Value-Chain Analysis

Petronas Primary Activities:

1. Operations:
Petronas Exploration & Production and Petronas Gas & Power extract fuel, oil, gas
as raw materials and keeps that as inventory and delivers those goods. Petronas begin with
exploration, development and production of crude oil and natural gas. From crude oil, there
will be refined process that will produce petroleum products. While Petronas Gas & Power
process the natural gas to be petrochemical plant, liquefied petroleum gas (LPG) and
processed gas/peninsular gas utilisation(PGU) system or go through liquefaction process to
produce liquefied natural gas (LNG).
3. Distribution:
Petronas maintain theirs strong distribution channel by using shipping, proper
delivery of goods and keeping a good relationship network with its local and international
distributors.
4. Sales and Marketing:
Petronas use a vast advertising policy by giving advertisement through TV,
Newspaper, and Journals etc. They also emphasis on market research and planning activities.
This is undertaken by three wholly-owned subsidiaries of PETRONAS Trading Corporation
Sdn Bhd (PETCO) namely, PETCO Trading Labuan Company Limited (PTLCL), PETCO
Trading UK Limited and PETCO Trading DMCC. In Malaysia, PETRONAS Dagangan
Berhad (PDB) is responsible for the domestic marketing and retailing of a wide range of
petroleum products. Within the ASEAN region, PETRONAS Dagangan Berhad (PDB has
established subsidiaries namely, PETRONAS Energy Philippines Inc (PEPI), PETRONAS
Vietnam Co Ltd (PVL) and PETRONAS International Marketing (Thailand) Co Ltd
(PIMTCL) to market LPG and lubricant products. PETRONAS also operates service stations
in South Africa and Sudan. It is the leading retailer and marketer of petroleum products in
South Africa through Engen. In other international markets, Petronas marketing and retailing
activities are managed by PT PETRONAS Niaga Indonesia (PTPNI) in Indonesia,
PETRONAS Marketing Sudan Limited (PMSL) in Sudan and PETRONAS Marketing
Ventures Limited (PMVL) in the Republic of South Sudan. PETRONAS Lubricants

International Sdn Bhd (PLI) was established in 2008 as the global manufacturing and
marketing subsidiary of PETRONAS, offering a wide range of quality automotive and
industrial lubricants across more than 80 countries.
5. Service:
Petronas is concerned about their installation services, spare parts delivery, repair of
any defect of goods and machinery, and maintenance of all the installed parts. Petronas
Exploration & Production employs innovative workflow and processes for effective
development design and planning. These efforts have earned significant cost savings, enabled
projects to be delivered ahead of time, while providing a greater return on investment.
Petronas is amongst the worlds first in maximising recovery of discovered fields with
Enhanced Oil Recovery (EOR) efforts. Petronas also applied Cutting-edge technologies
alongside new strategies to rejuvenate brownfields, extracting maximum value from existing
reservoirs. In consistently delivering some of the worlds first - pipelines, platforms and
projects, they have brought oil and gas on-stream ahead of schedule - providing rapid return
on investment for partners, stakeholders and investors.
Petronas Support Activities:
1.. Product R&D, Technology and Systems development:
All Petronas subsidiaries always gives emphasis on equipment design, maintaining
software for right extraction and telecommunication facilities for the wellbeing of their
supplier. Petronas produce HycaPureTM Hg, the worlds first ionic liquid mercury adsorbent,
which swept three International IChemE Awards in 2013 and clinched the coveted IChemE
Niklin Medal for best overall entry. Petronas also produce ProAssureTM Clamp, a
breakthrough in composite technology. The first ever pipeline repair clamp to be made of
composite material, it is poised to become a preferred solution over conventional metal
clamps. Moreover, they also produce Gas Cloud Seismic Imaging, an advanced seismic
imaging technology which zeroes in on hidden reserves obscured by gas clouds to identify
potential new resources.
2. Human Resource Management:
Petronas recruiting policy is an important factor. They hire the best graduate from the
different corners with due care and provide training for becoming the expert and capable

employee. Petronas employees come from diverse backgrounds such as Engineering,

Information Technology, Legal, Finance and Business. Good interpersonal skills are valued
as they will engage with various stakeholders such as end-users from plant operations, plant
maintenance, project teams, suppliers and contractors. PETRONAS undertook the
rejuvenation of Institut Teknologi Petroleum PETRONAS (INSTEP) in Batu Rakit,
Terengganu to become the INSTEP Integrated Oil and Gas Training Centre (IIOGTC). The
first of its kind in the region, the facility replicates actual oil and gas operations at its
Upstream-Downstream Training Plant, training drilling rig and simulator, and comprehensive
engineering workshops. This is in-line with Petronas aspiration to become the Regional
Education and Learning Hub for the Oil and Gas Industry.
3. General Administration:
Petronas has a strong general management system. The finance department works
with care, legal and regulatory affairs also follow the rules and regulations of the authority,
safety & security measures of the people are taken as a serious issue and looks after the
overhead utilities carefully.