1 Corporate Statements

2 Company Profile

4 Corporate Information

5 Board Of Directors

6 Management Committee

8 PETRONAS Group Of Companies

10 Chairman’s Statement

16 The Year In Review

44 Five-Year Financial Highlights

46 The Year ’s Highlights

54 Malaysia’s Contract Areas And

Oil And Gas Fields

56 Financial Statements

Content s

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 DevelopAnd Add Value To This National Resource

Our Objective Is To Contribute To The WellBeing Of The People And The Nation

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

To Be A Leading Oil And Gas MultinationalOf Choice

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

LoyaltyLoyal To Nation And Corporation

ProfessionalismCommitted, Innovative And Proactive AndAlways Striving For Excellence

IntegrityHonest And Upright

CohesivenessUnited In Purpose And Fellowship

B R A N D V A L U E STrustedPassionateProgressiveEnriching

Statement sC O R P O R A T E

2 • P E T R O L I A M N A S I O N A L B E R H A D 3

ProfileC O M P A N Y

PETRONAS , the acronym for Petroliam

Nasional Berhad, is Malaysia’s national

p e t roleum corporation. Incorporated on

17 August 1974 under the Companies

Act, 1965, it is wholly-owned by the

Malaysian G o v e rnment. The Petro l e u m

Development Act, 1974 vests in

PETRONAS the entire ownership and

c o n t rol of the petroleum re s o u rces in

Malaysia.

RANKED among the Fortune Global 500

companies, PETRONAS is an integrated

i n t e rnational oil and gas company with

business interests in more than 30 countries.

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; LNG,

gas processing and transmission pipeline

network operations; petro c h e m i c a l

manufacturing and marketing; shipping and

property investment.

2 • P E T R O L I A M N A S I O N A L B E R H A D 3

ProfileC O M P A N Y

PETRONAS , the acronym for Petroliam

Nasional Berhad, is Malaysia’s national

p e t roleum corporation. Incorporated on

17 August 1974 under the Companies

Act, 1965, it is wholly-owned by the

Malaysian G o v e rnment. The Petro l e u m

Development Act, 1974 vests in

PETRONAS the entire ownership and

c o n t rol of the petroleum re s o u rces in

Malaysia.

RANKED among the Fortune Global 500

companies, PETRONAS is an integrated

i n t e rnational oil and gas company with

business interests in more than 30 countries.

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; LNG,

gas processing and transmission pipeline

network operations; petro c h e m i c a l

manufacturing and marketing; shipping and

property investment.

ChairmanTan Sri Dato’ Seri Azizan Zainul Abidin

MembersTan Sri Dato’ Mohd. Hassan Marican

Datuk Ishak Imam Abas

Dato’ Shamsul Azhar Abbas

Anuar Ahmad

Tan Sri Dato’ Dr. Samsudin Hitam

Dato’ Sri Iskandar Dzakurnain Badarudin

Dato’ Seri Dr. Zainul Ariff Haji Hussain

Tan Sri Dato’ Zaki Tun Azmi

Haji Mohd Zarif Mohd Zaman(Alternate to Dato’ Sri Iskandar Dzakurnain

Badarudin)

Haji Ithnin Haji Hassan(Alternate to Tan Sri Dato’ Dr. Samsudin

Hitam)

Company SecretaryMohammed Azhar Osman Khairuddin

Registered OfficeTower 1PETRONAS Twin TowersKuala Lumpur City Centre50088 Kuala LumpurMalaysia

Telephone : (03) 2331-5000 Telefax : (03) 2026-5050Website : www.petronas.com.my

Seated From Left:

Tan Sri Dato’ Seri Azizan Zainul Abidin, Tan Sri Dato’ Mohd.Hassan Marican

Standing From Left:

Anuar Ahmad,Dato’ Seri Dr. Zainul Ariff Haji Hussain,

Dato’ Sri Iskandar Dzakurnain Badarudin,Datuk Ishak Imam Abas,

Dato’ Shamsul Azhar Abbas, Tan Sri Dato’ Zaki Tun Azmi,

Haji Ithnin Haji Hassan, Mohammed Azhar Osman Khairuddin

4 • P E T R O L I A M N A S I O N A L B E R H A D 5

I n f o r m a t i o nC O R P O R A T E

D i r e c t o r sB O A R D O F

ChairmanTan Sri Dato’ Seri Azizan Zainul Abidin

MembersTan Sri Dato’ Mohd. Hassan Marican

Datuk Ishak Imam Abas

Dato’ Shamsul Azhar Abbas

Anuar Ahmad

Tan Sri Dato’ Dr. Samsudin Hitam

Dato’ Sri Iskandar Dzakurnain Badarudin

Dato’ Seri Dr. Zainul Ariff Haji Hussain

Tan Sri Dato’ Zaki Tun Azmi

Haji Mohd Zarif Mohd Zaman(Alternate to Dato’ Sri Iskandar Dzakurnain

Badarudin)

Haji Ithnin Haji Hassan(Alternate to Tan Sri Dato’ Dr. Samsudin

Hitam)

Company SecretaryMohammed Azhar Osman Khairuddin

Registered OfficeTower 1PETRONAS Twin TowersKuala Lumpur City Centre50088 Kuala LumpurMalaysia

Telephone : (03) 2331-5000 Telefax : (03) 2026-5050Website : www.petronas.com.my

Seated From Left:

Tan Sri Dato’ Seri Azizan Zainul Abidin, Tan Sri Dato’ Mohd.Hassan Marican

Standing From Left:

Anuar Ahmad,Dato’ Seri Dr. Zainul Ariff Haji Hussain,

Dato’ Sri Iskandar Dzakurnain Badarudin,Datuk Ishak Imam Abas,

Dato’ Shamsul Azhar Abbas, Tan Sri Dato’ Zaki Tun Azmi,

Haji Ithnin Haji Hassan, Mohammed Azhar Osman Khairuddin

4 • P E T R O L I A M N A S I O N A L B E R H A D 5

I n f o r m a t i o nC O R P O R A T E

D i r e c t o r sB O A R D O F

6 • P E T R O L I A M N A S I O N A L B E R H A D 7

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

Tan Sri Dato’ Mohd Hassan Marican Datuk Ishak Imam Abas

Abdul Rahim Hj Hashim Mariam Rahimah Haji Mukhtar

George Ratilal

Anuar Ahmad

Mohammed Azhar OsmanKhairuddin

Abdul Hamid Ibrahim

Nasarudin Md Idris

Ainon Marziah Wahi

Faridah Haris Hamid

Yeow Kian Chai

Mohamad Johari DasriAbdullah Karim

Dato’ Haji Mohd Ali Haji Yasin Dato’ Shamsul Azhar Abbas

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

Datuk Ishak Imam AbasSenior Vice President

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

Dato’ Shamsul Azhar AbbasVice President, Exploration & Production

Anuar AhmadVice President, Oil Business

Abdul Rahim Haji HashimVice President, Gas Business

Mariam Rahimah Haji MukhtarVice President, Education

Nasarudin Md IdrisVice President, Corporate Planning &Development Division

Yeow Kian ChaiVice President, Petrochemical Business

Ainon Marziah WahiVice President, Human Resource ManagementDivision

George RatilalVice President, Finance

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

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

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

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

Faridah Haris HamidSecretary

6 • P E T R O L I A M N A S I O N A L B E R H A D 7

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

Tan Sri Dato’ Mohd Hassan Marican Datuk Ishak Imam Abas

Abdul Rahim Hj Hashim Mariam Rahimah Haji Mukhtar

George Ratilal

Anuar Ahmad

Mohammed Azhar OsmanKhairuddin

Abdul Hamid Ibrahim

Nasarudin Md Idris

Ainon Marziah Wahi

Faridah Haris Hamid

Yeow Kian Chai

Mohamad Johari DasriAbdullah Karim

Dato’ Haji Mohd Ali Haji Yasin Dato’ Shamsul Azhar Abbas

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

Datuk Ishak Imam AbasSenior Vice President

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

Dato’ Shamsul Azhar AbbasVice President, Exploration & Production

Anuar AhmadVice President, Oil Business

Abdul Rahim Haji HashimVice President, Gas Business

Mariam Rahimah Haji MukhtarVice President, Education

Nasarudin Md IdrisVice President, Corporate Planning &Development Division

Yeow Kian ChaiVice President, Petrochemical Business

Ainon Marziah WahiVice President, Human Resource ManagementDivision

George RatilalVice President, Finance

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

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

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

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

Faridah Haris HamidSecretary

OTHER COMPANIESOTHER COMPANIESPARTLY-OWNED SUBSIDIARIESWHOLLY-OWNED SUBSIDIARIESWHOLLY-OWNED SUBSIDIARIES

Polyethylene Malaysia Sdn. Bhd. (40%)Carigali-PTTEPI Operating Co. Sdn. Bhd. (50%)

Tchad Oil Transportation S.A. (31%)Con Son Joint Operating Company (30%)

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%)

Labuan Reinsurance (L) Ltd. (10%)Thang Long LPG JV Company (49%)

Cameroon Oil Transportation S.A. (30.2%)

P.T. Asean Aceh Fertilizer (13%)

Shell MDS (Malaysia) Sdn. Bhd. (6.86%)

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

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

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

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

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

PS Terminal Sdn. Bhd. (50%)PS Pipeline Sdn. Bhd. (50%)

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

Malaysian NPK Fertilizer Sdn Bhd (20%)

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.

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

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 Services 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. (95%)

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 Myanmar Ltd.

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

Petrosains Sdn. Bhd.

PETRONAS Capital Limited

PC JDA LimitedPC Vietnam LimitedASEAN LNG Trading Co. LtdPETRONAS Marketing Sudan LtdMITCO Labuan Co. LimitedParsi International LtdPETRONAS Carigali Gas LtdPetronas Carigali (Jabung) Ltd

PETRONAS Assets Sdn. Bhd.

PETRONAS Energy Philippines Inc. (60%)

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

PETRONAS Carigali Rims Joint Operating Company Ltd (50%)Lub Dagangan Sdn Bhd (20%)

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

Malaysian Maritime Academy Sdn. Bhd (30%)

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 (11.45%)

Bintulu Port Holdings Berhad (22.79%)

Transportadora De Gas Mercosur (14.6%)

Duta Inc. (40%)

Kertih Terminals 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%)KLCC (Holdings) Berhad (98.5%)Putrajaya Holdings Sdn Bhd (64.4%)PETRONAS Donghai LPG Co. Ltd (94%)

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

PETRONAS Carigali Nile Ltd.Global Resources Ltd. (50%)Taninthayi Pipeline Co. LLC (30%)

Transasia Pipeline Company Pvt Ltd (35%)

Engen Limited (80%)Guangdong Yangjiang Hailing (SINOPEC-PETRONAS-NIC)Petro-Chemical Co. Ltd. (30%)

Gas Malaysia Sdn Bhd (20%)

Bataan Polyethylene Corporation (38.6%)

8 • P E T R O L I A M N A S I O N A L B E R H A D 9

Companiesat 31 March 2003

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

OTHER COMPANIESOTHER COMPANIESPARTLY-OWNED SUBSIDIARIESWHOLLY-OWNED SUBSIDIARIESWHOLLY-OWNED SUBSIDIARIES

Polyethylene Malaysia Sdn. Bhd. (40%)Carigali-PTTEPI Operating Co. Sdn. Bhd. (50%)

Tchad Oil Transportation S.A. (31%)Con Son Joint Operating Company (30%)

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%)

Labuan Reinsurance (L) Ltd. (10%)Thang Long LPG JV Company (49%)

Cameroon Oil Transportation S.A. (30.2%)

P.T. Asean Aceh Fertilizer (13%)

Shell MDS (Malaysia) Sdn. Bhd. (6.86%)

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

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

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

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

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

PS Terminal Sdn. Bhd. (50%)PS Pipeline Sdn. Bhd. (50%)

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

Malaysian NPK Fertilizer Sdn Bhd (20%)

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.

