Petronas Annual Report 2003 - Editorial

Content s
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
CORPORATE
Statement 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 Develop

And Add Value To This National Resource
Our Objective Is To Contribute To The Well

Being 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 Multinational

Of Choice
SHARED V ALUES
Loyalty
Loyal To Nation And Corporation
Professionalism
Committed, Innovative And Proactive And
Always Striving For Excellence
Integrity
Honest And Upright
Cohesiveness
United In Purpose And Fellowship
BRAND V ALUES
Trusted
Passionate
Progressive
Enriching
COMPANY
Profile
PETRONAS , the acronym for Petroliam RANKED among the Fortune Global 500
Nasional Berhad, is Malaysia’s national companies, PETRONAS is an integrated
petroleum corporation. Incorporated on international oil and gas company with
17 August 1974 under the Companies business interests in more than 30 countries.
Act, 1965, it is wholly-owned by the
Malaysian Government. The Petroleum THE GROUP is engaged in a wide range of
Development Act, 1974 vests in activities, including upstream exploration
PETRONAS the entire ownership and and production of oil and gas to downstream
c o n t rol of the petroleum re s o u rces in oil refining; marketing and distribution
Malaysia. 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
COMPANY
Profile
PETRONAS , the acronym for Petroliam RANKED among the Fortune Global 500
Nasional Berhad, is Malaysia’s national companies, PETRONAS is an integrated
petroleum corporation. Incorporated on international oil and gas company with
17 August 1974 under the Companies business interests in more than 30 countries.
Act, 1965, it is wholly-owned by the
Malaysian Government. The Petroleum THE GROUP is engaged in a wide range of
Development Act, 1974 vests in activities, including upstream exploration
PETRONAS the entire ownership and and production of oil and gas to downstream
c o n t rol of the petroleum re s o u rces in oil refining; marketing and distribution
Malaysia. 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.
C O R P O R ATE
Information
Chairman
Tan Sri Dato’ Seri Azizan Zainul Abidin
Members
Tan 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 Secretary
Mohammed Azhar Osman Khairuddin
BOAR D OF
Registered Office
Tower 1
PETRONAS Twin Towers
Kuala Lumpur City Centre
Directors Seated From Left:
Tan Sri Dato’ Seri Azizan Zainul Abidin, Tan Sri Dato’ Mohd.Hassan Marican
50088 Kuala Lumpur Standing From Left:
Malaysia Anuar Ahmad,Dato’ Seri Dr. Zainul Ariff Haji Hussain,
Dato’ Sri Iskandar Dzakurnain Badarudin,Datuk Ishak Imam Abas,
Telephone : (03) 2331-5000
Dato’ Shamsul Azhar Abbas, Tan Sri Dato’ Zaki Tun Azmi,
Telefax : (03) 2026-5050
Haji Ithnin Haji Hassan, Mohammed Azhar Osman Khairuddin
Website : www.petronas.com.my
C O R P O R ATE
Information
Chairman
Members
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 Secretary
Mohammed Azhar Osman Khairuddin
BOAR D OF
Registered Office
Tower 1
PETRONAS Twin Towers
Kuala Lumpur City Centre
Directors Seated From Left:
Tan Sri Dato’ Seri Azizan Zainul Abidin, Tan Sri Dato’ Mohd.Hassan Marican
50088 Kuala Lumpur Standing From Left:
Malaysia Anuar Ahmad,Dato’ Seri Dr. Zainul Ariff Haji Hussain,
Dato’ Sri Iskandar Dzakurnain Badarudin,Datuk Ishak Imam Abas,
Telephone : (03) 2331-5000
Dato’ Shamsul Azhar Abbas, Tan Sri Dato’ Zaki Tun Azmi,
Telefax : (03) 2026-5050
Haji Ithnin Haji Hassan, Mohammed Azhar Osman Khairuddin
Website : www.petronas.com.my
President & Chief Executive Officer

Senior Vice President
Dato’ Haji Mohd. Ali Haji Yasin

Vice President, Logistics & Maritime Business
MANAGEMENT
Committee Dato’ Shamsul Azhar Abbas

Vice President, Exploration & Production
Anuar Ahmad
Vice President, Oil Business
Abdul Rahim Haji Hashim

Vice President, Gas Business
Mariam Rahimah Haji Mukhtar Yeow Kian Chai Ainon Marziah Wahi George Ratilal Abdul Hamid Ibrahim
Vice President, Education
Nasarudin Md Idris
Vice President, Corporate Planning &
Development Division
Yeow Kian Chai

Vice President, Petrochemical Business
Abdullah Karim Mohamad Johari Dasri Mohammed Azhar Osman Faridah Haris Hamid
Khairuddin
Ainon Marziah Wahi Mohamad Johari Dasri

Vice President, Human Resource Management Managing Director/Chief Executive Officer,
Tan Sri Dato’ Mohd Hassan Marican Datuk Ishak Imam Abas Dato’ Haji Mohd Ali Haji Yasin Dato’ Shamsul Azhar Abbas
Division PETRONAS Carigali Sdn. Bhd.
George Ratilal Mohammed Azhar Osman Khairuddin

Vice President, Finance Senior General Manager,
Legal & Corporate Affairs Division
Abdul Hamid Ibrahim
Managing Director/Chief Executive Officer, Faridah Haris Hamid
PETRONAS Gas Bhd. Secretary
Abdullah Karim
Managing Director/Chief Executive Officer,
Malaysia LNG Sdn. Bhd.
Anuar Ahmad Abdul Rahim Hj Hashim Mariam Rahimah Haji Mukhtar Nasarudin Md Idris
President & Chief Executive Officer

Senior Vice President
Dato’ Haji Mohd. Ali Haji Yasin

Vice President, Logistics & Maritime Business
MANAGEMENT
Committee Dato’ Shamsul Azhar Abbas

Vice President, Exploration & Production
Anuar Ahmad
Vice President, Oil Business
Abdul Rahim Haji Hashim

Vice President, Gas Business
Mariam Rahimah Haji Mukhtar Yeow Kian Chai Ainon Marziah Wahi George Ratilal Abdul Hamid Ibrahim
Vice President, Education
Nasarudin Md Idris
Vice President, Corporate Planning &
Development Division
Yeow Kian Chai

Vice President, Petrochemical Business
Abdullah Karim Mohamad Johari Dasri Mohammed Azhar Osman Faridah Haris Hamid
Khairuddin
Ainon Marziah Wahi Mohamad Johari Dasri

Vice President, Human Resource Management Managing Director/Chief Executive Officer,
Tan Sri Dato’ Mohd Hassan Marican Datuk Ishak Imam Abas Dato’ Haji Mohd Ali Haji Yasin Dato’ Shamsul Azhar Abbas
Division PETRONAS Carigali Sdn. Bhd.
George Ratilal Mohammed Azhar Osman Khairuddin

Vice President, Finance Senior General Manager,
Legal & Corporate Affairs Division
Abdul Hamid Ibrahim
Managing Director/Chief Executive Officer, Faridah Haris Hamid
PETRONAS Gas Bhd. Secretary
Abdullah Karim
Managing Director/Chief Executive Officer,
Malaysia LNG Sdn. Bhd.
Anuar Ahmad Abdul Rahim Hj Hashim Mariam Rahimah Haji Mukhtar Nasarudin Md Idris
WHOLLY-OWNED SUBSIDIARIES PARTLY-OWNED SUBSIDIARIES OTHER COMPANIES
PETRONAS GROUP OF PETRONAS Carigali Sdn. Bhd. Asean Bintulu Fertilizer Sdn. Bhd. (63.5%) CS Mutiara Petroleum Company Sdn. Bhd. (50%)
Companies at 31 March 2003

