1 . INTRODUCTION ......................................................................................... 2

1. IntroductionPETRONAS is the national oil and gas company of Malaysia and is wholly-owned by the Government of Malaysia. Together with its subsidiaries and associated companies, PETRONAS, a FORTUNE Global 500 company, has fully integrated oil and gas operations in a broad spectrum of the oil and gas value-chain.Its business activities include (i) the exploration, development and production of crude oil and natural gas in Malaysia and overseas; (ii) the liquefaction, sale and transportation of LNG; (iii) the processing and transmission of natural gas and the sale of natural gas products; (iv) the refining and marketing of petroleum products; (v) the manufacture and sale of petrochemical products; (vi) the trading of crude oil, petroleum products and petrochemical products; and (vii) shipping and logistics relating to LNG, crude oil and petroleum products. PETRONAS strives to contribute to the well-being of the people and nations wherever it operates by developing and adding value to oil and gas resources in a manner that carefully balances commercial, environmental and social considerations.PETRONAS is a global Malaysian oil and gas company that is given the right to carry out processing and refining of petroleum and manufacturing of petrochemicals. The company was founded in 1974. The company is wholly owned by the Malaysian government. The company is the 13th most profitable company in the world. Malaysia has 22nd largest reserves of world oil and the 16th reserves of world natural gas.PETRONAS is involved in several oil and gas industries such as exploring and extracting oil and gas, and refining and distributing products. As the reprehensive of Malaysian government and owner of oil and gas rights, PETRONAS has entered into negotiation with Indonesian government to settle disputes about each party claims over territorial waters and offshore resources. Since, there is a border dispute between Malaysia and Indonesia the problem is still going on.

2. THE HISTORY Hydrocarbon deposits were first discovered in the Borneo region, which is now under Malaysia territory, in the 1870s.In 1910, Royal Dutch Shell first drilled for oil in Sarawak, in the northern part of the Island of Borneo.In August 1974, the Malaysian government under then Tun Abdul Razak established Petroleum Nasional (Petronas) as its national oil company.It was incorporated on August 17, 1974 under Malaysian Companies Act with the state-owned Ministry of Finance Inc. as its sole shareholder.Petronas replaced the concessions held by Royal Dutch Shell in Borneo and Exxon on the Malay Peninsula with new production-sharing agreements that came into effect in 1976.In 1988, Petronas was able to conclude ten new production sharing contracts, the largest number of contracts signed in a year in the history of Malaysian petroleum industry.Petronas ranks among the top 20 international oil companies, with daily production of more than 750,200 barrels of oil.The company also holds 4.84 billion barrels of crude oil reserves and 2.5 trillion cubic meters of natural gas reserves.By early 2000s, Malaysia was competing with Algeria to the worlds second largest LNG exporter.Petronas has been expanding aggressively into LNG, with Malaysia accounting for 15 percent of total world LNG exports in 2005.Petronas MalaysiaImportant Achievements