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

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 Services 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. (95%)

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 Myanmar Ltd.

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

Petrosains Sdn. Bhd.

PETRONAS Capital Limited

PC JDA LimitedPC Vietnam LimitedASEAN LNG Trading Co. LtdPETRONAS Marketing Sudan LtdMITCO Labuan Co. LimitedParsi International LtdPETRONAS Carigali Gas LtdPetronas Carigali (Jabung) Ltd

PETRONAS Assets Sdn. Bhd.

PETRONAS Energy Philippines Inc. (60%)

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

PETRONAS Carigali Rims Joint Operating Company Ltd (50%)Lub Dagangan Sdn Bhd (20%)

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

Malaysian Maritime Academy Sdn. Bhd (30%)

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 (11.45%)

Bintulu Port Holdings Berhad (22.79%)

Transportadora De Gas Mercosur (14.6%)

Duta Inc. (40%)

Kertih Terminals 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%)KLCC (Holdings) Berhad (98.5%)Putrajaya Holdings Sdn Bhd (64.4%)PETRONAS Donghai LPG Co. Ltd (94%)

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

PETRONAS Carigali Nile Ltd.Global Resources Ltd. (50%)Taninthayi Pipeline Co. LLC (30%)

Transasia Pipeline Company Pvt Ltd (35%)

Engen Limited (80%)Guangdong Yangjiang Hailing (SINOPEC-PETRONAS-NIC)Petro-Chemical Co. Ltd. (30%)

Gas Malaysia Sdn Bhd (20%)

Bataan Polyethylene Corporation (38.6%)

8 • P E T R O L I A M N A S I O N A L B E R H A D 9

Companiesat 31 March 2003

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

10 • P E T R O L I A M N A S I O N A L B E R H A D 11

Tan Sri Dato’ Seri Azizan Zainul AbidinChairman

The 2003 financial year which ended on 31 March 2003 was generally a worrying period of

political and economic uncertainties and a depressing business environment, but for

PETRONAS it was an exceptionally good year. The revenue chalked by the Group for the

year was a record, the highest so far in the 29 years of its existence. High average prices of

crude and of most of the petroleum products, combined with a higher sales volume boosted

the year's revenue to a record high of RM81.4 billion from RM67.2 billion the year before –

an increase of 21.2%. This figure does not reflect the total value of PETRONAS’ business

activities. It does not include the value of the sales between PETRONAS subsidiaries. If we

take into account the value of the products and services produced by the individual

subsidiaries within the PETRONAS group, the total would aggregate to RM147 billion.

StatementC H A I R M A N ’ S

10 • P E T R O L I A M N A S I O N A L B E R H A D 11

Tan Sri Dato’ Seri Azizan Zainul AbidinChairman

The 2003 financial year which ended on 31 March 2003 was generally a worrying period of

political and economic uncertainties and a depressing business environment, but for

PETRONAS it was an exceptionally good year. The revenue chalked by the Group for the

year was a record, the highest so far in the 29 years of its existence. High average prices of

crude and of most of the petroleum products, combined with a higher sales volume boosted

the year's revenue to a record high of RM81.4 billion from RM67.2 billion the year before –

an increase of 21.2%. This figure does not reflect the total value of PETRONAS’ business

activities. It does not include the value of the sales between PETRONAS subsidiaries. If we

take into account the value of the products and services produced by the individual

subsidiaries within the PETRONAS group, the total would aggregate to RM147 billion.

StatementC H A I R M A N ’ S

P rofit before tax for the Group totalled

RM26.9 billion compared to RM24.3 billion

in the previous year – an increase of 10.5%.

Return on net revenue was 32.9% – amongst

the highest in the industry. While price was

the main factor for the impre s s i v e

performance, the integrated character of the

corporation's business was an import a n t

element in ensuring the overall profitability

of the Corporation. It enabled the

Corporation to adopt a group-wide approach

that exploited its strength and minimised the

impact of any weakness.

In the year under re v i e w, PETRONAS

continued to make further progress in its

international business. As at the end of

March 2003, the number of countries where

PETRONAS had set up operations

increased to 34. In the 2003 financial year,

PETRONAS' international business

contributed RM61.3 billion to the Group

revenue, or 75.3%. Exports accounted for

almost 45% of this international business,

with a total of RM36.4 billion.

In the upstream sector, 17 new production

sharing contracts (PSCs) were signed,

i n c reasing the number of PETRONAS

exploration portfolios to 57 ventures in 25

countries. Nine of the 17 new PSCs are in

Africa. We feel gratified and encouraged by

this development. They reflect the

confidence shown by an increasing number

of countries all over the world in the

technical and management capabilities of

the Corporation, its financial strength and

the growing awareness of PETRONAS as a

serious player in the oil and gas industry.

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

C H A I R M A N ’ S S T A T E M E N T

Globalisation.....

the key to PETRONAS’

success

P rofit before tax for the Group totalled

RM26.9 billion compared to RM24.3 billion

in the previous year – an increase of 10.5%.

Return on net revenue was 32.9% – amongst

the highest in the industry. While price was

the main factor for the impre s s i v e

performance, the integrated character of the

corporation's business was an import a n t

element in ensuring the overall profitability

of the Corporation. It enabled the

Corporation to adopt a group-wide approach

that exploited its strength and minimised the

impact of any weakness.

In the year under re v i e w, PETRONAS

continued to make further progress in its

international business. As at the end of

March 2003, the number of countries where

PETRONAS had set up operations

increased to 34. In the 2003 financial year,

PETRONAS' international business

contributed RM61.3 billion to the Group

revenue, or 75.3%. Exports accounted for

almost 45% of this international business,

with a total of RM36.4 billion.

In the upstream sector, 17 new production

sharing contracts (PSCs) were signed,

i n c reasing the number of PETRONAS

exploration portfolios to 57 ventures in 25

countries. Nine of the 17 new PSCs are in

Africa. We feel gratified and encouraged by

this development. They reflect the

confidence shown by an increasing number

of countries all over the world in the

technical and management capabilities of

the Corporation, its financial strength and

the growing awareness of PETRONAS as a

serious player in the oil and gas industry.

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

C H A I R M A N ’ S S T A T E M E N T

Globalisation.....

the key to PETRONAS’

success

To strengthen its position in the ASEAN

region, PETRONAS decided to swap its

25% interest in Premier Oil Plc for

Premier's interest in producing fields in

Myanmar and Indonesia. The move will

position PETRONAS to increase its

presence in the ASEAN region in general,

and in the ASEAN gas market in particular.

It will also help PETRONAS in fulfilling its

role in the development of the ASEAN gas

grid. In this context, the award of four

blocks under a PSC offshore Myanmar to

PETRONAS by the Government of the

Union of Myanmar was most timely.

Last year, PETRONAS made further

progress in its upstream venture in Iran.

Phase 2 and 3 of the South Pars

Development are now completed and have

been brought on stream. This project,

undertaken in joint-venture with TOTAL

and Gazprom, is PETRONAS' single largest

investment in the Middle East.

For the 2003 financial year, the revenue

earned by PETRONAS from its

manufacturing activities amounted to

C H A I R M A N ’ S S T A T E M E N T

15

RM50.8 billion. From the national perspective, these manufacturing activities have provided stability to existing

petrochemical-based small and medium scale industries and have helped spawn some new ones.

Next year, PETRONAS will be celebrating its 30th Anniversary. The past 29 years have been both exciting and

rewarding. It has grown into a respected multinational entity. In the coming years, we will see the Corporation reaping

the fruits of the investment it has been making in the past decade. The challenge faced by PETRONAS in moving

forward on its expansion programme is to ensure that the decisions taken by it should strengthen further the foundation

that has been built in the last 29 years. The Group is committed to developing its capability and capacity to grow its

business and deliver products and services of the highest quality for the benefit of the people and the nation, its partners,

customers, employees and its shareholders and stakeholders.

I would like to take this opportunity to thank the Management and the staff for their contribution to the success of the

Corporation.

Tan Sri Dato’ Seri Azizan Zainul Abidin

Chairman

30 June 2003

To strengthen its position in the ASEAN

region, PETRONAS decided to swap its

25% interest in Premier Oil Plc for

Premier's interest in producing fields in

Myanmar and Indonesia. The move will

position PETRONAS to increase its

presence in the ASEAN region in general,

and in the ASEAN gas market in particular.

It will also help PETRONAS in fulfilling its

role in the development of the ASEAN gas

grid. In this context, the award of four

blocks under a PSC offshore Myanmar to

PETRONAS by the Government of the

Union of Myanmar was most timely.

Last year, PETRONAS made further

progress in its upstream venture in Iran.

Phase 2 and 3 of the South Pars

Development are now completed and have

been brought on stream. This project,

undertaken in joint-venture with TOTAL

and Gazprom, is PETRONAS' single largest

investment in the Middle East.

For the 2003 financial year, the revenue

earned by PETRONAS from its

manufacturing activities amounted to

C H A I R M A N ’ S S T A T E M E N T

15

RM50.8 billion. From the national perspective, these manufacturing activities have provided stability to existing

petrochemical-based small and medium scale industries and have helped spawn some new ones.

Next year, PETRONAS will be celebrating its 30th Anniversary. The past 29 years have been both exciting and

rewarding. It has grown into a respected multinational entity. In the coming years, we will see the Corporation reaping

the fruits of the investment it has been making in the past decade. The challenge faced by PETRONAS in moving

forward on its expansion programme is to ensure that the decisions taken by it should strengthen further the foundation

that has been built in the last 29 years. The Group is committed to developing its capability and capacity to grow its

business and deliver products and services of the highest quality for the benefit of the people and the nation, its partners,

customers, employees and its shareholders and stakeholders.

I would like to take this opportunity to thank the Management and the staff for their contribution to the success of the

Corporation.

Tan Sri Dato’ Seri Azizan Zainul Abidin

Chairman

30 June 2003

FINANCIAL PERFORMANCE

PETRONAS’ operations are generally

sensitive to three major factors, namely

global crude oil prices, sales volume and

exchange rates. World oil prices incre a s e d

significantly during the period under re v i e w,

p a rticularly towards the latter part of the

y e a r, as a result of supply shortages fro m

Venezuela and the Middle East crisis. The

weighted average Malaysian crude oil price

i n c reased by 23% from US$23.24 per barre l

in the last financial year to US$28.60 per

b a rrel while the weighted average price for

liquefied natural gas (LNG) increased fro m

US$4.28 to US$4.35 per million British

t h e rmal unit (mmBtu).

Sales of crude oil increased by 17 million

b a rrels to 181.5 million barrels from 164.5

million barrels in 2002. The increase in

volume coupled with the increase in cru d e

prices resulted in higher crude oil revenue of

RM19,182 million, an increase of 32% fro m

RM14,531 million in the previous year.