PETRONAS Carigali (JDA) 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.
Malaysia LNG Sdn. Bhd. (95%)
Aromatics Malaysia Sdn. Bhd. (70%)
Ethylene Malaysia Sdn. Bhd. (72.5%)
Malaysia LNG Dua Sdn. Bhd. (60%)
Gas District Cooling (M) Sdn. Bhd. (95.83%)
Gas District Cooling (Putrajaya) Sdn. Bhd. (100%)
Carigali-Triton Operating Co. Sdn. Bhd. (50%)
Carigali-PTTEPI Operating Co. Sdn. Bhd. (50%)
Polyethylene Malaysia Sdn. Bhd. (40%)
Idemitsu SM (Malaysia) Sdn. Bhd. (30%)
Cameroon Oil Transportation S.A. (30.2%)
Tchad Oil Transportation S.A. (31%)
Gas District Cooling (UTP) Sdn. Bhd. (100%) Con Son Joint Operating Company (30%)
PETRONAS Carigali Overseas Sdn. Bhd.
Gas District Cooling (KLIA) Sdn. Bhd. (60%) Gas Malaysia Sdn Bhd (20%)
PETRONAS Hartabina Sdn. Bhd. P.T. Asean Aceh Fertilizer (13%)
PETRONAS Dagangan Bhd. (69.86%)
PETRONAS Assets Sdn. Bhd. Kuala Lumpur Aviation Fuelling System Sdn. Bhd. (65%) PETRONAS Carigali Rims Joint Operating Company Ltd (50%)
PETRONAS Penapisan (Terengganu) Sdn. Bhd. PETRONAS Gas Berhad (60.63%) Lub Dagangan Sdn Bhd (20%)
PETRONAS Penapisan (Melaka) Sdn. Bhd. OGP Technical Services Sdn. Bhd. (60%) PS Pipeline Sdn. Bhd. (50%)
PETRONAS Management Training Sdn. Bhd. Vinyl Chloride (Malaysia) Sdn. Bhd. (60%) PS Terminal Sdn. Bhd. (50%)
PETRONAS Methanol (Labuan) Sdn. Bhd. Malaysia LNG Tiga Sdn. Bhd. (60%) Shell MDS (Malaysia) Sdn. Bhd. (6.86%)
PETRONAS Gas Supply (Labuan) Sdn. Bhd. Malaysia International Shipping Corporation Berhad (62.44%) Optimal Glycols (Malaysia) Sdn. Bhd. (50%)
MTBE Malaysia Sdn. Bhd. Malaysian Refining Company Sdn Bhd. (53%) Optimal Chemicals (Malaysia) Sdn. Bhd. (50%)
Optimal Olefins (Malaysia) Sdn. Bhd. (64.25%) Bintulu Port Holdings Berhad (22.79%)
Polypropylene Malaysia Sdn. Bhd.
KLCC (Holdings) Berhad (98.5%) Midciti Resources Sdn. Bhd. (49.5%)
PETRONAS Maritime Services Sdn. Bhd.
Putrajaya Holdings Sdn Bhd (64.4%) Labuan Reinsurance (L) Ltd. (10%)
Sungai Udang Port Sdn. Bhd.
PETRONAS Donghai LPG Co. Ltd (94%) Thang Long LPG JV Company (49%)
Kertih Port Sdn. Bhd. Petrofibre Network (M) Sdn. Bhd. (40%)
Japan Malaysia LNG Co. Ltd. (70%)
PETRONAS Fertilizer (Kedah) Sdn. Bhd. (formerly known as Celcom PETRO NETWORK (M) SDN. BHD.)
PETRONAS Energy Philippines Inc. (60%)
Sanzbury Stead Sdn. Bhd. Sauber PETRONAS Engineering AG (40%)
Engen Limited (80%)
PETRONAS Trading Corporation Sdn. Bhd. Guangdong Yangjiang Hailing (SINOPEC-PETRONAS-NIC)
Malaysian International Trading Corporation Sdn. Bhd. Petro-Chemical Co. Ltd. (30%)
Malaysian International Trading Corporation (Japan) Sdn. Bhd. Trans Thai-Malaysia (Thailand) Ltd. (50%)
PETRONAS Argentina S.A. Trans Thai-Malaysia (Malaysia) Sdn Bhd. (50%)
PETRONAS Research & Scientific Services Sdn. Bhd. IndianOil Petronas Pvt. Ltd. (50%)
Kuantan Terminal Sdn. Bhd. Composites Technology Research Malaysia Sdn. Bhd. (10%)
PETRONAS Australia Pty. Ltd. Perusahaan Otomobil Nasional Berhad (11.45%)
East Australian Pipeline Marketing Pty. Ltd. Kertih Terminals Sdn. Bhd. (40%)
PETRONAS (Thailand) Co. Ltd. Phu My Plastics And Chemical Company Ltd. (50%)
PETRONAS Philippines Inc. Malaysian Maritime Academy Sdn. Bhd (30%)
PETRONAS Cambodia Co. Ltd. Malaysian NPK Fertilizer Sdn Bhd (20%)
Transportadora De Gas Mercosur (14.6%)
PETRONAS Cambodia Tankage Services Co. Ltd.
Gasinvest S.A. (18.3%)
PETRONAS Technical Services Sdn. Bhd.
Australian Pipeline Trust Ltd. (10%)
Institute of Technology PETRONAS Sdn. Bhd.
Duta Inc. (40%)
PETRONAS NGV Sdn. Bhd.
Bataan Polyethylene Corporation (38.6%)
Styrene Monomer (Malaysia) Sdn. Bhd. BP PETRONAS Acetyls Sdn. Bhd. (30%)
PETRONAS South Africa (Pty.) Ltd. BASF PETRONAS Chemicals Sdn. Bhd. (40%)
PETRONAS India (Holdings) Company Pte. Ltd. Advanced Engine Research Sdn. Bhd. (50%)
PETRONAS China Company Ltd. Petlin (Malaysia) Sdn. Bhd. (40%)
PETRONAS Ammonia Sdn. Bhd. Premier Oil PLC. (25%)
PETRONAS International Corporation Ltd. Transasia Pipeline Company Pvt Ltd (35%)
Greater Nile Petroleum Operating Company (30%)
SIRRI International Ltd.
Global Resources Ltd. (50%)
PETRONAS Carigali Nile Ltd.
Taninthayi Pipeline Co. LLC (30%)
PETRONAS Carigali Myanmar Inc.
PETRONAS Carigali Myanmar III Inc.
PC JDA Limited
PC Vietnam Limited
ASEAN LNG Trading Co. Ltd
PETRONAS Marketing Sudan Ltd
MITCO Labuan Co. Limited
Parsi International Ltd
PETRONAS Carigali Gas Ltd
Petronas Carigali (Jabung) Ltd
PETRONAS Marketing (Thailand) Co. Ltd.
Petrosains Sdn. Bhd.
PETRONAS Myanmar Ltd.
Myanmar PETRONAS Trading Co. Ltd.
Perecom Industries Sdn. Bhd.
PETRONAS Capital Limited
WHOLLY-OWNED SUBSIDIARIES PARTLY-OWNED SUBSIDIARIES OTHER COMPANIES
PETRONAS GROUP OF PETRONAS Carigali Sdn. Bhd. Asean Bintulu Fertilizer Sdn. Bhd. (63.5%) CS Mutiara Petroleum Company Sdn. Bhd. (50%)
Companies at 31 March 2003

PETRONAS Carigali (JDA) 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.
Malaysia LNG Sdn. Bhd. (95%)
Aromatics Malaysia Sdn. Bhd. (70%)
Ethylene Malaysia Sdn. Bhd. (72.5%)
Malaysia LNG Dua Sdn. Bhd. (60%)
Gas District Cooling (M) Sdn. Bhd. (95.83%)
Gas District Cooling (Putrajaya) Sdn. Bhd. (100%)
Carigali-Triton Operating Co. Sdn. Bhd. (50%)
Carigali-PTTEPI Operating Co. Sdn. Bhd. (50%)
Polyethylene Malaysia Sdn. Bhd. (40%)
Idemitsu SM (Malaysia) Sdn. Bhd. (30%)
Cameroon Oil Transportation S.A. (30.2%)
Tchad Oil Transportation S.A. (31%)
Gas District Cooling (UTP) Sdn. Bhd. (100%) Con Son Joint Operating Company (30%)
Gas District Cooling (KLIA) Sdn. Bhd. (60%) Gas Malaysia Sdn Bhd (20%)
PETRONAS Hartabina Sdn. Bhd. P.T. Asean Aceh Fertilizer (13%)
PETRONAS Dagangan Bhd. (69.86%)
PETRONAS Assets Sdn. Bhd. Kuala Lumpur Aviation Fuelling System Sdn. Bhd. (65%) PETRONAS Carigali Rims Joint Operating Company Ltd (50%)
PETRONAS Penapisan (Terengganu) Sdn. Bhd. PETRONAS Gas Berhad (60.63%) Lub Dagangan Sdn Bhd (20%)
PETRONAS Penapisan (Melaka) Sdn. Bhd. OGP Technical Services Sdn. Bhd. (60%) PS Pipeline Sdn. Bhd. (50%)
PETRONAS Management Training Sdn. Bhd. Vinyl Chloride (Malaysia) Sdn. Bhd. (60%) PS Terminal Sdn. Bhd. (50%)
PETRONAS Methanol (Labuan) Sdn. Bhd. Malaysia LNG Tiga Sdn. Bhd. (60%) Shell MDS (Malaysia) Sdn. Bhd. (6.86%)
PETRONAS Gas Supply (Labuan) Sdn. Bhd. Malaysia International Shipping Corporation Berhad (62.44%) Optimal Glycols (Malaysia) Sdn. Bhd. (50%)
MTBE Malaysia Sdn. Bhd. Malaysian Refining Company Sdn Bhd. (53%) Optimal Chemicals (Malaysia) Sdn. Bhd. (50%)
Optimal Olefins (Malaysia) Sdn. Bhd. (64.25%) Bintulu Port Holdings Berhad (22.79%)
Polypropylene Malaysia Sdn. Bhd.
KLCC (Holdings) Berhad (98.5%) Midciti Resources Sdn. Bhd. (49.5%)
PETRONAS Maritime Services Sdn. Bhd.
Putrajaya Holdings Sdn Bhd (64.4%) Labuan Reinsurance (L) Ltd. (10%)
Sungai Udang Port Sdn. Bhd.
PETRONAS Donghai LPG Co. Ltd (94%) Thang Long LPG JV Company (49%)
Kertih Port Sdn. Bhd. Petrofibre Network (M) Sdn. Bhd. (40%)
Japan Malaysia LNG Co. Ltd. (70%)
PETRONAS Fertilizer (Kedah) Sdn. Bhd. (formerly known as Celcom PETRO NETWORK (M) SDN. BHD.)
PETRONAS Energy Philippines Inc. (60%)
Sanzbury Stead Sdn. Bhd. Sauber PETRONAS Engineering AG (40%)
Engen Limited (80%)
PETRONAS Trading Corporation Sdn. Bhd. Guangdong Yangjiang Hailing (SINOPEC-PETRONAS-NIC)
Malaysian International Trading Corporation Sdn. Bhd. Petro-Chemical Co. Ltd. (30%)
Malaysian International Trading Corporation (Japan) Sdn. Bhd. Trans Thai-Malaysia (Thailand) Ltd. (50%)
PETRONAS Argentina S.A. Trans Thai-Malaysia (Malaysia) Sdn Bhd. (50%)
PETRONAS Research & Scientific Services Sdn. Bhd. IndianOil Petronas Pvt. Ltd. (50%)
Kuantan Terminal Sdn. Bhd. Composites Technology Research Malaysia Sdn. Bhd. (10%)
PETRONAS Australia Pty. Ltd. Perusahaan Otomobil Nasional Berhad (11.45%)
East Australian Pipeline Marketing Pty. Ltd. Kertih Terminals Sdn. Bhd. (40%)
PETRONAS (Thailand) Co. Ltd. Phu My Plastics And Chemical Company Ltd. (50%)
PETRONAS Philippines Inc. Malaysian Maritime Academy Sdn. Bhd (30%)
PETRONAS Cambodia Co. Ltd. Malaysian NPK Fertilizer Sdn Bhd (20%)
Transportadora De Gas Mercosur (14.6%)
PETRONAS Cambodia Tankage Services Co. Ltd.
Gasinvest S.A. (18.3%)
PETRONAS Technical Services Sdn. Bhd.
Australian Pipeline Trust Ltd. (10%)
Institute of Technology PETRONAS Sdn. Bhd.
Duta Inc. (40%)
PETRONAS NGV Sdn. Bhd.
Bataan Polyethylene Corporation (38.6%)
Styrene Monomer (Malaysia) Sdn. Bhd. BP PETRONAS Acetyls Sdn. Bhd. (30%)
PETRONAS South Africa (Pty.) Ltd. BASF PETRONAS Chemicals Sdn. Bhd. (40%)
PETRONAS India (Holdings) Company Pte. Ltd. Advanced Engine Research Sdn. Bhd. (50%)
PETRONAS China Company Ltd. Petlin (Malaysia) Sdn. Bhd. (40%)
PETRONAS Ammonia Sdn. Bhd. Premier Oil PLC. (25%)
PETRONAS International Corporation Ltd. Transasia Pipeline Company Pvt Ltd (35%)
Greater Nile Petroleum Operating Company (30%)
SIRRI International Ltd.
Global Resources Ltd. (50%)
PETRONAS Carigali Nile Ltd.
Taninthayi Pipeline Co. LLC (30%)
PETRONAS Carigali Myanmar Inc.
PETRONAS Carigali Myanmar III Inc.
PC JDA Limited
PC Vietnam Limited
ASEAN LNG Trading Co. Ltd
PETRONAS Marketing Sudan Ltd
MITCO Labuan Co. Limited
Parsi International Ltd
PETRONAS Carigali Gas Ltd
Petronas Carigali (Jabung) Ltd
PETRONAS Marketing (Thailand) Co. Ltd.
Petrosains Sdn. Bhd.
PETRONAS Myanmar Ltd.
Myanmar PETRONAS Trading Co. Ltd.
Perecom Industries Sdn. Bhd.
PETRONAS Capital Limited
CHAIRMAN’S
Statement
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.