1975 First export of crude oil 1976 Conclusion of production sharing contract with Shell and Esso 1978 Incorporation of Carigali, the exploration arm. 1980 Incorporation of AseanBintulu Fertilizer - marking its entry into petrochemicals 1981 Its first gas station set up in Taman TunDr Ismail, Kuala Lumpur 1982 Carigali's first oil discovery in the Dulang oilfield, offshore Terengganu 1983 Malaysian LNG exported its first shipment of liquified natural gas to Japan First refinery with 30,000 bpd capacity in Kertih, Terengganu came onstream 1984 HQ move to KompleksDayabumi 1985 First fertilizer export. First liquified export. 1990 First overseas operation - Myanmar 1994 PetronasDaganganBhd - first subsidiary listed on KLSE 1997 HQ moved from DayabumiComples to the Twin TowersHistory of PetronasOil was first found in Malaysia in July 1882 in the Baram district of Sarawak in East Malaysia by the British Resident. It was initially used by the local folks for medicinal purposes. Later it was used as fuel for lamps and also for waterproofing of boats and roofs.It was only in 1910 that the rights to explore for oil was given to the Anglo-Saxon Petroleum Company. This company later became know as Sarawak Shell. Miri became the first oil town in the then British Borneo and marked the advent of Malaysia into the oil and gas business. However further onshore exploration was not successful as there were not much oil onshore to justify further drilling activities.1960s marked the change of fate for Malaysia with the commencement of offshore drilling which was made possible by advancing technology. It saw the discovery of major oil reserves off Sarawak shores.1970s saw major oil discoveries off the state of Trengganu in Peninsula Malaysia.In the earlier days concessions were given to foreign oil companies to explore for oil. In return these companies paid a paltry royalty and taxes to the government.This all changed after the Isreali War in 1973 when the OPEC countries decided to put out an oil embargo. It resulted in the price of crude oil skyrocketing.In order to better manage this limited and exhaustable resource, Malaysia introduced the Petroleum Development Act 1974 and the national oil company, Petronas, was incorporated.Company BackgroundCome 2002, Union Carbide Corporations stake in the Group was taken over by The Dow Chemical Company (Dow), a diversified industry-leading global giant with a portfolio of specialty chemicals, advanced materials, agrosciences and plastics businesses that delivers a broad range of technology-based products and solutions.

January 2002, marked a momentous occasion for the Group. The first on-spec ethylene was produced the new chapter from project stage to a fully operational petrochemical company had begun. The operations of the final reactor in the OPTIMAL Complex in October 2000 recorded the completion of the project phase. Named the OPTIMAL Group of Companies.

In 2010, PETRONAS acquired all the shares owned by Dow which subsequently led to the OPTIMAL Group becoming part of PETRONAS Chemicals Group Berhad (PCG). This became a turning point for us. We are now a member of a focused, driven Group under the PETRONAS family.

Corporate Logo

PETRONAS Logo was created in 1974 by Dato' Johan Ariff ofJohan Design Associates.He is also responsible in creating the Logo of many PETRONAS subsidiaries, JVs, link-companies and properties, including Kuala Lumpur City Centre (KLCC), MISC, MMHE, UniversitiTeknologi PETRONAS (UTP), Kuala Lumpur Convention Centre, Putrajaya Holdings, Prince Court Medical Centre (PCMC), PETLIN, Malaysian Petroleum Club and Mesra Mall, to name a few.

Logo ConceptThe basic structure is geometric, embodying metaphoric and alpha glyphic nuances of an oil drop and a typography 'P', the latter being evident in the triangle assigned at the top right corner. The triangle is also an essential element to define directional movement and dynamism. The placement of a solid circle in the Logo is interpretive if the wheel of the oil and gas industry while outline of the drop simulates a driving system, the energy which to be derived from oil.The Corporate Colour chosen for the Logo is Emerald Green, an obvious reference to the sea from where oil and gas are drilled.The Corporate Logotype named 'Alpha PETRONAS' is designed in uppercase exclusively for PETRONAS and its subsidiaries. Each alphabet is rendered with a rounded profile to assume fluidity and viscosity, while emphasizing the oil based operation.

Vision, Mission & Shared Values of PETRONAS.Vision and MissionThese statements define PETRONAS as an organisation, guiding our corporate activities and policies, setting our course for the future.Vision StatementTo be a Leading Oil and Gas Multinational of Choice.Mission Statement 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

Shared ValuesOur values are embedded in our culture as the backbone of our business conduct, reflecting our sense of duty and responsibility in upholding our commitment towards contributing to the well-being of peoples and nations wherever we operate.TEAM MANAGEMENT COMMITTEE OF PETRONAS Tan Sri Dato' ShamsulAzhar AbbasPresident & Chief Executive OfficerDatuk Wan Zulkiflee Wan AriffilChief Operating Officer & Executive VicePresidentDownstream Business

