the International

Petroleum Industry Environmental Conservation Association

(IPIECA) guideline, referencing the Global Reporting Initiative

Sustainability Reporting Guidelines (GRI-G3) where appropriate.

For PETRONAS, sustainability means carrying out business in a

socially responsible and holistic manner to ensure continued growth

and success for the benefit of both the present and future generations.

In pursuing this philosophy, we are guided by the PETRONAS

Guidelines for Business Conduct and our Corporate Sustainability

Framework which set out the principles and key elements to be

adhered to in order to ensure integrity and consistency in all our

business undertakings.

The PETRONAS Guidelines for Business Conduct addresses the

challenges of sustainable development as a core focus of our business

approach: It outlines the general principles that govern how

PETRONAS conducts its business, stipulating the requirements

to which all employees must adhere to business integrity; quality;

health; safety and environmental protection; human rights;

commitment to the community; employment practices and

compliance with the local law. It also provides for periodic review

and audit to ensure the continued relevance of and conformance

to the guidelines.

The PETRONAS Corporate Sustainability Framework

focuses on seven key result areas across the social, economic and

environmental dimensions in which our activities have a material

impact to facilitate Group-wide implementation, measurement

and reporting of our economic, environmental and social

performance.

The PETRONAS Sustainability Report 2009 is available at

www.petronas.com.

petronassustainability report 2009

24 PETRONAS SUSTAINABIL ITY REPORT

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25CORPORATE ROUNDUP

corporateroundup

DRAGON LNG OFFICIALLY OPENED

The official opening ceremony of Dragon LNG was held on

2 October 2009 at Dragon Terminal in Milford Haven, South

West Wales to commemorate the completed commissioning

phase as well as commencement of commercial operations

of the receiving and regasification terminal. This terminal

can supply up to five per cent of current UK demand with

the ability to transmit six billion cubic metres of natural gas

per annum to the UK’s National Transmission System.

The shareholders of Dragon LNG include BG Group

(50%), PETRONAS (30%) 4Gas (20%). PETRONAS’

involvement in Dragon LNG enables it to further enhance

its presence in the UK market by strengthening its position

as a gas supplier, creating more opportunities along the gas

value chain.The first commercial cargo by British Diamond arrived

at the terminal on 8 September 2009, carrying PETGAS’

nominated cargo.

Initially, three cargoes were delivered to the terminal

during the commissioning phase.

PETRONAS ISSUES GLOBAL

ISLAMIC AND CONVENTIONAL

BONDS

In August 2009, PETRONAS issued global Islamic and

conventional bonds, with the deal representing the Group’s

re-entry into the capital markets since 2002. The USD3

billion 5.250 per cent guaranteed notes, due on 12 August

2019, were issued by PETRONAS Capital Limited, while

the USD1.5 billion Shari’a-compliant Ijara Sukuk Trust

Certificates at an annual rate of 4.250 per cent, due on 12August 2014, were issued by PETRONAS Global Sukuk and

priced on 5 August 2009.

The deal, which was closed on 12 August 2009, was

significantly oversubscribed from the original benchmark

size guidance and has been fully placed to institutional and

accredited investors.

PETRONAS INTRODUCES TWO

B-DOUBLE TANKERS

On 5 October 2009, PETRONAS Dagangan Berhad (PDB)

included two units of B-Double tankers into its fleet of

product movers, adding to existing 650 road tankers used for

distribution system throughout Malaysia. PDB is the first in

Malaysia to have such high capacity tankers equipped with

technologically advanced features, such as an an electronic

braking system and roll stability support system.

Each of the tankers consists of a prime mover hauling two

trailers, with a total length of 18 metres. It has a gross train

weight of 61,000 kg and the ability to carry a maximum load

of 54,600 litres.

The PETRONAS B-Double tanker also offers easy

maneuverability and flexible structure. It is designed andmanufactured according to the stringent international UN/

ADR standards for road transportation of hazardous goods.