Chairman
CHAIRMAN’S
Statement
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.

Chairman
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

CHA IRM AN’S S TAT E M E N T
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,
increasing 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

Profit before tax for the Group totalled the Corporation, its financial strength and
Globalisation.....
RM26.9 billion compared to RM24.3 billion the growing awareness of PETRONAS as a
the key to PETRONAS’
in the previous year – an increase of 10.5%. serious player in the oil and gas industry.
success
Return on net revenue was 32.9% – amongst
the highest in the industry. While price was
the main factor for the impressive
performance, the integrated character of the
corporation's business was an important
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 review, PETRONAS
continued to make further progress in its
12 • P E T R O L I A M N A S I O N A L B E R H A D
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

CHA IRM AN’S S TAT E M E N T
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,
increasing 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

Profit before tax for the Group totalled the Corporation, its financial strength and
Globalisation.....
RM26.9 billion compared to RM24.3 billion the growing awareness of PETRONAS as a
the key to PETRONAS’
in the previous year – an increase of 10.5%. serious player in the oil and gas industry.
success
Return on net revenue was 32.9% – amongst
the highest in the industry. While price was
the main factor for the impressive
performance, the integrated character of the
corporation's business was an important
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 review, PETRONAS
continued to make further progress in its
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
CHAIRMAN’S S TAT E M E N T presence in the ASEAN region in general, RM50.8 billion. From the national perspective, these manufacturing activities have provided stability to existing
and in the ASEAN gas market in particular. petrochemical-based small and medium scale industries and have helped spawn some new ones.
It will also help PETRONAS in fulfilling its
role in the development of the ASEAN gas Next year, PETRONAS will be celebrating its 30th Anniversary. The past 29 years have been both exciting and
grid. In this context, the award of four rewarding. It has grown into a respected multinational entity. In the coming years, we will see the Corporation reaping
blocks under a PSC offshore Myanmar to the fruits of the investment it has been making in the past decade. The challenge faced by PETRONAS in moving
PETRONAS by the Government of the forward on its expansion programme is to ensure that the decisions taken by it should strengthen further the foundation
Union of Myanmar was most timely. 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,
Last year, PETRONAS made further customers, employees and its shareholders and stakeholders.
progress in its upstream venture in Iran.
Phase 2 and 3 of the South Pars I would like to take this opportunity to thank the Management and the staff for their contribution to the success of the
Development are now completed and have Corporation.
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
Chairman
earned by PETRONAS from its
manufacturing activities amounted to 30 June 2003
15
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
CHAIRMAN’S S TAT E M E N T presence in the ASEAN region in general, RM50.8 billion. From the national perspective, these manufacturing activities have provided stability to existing
and in the ASEAN gas market in particular. petrochemical-based small and medium scale industries and have helped spawn some new ones.
It will also help PETRONAS in fulfilling its
role in the development of the ASEAN gas Next year, PETRONAS will be celebrating its 30th Anniversary. The past 29 years have been both exciting and
grid. In this context, the award of four rewarding. It has grown into a respected multinational entity. In the coming years, we will see the Corporation reaping
blocks under a PSC offshore Myanmar to the fruits of the investment it has been making in the past decade. The challenge faced by PETRONAS in moving
PETRONAS by the Government of the forward on its expansion programme is to ensure that the decisions taken by it should strengthen further the foundation
Union of Myanmar was most timely. 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,
Last year, PETRONAS made further customers, employees and its shareholders and stakeholders.
progress in its upstream venture in Iran.
Phase 2 and 3 of the South Pars I would like to take this opportunity to thank the Management and the staff for their contribution to the success of the
Development are now completed and have Corporation.
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
Chairman
earned by PETRONAS from its
manufacturing activities amounted to 30 June 2003
15
FINANCIAL PERFORMANCE
PETRONAS’ operations are generally
sensitive to three major factors, namely
global crude oil prices, sales volume and
THE Y EA R IN exchange rates. World oil prices increased
Review significantly during the period under review,
particularly towards the latter part of the
year, as a result of supply shortages from
Venezuela and the Middle East crisis. The
weighted average Malaysian crude oil price
increased by 23% from US$23.24 per barrel
in the last financial year to US$28.60 per
barrel while the weighted average price for
liquefied natural gas (LNG) increased from
US$4.28 to US$4.35 per million British
thermal unit (mmBtu).
Sales of crude oil increased by 17 million
barrels to 181.5 million barrels from 164.5

It gives me great pleasure to present the review on the activities of the PETRONAS
million barrels in 2002. The increase in
Group for the financial year ended 31 March 2003. volume coupled with the increase in crude
prices resulted in higher crude oil revenue of
During the 2003 financial year, PETRONAS operated in an uncertain and challenging RM19,182 million, an increase of 32% from
business environment, with continued geopolitical volatility and overall economic RM14,531 million in the previous year.
fragility, combined with the invasion of Iraq and the outbreak of the Severe Acute Petroleum products remained the largest
revenue earner for the Group. Despite tight

Respiratory Syndrome (SARS). Maintaining momentum in these uncertain times was a
refining margins, revenue from petroleum
challenge PETRONAS was faced with. Against this backdrop of a volatile and often
products increased to RM28,075 million
difficult trading and operating environment, PETRONAS continued to pursue its
Tan Sri Dato’ Mohd Hassan Marican compared to RM23,034 million in 2002.
integration, globalisation and value adding strategies to ensure its continuous success in President and Chief Executive Officer
LNG, the third largest revenue earner for the
the future.
Group after petroleum products and crude
oil, registered a marginal increase of 2.2% to
FINANCIAL PERFORMANCE
PETRONAS’ operations are generally
sensitive to three major factors, namely
global crude oil prices, sales volume and
THE Y EA R IN exchange rates. World oil prices increased
Review significantly during the period under review,
particularly towards the latter part of the
year, as a result of supply shortages from
Venezuela and the Middle East crisis. The
weighted average Malaysian crude oil price
increased by 23% from US$23.24 per barrel
in the last financial year to US$28.60 per
barrel while the weighted average price for
liquefied natural gas (LNG) increased from
US$4.28 to US$4.35 per million British
thermal unit (mmBtu).
Sales of crude oil increased by 17 million
barrels to 181.5 million barrels from 164.5

It gives me great pleasure to present the review on the activities of the PETRONAS
million barrels in 2002. The increase in
Group for the financial year ended 31 March 2003. volume coupled with the increase in crude
prices resulted in higher crude oil revenue of
During the 2003 financial year, PETRONAS operated in an uncertain and challenging RM19,182 million, an increase of 32% from
business environment, with continued geopolitical volatility and overall economic RM14,531 million in the previous year.
fragility, combined with the invasion of Iraq and the outbreak of the Severe Acute Petroleum products remained the largest
revenue earner for the Group. Despite tight

Respiratory Syndrome (SARS). Maintaining momentum in these uncertain times was a
refining margins, revenue from petroleum
challenge PETRONAS was faced with. Against this backdrop of a volatile and often
products increased to RM28,075 million
difficult trading and operating environment, PETRONAS continued to pursue its
Tan Sri Dato’ Mohd Hassan Marican compared to RM23,034 million in 2002.
integration, globalisation and value adding strategies to ensure its continuous success in President and Chief Executive Officer
LNG, the third largest revenue earner for the
the future.
Group after petroleum products and crude
oil, registered a marginal increase of 2.2% to
RM13,038 million. Petrochemical revenue recorded a 71.2% increase to RM5,822 million due to higher petrochemical
prices and increased sales volume.
Group revenue was a record RM81,434 million, an increase of 21.2% from RM67,181 million in the previous financial
year. 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
profit after tax increased by 3.7% to RM15,105 million from RM14,569 million in the previous year.
The Group’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 recorded a 71.2% increase to RM5,822 million due to higher petrochemical
prices and increased sales volume.
Group revenue was a record RM81,434 million, an increase of 21.2% from RM67,181 million in the previous financial
year. 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
profit after tax increased by 3.7% to RM15,105 million from RM14,569 million in the previous year.
The Group’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
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.
The discovery made at Kikeh was particularly significant as this was the first commercially viable deepwater oil discovery
Upstream
THE YEA R IN R EVIEW
Seven production sharing contracts (PSCs)
and will serve to further encourage deepwater exploration efforts in Malaysia.
were signed during the year, bringing the
number of PSCs in operation to a record 46.