P e t roleum products remained the larg e s t

revenue earner for the Group. Despite tight

refining margins, revenue from petro l e u m

p roducts increased to RM28,075 million

c o m p a red to RM23,034 million in 2002.

LNG, the third largest revenue earner for the

G roup after petroleum products and cru d e

oil, re g i s t e red a marginal increase of 2.2% to

16 • P E T R O L I A M N A S I O N A L B E R H A D 17

It gives me great pleasure to present the review on the activities of the PETRONAS

Group for the financial year ended 31 March 2003.

During the 2003 financial year, PETRONAS operated in an uncertain and challenging

business environment, with continued geopolitical volatility and overall economic

fragility, combined with the invasion of Iraq and the outbreak of the Severe Acute

Respiratory Syndrome (SARS). Maintaining momentum in these uncertain times was a

challenge PETRONAS was faced with. Against this backdrop of a volatile and often

difficult trading and operating environment, PETRONAS continued to pursue its

integration, globalisation and value adding strategies to ensure its continuous success in

the future.

Review

Tan Sri Dato’ Mohd Hassan MaricanPresident and Chief Executive Officer

T H E Y E A R I N

FINANCIAL PERFORMANCE

PETRONAS’ operations are generally

sensitive to three major factors, namely

global crude oil prices, sales volume and

exchange rates. World oil prices incre a s e d

significantly during the period under re v i e w,

p a rticularly towards the latter part of the

y e a r, as a result of supply shortages fro m

Venezuela and the Middle East crisis. The

weighted average Malaysian crude oil price

i n c reased by 23% from US$23.24 per barre l

in the last financial year to US$28.60 per

b a rrel while the weighted average price for

liquefied natural gas (LNG) increased fro m

US$4.28 to US$4.35 per million British

t h e rmal unit (mmBtu).

Sales of crude oil increased by 17 million

b a rrels to 181.5 million barrels from 164.5

million barrels in 2002. The increase in

volume coupled with the increase in cru d e

prices resulted in higher crude oil revenue of

RM19,182 million, an increase of 32% fro m

RM14,531 million in the previous year.

P e t roleum products remained the larg e s t

revenue earner for the Group. Despite tight

refining margins, revenue from petro l e u m

p roducts increased to RM28,075 million

c o m p a red to RM23,034 million in 2002.

LNG, the third largest revenue earner for the

G roup after petroleum products and cru d e

oil, re g i s t e red a marginal increase of 2.2% to

16 • P E T R O L I A M N A S I O N A L B E R H A D 17

It gives me great pleasure to present the review on the activities of the PETRONAS

Group for the financial year ended 31 March 2003.

During the 2003 financial year, PETRONAS operated in an uncertain and challenging

business environment, with continued geopolitical volatility and overall economic

fragility, combined with the invasion of Iraq and the outbreak of the Severe Acute

Respiratory Syndrome (SARS). Maintaining momentum in these uncertain times was a

challenge PETRONAS was faced with. Against this backdrop of a volatile and often

difficult trading and operating environment, PETRONAS continued to pursue its

integration, globalisation and value adding strategies to ensure its continuous success in

the future.

Review

Tan Sri Dato’ Mohd Hassan MaricanPresident and Chief Executive Officer

T H E Y E A R I N

RM13,038 million. Petrochemical revenue re c o rded a 71.2% increase to RM5,822 million due to higher petro c h e m i c a l

prices and increased sales volume.

G roup revenue was a re c o rd RM81,434 million, an increase of 21.2% from RM67,181 million in the previous financial

y e a r. Group revenue from international business amounted to RM61,320 million or 75.3% of total revenue compared to

RM51,171 million or 76.2% in 2002. Profit before tax grew by 10.5% to RM26,872 million from RM24,318 million while

p rofit after tax increased by 3.7% to RM15,105 million from RM14,569 million in the previous year.

The Gro u p ’s balance sheet remained very strong, with an increased asset base of RM178,012 million compared to

RM144,216 million last year. Shareholders funds grew 20.9% from RM64,784 million to RM78,356 million.

During the year, PETRONAS concluded the largest ever Asian corporate deal, and raised approximately US$3.65 billion

in the international financial market. Consequently, Groupwide borrowings increased from RM40,372 million to

RM58,092 million. Cash and fund investment also increased from RM42,762 million to RM55,377 million.

19

RM13,038 million. Petrochemical revenue re c o rded a 71.2% increase to RM5,822 million due to higher petro c h e m i c a l

prices and increased sales volume.

G roup revenue was a re c o rd RM81,434 million, an increase of 21.2% from RM67,181 million in the previous financial

y e a r. Group revenue from international business amounted to RM61,320 million or 75.3% of total revenue compared to

RM51,171 million or 76.2% in 2002. Profit before tax grew by 10.5% to RM26,872 million from RM24,318 million while

p rofit after tax increased by 3.7% to RM15,105 million from RM14,569 million in the previous year.

The Gro u p ’s balance sheet remained very strong, with an increased asset base of RM178,012 million compared to

RM144,216 million last year. Shareholders funds grew 20.9% from RM64,784 million to RM78,356 million.

During the year, PETRONAS concluded the largest ever Asian corporate deal, and raised approximately US$3.65 billion

in the international financial market. Consequently, Groupwide borrowings increased from RM40,372 million to

RM58,092 million. Cash and fund investment also increased from RM42,762 million to RM55,377 million.

19

DOMESTIC EXPLORATION &

PRODUCTION

As at 1 January 2003, the nation’s crude oil

re s e rves including condensates stood at

4,544 million barrels, an increase of 7.2%

from 4,240 million barrels in 2002. Natural

gas re s e rves increased from 87.5 trillion

standard cubic feet (tscf) in 2002 to 89.0

tscf, about three times the size of crude oil

re s e rves. Based on the current rate of

production, the crude oil and natural gas

reserves are expected to have an average life

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

of 18 and 35 years respectively. The increase

in the reserves was due to the exploration

success during the year particularly in the

deepwater areas.

Seven production sharing contracts (PSCs)

were signed during the year, bringing the

number of PSCs in operation to a record 46.

Exploration activities included the

acquisition of 351,675 line km of seismic data

and the drilling of 32 exploration wells.

Seven new discoveries (Congkak, Kikeh,

Kebabangan, Kamunsu East Upthro w n

Canyon, Sumandak Tengah, Limbayong and

Melinau) were made, which added 416.8

million barrels of crude and 3.5 tscf of gas to

the nation’s oil and gas reserves.

Promoting exploration

and production

activities to augment

the country’s petroluem

reserves

21

UpstreamT H E Y E A R I N R E V I E W The discovery made at Kikeh was particularly significant as this was the first commercially viable deepwater oil discovery

and will serve to further encourage deepwater exploration efforts in Malaysia.

Malaysia’s production of crude oil and condensates was 256.5 million barrels compared to 245.7 million barrels in the

previous year. PETRONAS’ share of total crude oil and condensates production was marginally lower at 74.8% compared

to 75.1% last year due to higher cost oil recovery by the PSC contractors, in line with higher investments made. Natural

gas production was 2.10 tscf, up from 2.02 tscf in 2002.

Seven oil and gas fields came on stream during the year, namely Bintang, Lawang, Langat, Serudon, Baronia Barat,

M4 and Semarang Kechil, increasing the total number of domestic producing fields from 56 to 63. Of these, 48 are oil

fields and the remaining 15 gas fields. PETRONAS Carigali, the exploration and production arm of PETRONAS,

operates 30 fields.

DOMESTIC EXPLORATION &

PRODUCTION

As at 1 January 2003, the nation’s crude oil

re s e rves including condensates stood at

4,544 million barrels, an increase of 7.2%

from 4,240 million barrels in 2002. Natural

gas re s e rves increased from 87.5 trillion

standard cubic feet (tscf) in 2002 to 89.0

tscf, about three times the size of crude oil

re s e rves. Based on the current rate of

production, the crude oil and natural gas

reserves are expected to have an average life

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

of 18 and 35 years respectively. The increase

in the reserves was due to the exploration

success during the year particularly in the

deepwater areas.

Seven production sharing contracts (PSCs)

were signed during the year, bringing the

number of PSCs in operation to a record 46.

Exploration activities included the

acquisition of 351,675 line km of seismic data

and the drilling of 32 exploration wells.

Seven new discoveries (Congkak, Kikeh,

Kebabangan, Kamunsu East Upthro w n

Canyon, Sumandak Tengah, Limbayong and

Melinau) were made, which added 416.8

million barrels of crude and 3.5 tscf of gas to

the nation’s oil and gas reserves.

Promoting exploration

and production

activities to augment

the country’s petroluem

reserves

21

UpstreamT H E Y E A R I N R E V I E W The discovery made at Kikeh was particularly significant as this was the first commercially viable deepwater oil discovery

and will serve to further encourage deepwater exploration efforts in Malaysia.

Malaysia’s production of crude oil and condensates was 256.5 million barrels compared to 245.7 million barrels in the

previous year. PETRONAS’ share of total crude oil and condensates production was marginally lower at 74.8% compared

to 75.1% last year due to higher cost oil recovery by the PSC contractors, in line with higher investments made. Natural

gas production was 2.10 tscf, up from 2.02 tscf in 2002.

Seven oil and gas fields came on stream during the year, namely Bintang, Lawang, Langat, Serudon, Baronia Barat,

M4 and Semarang Kechil, increasing the total number of domestic producing fields from 56 to 63. Of these, 48 are oil

fields and the remaining 15 gas fields. PETRONAS Carigali, the exploration and production arm of PETRONAS,

operates 30 fields.

GLOBAL EXPLORATION AND PRODUCTION

The year under review saw considerable expansion in the Gro u p ’s international upstream business. Four new PSCs and

two reconnaissance contracts were signed while interest in 11 exploration and production blocks were acquired. This has

f u rther expanded PETRONAS’ international E&P activities to 57 international ventures in 25 countries in Asia, Middle

East and the Africa Region. Notable amongst the new PSCs were the award of one off s h o re block in Mozambique which

re p resented PETRONAS’ first venture into the East Africa region and that of two new blocks in re s o u rce rich Sudan, a

A number of development projects alre a d y

u n d e rway are expected to come on stream in

the near future. The Tapis-F oil pro j e c t ,

operated by ExxonMobil, is expected to

come on stream in the fourth quarter of

2003. The Bunga Kekwa, Bunga Raya and

Bunga Seroja fields being developed by

Talisman in Block PM3 under PETRONAS’

C o m m e rcial Arrangement with Vietnam are

also expected to come on stream with first

gas scheduled in September 2003. Other

development projects include B11, Jintan

and Helang fields in Sarawak which will

supply gas to PETRONAS’ MLNG plants,

including the new MLNG Tiga plant.

In our pursuit to sustain and enhance the

n a t i o n ’s re s e rves, 42 exploration wells and

150 development wells are planned for the

coming financial year including 10

deepwater exploration wells. In line with

i n c reased focus on deepwater exploration,

PETRONAS has embarked on a Deepwater

A c reage Demarcation initiative in addition

to stepping up seismic survey activities on

existing open blocks. Eff o rts are also being

made to increase oil re c o v e ry in existing

p roducing fields with the implementation of

the Dulang Water Alternating Gas (WA G )

p roject and the Microbial Enhanced Oil

R e c o v e ry (MEOR) project in Bokor.