The European Agreement concerning the International

Carriage of Dangerous Goods by Road is commonly known

as ADR and formulated under the aegis of the United

Nations' Economic Commission for Europe.

The inclusion of these tankers also aims to support the

Ministry of Transport’s aspiration for higher Malaysian road

safety levels, as it reduces the number of smaller capacity

tankers plying between destinations.

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PRIME MINISTER PRESENTS MERDEKA

AWARD 2009 TO FOUR RECIPIENTS

On 19 October 2009, four outstanding Malaysians from

diverse backgrounds were presented with the Merdeka Award

2009 by the Prime Minister of Malaysia and Patron of the

Award, Dato’ Sri Mohd Najib bin Tun Abdul Razak, at the

Dewan Filharmonik PETRONAS in Kuala Lumpur.

The recipients honoured for their contributions to the

nation were: Tun Fatimah Hashim and Dato’ Lim Phaik

Gan as joint recipients for the Education and Community

category; Professor Dr Halimaton Hamdan of Universiti

Teknologi Malaysia (UTM) for the Health, Science &

Technology category; and Professor Dato’ Ir Dr Zaini Ujang,

Vice-Chancellor of UTM for the Outstanding Scholastic

Achievement category. The recipient of each category received

RM500,000 cash, a trophy, a work of ar t by renownedMalaysian artist Latiff Mohidin and a certificate from the

Patron.

The Merdeka Award was established in August 2007 by

PETRONAS, ExxonMobil and Shell as a combined effort by

the Malaysian oil and gas industry to recognise and reward

Malaysians and non-Malaysians who have made outstanding

and lasting contributions to the nation and people of

Malaysia.

The Award, launched in conjunction with Malaysia’s

Golden Jubilee in 2007, is so named not only in

commemoration of the country’s 50th Merdeka , but also, and

more importantly, to celebrate the true spirit of independence

that drives exceptional individuals or organisations to push

boundaries in their pursuit of excellence.

PETRONAS CARIGALI WINS MSOSH

GOLD MERIT AWARD

PETRONAS Carigali Sdn Bhd - Sabah Operations (PCSB-

SBO) won the Gold Merit Award at the Malaysian Society

for Occupational Safety and Health (MSOSH) Awards 2008

under the Petroleum, Gas, Petrochemicals and Allied Sectors

category. PCSB-SBO received the award in recognition of

its excellent practices at the Sabah Gas Terminal in Tuaran,

Sabah.

Deputy Minister of Human Resource who is alsoChairman of the National Council for Occupational Safety

and Health, Senator Datuk Maznah bt Mazlan, presented

the award to PCSB’s Senior General Manager of Operations

Division Mr Lau Nai Tuang and General Manager of Sabah

Operations Mr Chris Poheng Uji, at a ceremony held on 7

August 2009 in Kuala Lumpur.

26 CORPORATE ROUNDUP

PETRONAS AMMONIA SDN BHD

BAGS THE ROSPA BEST NEW ENTRY

AWARD 2009

PETRONAS Ammonia Sdn Bhd

(PASB) was among the winners of

Royal Society for the Prevention of

Accidents’ (RoSPA) OccupationalHealth and Safety Awards 2009. It

received the Best New Entry Award,

in addition to the RoSPA Gold

Award received in May, at a ceremony held at the Glasgow

Hilton Hotel in September 2009.

RoSPA awards involve an assessment of a broad

portfolio pertaining to the level of development and

performance in an organisation’s occupational health and

safety management system. Reportable accident rate and

enforcement experience are also taken into consideration.

These awards recognise the dedication and commitment

of PASB’s Management and staff in creating a safer work

environment while striving for a healthier work-life balance.

The award was organised by MSOSH to give due

recognition to organisations that are committed to

protecting the health and safety of personnel and others,

and ensuring a conducive working environment. The

participating organisations were subject to audits by

auditors from the Department of Occupational Safety and

Health, Social Security Organisation, National Institute of

Occupational Safety and Health, Federation of Malaysian

Manufacturers, Malaysian Department of Occupational

Safety and Health, and SIRIM Berhad, among others.