Malaysia’s production of crude oil and condensates was 256.5 million barrels compared to 245.7 million barrels in the
Exploration activities included the
previous year. PETRONAS’ share of total crude oil and condensates production was marginally lower at 74.8% compared
acquisition of 351,675 line km of seismic data
to 75.1% last year due to higher cost oil recovery by the PSC contractors, in line with higher investments made. Natural
and the drilling of 32 exploration wells.
gas production was 2.10 tscf, up from 2.02 tscf in 2002.
Seven new discoveries (Congkak, Kikeh,
Kebabangan, Kamunsu East Upthrown

Seven oil and gas fields came on stream during the year, namely Bintang, Lawang, Langat, Serudon, Baronia Barat,
Promoting exploration Canyon, Sumandak Tengah, Limbayong and
and production
Melinau) were made, which added 416.8 M4 and Semarang Kechil, increasing the total number of domestic producing fields from 56 to 63. Of these, 48 are oil
activities to augment
million barrels of crude and 3.5 tscf of gas to fields and the remaining 15 gas fields. PETRONAS Carigali, the exploration and production arm of PETRONAS,
the country’s petroluem
the nation’s oil and gas reserves. operates 30 fields.
reserves
DO ME ST IC EX PL ORATION &
PRODUCTION
As at 1 January 2003, the nation’s crude oil
reserves including condensates stood at
4,544 million barrels, an increase of 7.2%
from 4,240 million barrels in 2002. Natural
gas reserves increased from 87.5 trillion
standard cubic feet (tscf) in 2002 to 89.0
tscf, about three times the size of crude oil
reserves. Based on the current rate of
production, the crude oil and natural gas
reserves are expected to have an average life
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.
The discovery made at Kikeh was particularly significant as this was the first commercially viable deepwater oil discovery
Upstream
THE YEA R IN R EVIEW
Seven production sharing contracts (PSCs)
and will serve to further encourage deepwater exploration efforts in Malaysia.
were signed during the year, bringing the
number of PSCs in operation to a record 46.

Malaysia’s production of crude oil and condensates was 256.5 million barrels compared to 245.7 million barrels in the
Exploration activities included the
previous year. PETRONAS’ share of total crude oil and condensates production was marginally lower at 74.8% compared
acquisition of 351,675 line km of seismic data
to 75.1% last year due to higher cost oil recovery by the PSC contractors, in line with higher investments made. Natural
and the drilling of 32 exploration wells.
gas production was 2.10 tscf, up from 2.02 tscf in 2002.
Seven new discoveries (Congkak, Kikeh,
Kebabangan, Kamunsu East Upthrown

Seven oil and gas fields came on stream during the year, namely Bintang, Lawang, Langat, Serudon, Baronia Barat,
Promoting exploration Canyon, Sumandak Tengah, Limbayong and
and production
Melinau) were made, which added 416.8 M4 and Semarang Kechil, increasing the total number of domestic producing fields from 56 to 63. Of these, 48 are oil
activities to augment
million barrels of crude and 3.5 tscf of gas to fields and the remaining 15 gas fields. PETRONAS Carigali, the exploration and production arm of PETRONAS,
the country’s petroluem
the nation’s oil and gas reserves. operates 30 fields.
reserves
DO ME ST IC EX PL ORATION &
PRODUCTION
As at 1 January 2003, the nation’s crude oil
reserves including condensates stood at
4,544 million barrels, an increase of 7.2%
from 4,240 million barrels in 2002. Natural
gas reserves increased from 87.5 trillion
standard cubic feet (tscf) in 2002 to 89.0
tscf, about three times the size of crude oil
reserves. Based on the current rate of
production, the crude oil and natural gas
reserves are expected to have an average life
supply gas to PETRONAS’ MLNG plants,
including the new MLNG Tiga plant.
In our pursuit to sustain and enhance the
nation’s reserves, 42 exploration wells and

UPSTREAM
150 development wells are planned for the
coming financial year including 10
deepwater exploration wells. In line with
increased focus on deepwater exploration,
PETRONAS has embarked on a Deepwater
Acreage Demarcation initiative in addition
to stepping up seismic survey activities on
existing open blocks. Efforts are also being
made to increase oil recovery in existing
producing fields with the implementation of
the Dulang Water Alternating Gas (WAG)
Exploration efforts are project and the Microbial Enhanced Oil

enhanced through continuous
Recovery (MEOR) project in Bokor.
A number of development projects already
development of
underway are expected to come on stream in new technology
the near future. The Tapis-F oil project,
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

GLOBAL EXPLORATION AND PRODUCTION
Talisman in Block PM3 under PETRONAS’
Commercial Arrangement with Vietnam are

The year under review saw considerable expansion in the Group’s international upstream business. Four new PSCs and
also expected to come on stream with first
two reconnaissance contracts were signed while interest in 11 exploration and production blocks were acquired. This has
gas scheduled in September 2003. Other
further expanded PETRONAS’ international E&P activities to 57 international ventures in 25 countries in Asia, Middle
development projects include B11, Jintan East and the Africa Region. Notable amongst the new PSCs were the award of one offshore block in Mozambique which
and Helang fields in Sarawak which will represented PETRONAS’ first venture into the East Africa region and that of two new blocks in resource rich Sudan, a
supply gas to PETRONAS’ MLNG plants,
including the new MLNG Tiga plant.
In our pursuit to sustain and enhance the
nation’s reserves, 42 exploration wells and

UPSTREAM
150 development wells are planned for the
coming financial year including 10
deepwater exploration wells. In line with
increased focus on deepwater exploration,
PETRONAS has embarked on a Deepwater
Acreage Demarcation initiative in addition
to stepping up seismic survey activities on
existing open blocks. Efforts are also being
made to increase oil recovery in existing
producing fields with the implementation of
the Dulang Water Alternating Gas (WAG)
Exploration efforts are project and the Microbial Enhanced Oil

enhanced through continuous
Recovery (MEOR) project in Bokor.
A number of development projects already
development of
underway are expected to come on stream in new technology
the near future. The Tapis-F oil project,
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

GLOBAL EXPLORATION AND PRODUCTION
Talisman in Block PM3 under PETRONAS’
Commercial Arrangement with Vietnam are

The year under review saw considerable expansion in the Group’s international upstream business. Four new PSCs and
also expected to come on stream with first
two reconnaissance contracts were signed while interest in 11 exploration and production blocks were acquired. This has
gas scheduled in September 2003. Other
further expanded PETRONAS’ international E&P activities to 57 international ventures in 25 countries in Asia, Middle
development projects include B11, Jintan East and the Africa Region. Notable amongst the new PSCs were the award of one offshore block in Mozambique which
and Helang fields in Sarawak which will represented PETRONAS’ first venture into the East Africa region and that of two new blocks in resource rich Sudan, a
International production during the year
averaged 240,900 boe per day, higher than
101,300 boe per day in the last financial year.
International production accounts for
approximately 18.2% of PETRONAS’ total
UPSTREAM production with Sudan as the biggest
contributor. 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 project,
a joint-venture with ExxonMobil and
ChevronTexaco 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,

core region within PETRONAS’ global Positive results are seen in will serve to complement the Company’s
exploration and production activities. The PETRONAS’ expanding global long-term gas supply to Peninsular Malaysia.
acquisition of two producing blocks in upstream activities
Indonesia marked PETRONAS’ first oil
production in that country.
PETRONAS’ international reserves grew
28.3% from 3.71 billion barrels of oil
equivalent (boe) last year to 4.76 billion boe,
accounting for 19.7% of the Group’s total
reserves compared to 16.5% in 2002,
underlining PETRONAS’ success in
exploration overseas.
International production during the year
averaged 240,900 boe per day, higher than
101,300 boe per day in the last financial year.
International production accounts for
approximately 18.2% of PETRONAS’ total
UPSTREAM production with Sudan as the biggest
contributor. 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 project,
a joint-venture with ExxonMobil and
ChevronTexaco 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,

core region within PETRONAS’ global Positive results are seen in will serve to complement the Company’s
exploration and production activities. The PETRONAS’ expanding global long-term gas supply to Peninsular Malaysia.
acquisition of two producing blocks in upstream activities
Indonesia marked PETRONAS’ first oil
production in that country.
PETRONAS’ international reserves grew
28.3% from 3.71 billion barrels of oil
equivalent (boe) last year to 4.76 billion boe,
accounting for 19.7% of the Group’s total
reserves compared to 16.5% in 2002,
underlining PETRONAS’ success in
exploration overseas.
In the refining sector, PETRONAS’ total net
refining capacity remained at 340,500 barrels
per day at refineries in Kertih and Melaka in
Malaysia and Durban in South Africa.
During the financial year, PETRONAS GAS BUSINESS
Downstream
T HE YE AR IN R EVIE W
completed the acquisition of Mobil Oil
Sudan Limited, subsequently renamed LNG was the third largest revenue earner for the group with a total of 15.2 million tonnes of LNG exported during the
PETRONAS Marketing Sudan Limited. The year. Of this, 72% was sold to Japan, 16% to Korea and 12% to Taiwan. Malaysia’s LNG exports are expected to rise
company owns a number of service stations considerably in the future with the coming on stream of MLNG Tiga’s second train in September 2003. With MLNG Tiga
and petroleum depots in Sudan. The in full operation, the total production capacity of the PETRONAS LNG complex at Bintulu will increase to 23 million
downstream acquisition will enhance tonnes per annum, making it the world’s largest LNG plant in a single location.
PETRONAS’ presence in Sudan where it has
already established itself as a key player in the PETRONAS is also expanding its LNG business internationally. The acquisition of a 35% share in Egypt LNG in June
upstream sector and will also provide 2003 marks PETRONAS’ entry into the Atlantic Basin LNG market. The project’s first train with a capacity of
PETRONAS with opportunities in the North 3.6 million tonnes per annum is currently being constructed with first production expected in 2005.
African downstream market. PETRONAS,
via its subsidiary ENGEN, already has a