Exploration efforts are

enhanced through continuous

development of

new technology

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

U P S T R E A M

GLOBAL EXPLORATION AND PRODUCTION

The year under review saw considerable expansion in the Gro u p ’s international upstream business. Four new PSCs and

two reconnaissance contracts were signed while interest in 11 exploration and production blocks were acquired. This has

f u rther expanded PETRONAS’ international E&P activities to 57 international ventures in 25 countries in Asia, Middle

East and the Africa Region. Notable amongst the new PSCs were the award of one off s h o re block in Mozambique which

re p resented PETRONAS’ first venture into the East Africa region and that of two new blocks in re s o u rce rich Sudan, a

A number of development projects alre a d y

u n d e rway are expected to come on stream in

the near future. The Tapis-F oil pro j e c t ,

operated by ExxonMobil, is expected to

come on stream in the fourth quarter of

2003. The Bunga Kekwa, Bunga Raya and

Bunga Seroja fields being developed by

Talisman in Block PM3 under PETRONAS’

C o m m e rcial Arrangement with Vietnam are

also expected to come on stream with first

gas scheduled in September 2003. Other

development projects include B11, Jintan

and Helang fields in Sarawak which will

supply gas to PETRONAS’ MLNG plants,

including the new MLNG Tiga plant.

In our pursuit to sustain and enhance the

n a t i o n ’s re s e rves, 42 exploration wells and

150 development wells are planned for the

coming financial year including 10

deepwater exploration wells. In line with

i n c reased focus on deepwater exploration,

PETRONAS has embarked on a Deepwater

A c reage Demarcation initiative in addition

to stepping up seismic survey activities on

existing open blocks. Eff o rts are also being

made to increase oil re c o v e ry in existing

p roducing fields with the implementation of

the Dulang Water Alternating Gas (WA G )

p roject and the Microbial Enhanced Oil

R e c o v e ry (MEOR) project in Bokor.

Exploration efforts are

enhanced through continuous

development of

new technology

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

U P S T R E A M

c o re region within PETRONAS’ global

exploration and production activities. The

acquisition of two producing blocks in

Indonesia marked PETRONAS’ first oil

p roduction in that country.

PETRONAS’ international re s e rves gre w

28.3% from 3.71 billion barrels of oil

equivalent (boe) last year to 4.76 billion boe,

accounting for 19.7% of the Gro u p ’s total

re s e rves compared to 16.5% in 2002,

underlining PETRONAS’ success in

exploration overseas.

Positive results are seen in

PETRONAS’ expanding global

upstream activities

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

I n t e rnational production during the year

averaged 240,900 boe per day, higher than

101,300 boe per day in the last financial year.

I n t e rnational production accounts for

a p p roximately 18.2% of PETRONAS’ total

p roduction with Sudan as the biggest

c o n t r i b u t o r. In Iran, first contractual gas was

achieved under Phase Two and Three of the

South Pars Development Project in June

2002. Elsewhere, significant headway is

being made in the Chad-Cameroon pro j e c t ,

a joint-venture with ExxonMobil and

C h e v ro n Texaco with first oil expected in

July 2003 and production expected to peak

at 225,000 in 2004.

In August 2002, PETRONAS received first

gas from Indonesia’s West Natuna Block B

under a gas import arrangement concluded

last year. The gas, transported to

PETRONAS Carigali’s Duyong facilities,

will serve to complement the Company’s

l o n g - t e rm gas supply to Peninsular Malaysia.

c o re region within PETRONAS’ global

exploration and production activities. The

acquisition of two producing blocks in

Indonesia marked PETRONAS’ first oil

p roduction in that country.

PETRONAS’ international re s e rves gre w

28.3% from 3.71 billion barrels of oil

equivalent (boe) last year to 4.76 billion boe,

accounting for 19.7% of the Gro u p ’s total

re s e rves compared to 16.5% in 2002,

underlining PETRONAS’ success in

exploration overseas.

Positive results are seen in

PETRONAS’ expanding global

upstream activities

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

I n t e rnational production during the year

averaged 240,900 boe per day, higher than

101,300 boe per day in the last financial year.

I n t e rnational production accounts for

a p p roximately 18.2% of PETRONAS’ total

p roduction with Sudan as the biggest

c o n t r i b u t o r. In Iran, first contractual gas was

achieved under Phase Two and Three of the

South Pars Development Project in June

2002. Elsewhere, significant headway is

being made in the Chad-Cameroon pro j e c t ,

a joint-venture with ExxonMobil and

C h e v ro n Texaco with first oil expected in

July 2003 and production expected to peak

at 225,000 in 2004.

In August 2002, PETRONAS received first

gas from Indonesia’s West Natuna Block B

under a gas import arrangement concluded

last year. The gas, transported to

PETRONAS Carigali’s Duyong facilities,

will serve to complement the Company’s

l o n g - t e rm gas supply to Peninsular Malaysia.

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

In the refining sector, PETRONAS’ total net

refining capacity remained at 340,500 barre l s

per day at refineries in Kertih and Melaka in

Malaysia and Durban in South Africa.

During the financial year, PETRONAS

completed the acquisition of Mobil Oil

Sudan Limited, subsequently re n a m e d

PETRONAS Marketing Sudan Limited. The

company owns a number of service stations

and petroleum depots in Sudan. The

d o w n s t ream acquisition will enhance

PETRONAS’ presence in Sudan where it has

a l ready established itself as a key player in the

u p s t ream sector and will also pro v i d e

PETRONAS with opportunities in the Nort h

African downstream market. PETRONAS,

via its subsidiary ENGEN, already has a

s t rong presence in the downstream market in

the Sub-Saharan region of the south.

OIL BUSINESS

Having established a market leadership in

the domestic petroleum products market last

y e a r, PETRONAS has successfully defended

and improved its position this year, re c o rd i n g

an increase in market share to 37% fro m

36%. PETRONAS has also expanded its

nationwide retail distribution network in

Malaysia by opening another 44 serv i c e

stations to bring the total number of stations

to 635. In South Africa, its subsidiary, Engen

re c o rded a market share of 26%, maintaining

its market leadership position.

Engen..... the gateway

into the sub-Sahara

market

DownstreamT H E Y E A R I N R E V I E W GAS BUSINESS

LNG was the third largest revenue earner for the group with a total of 15.2 million tonnes of LNG exported during the

y e a r. Of this, 72% was sold to Japan, 16% to Korea and 12% to Taiwan. Malaysia’s LNG exports are expected to rise

considerably in the future with the coming on stream of MLNG Ti g a ’s second train in September 2003. With MLNG Ti g a

in full operation, the total production capacity of the PETRONAS LNG complex at Bintulu will increase to 23 million

tonnes per annum, making it the world’s largest LNG plant in a single location.

PETRONAS is also expanding its LNG business intern a t i o n a l l y. The acquisition of a 35% share in Egypt LNG in June

2003 marks PETRONAS’ entry into the Atlantic Basin LNG market. The pro j e c t ’s first train with a capacity of

3.6 million tonnes per annum is currently being constructed with first production expected in 2005.

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

In the refining sector, PETRONAS’ total net

refining capacity remained at 340,500 barre l s

per day at refineries in Kertih and Melaka in

Malaysia and Durban in South Africa.

During the financial year, PETRONAS

completed the acquisition of Mobil Oil

Sudan Limited, subsequently re n a m e d

PETRONAS Marketing Sudan Limited. The

company owns a number of service stations

and petroleum depots in Sudan. The

d o w n s t ream acquisition will enhance

PETRONAS’ presence in Sudan where it has

a l ready established itself as a key player in the

u p s t ream sector and will also pro v i d e

PETRONAS with opportunities in the Nort h

African downstream market. PETRONAS,

via its subsidiary ENGEN, already has a

s t rong presence in the downstream market in

the Sub-Saharan region of the south.

OIL BUSINESS

Having established a market leadership in

the domestic petroleum products market last

y e a r, PETRONAS has successfully defended

and improved its position this year, re c o rd i n g

an increase in market share to 37% fro m

36%. PETRONAS has also expanded its

nationwide retail distribution network in

Malaysia by opening another 44 serv i c e

stations to bring the total number of stations

to 635. In South Africa, its subsidiary, Engen

re c o rded a market share of 26%, maintaining

its market leadership position.

Engen..... the gateway

into the sub-Sahara

market

DownstreamT H E Y E A R I N R E V I E W GAS BUSINESS

LNG was the third largest revenue earner for the group with a total of 15.2 million tonnes of LNG exported during the

y e a r. Of this, 72% was sold to Japan, 16% to Korea and 12% to Taiwan. Malaysia’s LNG exports are expected to rise

considerably in the future with the coming on stream of MLNG Ti g a ’s second train in September 2003. With MLNG Ti g a

in full operation, the total production capacity of the PETRONAS LNG complex at Bintulu will increase to 23 million

tonnes per annum, making it the world’s largest LNG plant in a single location.

PETRONAS is also expanding its LNG business intern a t i o n a l l y. The acquisition of a 35% share in Egypt LNG in June

2003 marks PETRONAS’ entry into the Atlantic Basin LNG market. The pro j e c t ’s first train with a capacity of

3.6 million tonnes per annum is currently being constructed with first production expected in 2005.

In Peninsular Malaysia, PETRONAS’

Peninsular Gas Utilisation system

t r a n s p o rted an average of 1,849 mmscf/d of

p rocessed gas compared to 1,731 mmscf/d in

the previous year. This is a result of higher

demand from the domestic power sector,

which accounted for 69% of the total sales

gas delivered while industrial, petro c h e m i c a l

and other users accounted for 24% and

e x p o rts to Singapore was 7%.

In November 2002, PETRONAS, through a

c o n s o rtium in which it has a 35% intere s t ,

p u rchased a 40% stake in PT Tr a n s p o rt a s i

Gas Indonesia (TGI). TGI currently owns

and operates the 536-km Grissik-Duri

transmission pipeline in Indonesia.

C o n s t ruction of the Grissik-Batam-

S i n g a p o re pipeline is expected to be

completed in third quarter of 2003. This is

PETRONAS’ first investment in the gas

t r a n s p o rtation business in Indonesia.

After two years of delay, development of the

Trans Thailand-Malaysia pipeline has

commenced. The pipeline will deliver the

Joint Development Area (JDA) gas to

Malaysia and completion is now expected

in 2005.

PETRONAS continues to play a leading ro l e

in the realisation of the Trans ASEAN Gas

Pipeline (TAGP). Significant milestones

achieved during the year included the

completion of the TAGP Conceptual Master

Plan and the signing of the ASEAN

Memorandum of Understanding by the

ASEAN Ministers of Energ y.

PETRONAS has acquired the

expertise and successfully

developed several world-

class gas development and

pipeline projects

D O W N S T R E A M

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

In Peninsular Malaysia, PETRONAS’

Peninsular Gas Utilisation system

t r a n s p o rted an average of 1,849 mmscf/d of

p rocessed gas compared to 1,731 mmscf/d in

the previous year. This is a result of higher

demand from the domestic power sector,

which accounted for 69% of the total sales

gas delivered while industrial, petro c h e m i c a l

and other users accounted for 24% and

e x p o rts to Singapore was 7%.

In November 2002, PETRONAS, through a

c o n s o rtium in which it has a 35% intere s t ,

p u rchased a 40% stake in PT Tr a n s p o rt a s i

Gas Indonesia (TGI). TGI currently owns

and operates the 536-km Grissik-Duri

transmission pipeline in Indonesia.