PCSB-SBO was also conferred the Gold Merit Award in

2005.

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PETRONAS LAUNCHES ENGLISH

LANGUAGE PROGRAMME 2009

In Vietnam, PETRONAS held the opening ceremony for

the PETRONAS English Language Programme 2009 on 14

August 2009. The objective of the programme is to enable

final year university students in Vietnam to have a better

command of English, making them more marketable in the

job market upon graduation.

Selected students would undergo a four-month course

in several language proficiency skills, such as writingcurriculum vitae, job applications and general business

correspondence, to help increase their chances in securing

employment. Many students who have attended the course

have secured good job opportunities both locally and

abroad, while some of them are pursuing their post-graduate

studies in Australia, US and other countries.

This is the fourth year that PETRONAS has sponsored

the English Language Programme for university students

in Vietnam. With the success of some 160 students from

the first batch in 2006, PETRONAS has extended the

programme in the year 2007, 2008 and 2009. So far, 1,060

students from 14 universities in Hanoi, Hai Phong and HoChi Minh City have benefited from the programme.

ALAM PRODUCES FIRST BATCH OF

FEMALE GRADUATES

Akademi Laut Malaysia (ALAM) held its Convocation

Ceremony on 24 October 2009, celebrating the graduation

of 302 of its cadets in Diploma in Nautical Studies and

Diploma in Marine Engineering, as well as the graduation

of the first batch of female cadets. While ALAM was

previously an all-male institution, the academy opened itsdoors in 2007 to young women to pursue careers as sea-

going professionals.

This inaugural graduation of female maritime cadets

from ALAM also signals the entry of Malaysian women into

the seafaring profession. As the premier training ground for

maritime professionals in the country, ALAM plays a role in

developing the nation’s human capital seriously.

It is in line with the academy’s aspiration in becoming a

world-class training institution of choice for both men and

women.

LECTURE BY ROYAL PROFESSOR

UNGKU AZIZ ON ‘REAL POVERTY’

Royal Professor Ungku Abdul Aziz B Ungku Abdul Hamid,

recipient of the Merdeka Award 2008 for the Education &

Community category, delivered a lecture on ‘Real Poverty’ at the

Chancellor Hall of Universiti Teknologi PETRONAS (UTP) on

14 October 2009. He spoke on the causes of poverty in the rural

areas and discussed issues in poverty eradication as well as rural

development.

In his lecture, Royal Professor Ungku Aziz argued that

the provision of nutritious food, good education, good

health care and an improved transportation system will

provide more opportunities for the rural poor and aid rural

development. He advocated the use of a card system to help

the poor to buy groceries or even petrol at selected shops. The

system could be supported by the government to provide up

to RM300 to RM500 each family every month.

The event was part of the Merdeka Award Lecture Series

which was launched early this year and is aimed at providing

an opportunity and platform for the public to hear and beinspired by the recipients of the Merdeka Award.

PETRONAS BRINGS MotoGP EXPERIENCE

TO THE PUBLIC

Fiat Yamaha Team’s

Valentino Rossi made a pit

stop at the PETRONAS

MotoGP Showcase in

KLCC on 21 October 2009

after achieving his eleventhpodium of the season at the

Australian Grand Prix held

at Phillip Island. He was

accompanied by Spaniard

Jorge Lorenzo, teammate and fellow title contender for the 2009 FIM

Road Racing World Championship or MotoGP honours.

The duo met and obliged fans in an autograph session

organised by PETRONAS, the Premium Partner to the Fiat

Yamaha Team.

Rossi and Lorenzo had earlier been presented with the

winning artwork from a group of underprivileged students from

Sekolah Kebangsaan Saujana Utama Sungai Buloh. The students were participants in an art contest together with the riders from

the PETRONAS Sprinta Yamaha Teams as part of an outreach

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