Engen..... the gateway
strong presence in the downstream market in
into the sub-Sahara
the Sub-Saharan region of the south.
OIL BUSINESS market
Having established a market leadership in
the domestic petroleum products market last
year, PETRONAS has successfully defended
and improved its position this year, recording
an increase in market share to 37% from
36%. PETRONAS has also expanded its
nationwide retail distribution network in
Malaysia by opening another 44 service
stations to bring the total number of stations
to 635. In South Africa, its subsidiary, Engen
recorded a market share of 26%, maintaining
its market leadership position.
In the refining sector, PETRONAS’ total net
refining capacity remained at 340,500 barrels
per day at refineries in Kertih and Melaka in
Malaysia and Durban in South Africa.
During the financial year, PETRONAS GAS BUSINESS
Downstream
T HE YE AR IN R EVIE W
completed the acquisition of Mobil Oil
Sudan Limited, subsequently renamed LNG was the third largest revenue earner for the group with a total of 15.2 million tonnes of LNG exported during the
PETRONAS Marketing Sudan Limited. The year. Of this, 72% was sold to Japan, 16% to Korea and 12% to Taiwan. Malaysia’s LNG exports are expected to rise
company owns a number of service stations considerably in the future with the coming on stream of MLNG Tiga’s second train in September 2003. With MLNG Tiga
and petroleum depots in Sudan. The in full operation, the total production capacity of the PETRONAS LNG complex at Bintulu will increase to 23 million
downstream acquisition will enhance tonnes per annum, making it the world’s largest LNG plant in a single location.
PETRONAS’ presence in Sudan where it has
already established itself as a key player in the PETRONAS is also expanding its LNG business internationally. The acquisition of a 35% share in Egypt LNG in June
upstream sector and will also provide 2003 marks PETRONAS’ entry into the Atlantic Basin LNG market. The project’s first train with a capacity of
PETRONAS with opportunities in the North 3.6 million tonnes per annum is currently being constructed with first production expected in 2005.
African downstream market. PETRONAS,
via its subsidiary ENGEN, already has a

Engen..... the gateway
strong presence in the downstream market in
into the sub-Sahara
the Sub-Saharan region of the south.
OIL BUSINESS market
Having established a market leadership in
the domestic petroleum products market last
year, PETRONAS has successfully defended
and improved its position this year, recording
an increase in market share to 37% from
36%. PETRONAS has also expanded its
nationwide retail distribution network in
Malaysia by opening another 44 service
stations to bring the total number of stations
to 635. In South Africa, its subsidiary, Engen
recorded a market share of 26%, maintaining
its market leadership position.
and operates the 536-km Grissik-Duri
transmission pipeline in Indonesia.
Construction of the Grissik-Batam-
Singapore pipeline is expected to be
completed in third quarter of 2003. This is
D O W N S T R E A M PETRONAS’ first investment in the gas
transportation 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 role
in the realisation of the Trans ASEAN Gas
Pipeline (TAGP). Significant milestones
achieved during the year included the
completion of the TAGP Conceptual Master

In Peninsular Malaysia, PETRONAS’ Plan and the signing of the ASEAN
Peninsular Gas Utilisation system Memorandum of Understanding by the
PETRONAS has acquired the
transported an average of 1,849 mmscf/d of expertise and successfully ASEAN Ministers of Energy.
processed gas compared to 1,731 mmscf/d in developed several world-
the previous year. This is a result of higher class gas development and
demand from the domestic power sector, pipeline projects
which accounted for 69% of the total sales
gas delivered while industrial, petrochemical
and other users accounted for 24% and
exports to Singapore was 7%.
In November 2002, PETRONAS, through a
consortium in which it has a 35% interest,
purchased a 40% stake in PT Transportasi
Gas Indonesia (TGI). TGI currently owns
and operates the 536-km Grissik-Duri
transmission pipeline in Indonesia.
Construction of the Grissik-Batam-
Singapore pipeline is expected to be
completed in third quarter of 2003. This is
D O W N S T R E A M PETRONAS’ first investment in the gas
transportation 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 role
in the realisation of the Trans ASEAN Gas
Pipeline (TAGP). Significant milestones
achieved during the year included the
completion of the TAGP Conceptual Master

In Peninsular Malaysia, PETRONAS’ Plan and the signing of the ASEAN
Peninsular Gas Utilisation system Memorandum of Understanding by the
PETRONAS has acquired the
transported an average of 1,849 mmscf/d of expertise and successfully ASEAN Ministers of Energy.
processed gas compared to 1,731 mmscf/d in developed several world-
the previous year. This is a result of higher class gas development and
demand from the domestic power sector, pipeline projects
which accounted for 69% of the total sales
gas delivered while industrial, petrochemical
and other users accounted for 24% and
exports to Singapore was 7%.
In November 2002, PETRONAS, through a
consortium in which it has a 35% interest,
purchased a 40% stake in PT Transportasi
Gas Indonesia (TGI). TGI currently owns
D O W N S T R E A M
PETROCHEMICAL BUSINESS Development of the
PPIC..... a conduit to
It was a good year for PETRONAS’ nation building
petrochemical business. Despite difficult
business conditions in the petrochemical
industry, the Group managed to capitalise on
product price increases and supply shortages
in the market to record an increase in
revenue of 71.2% to RM5,822 million from
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) Sdn
30 • P E T R O L IA M N A S I O N A L B E R H A D
D O W N S T R E A M
PETROCHEMICAL BUSINESS Development of the
PPIC..... a conduit to
It was a good year for PETRONAS’ nation building
petrochemical business. Despite difficult
business conditions in the petrochemical
industry, the Group managed to capitalise on
product price increases and supply shortages
in the market to record an increase in
revenue of 71.2% to RM5,822 million from
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) Sdn
30 • P E T R O L IA M N A S I O N A L B E R H A D
In Vietnam, Phu My Plastics and Chemicals
Co Ltd commenced operations in October
2002. The 100,000-tonne PVC plant, a
joint-venture with PETROVIETNAM and
Tramatsuco of Vietnam, sources its vinyl
D O W N S T R E A M chloride monomer (VCM) feedstock from
PETRONAS’ joint-venture plant in Kertih.
L OGIS TIC S A ND M ARITI ME
BUSINESS
The financial year under review was a
challenging year for the Group’s Maritime
and Logistics Business due to overcapacity
and unfavourable freight rates in the non-
LNG sectors.
During the year, Malaysia International
Shipping Corporation Berhad (MISC),
PETRONAS’ shipping subsidiary, brought
into operation two of its six new ‘Puteri Satu’

PETRONAS continues to
class LNG vessels, increasing the number of
expand and strengthen its gas
value chain with downstream
activities both locally and
internationally
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
joint-venture 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
joint-venture with PETROVIETNAM and
Tramatsuco of Vietnam, sources its vinyl
D O W N S T R E A M chloride monomer (VCM) feedstock from
PETRONAS’ joint-venture plant in Kertih.
L OGIS TIC S A ND M ARITI ME
BUSINESS
The financial year under review was a
challenging year for the Group’s Maritime
and Logistics Business due to overcapacity
and unfavourable freight rates in the non-
LNG sectors.
During the year, Malaysia International
Shipping Corporation Berhad (MISC),
PETRONAS’ shipping subsidiary, brought
into operation two of its six new ‘Puteri Satu’

PETRONAS continues to
class LNG vessels, increasing the number of
expand and strengthen its gas
value chain with downstream
activities both locally and
internationally
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
joint-venture plant within the complex.
LNG vessels from 13 to 15. With four
remaining vessels to be delivered and
another two on order, MISC is set to
continue as the largest single owner and
operator of LNG vessels in the world.
D O W N S T R E A M In January 2003, MISC made its first cargo
delivery for Gaz de France under its first
third party LNG time charter outside the
PETRONAS Group.
MISC also took delivery of its first Very
Large Crude Carrier (VLCC), ‘Bunga
Kasturi’, which is the largest Malaysian-
registered vessel to-date in April 2002.
Shortly thereafter, MISC completed the
acquisition of American Eagle Tanker Inc., a
subsidiary of Neptune Orient Line in June
2003. This acquisition was a significant
milestone as not only does it enhance
MISC’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
LNG vessels from 13 to 15. With four
remaining vessels to be delivered and
another two on order, MISC is set to
continue as the largest single owner and
operator of LNG vessels in the world.
D O W N S T R E A M In January 2003, MISC made its first cargo
delivery for Gaz de France under its first
third party LNG time charter outside the
PETRONAS Group.
MISC also took delivery of its first Very
Large Crude Carrier (VLCC), ‘Bunga
Kasturi’, which is the largest Malaysian-
registered vessel to-date in April 2002.
Shortly thereafter, MISC completed the
acquisition of American Eagle Tanker Inc., a
subsidiary of Neptune Orient Line in June
2003. This acquisition was a significant
milestone as not only does it enhance
MISC’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
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.
TECHNOLOGY
Development
PETRONAS is currently developing its own In March 2003, PETRONAS opened its own Motorsports Technical Centre and Motorsport Museum aimed at
Formula One fuel for the Sauber PETRONAS developing, expanding and adding value to all technological expertise and experiences gained through its involvement
cars for use in the 2003 FIA Formula One in various motorsports activities. The centre will also act as the local technology arm for Sauber PETRONAS
World Championship. Engineering AG.
During the year, PETRONAS launched the TECHNICAL SERVICES