C o n s t ruction of the Grissik-Batam-

S i n g a p o re pipeline is expected to be

completed in third quarter of 2003. This is

PETRONAS’ first investment in the gas

t r a n s p o rtation business in Indonesia.

After two years of delay, development of the

Trans Thailand-Malaysia pipeline has

commenced. The pipeline will deliver the

Joint Development Area (JDA) gas to

Malaysia and completion is now expected

in 2005.

PETRONAS continues to play a leading ro l e

in the realisation of the Trans ASEAN Gas

Pipeline (TAGP). Significant milestones

achieved during the year included the

completion of the TAGP Conceptual Master

Plan and the signing of the ASEAN

Memorandum of Understanding by the

ASEAN Ministers of Energ y.

PETRONAS has acquired the

expertise and successfully

developed several world-

class gas development and

pipeline projects

D O W N S T R E A M

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

PETROCHEMICAL BUSINESS

It was a good year for PETRONAS’

p e t rochemical business. Despite diff i c u l t

business conditions in the petro c h e m i c a l

i n d u s t ry, the Group managed to capitalise on

p roduct price increases and supply short a g e s

in the market to re c o rd an increase in

revenue of 71.2% to RM5,822 million fro m

the previous year.

The PETRONAS Petroleum Industry

Complex (PPIC) also saw another addition

to its fold of integrated petrochemical plants

during the year when Petlin (Malaysia) S d n

D O W N S T R E A M

Development of the

PPIC..... a conduit to

nation building

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

PETROCHEMICAL BUSINESS

It was a good year for PETRONAS’

p e t rochemical business. Despite diff i c u l t

business conditions in the petro c h e m i c a l

i n d u s t ry, the Group managed to capitalise on

p roduct price increases and supply short a g e s

in the market to re c o rd an increase in

revenue of 71.2% to RM5,822 million fro m

the previous year.

The PETRONAS Petroleum Industry

Complex (PPIC) also saw another addition

to its fold of integrated petrochemical plants

during the year when Petlin (Malaysia) S d n

D O W N S T R E A M

Development of the

PPIC..... a conduit to

nation building

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

Bhd, a joint-venture with Sasol and DSM,

commenced operations in September 2002.

The plant produces 225,000 tonnes of linear

low density polyethylene per year and

utilises feedstock from another PETRONAS

j o i n t - v e n t u re plant within the complex.

In Vietnam, Phu My Plastics and Chemicals

Co Ltd commenced operations in October

2002. The 100,000-tonne PVC plant, a

j o i n t - v e n t u re with PETROVIETNAM and

Tramatsuco of Vietnam, sources its vinyl

chloride monomer (VCM) feedstock fro m

PETRONAS’ joint-venture plant in Kert i h .

LOGISTICS AND MARITIME

B U S I N E S S

The financial year under review was a

challenging year for the Gro u p ’s Maritime

and Logistics Business due to overc a p a c i t y

and unfavourable freight rates in the non-

LNG sectors.

During the year, Malaysia Intern a t i o n a l

Shipping Corporation Berhad (MISC),

PETRONAS’ shipping subsidiary, bro u g h t

into operation two of its six new ‘Puteri Satu’

class LNG vessels, increasing the number ofPETRONAS continues to

expand and strengthen its gas

value chain with downstream

activities both locally and

internationally

D O W N S T R E A M

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

Bhd, a joint-venture with Sasol and DSM,

commenced operations in September 2002.

The plant produces 225,000 tonnes of linear

low density polyethylene per year and

utilises feedstock from another PETRONAS

j o i n t - v e n t u re plant within the complex.

In Vietnam, Phu My Plastics and Chemicals

Co Ltd commenced operations in October

2002. The 100,000-tonne PVC plant, a

j o i n t - v e n t u re with PETROVIETNAM and

Tramatsuco of Vietnam, sources its vinyl

chloride monomer (VCM) feedstock fro m

PETRONAS’ joint-venture plant in Kert i h .

LOGISTICS AND MARITIME

B U S I N E S S

The financial year under review was a

challenging year for the Gro u p ’s Maritime

and Logistics Business due to overc a p a c i t y

and unfavourable freight rates in the non-

LNG sectors.

During the year, Malaysia Intern a t i o n a l

Shipping Corporation Berhad (MISC),

PETRONAS’ shipping subsidiary, bro u g h t

into operation two of its six new ‘Puteri Satu’

class LNG vessels, increasing the number ofPETRONAS continues to

expand and strengthen its gas

value chain with downstream

activities both locally and

internationally

D O W N S T R E A M

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

Today PETRONAS has

10 per cent of the world’s

LNG gross vessel capacity

at 1.6 million cubic metres

D O W N S T R E A M

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

LNG vessels from 13 to 15. With four

remaining vessels to be delivered and

another two on ord e r, MISC is set to

continue as the largest single owner and

operator of LNG vessels in the world.

In January 2003, MISC made its first carg o

d e l i v e ry for Gaz de France under its first

t h i rd party LNG time charter outside the

PETRONAS Gro u p .

MISC also took delivery of its first Ve ry

L a rge Crude Carrier (VLCC), ‘Bunga

Kasturi’, which is the largest Malaysian-

re g i s t e red vessel to-date in April 2002.

S h o rtly there a f t e r, MISC completed the

acquisition of American Eagle Tanker Inc., a

s u b s i d i a ry of Neptune Orient Line in June

2003. This acquisition was a significant

milestone as not only does it enhance

M I S C ’s crude oil fleet but it also opens the

Atlantic basin as a new market for the

shipping company.

Today PETRONAS has

10 per cent of the world’s

LNG gross vessel capacity

at 1.6 million cubic metres

D O W N S T R E A M

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

LNG vessels from 13 to 15. With four

remaining vessels to be delivered and

another two on ord e r, MISC is set to

continue as the largest single owner and

operator of LNG vessels in the world.

In January 2003, MISC made its first carg o

d e l i v e ry for Gaz de France under its first

t h i rd party LNG time charter outside the

PETRONAS Gro u p .

MISC also took delivery of its first Ve ry

L a rge Crude Carrier (VLCC), ‘Bunga

Kasturi’, which is the largest Malaysian-

re g i s t e red vessel to-date in April 2002.

S h o rtly there a f t e r, MISC completed the

acquisition of American Eagle Tanker Inc., a

s u b s i d i a ry of Neptune Orient Line in June

2003. This acquisition was a significant

milestone as not only does it enhance

M I S C ’s crude oil fleet but it also opens the

Atlantic basin as a new market for the

shipping company.

In March 2003, PETRONAS opened its own Motorsports Technical Centre and Motorsport Museum aimed at

developing, expanding and adding value to all technological expertise and experiences gained through its involvement

in various motorsports activities. The centre will also act as the local technology arm for Sauber PETRONAS

Engineering AG.

TECHNICAL SERVICES

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

continued to thrive both domestically and internationally.

During the year, OGP successfully secured the Fula project from the Ministry of Energy and Mines, Sudan after

establishing its capabilities in the Sudan Development, Sudan Phase 2 and Phase 3 projects for the Greater Nile

Petroleum Operating Company (GNPOC) and partners. OGP also won the award for the supply of project management

manpower for the Sumatra/Singapore Gas Pipeline for Transportasi Gas Indonesia.

In Malaysia, OGP was awarded the F23 workscoping project for Sarawak Shell on the back of its success in the E11

project.

PETRONAS is fully cognizant to the

advantages in remaining one step ahead in

the playing field. To this end, PETRONAS

continues to place strong emphasis on

technology development in creating and

adding value to its business.

RESEARCH AND DEVELOPMENT

The Gro u p ’s re s e a rch and development

(R&D) arm, PETRONAS Research and

Scientific Services Sdn Bhd (PRSS) has

positioned itself as a full-fledged business

driven R&D centre, meeting not only the

re s e a rch and technological needs of the

PETRONAS Group but other petroleum-

related companies, both domestic and

international. It has undertaken R&D projects

in Sudan, Algeria, Chad and Syria.

PETRONAS’ continuing involvement in

automotive engineering has proven to be a

catalyst in the development and acquisition

of advanced technology in Malaysia.

PETRONAS is currently developing its own

Formula One fuel for the Sauber PETRONAS

cars for use in the 2003 FIA Formula One

World Championship.

During the year, PETRONAS launched the

Foggy PETRONAS racing team for the World

Superbike Championship powered by the FP1

engine developed by PETRONAS. A road

version of the FP1 motorcycle has also been

developed and will be assembled by Motosikal

dan Enjin Nasional Sdn Bhd (MODENAS) to

give Malaysia its first superbike. A new high

performance synthetic motor oil, SYNTIUM

3000 5W-40 specially engineered to meet

stringent international standards, was also

launched during the year.

Acquiring technology and

experience through

motorsports

36 • P E T R O L I A M N A S I O N A L B E R H A D 37

Developmen tT E C H N O L O G Y

In March 2003, PETRONAS opened its own Motorsports Technical Centre and Motorsport Museum aimed at

developing, expanding and adding value to all technological expertise and experiences gained through its involvement

in various motorsports activities. The centre will also act as the local technology arm for Sauber PETRONAS

Engineering AG.

TECHNICAL SERVICES

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

continued to thrive both domestically and internationally.

During the year, OGP successfully secured the Fula project from the Ministry of Energy and Mines, Sudan after

establishing its capabilities in the Sudan Development, Sudan Phase 2 and Phase 3 projects for the Greater Nile

Petroleum Operating Company (GNPOC) and partners. OGP also won the award for the supply of project management

manpower for the Sumatra/Singapore Gas Pipeline for Transportasi Gas Indonesia.

In Malaysia, OGP was awarded the F23 workscoping project for Sarawak Shell on the back of its success in the E11

project.

PETRONAS is fully cognizant to the

advantages in remaining one step ahead in

the playing field. To this end, PETRONAS

continues to place strong emphasis on

technology development in creating and

adding value to its business.

RESEARCH AND DEVELOPMENT

The Gro u p ’s re s e a rch and development

(R&D) arm, PETRONAS Research and

Scientific Services Sdn Bhd (PRSS) has

positioned itself as a full-fledged business

driven R&D centre, meeting not only the

re s e a rch and technological needs of the

PETRONAS Group but other petroleum-

related companies, both domestic and

international. It has undertaken R&D projects

in Sudan, Algeria, Chad and Syria.

PETRONAS’ continuing involvement in

automotive engineering has proven to be a

catalyst in the development and acquisition

of advanced technology in Malaysia.

PETRONAS is currently developing its own

Formula One fuel for the Sauber PETRONAS

cars for use in the 2003 FIA Formula One

World Championship.

During the year, PETRONAS launched the

Foggy PETRONAS racing team for the World

Superbike Championship powered by the FP1

engine developed by PETRONAS. A road

version of the FP1 motorcycle has also been

developed and will be assembled by Motosikal

dan Enjin Nasional Sdn Bhd (MODENAS) to

give Malaysia its first superbike. A new high

performance synthetic motor oil, SYNTIUM

3000 5W-40 specially engineered to meet

stringent international standards, was also

launched during the year.

Acquiring technology and

experience through

motorsports

36 • P E T R O L I A M N A S I O N A L B E R H A D 37

Developmen tT E C H N O L O G Y

PETRONAS continues to promote the

i m p o rtance of health, safety and

environment in its operations through the

promotion of PETRONAS health, safety

and environment (HSE) management

system (HSEMS) as an integral element of

business management groupwide.