Foggy PETRONAS racing team for the World
Superbike Championship powered by the FP1 OGP Technical Services Sdn. Bhd. (OGP), PETRONAS’ project management and engineering services subsidiary,
engine developed by PETRONAS. A road continued to thrive both domestically and internationally.
version of the FP1 motorcycle has also been
developed and will be assembled by Motosikal During the year, OGP successfully secured the Fula project from the Ministry of Energy and Mines, Sudan after
dan Enjin Nasional Sdn Bhd (MODENAS) to establishing its capabilities in the Sudan Development, Sudan Phase 2 and Phase 3 projects for the Greater Nile
give Malaysia its first superbike. A new high Petroleum Operating Company (GNPOC) and partners. OGP also won the award for the supply of project management
performance synthetic motor oil, SYNTIUM manpower for the Sumatra/Singapore Gas Pipeline for Transportasi Gas Indonesia.
Acquiring technology and
3000 5W-40 specially engineered to meet
experience through stringent international standards, was also In Malaysia, OGP was awarded the F23 workscoping project for Sarawak Shell on the back of its success in the E11
motorsports launched during the year. 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 Group’s research 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
research 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.
TECHNOLOGY
Development
PETRONAS is currently developing its own In March 2003, PETRONAS opened its own Motorsports Technical Centre and Motorsport Museum aimed at
Formula One fuel for the Sauber PETRONAS developing, expanding and adding value to all technological expertise and experiences gained through its involvement
cars for use in the 2003 FIA Formula One in various motorsports activities. The centre will also act as the local technology arm for Sauber PETRONAS
World Championship. Engineering AG.
During the year, PETRONAS launched the TECHNICAL SERVICES

Foggy PETRONAS racing team for the World
Superbike Championship powered by the FP1 OGP Technical Services Sdn. Bhd. (OGP), PETRONAS’ project management and engineering services subsidiary,
engine developed by PETRONAS. A road continued to thrive both domestically and internationally.
version of the FP1 motorcycle has also been
developed and will be assembled by Motosikal During the year, OGP successfully secured the Fula project from the Ministry of Energy and Mines, Sudan after
dan Enjin Nasional Sdn Bhd (MODENAS) to establishing its capabilities in the Sudan Development, Sudan Phase 2 and Phase 3 projects for the Greater Nile
give Malaysia its first superbike. A new high Petroleum Operating Company (GNPOC) and partners. OGP also won the award for the supply of project management
performance synthetic motor oil, SYNTIUM manpower for the Sumatra/Singapore Gas Pipeline for Transportasi Gas Indonesia.
Acquiring technology and
3000 5W-40 specially engineered to meet
experience through stringent international standards, was also In Malaysia, OGP was awarded the F23 workscoping project for Sarawak Shell on the back of its success in the E11
motorsports launched during the year. 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 Group’s research 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
research and technological needs of the
PETRONAS Group but other petroleum-
related companies, both domestic and
were accredited with ISO14001, bringing the
total PETRONAS subsidiaries with
ISO14001 to five. The other subsidiaries
already accredited are the ASEAN Bintulu
Fertilizer plant, PETRONAS’ refineries in
Melaka and Terengganu and PETRONAS
H E A LT H , SA FETY AND Sungei Udang Port in Melaka.
Environment 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 efforts to

promote 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
Eco-consciousness is an
needs, HSE, product stewardship, climate
integral part of PETRONAS, change and biodiversity.
which places importance on
harmonious and sustainable
growth
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
were accredited with ISO14001, bringing the
total PETRONAS subsidiaries with
ISO14001 to five. The other subsidiaries
already accredited are the ASEAN Bintulu
Fertilizer plant, PETRONAS’ refineries in
Melaka and Terengganu and PETRONAS
H E A LT H , SA FETY AND Sungei Udang Port in Melaka.
Environment 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 efforts to

promote 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
Eco-consciousness is an
needs, HSE, product stewardship, climate
integral part of PETRONAS, change and biodiversity.
which places importance on
harmonious and sustainable
growth
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
HUMAN CAPITAL AND learning programme offers live interactive
Education education-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
Contributing to nation and abroad.
building through
promotion of education
and intellectual
PETRONAS recognises that continued development
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 its
employees.
During the year, PETRONAS introduced
PETRONAS eCast as part of the
PETRONAS eLearning Project launched by
the Education Division. This holistic
HUMAN CAPITAL AND learning programme offers live interactive
Education education-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
Contributing to nation and abroad.
building through
promotion of education
and intellectual
PETRONAS recognises that continued development
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 its
employees.
During the year, PETRONAS introduced
PETRONAS eCast as part of the
PETRONAS eLearning Project launched by
the Education Division. This holistic
Conclusion
The 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
Conclusion
The 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
FIVE-YEAR FINANCIAL
Highlights at 31 March 2003
Revenue Profit Before Taxation Net Profit Total Assets Employed Shareholder's Funds
178,012
78,356
81,434
90,000 36,000 21,000 180,000 81,000
144,216
73,351
29,029
64,784
139,040
16,488
67,181
26,872
15,105
121,571
14,568
75,000 30,000 17,500 150,000 67,500
60,628
53,934
24,318
21,611
12,604
GROUP
99,498
As at 31 March (Million RM) 60,000 24,000 14,000 120,000 54,000
40,259
42,306
36,871
45,000 18,000 10,500 90,000 40,500
11,844
6,808
30,000 12,000 7,000 60,000 27,000
15,000 6,000 3,500 30,000 13,500
0 0 0 0 0
99 00 01 02 03 99 00 01 02 03 99 00 01 02 03 99 00 01 02 03 99 00 01 02 03
112,009
20,238
56,700
14,018
10,473
45,000 15,000
17,992
21,000 120,000 60,000

37,988
36,965
11,244
46,735
16,322
86,233
37,500
31,963
84,111
17,500 12,500 100,000 50,000
39,614
13,653
28,362
74,208
9,644
7,371
COMPANY
30,000 10,000
63,926
32,060
As at 31 March (Million RM) 14,000 80,000 40,000
10,392
28,721
19,620
22,500 10,500 7,500 60,000 30,000
15,000 7,000 5,000 40,000 20,000
7,500 3,500 2,500 20,000 10,000
0 0 0 0 0
99 00 01 02 03 99 00 01 02 03 99 00 01 02 03 99 00 01 02 03 99 00 01 02 03
FIVE-YEAR FINANCIAL
Highlights at 31 March 2003
178,012
78,356
81,434
90,000 36,000 21,000 180,000 81,000
144,216
73,351
29,029
64,784
139,040
16,488
67,181
26,872
15,105
121,571
14,568
75,000 30,000 17,500 150,000 67,500
60,628
53,934
24,318
21,611
12,604
GROUP
99,498
As at 31 March (Million RM) 60,000 24,000 14,000 120,000 54,000
40,259
42,306
36,871
45,000 18,000 10,500 90,000 40,500
11,844
6,808
30,000 12,000 7,000 60,000 27,000
15,000 6,000 3,500 30,000 13,500
0 0 0 0 0
99 00 01 02 03 99 00 01 02 03 99 00 01 02 03 99 00 01 02 03 99 00 01 02 03
112,009
20,238
56,700
14,018
10,473
45,000 15,000
17,992
21,000 120,000 60,000

37,988
36,965
11,244
46,735
16,322
86,233
37,500
31,963
84,111
17,500 12,500 100,000 50,000
39,614
13,653
28,362
74,208
9,644
7,371
COMPANY
30,000 10,000
63,926
32,060
As at 31 March (Million RM) 14,000 80,000 40,000
10,392
28,721
19,620
22,500 10,500 7,500 60,000 30,000
15,000 7,000 5,000 40,000 20,000
7,500 3,500 2,500 20,000 10,000
0 0 0 0 0
99 00 01 02 03 99 00 01 02 03 99 00 01 02 03 99 00 01 02 03 99 00 01 02 03
9 M AY
TH E Y EAR’ S
21 April
Highlight s Malaysia International

Corporation Berhad (MISC) secured a
Shipping
contract with Gaz de France, a major

European gas utility company, for the charter
of its LNG tanker “Tenaga Satu”.
2 1 AP RI L 21 April
PETRONAS’ office in Bahrain was officially
opened by the Prime Minister of Malaysia,
Dato Seri Dr Mahathir bin Mohamad.
7 May
PETRONAS NGV Sdn. Bhd. signed a
three-year Memorandum of Understanding
with the Philippines National Oil Company
to introduce the natural gas-powered
2002 vehicles, the Enviro 2002, as well as jointly

promote the use of natural gas for vehicles
9 May
PETRONAS’ Petroleum Industry Complex (PPIC) in Kertih was officially opened by the Prime Minister of Malaysia,
9 April (NGV) in the country.
Malaysia LNG Tiga Sdn. Bhd. signed a sale
16 May
and purchase agreement with Japan
7 M AY
PETRONAS successfully raised US$2.7 billion from its latest global bond issue, the largest corporate bond issue ever
Petroleum Exploration Co. Ltd. to supply up
to 480,000 tonnes of liquefied natural gas concluded by an Asian corporation in the international debt capital market. The issue was increased to US$3.7 billion
per year for 20 years beginning from 2003. in November 2003.
17 April 22 May
PETRONAS Carigali Overseas Sdn. Bhd., MISC’s LNG tanker, Puteri Intan Satu, was officially named by Prime Minister, Dato Seri Dr Mahathir bin Mohamad
entered into two Reconnaissance Contracts at the Mitsubishi Heavy Industries Ltd, Koyagi Shipyard in Nagasaki, Japan. Puteri Intan Satu is the first in the series of
with the Office National de Recherches et six Puteri Satu class LNG tankers ordered by MISC as part of its fleet expansion programme. The acquisition of the
d’Explorations Pétroliéres, the national oil tankers will affirm MISC’s position as the world’s single largest owner and operator of LNG tankers.
company of Morocco, for an offshore area in
the Missour Basin and Rebat Sale Haute
Mer. The signing of the contracts marked
another milestone for PETRONAS’
operations in Morocco.
9 M AY
TH E Y EAR’ S
21 April
Highlight s Malaysia International

Corporation Berhad (MISC) secured a
Shipping
contract with Gaz de France, a major

European gas utility company, for the charter
of its LNG tanker “Tenaga Satu”.
2 1 AP RI L 21 April
PETRONAS’ office in Bahrain was officially
opened by the Prime Minister of Malaysia,
7 May
PETRONAS NGV Sdn. Bhd. signed a
three-year Memorandum of Understanding
with the Philippines National Oil Company
to introduce the natural gas-powered
2002 vehicles, the Enviro 2002, as well as jointly

promote the use of natural gas for vehicles
9 May
PETRONAS’ Petroleum Industry Complex (PPIC) in Kertih was officially opened by the Prime Minister of Malaysia,
9 April (NGV) in the country.
Malaysia LNG Tiga Sdn. Bhd. signed a sale
16 May
and purchase agreement with Japan
7 M AY
PETRONAS successfully raised US$2.7 billion from its latest global bond issue, the largest corporate bond issue ever
Petroleum Exploration Co. Ltd. to supply up
to 480,000 tonnes of liquefied natural gas concluded by an Asian corporation in the international debt capital market. The issue was increased to US$3.7 billion
per year for 20 years beginning from 2003. in November 2003.
17 April 22 May
PETRONAS Carigali Overseas Sdn. Bhd., MISC’s LNG tanker, Puteri Intan Satu, was officially named by Prime Minister, Dato Seri Dr Mahathir bin Mohamad
entered into two Reconnaissance Contracts at the Mitsubishi Heavy Industries Ltd, Koyagi Shipyard in Nagasaki, Japan. Puteri Intan Satu is the first in the series of
with the Office National de Recherches et six Puteri Satu class LNG tankers ordered by MISC as part of its fleet expansion programme. The acquisition of the
d’Explorations Pétroliéres, the national oil tankers will affirm MISC’s position as the world’s single largest owner and operator of LNG tankers.
company of Morocco, for an offshore area in
the Missour Basin and Rebat Sale Haute
Mer. The signing of the contracts marked
another milestone for PETRONAS’
operations in Morocco.
30 July
PETRONAS made an oil discovery at the
open block of the Kebabangan field, offshore
deepwater Sabah.
6 August
1 NOVEM BE R
T HE YEAR ’S HIGHLIG HTS PETRONAS Carigali Sdn. Bhd. and Murphy
Oil discovered oil at Block K (the Kikeh
field) offshore deepwater Sabah.
8 August
PETRONAS received the first delivery of
natural gas from West Natuna, Indonesia, to
5 June the Duyong gas platform offshore Peninsular
PETRONAS, together with Empresa Malaysia. This was the culmination of a sales
Nacional de Hidrocarbonetos de and purchase agreement signed on 28 March
Mocambique, the national oil company of 2001 among PETRONAS, PERTAMINA
Mozambique, was awarded the exploration (Indonesia’s national oil company) and its
and production contract for the offshore production sharing contractor, Conoco.
Zambezi Delta Block by the government of Under the 20-year contract, natural gas is
Mozambique. delivered from the Hang Tuah platform to

Duyong gas platform in Malaysia.
14 June
acquired the entire share capital of Kerr- 16 September
McGee Indonesia Ltd. (KMI), marking PETRONAS International Corporation Limited (PICL) entered into an agreement with Premier Oil Plc to swap its
19 S EPT EMB ER
PETRONAS’ maiden entry into oil 25% share in Premier for Premier’s interests in pr oducing fields in Myanmar and Indonesia.
production in Indonesia.
19 September
23 July PETRONAS Carigali (Turkmenistan) Sdn Bhd discovered oil in the Turkmen sector of the Caspian Sea.
PETRONAS awarded two Production
Sharing Contracts for Blocks PM311 and 13 October
PM312 offshore Peninsular Malaysia to PETRONAS announced that it is developing its own Formula One fuel for the Sauber PETRONAS cars for use in the
Murphy Oil Corporation and PETRONAS 2003 FIA Formula One World Championship.
Carigali Sdn. Bhd.
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.
30 July
PETRONAS made an oil discovery at the
open block of the Kebabangan field, offshore
deepwater Sabah.
6 August
1 NOVEM BE R
T HE YEAR ’S HIGHLIG HTS PETRONAS Carigali Sdn. Bhd. and Murphy
Oil discovered oil at Block K (the Kikeh
field) offshore deepwater Sabah.
8 August
PETRONAS received the first delivery of
natural gas from West Natuna, Indonesia, to
5 June the Duyong gas platform offshore Peninsular
PETRONAS, together with Empresa Malaysia. This was the culmination of a sales
Nacional de Hidrocarbonetos de and purchase agreement signed on 28 March
Mocambique, the national oil company of 2001 among PETRONAS, PERTAMINA
Mozambique, was awarded the exploration (Indonesia’s national oil company) and its
and production contract for the offshore production sharing contractor, Conoco.
Zambezi Delta Block by the government of Under the 20-year contract, natural gas is
Mozambique. delivered from the Hang Tuah platform to

Duyong gas platform in Malaysia.
14 June
acquired the entire share capital of Kerr- 16 September
McGee Indonesia Ltd. (KMI), marking PETRONAS International Corporation Limited (PICL) entered into an agreement with Premier Oil Plc to swap its
19 S EPT EMB ER
PETRONAS’ maiden entry into oil 25% share in Premier for Premier’s interests in pr oducing fields in Myanmar and Indonesia.
production in Indonesia.
19 September
23 July PETRONAS Carigali (Turkmenistan) Sdn Bhd discovered oil in the Turkmen sector of the Caspian Sea.
PETRONAS awarded two Production
Sharing Contracts for Blocks PM311 and 13 October
PM312 offshore Peninsular Malaysia to PETRONAS announced that it is developing its own Formula One fuel for the Sauber PETRONAS cars for use in the
Murphy Oil Corporation and PETRONAS 2003 FIA Formula One World Championship.
Carigali Sdn. Bhd.
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.
12 November
PETRONAS International Corporation
(PICL) announced the conclusion of the
purchase of a 40 per cent stake in PT
Transportasi Gas Indonesia (TGI) by
Transasia Pipeline Company Pvt. Ltd.
6 JA NUARY
THE YE AR’S HIG HLIGHT S (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.
11 November
The Puteri Delima Satu tanker was safely 29 November
d e l i v e red to Malaysia Intern a t i o n a l PETRONAS Carigali Overseas Sdn. Bhd.,
Shipping Corporation Bhd (MISC). The acquired an interest in the onshore Munir
vessel is the second of six new Puteri class Block in Iran from Edison International and
liquefied natural gas (LNG) tankers ordered Lundin (Munir) Ltd.
by MISC as part of its fleet expansion
programme. 12 December
PETRONAS signed a Petroleum Contract
in Hanoi with PetroVietnam and Talisman
to jointly explore for and develop
hydrocarbon resources in Block 46/02 2003
offshore Vietnam. The signing will increase
the number of petroleum blocks that 6 Januar y
PETRONAS is involved in Vietnam to five Phu My Plastics & Chemicals Company Ltd. (PMPC), a joint-venture among PETRONAS, PETROVIETNAM and
blocks, namely Blocks 01 & 02 signed in TRAMATSUCO, was officially opened by the Chairman of Ba Ria-Vung Tau People’s Committee, His Excellency
1991, Blocks 10 & 11-1 and Block 46-Cai Nguyen Tuan. This polyvinyl chloride (PVC) plant, located at the Ba Ria-Vung Tau Province, has a production capacity
Nuoc signed in 2002. 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 NOV E MBER
12 November
(PICL) announced the conclusion of the
purchase of a 40 per cent stake in PT
Transportasi Gas Indonesia (TGI) by
Transasia Pipeline Company Pvt. Ltd.
6 JA NUARY
THE YE AR’S HIG HLIGHT S (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.
11 November
The Puteri Delima Satu tanker was safely 29 November
d e l i v e red to Malaysia Intern a t i o n a l PETRONAS Carigali Overseas Sdn. Bhd.,
Shipping Corporation Bhd (MISC). The acquired an interest in the onshore Munir
vessel is the second of six new Puteri class Block in Iran from Edison International and
liquefied natural gas (LNG) tankers ordered Lundin (Munir) Ltd.
by MISC as part of its fleet expansion
programme. 12 December
PETRONAS signed a Petroleum Contract
in Hanoi with PetroVietnam and Talisman
to jointly explore for and develop
hydrocarbon resources in Block 46/02 2003
offshore Vietnam. The signing will increase
the number of petroleum blocks that 6 Januar y
PETRONAS is involved in Vietnam to five Phu My Plastics & Chemicals Company Ltd. (PMPC), a joint-venture among PETRONAS, PETROVIETNAM and
blocks, namely Blocks 01 & 02 signed in TRAMATSUCO, was officially opened by the Chairman of Ba Ria-Vung Tau People’s Committee, His Excellency
1991, Blocks 10 & 11-1 and Block 46-Cai Nguyen Tuan. This polyvinyl chloride (PVC) plant, located at the Ba Ria-Vung Tau Province, has a production capacity
Nuoc signed in 2002. 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 NOV E MBER
13 March
Limited, a wholly-owned subsidiary of
PETRONAS, completed the acquisition of
Mobil Oil Sudan Limited from Mobil
International Petroleum Corporation. This
20 MARCH
THE YE AR’S H IGHLIGHTS 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.
2 5 J A N U A RY
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.
17 MARCH
25 Januar y
PETRONAS Dagangan Berhad opened
Malaysia’s first concept hyperstation in Kuala
Lumpur. The all-in-one retail outlet
incorporates facilities such as a supermarket, 19 March
convenience store, fast food outlet, post PETRONAS launched its new premier synthetic motor oil, the SYNTIUM 300 5W-40, to be marketed by its retail and
office, ATMs, photocopy machine and marketing subsidiary, PETRONAS Dagangan Bhd. It is a fully synthetic multigrade engine oil specially engineered to
courier counter, all within the vicinity of a provide ultimate engine protection and performance for engines running under extreme and demanding driving
single service station. 11 F EBR UARY conditions.
11 Februar y 20 March
The development of the Kuala Lumpur PETRONAS opened its Motorsports Technical Centre and Motorsports Museum in its efforts to further develop, expand
Convention Centre was officially launched and add value to all technological expertise and experiences gained through its involvement in various motorsports
by Prime Minister Dato Seri Dr Mahathir activities.
bin Mohamad. The state-of-the-art facility
is located within the Kuala Lumpur City 26 March
Centre. The facility is owned by Kuala First train of Malaysia LNG Tiga at the PETRONAS LNG Complex in Bintulu, Sarawak commenced commercial
Lumpur Convention Centre Sdn. Bhd., a production.
subsidiary of PETRONAS.
13 March
Limited, a wholly-owned subsidiary of
PETRONAS, completed the acquisition of
Mobil Oil Sudan Limited from Mobil
International Petroleum Corporation. This
20 MARCH
THE YE AR’S H IGHLIGHTS 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.
2 5 J A N U A RY
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.
17 MARCH
25 Januar y
PETRONAS Dagangan Berhad opened
Malaysia’s first concept hyperstation in Kuala
Lumpur. The all-in-one retail outlet
incorporates facilities such as a supermarket, 19 March
convenience store, fast food outlet, post PETRONAS launched its new premier synthetic motor oil, the SYNTIUM 300 5W-40, to be marketed by its retail and
office, ATMs, photocopy machine and marketing subsidiary, PETRONAS Dagangan Bhd. It is a fully synthetic multigrade engine oil specially engineered to
courier counter, all within the vicinity of a provide ultimate engine protection and performance for engines running under extreme and demanding driving
single service station. 11 F EBR UARY conditions.
11 Februar y 20 March
The development of the Kuala Lumpur PETRONAS opened its Motorsports Technical Centre and Motorsports Museum in its efforts to further develop, expand
Convention Centre was officially launched and add value to all technological expertise and experiences gained through its involvement in various motorsports
by Prime Minister Dato Seri Dr Mahathir activities.
bin Mohamad. The state-of-the-art facility
is located within the Kuala Lumpur City 26 March
Centre. The facility is owned by Kuala First train of Malaysia LNG Tiga at the PETRONAS LNG Complex in Bintulu, Sarawak commenced commercial
Lumpur Convention Centre Sdn. Bhd., a production.
subsidiary of PETRONAS.
Domestic Operations Indicators
PRODUCTION SHARING CONTRACT (PSC) AREAS
PETRONAS CARIGALI SDN. BHD. SARAWAK SHELL BHD./PCSB PRODUCING FIELDS
SABAH SHELL PET. CO. LTD/SHELL OIL GAS