During the year, PETRONAS Carigali’s

Sarawak and Sabah regional operations

Eco-consciousness is an

integral part of PETRONAS,

which places importance on

harmonious and sustainable

growth

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

E n v i r o n m e n tH E A L T H , S A F E T Y A N D

were accredited with ISO14001, bringing the

total PETRONAS subsidiaries with

ISO14001 to five. The other subsidiaries

already accredited are the ASEAN Bintulu

F e rtilizer plant, PETRONAS’ refineries in

Melaka and Terengganu and PETRONAS

Sungei Udang Port in Melaka.

Several PETRONAS subsidiaries were also

recognised with the annual industry

excellence awards by the Malaysian Society

for Occupational Safety and Health during

the year. PETRONAS’ Gas Centralised

Utility Facilities was awarded a Grand Award

while a number of other subsidiaries and

operating units were presented with Gold

Awards.

PETRONAS is continuing its eff o rts to

p romote sustainable development. To this

end, PETRONAS is pleased to announce that

it has developed a corporate sustainability

framework to monitor, track and promote

initiatives in seven relevant and pivotal areas

identified by the Group. The seven areas are

shareholder value, energy demand, societal

needs, HSE, product stewardship, climate

change and biodiversity.

PETRONAS continues to promote the

i m p o rtance of health, safety and

environment in its operations through the

promotion of PETRONAS health, safety

and environment (HSE) management

system (HSEMS) as an integral element of

business management groupwide.

During the year, PETRONAS Carigali’s

Sarawak and Sabah regional operations

Eco-consciousness is an

integral part of PETRONAS,

which places importance on

harmonious and sustainable

growth

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

E n v i r o n m e n tH E A L T H , S A F E T Y A N D

were accredited with ISO14001, bringing the

total PETRONAS subsidiaries with

ISO14001 to five. The other subsidiaries

already accredited are the ASEAN Bintulu

F e rtilizer plant, PETRONAS’ refineries in

Melaka and Terengganu and PETRONAS

Sungei Udang Port in Melaka.

Several PETRONAS subsidiaries were also

recognised with the annual industry

excellence awards by the Malaysian Society

for Occupational Safety and Health during

the year. PETRONAS’ Gas Centralised

Utility Facilities was awarded a Grand Award

while a number of other subsidiaries and

operating units were presented with Gold

Awards.

PETRONAS is continuing its eff o rts to

p romote sustainable development. To this

end, PETRONAS is pleased to announce that

it has developed a corporate sustainability

framework to monitor, track and promote

initiatives in seven relevant and pivotal areas

identified by the Group. The seven areas are

shareholder value, energy demand, societal

needs, HSE, product stewardship, climate

change and biodiversity.

PETRONAS recognises that continued

success is very much contingent on the

quality and competency of its most valuable

assets, its human capital. PETRONAS

remains committed to the ongoing

development and enrichment of i t s

employees.

During the year, PETRONAS introduced

PETRONAS eCast as part of the

PETRONAS eLearning Project launched by

the Education Division. This holistic

learning programme offers live interactive

e d u c a t i o n - related webcast to employees

within the Group.

PETRONAS also seeks to contribute to

nation building through its investment in

education. PETRONAS’ educational

facilities offers various long-term education

and training programmes which serve not

only to meet and enhance the human

resource needs of the petroleum industry but

also that of the nation. Sponsorships are

offered to deserving students both locally

and abroad.Contributing to nation

building through

promotion of education

and intellectual

development

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

EducationH U M A N C A P I T A L A N D

PETRONAS recognises that continued

success is very much contingent on the

quality and competency of its most valuable

assets, its human capital. PETRONAS

remains committed to the ongoing

development and enrichment of i t s

employees.

During the year, PETRONAS introduced

PETRONAS eCast as part of the

PETRONAS eLearning Project launched by

the Education Division. This holistic

learning programme offers live interactive

e d u c a t i o n - related webcast to employees

within the Group.

PETRONAS also seeks to contribute to

nation building through its investment in

education. PETRONAS’ educational

facilities offers various long-term education

and training programmes which serve not

only to meet and enhance the human

resource needs of the petroleum industry but

also that of the nation. Sponsorships are

offered to deserving students both locally

and abroad.Contributing to nation

building through

promotion of education

and intellectual

development

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

EducationH U M A N C A P I T A L A N D

42 • P E T R O L I A M N A S I O N A L B E R H A D 43

ConclusionThe financial year ended 31 March 2003 was indeed one fraught with challenges. The events of the last two years have

proved to us that the only certain thing in the world today is uncertainty. The world is still adjusting to the after effects

of recent events in the Middle East while the outlook for the US economy, the engine of world growth, remains bleak.

These factors together with the increased pace of globalisation indicate a future typified by volatile conditions, fast-paced

changes and intensified competition.

In such an unpredictable environment, the key to continued survival is resilience. To this end, PETRONAS will

continue its strategy of capability and capacity building, while adding value to its operations, to effectively build its

resilience and adaptability in a changing business landscape. We believe that we already have a firm foundation

established, as testified by our strong performance this year, and our efforts will be geared towards strengthening this

foundation to ensure continued success and growth.

Finally, I would like to take this opportunity to thank all PETRONAS staff for their hard work and diligence, without

which our success would not have been possible. I would like to express my gratitude to the Government of Malaysia

and to the Governments of PETRONAS’ host countries for their continued support as well as the Chairman and the

Board of Directors for their support, counsel and guidance.

Tan Sri Dato’ Mohd Hassan Marican

President and Chief Executive Officer

30 June 2003

42 • P E T R O L I A M N A S I O N A L B E R H A D 43

ConclusionThe financial year ended 31 March 2003 was indeed one fraught with challenges. The events of the last two years

have proved to us that the only certain thing in the world today is uncertainty. The world is still adjusting to the

after effects of recent events in the Middle East while the outlook for the US economy, the engine of world growth,

remains bleak. These factors together with the increased pace of globalisation indicate a future typified by volatile

conditions, fast-paced changes and intensified competition.

In such an unpredictable environment, the key to continued survival is resilience. To this end, PETRONAS will

continue its strategy of capability and capacity building, while adding value to its operations, to effectively build its

resilience and adaptability in a changing business landscape. We believe that we already have a firm foundation

established, as testified by our strong performance this year, and our efforts will be geared towards strengthening this

foundation to ensure continued success and growth.

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

without which our success would not have been possible. I would like to express my gratitude to the Government of

Malaysia and to the Governments of PETRONAS’ host countries for their continued support as well as the

Chairman and the Board of Directors for their support, counsel and guidance.

Tan Sri Dato’ Mohd Hassan Marican

President and Chief Executive Officer

30 June 2003

44 • P E T R O L I A M N A S I O N A L B E R H A D 45

Highlightsat 31 March 2003

7,37

1

9,64

4

10,4

73

11,2

44

14,0

18

0

2,500

7,500

5,000

10,000

12,500

15,000

02 03010099

Net Profit

10,3

92

13,6

53

17,9

92

16,3

22

20,2

38

0

3,500

10,500

7,000

14,000

17,500

21,000

02 03010099

Profit Before Taxation

0

3,500

10,500

7,000

14,000

17,500

21,000

12,6

04

6,80

8

42,3

06

60,6

28 67,1

8173,3

51 81,4

34

19,6

20

28,3

62 31,9

63

36,9

65

37,9

88

14,5

6816,4

88

15,1

05

0

15,000

45,000

30,000

60,000

75,000

90,000

11,8

44

21,6

11 24,3

18

29,0

29

26,8

72

0

6,000

18,000

12,000

24,000

30,000

36,000

02 0301009902 03010099 02 03010099

0

7,500

22,500

15,000

30,000

37,500

45,000

02 03010099

GROUPAs at 31 March (Million RM)

COMPANYAs at 31 March (Million RM)

Net ProfitRevenue

Revenue

63,9

26 74,2

08 84,1

11

86,2

33

112,

009

0

20,000

60,000

40,000

80,000

100,000

120,000

02 03010099

Total Assets Employed

99,4

98

121,

571

139,

040

144,

216

178,

012

0

30,000

90,000

60,000

120,000

150,000

180,000

02 03010099

Total Assets EmployedProfit Before Taxation

36,8

71

40,2

59

53,9

34

64,7

84

78,3

56

0

13,500

40,500

27,000

54,000

67,500

81,000

02 03010099

28,7

21

32,0

60

46,7

35

39,6

14

56,7

00

0

10,000

30,000

20,000

40,000

50,000

60,000

02 03010099

Shareholder's Funds

Shareholder's Funds

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

44 • P E T R O L I A M N A S I O N A L B E R H A D 45

Highlightsat 31 March 2003

7,37

1

9,64

4

10,4

73

11,2

44

14,0

18

0

2,500

7,500

5,000

10,000

12,500

15,000

02 03010099

Net Profit

10,3

92

13,6

53

17,9

92

16,3

22

20,2

38

0

3,500

10,500

7,000

14,000

17,500

21,000

02 03010099

Profit Before Taxation

0

3,500

10,500

7,000

14,000

17,500

21,000

12,6

04

6,80

8

42,3

06

60,6

28 67,1

8173,3

51 81,4

34

19,6

20

28,3

62 31,9

63

36,9

65

37,9

88

14,5

6816,4

88

15,1

05

0

15,000

45,000

30,000

60,000

75,000

90,000

11,8

44

21,6

11 24,3

18

29,0

29

26,8

72

0

6,000

18,000

12,000

24,000

30,000

36,000

02 0301009902 03010099 02 03010099

0

7,500

22,500

15,000

30,000

37,500

45,000

02 03010099

GROUPAs at 31 March (Million RM)

COMPANYAs at 31 March (Million RM)

Net ProfitRevenue

Revenue

63,9

26 74,2

08 84,1

11

86,2

33

112,

009

0

20,000

60,000

40,000

80,000

100,000

120,000

02 03010099

Total Assets Employed

99,4

98

121,

571

139,

040

144,

216

178,

012

0

30,000

90,000

60,000

120,000

150,000

180,000

02 03010099

Total Assets EmployedProfit Before Taxation

36,8

71

40,2

59

53,9

34

64,7

84

78,3

56

0

13,500

40,500

27,000

54,000

67,500

81,000

02 03010099

28,7

21

32,0

60

46,7

35

39,6

14

56,7

00

0

10,000

30,000

20,000

40,000

50,000

60,000

02 03010099

Shareholder's Funds

Shareholder's Funds

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

46 • P E T R O L I A M N A S I O N A L B E R H A D 47

20029 April

Malaysia LNG Tiga Sdn. Bhd. signed a sale

and purchase agreement with Japan

Petroleum Exploration Co. Ltd. to supply up

to 480,000 tonnes of liquefied natural gas

per year for 20 years beginning from 2003.

17 April

PETRONAS Carigali Overseas Sdn. Bhd.,

e n t e red into two Reconnaissance Contracts

with the Office National de Recherches et

d’Explorations Pétro l i é res, the national oil

company of Morocco, for an off s h o re area in

the Missour Basin and Rebat Sale Haute

M e r. The signing of the contracts marked

another milestone for PETRONAS’

operations in Moro c c o .

21 April

Malaysia International Shipping

Corporation Berhad (MISC) secured a

contract with Gaz de France, a major

European gas utility company, for the charter

of its LNG tanker “Tenaga Satu”.

21 April

PETRONAS’ office in Bahrain was officially

opened by the Prime Minister of Malaysia,

Dato Seri Dr Mahathir bin Mohamad.