MURPHY SARAWAK OIL CO. LTD./PCSB
SABAH SELATAN/PCSB
EXXONMOBIL EXPLORATION &
PRODUCTION MALAYSIA INC./PCSB PETRONAS CARIGALI SDN. BHD. PENINSULAR GAS UTILISATION
PIPELINE SYSTEM
TALISMAN MALAYSIA LTD./ UNDER TECHNICAL EVALUATION AGREEMENT
Contract areas
M A L AY S I A’S TALISMAN MALAYSIA (PM3) LTD./PIDC/PCSB WITH SARAWAK SHELL BHD. Phase 1 Phase 3
CS MUTIARA PETROLEUM SDN. BHD. SABAH SHELL PET. CO. LTD./SHELL SABAH SELATAN/ Phase 2 PGU Loop I
PCSB
PGU Loop II
SEPM (SHELL EXPLORATION & PRODUCTION AMERADA HESS (MALAYSIA - BLOCK SB 302) LTD./
MALAYSIA B.V.)/PCSB KUFPEC/PCSB Multi-product pipeline
AN D OI L AND GAS FI ELDS
TALISMAN MALAYSIA LTD./PCSB PETRONAS CARIGALI SDN. BHD.
PETRONAS CARIGALI SDN. BHD. SARAWAK SHELL BHD./DIAMOND GAS/PCSB
MURPHY PENINSULAR MALAYSIA OIL CO. LTD./ AMERADA HESS (MALAYSIA – BLOCK F) LTD./
PCSB TOTALFINAELF/PCSB
YPF (REPSOL) MALAYSIA LTD./ SABAH SHELL PET. CO. LTD/SHELL SABAH SELATAN/
MITSUBISHI CORP./PCSB CONOCO SABAH LTD./PCSB
PETRONAS CARIGALI SDN. BHD./
PIDC/PERTAMINA MURPHY SABAH OIL CO. LTD./PCSB

SARAWAK SHELL BHD.
Domestic Operations Indicators
PRODUCTION SHARING CONTRACT (PSC) AREAS
PETRONAS CARIGALI SDN. BHD. SARAWAK SHELL BHD./PCSB PRODUCING FIELDS
SABAH SHELL PET. CO. LTD/SHELL OIL GAS

MURPHY SARAWAK OIL CO. LTD./PCSB
SABAH SELATAN/PCSB
EXXONMOBIL EXPLORATION &
PRODUCTION MALAYSIA INC./PCSB PETRONAS CARIGALI SDN. BHD. PENINSULAR GAS UTILISATION
PIPELINE SYSTEM
TALISMAN MALAYSIA LTD./ UNDER TECHNICAL EVALUATION AGREEMENT
Contract areas
M A L AY S I A’S TALISMAN MALAYSIA (PM3) LTD./PIDC/PCSB WITH SARAWAK SHELL BHD. Phase 1 Phase 3
CS MUTIARA PETROLEUM SDN. BHD. SABAH SHELL PET. CO. LTD./SHELL SABAH SELATAN/ Phase 2 PGU Loop I
PCSB
PGU Loop II
SEPM (SHELL EXPLORATION & PRODUCTION AMERADA HESS (MALAYSIA - BLOCK SB 302) LTD./
MALAYSIA B.V.)/PCSB KUFPEC/PCSB Multi-product pipeline
AN D OI L AND GAS FI ELDS
TALISMAN MALAYSIA LTD./PCSB PETRONAS CARIGALI SDN. BHD.
PETRONAS CARIGALI SDN. BHD. SARAWAK SHELL BHD./DIAMOND GAS/PCSB
MURPHY PENINSULAR MALAYSIA OIL CO. LTD./ AMERADA HESS (MALAYSIA – BLOCK F) LTD./
PCSB TOTALFINAELF/PCSB
YPF (REPSOL) MALAYSIA LTD./ SABAH SHELL PET. CO. LTD/SHELL SABAH SELATAN/
MITSUBISHI CORP./PCSB CONOCO SABAH LTD./PCSB
PIDC/PERTAMINA MURPHY SABAH OIL CO. LTD./PCSB

SARAWAK SHELL BHD.

Petronas Annual Report 2003 - Editorial

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Petronas Annual Report 2003 - Editorial

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8 PETRONAS Group Of Companies

16 The Year In Review

44 Five-Year Financial Highlights

46 The Year ’s Highlights

54 Malaysia’s Contract Areas And

We Are A Business Entity

Petroleum Is Our Core Business

Our Primary Responsibility Is To Develop

Our Objective Is To Contribute To The Well

To Be A Leading Oil And Gas Multinational

Nasional Berhad, is Malaysia’s national companies, PETRONAS is an integrated

petroleum corporation. Incorporated on international oil and gas company with

Act, 1965, it is wholly-owned by the

Malaysian Government. The Petroleum THE GROUP is engaged in a wide range of

Development Act, 1974 vests in activities, including upstream exploration

c o n t rol of the petroleum re s o u rces in oil refining; marketing and distribution

Malaysia. 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

Nasional Berhad, is Malaysia’s national companies, PETRONAS is an integrated

petroleum corporation. Incorporated on international oil and gas company with

Act, 1965, it is wholly-owned by the

Malaysian Government. The Petroleum THE GROUP is engaged in a wide range of

Development Act, 1974 vests in activities, including upstream exploration

c o n t rol of the petroleum re s o u rces in oil refining; marketing and distribution

Malaysia. 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

Datuk Ishak Imam Abas

Dato’ Haji Mohd. Ali Haji Yasin

Committee Dato’ Shamsul Azhar Abbas

Abdul Rahim Haji Hashim

Yeow Kian Chai

Ainon Marziah Wahi Mohamad Johari Dasri

George Ratilal Mohammed Azhar Osman Khairuddin

Datuk Ishak Imam Abas

Dato’ Haji Mohd. Ali Haji Yasin

Committee Dato’ Shamsul Azhar Abbas

Abdul Rahim Haji Hashim

Yeow Kian Chai

Ainon Marziah Wahi Mohamad Johari Dasri

George Ratilal Mohammed Azhar Osman Khairuddin

Companies at 31 March 2003

Companies at 31 March 2003

Tan Sri Dato’ Seri Azizan Zainul Abidin

Tan Sri Dato’ Seri Azizan Zainul Abidin

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

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,

increasing 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