7 May

P E T R O N A S NGV Sdn. Bhd. signed a

three-year Memorandum of Understanding

with the Philippines National Oil Company

to introduce the natural gas-powere d

vehicles, the Enviro 2002, as well as jointly

promote the use of natural gas for vehicles

(NGV) in the country.

Highlight s

9 May

PETRONAS’ Petroleum Industry Complex (PPIC) in Kertih was officially opened by the Prime Minister of Malaysia,

Dato Seri Dr Mahathir bin Mohamad.

16 May

PETRONAS successfully raised US$2.7 billion from its latest global bond issue, the largest corporate bond issue ever

concluded by an Asian corporation in the international debt capital market. The issue was increased to US$3.7 billion

in November 2003.

22 May

MISC’s LNG tanker, Puteri Intan Satu, was officially named by Prime Minister, Dato Seri Dr Mahathir bin Mohamad

at the Mitsubishi Heavy Industries Ltd, Koyagi Shipyard in Nagasaki, Japan. Puteri Intan Satu is the first in the series of

six Puteri Satu class LNG tankers ordered by MISC as part of its fleet expansion programme. The acquisition of the

tankers will affirm MISC’s position as the world’s single largest owner and operator of LNG tankers.

2 1 A P R I L

7 M AY

9 M AYT H E Y E A R ’ S

46 • P E T R O L I A M N A S I O N A L B E R H A D 47

20029 April

Malaysia LNG Tiga Sdn. Bhd. signed a sale

and purchase agreement with Japan

Petroleum Exploration Co. Ltd. to supply up

to 480,000 tonnes of liquefied natural gas

per year for 20 years beginning from 2003.

17 April

PETRONAS Carigali Overseas Sdn. Bhd.,

e n t e red into two Reconnaissance Contracts

with the Office National de Recherches et

d’Explorations Pétro l i é res, the national oil

company of Morocco, for an off s h o re area in

the Missour Basin and Rebat Sale Haute

M e r. The signing of the contracts marked

another milestone for PETRONAS’

operations in Moro c c o .

21 April

Malaysia International Shipping

Corporation Berhad (MISC) secured a

contract with Gaz de France, a major

European gas utility company, for the charter

of its LNG tanker “Tenaga Satu”.

21 April

PETRONAS’ office in Bahrain was officially

opened by the Prime Minister of Malaysia,

Dato Seri Dr Mahathir bin Mohamad.

7 May

P E T R O N A S NGV Sdn. Bhd. signed a

three-year Memorandum of Understanding

with the Philippines National Oil Company

to introduce the natural gas-powere d

vehicles, the Enviro 2002, as well as jointly

promote the use of natural gas for vehicles

(NGV) in the country.

Highlight s

9 May

PETRONAS’ Petroleum Industry Complex (PPIC) in Kertih was officially opened by the Prime Minister of Malaysia,

Dato Seri Dr Mahathir bin Mohamad.

16 May

PETRONAS successfully raised US$2.7 billion from its latest global bond issue, the largest corporate bond issue ever

concluded by an Asian corporation in the international debt capital market. The issue was increased to US$3.7 billion

in November 2003.

22 May

MISC’s LNG tanker, Puteri Intan Satu, was officially named by Prime Minister, Dato Seri Dr Mahathir bin Mohamad

at the Mitsubishi Heavy Industries Ltd, Koyagi Shipyard in Nagasaki, Japan. Puteri Intan Satu is the first in the series of

six Puteri Satu class LNG tankers ordered by MISC as part of its fleet expansion programme. The acquisition of the

tankers will affirm MISC’s position as the world’s single largest owner and operator of LNG tankers.

2 1 A P R I L

7 M AY

9 M AYT H E Y E A R ’ S

16 September

PETRONAS International Corporation Limited (PICL) entered into an agreement with Premier Oil Plc to swap its

25% share in Premier for Premier’s interests in producing fields in Myanmar and Indonesia.

19 September

PETRONAS Carigali (Turkmenistan) Sdn Bhd discovered oil in the Turkmen sector of the Caspian Sea.

13 October

PETRONAS announced that it is developing its own Formula One fuel for the Sauber PETRONAS cars for use in the

2003 FIA Formula One World Championship.

1 November

PETRONAS Dagangan Bhd (PDB) unveiled an improved version of its PRIMAX motor petrol which has been

enhanced with a new formulation for superior performance.

5 June

PETRONAS, together with Empre s a

Nacional de Hidrocarbonetos de

Mocambique, the national oil company of

Mozambique, was awarded the exploration

and production contract for the offshore

Zambezi Delta Block by the government of

Mozambique.

14 June

PETRONAS Carigali Overseas Sdn. Bhd.

a c q u i red the entire share capital of Kerr-

McGee Indonesia Ltd. (KMI), marking

PETRONAS’ maiden entry into oil

p roduction in Indonesia.

23 July

PETRONAS awarded two Prod u c t i o n

Sharing Contracts for Blocks PM311 and

PM312 off s h o re Peninsular Malaysia to

Murphy Oil Corporation and PETRONAS

Carigali Sdn. Bhd.

30 July

PETRONAS made an oil discovery at the

open block of the Kebabangan field, offshore

deepwater Sabah.

6 August

PETRONAS Carigali Sdn. Bhd. and Murphy

Oil discovered oil at Block K (the Kikeh

field) off s h o re deepwater Sabah.

8 August

PETRONAS received the first delivery of

natural gas from West Natuna, Indonesia, to

the Duyong gas platform offshore Peninsular

Malaysia. This was the culmination of a sales

and purchase agreement signed on 28 March

2001 among PETRONAS, PERTAMINA

(Indonesia’s national oil company) and its

p roduction sharing contractor, Conoco.

Under the 20-year contract, natural gas is

delivered from the Hang Tuah platform to

Duyong gas platform in Malaysia.

48 • P E T R O L I A M N A S I O N A L B E R H A D 49

T H E Y E A R ’ S H I G H L I G H T S

1 9 S E P T E M B E R

1 N O V E M B E R

16 September

PETRONAS International Corporation Limited (PICL) entered into an agreement with Premier Oil Plc to swap its

25% share in Premier for Premier’s interests in producing fields in Myanmar and Indonesia.

19 September

PETRONAS Carigali (Turkmenistan) Sdn Bhd discovered oil in the Turkmen sector of the Caspian Sea.

13 October

PETRONAS announced that it is developing its own Formula One fuel for the Sauber PETRONAS cars for use in the

2003 FIA Formula One World Championship.

1 November

PETRONAS Dagangan Bhd (PDB) unveiled an improved version of its PRIMAX motor petrol which has been

enhanced with a new formulation for superior performance.

5 June

PETRONAS, together with Empre s a

Nacional de Hidrocarbonetos de

Mocambique, the national oil company of

Mozambique, was awarded the exploration

and production contract for the offshore

Zambezi Delta Block by the government of

Mozambique.

14 June

PETRONAS Carigali Overseas Sdn. Bhd.

a c q u i red the entire share capital of Kerr-

McGee Indonesia Ltd. (KMI), marking

PETRONAS’ maiden entry into oil

p roduction in Indonesia.

23 July

PETRONAS awarded two Prod u c t i o n

Sharing Contracts for Blocks PM311 and

PM312 off s h o re Peninsular Malaysia to

Murphy Oil Corporation and PETRONAS

Carigali Sdn. Bhd.

30 July

PETRONAS made an oil discovery at the

open block of the Kebabangan field, offshore

deepwater Sabah.

6 August

PETRONAS Carigali Sdn. Bhd. and Murphy

Oil discovered oil at Block K (the Kikeh

field) off s h o re deepwater Sabah.

8 August

PETRONAS received the first delivery of

natural gas from West Natuna, Indonesia, to

the Duyong gas platform offshore Peninsular

Malaysia. This was the culmination of a sales

and purchase agreement signed on 28 March

2001 among PETRONAS, PERTAMINA

(Indonesia’s national oil company) and its

p roduction sharing contractor, Conoco.

Under the 20-year contract, natural gas is

delivered from the Hang Tuah platform to

Duyong gas platform in Malaysia.

48 • P E T R O L I A M N A S I O N A L B E R H A D 49

T H E Y E A R ’ S H I G H L I G H T S

1 9 S E P T E M B E R

1 N O V E M B E R

11 November

The Puteri Delima Satu tanker was safely

d e l i v e red to Malaysia Intern a t i o n a l

Shipping Corporation Bhd (MISC). The

vessel is the second of six new Puteri class

liquefied natural gas (LNG) tankers ordered

by MISC as part of its fleet expansion

programme.

T H E Y E A R ’ S H I G H L I G H T S

50 • P E T R O L I A M N A S I O N A L B E R H A D 51

12 November

PETRONAS International Corporation

(PICL) announced the conclusion of the

p u rchase of a 40 per cent stake in PT

Tr a n s p o rtasi Gas Indonesia (TGI) by

Transasia Pipeline Company Pvt. Ltd.

( Transasia). TGI is a subsidiary of PT

Perusahaan Gas Negara (PGN), Indonesia’s

state-owned gas transmission company.

PICL has a 35 per cent interest in Transasia

while CONOCO Indonesia Holdings Ltd

has 35 per cent, SPC Indo-Pipeline Co. Ltd.

15 per cent and Talisman Transgasindo Ltd

the remaining 15 per cent.

29 November

PETRONAS Carigali Overseas Sdn. Bhd.,

acquired an interest in the onshore Munir

Block in Iran from Edison International and

Lundin (Munir) Ltd.

12 December

PETRONAS signed a Petroleum Contract

in Hanoi with PetroVietnam and Talisman

to jointly explore for and develop

h y d rocarbon re s o u rces in Block 46/02

offshore Vietnam. The signing will increase

the number of petroleum blocks that

PETRONAS is involved in Vietnam to five

blocks, namely Blocks 01 & 02 signed in

1991, Blocks 10 & 11-1 and Block 46-Cai

Nuoc signed in 2002.

20036 Januar y

Phu My Plastics & Chemicals Company Ltd. (PMPC), a joint-venture among PETRONAS, PETROVIETNAM and

TRAMATSUCO, was officially opened by the Chairman of Ba Ria-Vung Tau People’s Committee, His Excellency

Nguyen Tuan. This polyvinyl chloride (PVC) plant, located at the Ba Ria-Vung Tau Province, has a production capacity

of 100,000 metric tonnes per annum and exports 30 per cent of its output to the international market.

7 Januar y

PETRONAS and PETROVIETNAM signed a Petroleum Contract to jointly explore and develop hydrocarbon resources

in Blocks 01/97 and 02/97 offshore Vietnam.

16 Januar y

PETRONAS awarded two Production Sharing Contracts (PSCs) for deepwater Blocks L and M offshore Malaysia to

Murphy Oil Corporation and PETRONAS Carigali Sdn. Bhd. 1 1 N O V E M B E R

6 J A N U A R Y

11 November

The Puteri Delima Satu tanker was safely

d e l i v e red to Malaysia Intern a t i o n a l

Shipping Corporation Bhd (MISC). The

vessel is the second of six new Puteri class

liquefied natural gas (LNG) tankers ordered

by MISC as part of its fleet expansion

programme.

T H E Y E A R ’ S H I G H L I G H T S

50 • P E T R O L I A M N A S I O N A L B E R H A D 51

12 November

PETRONAS International Corporation

(PICL) announced the conclusion of the

p u rchase of a 40 per cent stake in PT

Tr a n s p o rtasi Gas Indonesia (TGI) by

Transasia Pipeline Company Pvt. Ltd.

( Transasia). TGI is a subsidiary of PT

Perusahaan Gas Negara (PGN), Indonesia’s

state-owned gas transmission company.

PICL has a 35 per cent interest in Transasia

while CONOCO Indonesia Holdings Ltd

has 35 per cent, SPC Indo-Pipeline Co. Ltd.

15 per cent and Talisman Transgasindo Ltd

the remaining 15 per cent.

29 November

PETRONAS Carigali Overseas Sdn. Bhd.,

acquired an interest in the onshore Munir

Block in Iran from Edison International and

Lundin (Munir) Ltd.

12 December

PETRONAS signed a Petroleum Contract

in Hanoi with PetroVietnam and Talisman

to jointly explore for and develop

h y d rocarbon re s o u rces in Block 46/02

offshore Vietnam. The signing will increase

the number of petroleum blocks that

PETRONAS is involved in Vietnam to five

blocks, namely Blocks 01 & 02 signed in

1991, Blocks 10 & 11-1 and Block 46-Cai

Nuoc signed in 2002.

20036 Januar y

Phu My Plastics & Chemicals Company Ltd. (PMPC), a joint-venture among PETRONAS, PETROVIETNAM and

TRAMATSUCO, was officially opened by the Chairman of Ba Ria-Vung Tau People’s Committee, His Excellency

Nguyen Tuan. This polyvinyl chloride (PVC) plant, located at the Ba Ria-Vung Tau Province, has a production capacity

of 100,000 metric tonnes per annum and exports 30 per cent of its output to the international market.

7 Januar y

PETRONAS and PETROVIETNAM signed a Petroleum Contract to jointly explore and develop hydrocarbon resources

in Blocks 01/97 and 02/97 offshore Vietnam.

16 Januar y

PETRONAS awarded two Production Sharing Contracts (PSCs) for deepwater Blocks L and M offshore Malaysia to

Murphy Oil Corporation and PETRONAS Carigali Sdn. Bhd. 1 1 N O V E M B E R

6 J A N U A R Y

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

13 March

PETRONAS International Corporation

Limited, a wholly-owned subsidiary of

PETRONAS, completed the acquisition of

Mobil Oil Sudan Limited from Mobil

International Petroleum Corporation. This

acquisition further paves the way for

PETRONAS to add value to its activities in

Sudan as well as to strengthen its position in

that country.

17 March

PETRONAS’ subsidiaries, Malaysia LNG

Sdn. Bhd. (MLNG) and MLNG Tiga Sdn.

Bhd. signed two separate Sale and Purchase

A g reements to supply liquefied natural

gas to The Tokyo Electric Power Company

Inc. and Tokyo Gas Company Ltd for

15 years.

25 Januar y

PETRONAS Dagangan Berhad o p e n e d

M a l a y s i a ’s first concept hyperstation in Kuala

L u m p u r. The all-i n-one retail outlet

incorporates facilities such as a superm a r k e t ,

convenience store, fast food outlet, post

o ffice, ATMs, photocopy machine and

courier counter, all within the vicinity of a

single service station.

11 Februar y

The development of the Kuala Lumpur

Convention Centre was officially launched

by Prime Minister Dato Seri Dr Mahathir

bin Mohamad. The state-of-the-art facility

is located within the Kuala Lumpur City

Centre. The facility is owned by Kuala

Lumpur Convention Centre Sdn. Bhd., a

subsidiary of PETRONAS.

19 March

PETRONAS launched its new premier synthetic motor oil, the SYNTIUM 300 5W-40, to be marketed by its retail and

marketing subsidiary, PETRONAS Dagangan Bhd. It is a fully synthetic multigrade engine oil specially engineered to

provide ultimate engine protection and performance for engines running under extreme and demanding driving

conditions.

20 March

PETRONAS opened its Motorsports Technical Centre and Motorsports Museum in its efforts to further develop, expand

and add value to all technological expertise and experiences gained through its involvement in various motorsports

activities.

26 March

First train of Malaysia LNG Tiga at the PETRONAS LNG Complex in Bintulu, Sarawak commenced commercial

production.

2 5 J A N U A R Y

1 1 F E B R U A R Y

1 7 M A R C H

2 0 M A R C HT H E Y E A R ’ S H I G H L I G H T S

53

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

13 March

PETRONAS International Corporation

Limited, a wholly-owned subsidiary of

PETRONAS, completed the acquisition of

Mobil Oil Sudan Limited from Mobil

International Petroleum Corporation. This

acquisition further paves the way for

PETRONAS to add value to its activities in

Sudan as well as to strengthen its position in

that country.

17 March

PETRONAS’ subsidiaries, Malaysia LNG

Sdn. Bhd. (MLNG) and MLNG Tiga Sdn.

Bhd. signed two separate Sale and Purchase

A g reements to supply liquefied natural

gas to The Tokyo Electric Power Company

Inc. and Tokyo Gas Company Ltd for

15 years.

25 Januar y

PETRONAS Dagangan Berhad o p e n e d

M a l a y s i a ’s first concept hyperstation in Kuala

L u m p u r. The all-i n-one retail outlet

incorporates facilities such as a superm a r k e t ,

convenience store, fast food outlet, post

o ffice, ATMs, photocopy machine and

courier counter, all within the vicinity of a

single service station.

11 Februar y

The development of the Kuala Lumpur

Convention Centre was officially launched

by Prime Minister Dato Seri Dr Mahathir

bin Mohamad. The state-of-the-art facility

is located within the Kuala Lumpur City

Centre. The facility is owned by Kuala

Lumpur Convention Centre Sdn. Bhd., a

subsidiary of PETRONAS.

19 March

PETRONAS launched its new premier synthetic motor oil, the SYNTIUM 300 5W-40, to be marketed by its retail and

marketing subsidiary, PETRONAS Dagangan Bhd. It is a fully synthetic multigrade engine oil specially engineered to

provide ultimate engine protection and performance for engines running under extreme and demanding driving

conditions.

20 March

PETRONAS opened its Motorsports Technical Centre and Motorsports Museum in its efforts to further develop, expand

and add value to all technological expertise and experiences gained through its involvement in various motorsports

activities.

26 March

First train of Malaysia LNG Tiga at the PETRONAS LNG Complex in Bintulu, Sarawak commenced commercial

production.

2 5 J A N U A R Y

1 1 F E B R U A R Y

1 7 M A R C H

2 0 M A R C HT H E Y E A R ’ S H I G H L I G H T S

53

54 • P E T R O L I A M N A S I O N A L B E R H A D 55

Contract areasM A L A Y S I A ’ S

A N D O I L A N D G A S F I E L D S

PETRONAS CARIGALI SDN. BHD.

SABAH SHELL PET. CO. LT D / S H E L LSABAH SELATA N / P C S B

EXXONMOBIL EXPLOR ATION & PRODUCTION MALAYSIA INC./PCSB

TALISMAN MALAYSIA LT D . /TALISMAN MALAYSIA (PM3) LT D . / P I D C / P C S B

CS MUTIARA PETROLEUM SDN. BHD.

SEPM (SHELL EXPLOR ATION & PRODUCTION M A L AYSIA B.V. ) / P C S B

TALISMAN MALAYSIA LT D . / P C S B

PETRONAS CARIGALI SDN. BHD.

MURPHY PENINSULAR MALAYSIA OIL CO. LT D . /P C S B

YPF (REPSOL) M A L AYSIA LT D . /MITSUBISHI COR P. / P C S B

PETRONAS CARIGALI SDN. BHD./P I D C / P E RTA M I N A

PETRONAS CARIGALI SDN. BHD./S A R AWAK SHELL BHD.

S A R AWAK SHELL BHD./PCSB

MURPHY SARAWAK OIL CO. LT D . / P C S B

PETRONAS CARIGALI SDN. BHD.

UNDER TECHNICAL EVA L U ATION AGREEMENTWITH SARAWAK SHELL BHD.

SABAH SHELL PET. CO. LTD./SHELL SABAH SELATA N /P C S B

AMERADA HESS (MALAYSIA - BLOCK SB 302) LT D . /K U F P E C / P C S B

PETRONAS CARIGALI SDN. BHD.

S A R AWAK SHELL BHD./DIAMOND GAS/PCSB

AMERADA HESS (MALAYSIA – BLOCK F) LT D . /T O TA L F I N A E L F / P C S B

SABAH SHELL PET. CO. LTD/SHELL SABAH SELATA N /C O N OCO SABAH LT D . / P C S B

MURPHY SABAH OIL CO. LT D . / P C S B

Domestic Operations IndicatorsPRODUCTION SHARING CONTRACT (PSC) AREAS

PRODUCING FIELDS

O I L G A S

PENINSULAR GAS UTILISAT I O NPIPELINE SYSTEM

Phase 1 Phase 3

Phase 2 PGU Loop I

PGU Loop II

Multi-product pipeline

54 • P E T R O L I A M N A S I O N A L B E R H A D 55

Contract areasM A L A Y S I A ’ S

A N D O I L A N D G A S F I E L D S

PETRONAS CARIGALI SDN. BHD.

SABAH SHELL PET. CO. LT D / S H E L LSABAH SELATA N / P C S B

EXXONMOBIL EXPLOR ATION & PRODUCTION MALAYSIA INC./PCSB

TALISMAN MALAYSIA LT D . /TALISMAN MALAYSIA (PM3) LT D . / P I D C / P C S B

CS MUTIARA PETROLEUM SDN. BHD.

SEPM (SHELL EXPLOR ATION & PRODUCTION M A L AYSIA B.V. ) / P C S B

TALISMAN MALAYSIA LT D . / P C S B

PETRONAS CARIGALI SDN. BHD.

MURPHY PENINSULAR MALAYSIA OIL CO. LT D . /P C S B

YPF (REPSOL) M A L AYSIA LT D . /MITSUBISHI COR P. / P C S B

PETRONAS CARIGALI SDN. BHD./P I D C / P E RTA M I N A

PETRONAS CARIGALI SDN. BHD./S A R AWAK SHELL BHD.

S A R AWAK SHELL BHD./PCSB

MURPHY SARAWAK OIL CO. LT D . / P C S B

PETRONAS CARIGALI SDN. BHD.

UNDER TECHNICAL EVA L U ATION AGREEMENTWITH SARAWAK SHELL BHD.

SABAH SHELL PET. CO. LTD./SHELL SABAH SELATA N /P C S B

AMERADA HESS (MALAYSIA - BLOCK SB 302) LT D . /K U F P E C / P C S B

PETRONAS CARIGALI SDN. BHD.

S A R AWAK SHELL BHD./DIAMOND GAS/PCSB

AMERADA HESS (MALAYSIA – BLOCK F) LT D . /T O TA L F I N A E L F / P C S B

SABAH SHELL PET. CO. LTD/SHELL SABAH SELATA N /C O N OCO SABAH LT D . / P C S B

MURPHY SABAH OIL CO. LT D . / P C S B

Domestic Operations IndicatorsPRODUCTION SHARING CONTRACT (PSC) AREAS

PRODUCING FIELDS

O I L G A S

PENINSULAR GAS UTILISAT I O NPIPELINE SYSTEM

Phase 1 Phase 3

Phase 2 PGU Loop I

PGU Loop II

Multi-product pipeline