DatukAnuar Ahmad Executive Vice PresidentGas & Power Business

Dato' Wee YiawHinExecutive Vice PresidentExploration & Production Business

DatukManharlalRatilalExecutive Vice PresidentFinance

Ramlan Abdul MalekVice PresidentPetroleum Management

Dr Colin Wong HeeHuingVice President Technology & Engineering

MdArifMahmoodVice President Corporate Strategic Planning

MohamadRauffNabiBaxVice PresidentLegal

RaihaAzniAbdRahmanVice President Human Resource Management

DatukNasarudinMdIdrisPresident/CEOMISC Berhad

Dato Mohammad Medan AbdullahSenior General ManagerGroup Corporate Affairs

HazleenaHamzahSecretary

Exploration & Production BusinessAs custodian of Malaysias oil and gas resources, PETRONAS is entrusted with the responsibility to develop and add value to the nations hydrocarbon resources. In the early years, PETRONAS focused its efforts on managing the production sharing contractors who were exploring Malaysian acreages, but PETRONAS soon saw the need to take on a bigger and more proactive role in augmenting the nations oil and gas reserves. PETRONAS has also reintensified efforts to strengthen Malaysias upstream industry through the enhancement of fiscal terms and the introduction of new petroleum solutions, leveraging on the Governments new tax incentives.Through its Exploration & Production (E&P) subsidiary, PETRONAS CarigaliSdnBhd (PETRONAS Carigali), PETRONAS has developed capability as a hands-on operator with a track record of successful oil and gas developments. PETRONAS Carigali works alongside a number of petroleum multinational corporations through Production Sharing Contracts (PSCs) to explore develop and produce oil and gas in Malaysia. Abroad, PETRONAS continues to strengthen its position by securing new acreages while undertaking various development projects. The Petroleum Management Unit of PETRONAS acts as resource owner and manager of Malaysias domestic oil and gas assets. It manages the optimal exploitation of hydrocarbon resources and enhances the prospectively of domestic acreages to attract investment and protect the national interest. One of the key drivers of its business growth is deepwater E&P, with many positive prospects emerging in Malaysian acreages.

PETRONAS continues to harness and develop new technologies to maximise opportunities and further strengthen its capabilities as part of its ongoing efforts to become a leading global E&P player.Gas & PowerPETRONAS Gas & Power Business aspires to be a leading integrated gas, liquefied natural gas (LNG) and power player. To create greater focus in these core areas of growth, the business has been structured and streamlined into two major portfolios; Global LNG business and Infrastructure, Utilities & Power business.Global LNGPETRONAS global LNG business comprises the production and sale of LNG through its domestic operations in Bintulu, Sarawak (PETRONAS LNG Complex) and overseas operations in Egypt (Egyptian LNG). PETRONAS operates one of the worlds largest LNG facilities in Bintulu, Sarawak, which consists of three plants, MLNG, LNG Dua and MLNG Tiga, with a combined capacity of 24 million tonnes per annum.PETRONAS is also involved in LNG and energy trading activities through its marketing arms in Malaysia and Europe (PETRONAS LNG Ltd and PETRONAS Energy Trading Ltd).At present, PETRONAS commands a sizeable LNG market share in the Far East. Over the years, PETRONAS has sustained its market position and preserved its reputation as a reliable supplier of LNG, having sold more than 7,000 cargoes since the establishment of its first LNG plant in 1983.As a global LNG player, PETRONAS is determined to defend its significant traditional Far East market and seize opportunities on the growing spot market, while continuing to grow its LNG presence in the Atlantic basin.PETRONAS is also establishing its foothold in European energy trading, which includes electricity and carbon trading.GLOBAL ECONOMY OF PETRONAS Petroliam Nasional Bhd.,Malaysias state energy company, defended its 8.8 billion ringgit ($2.8 billion) buyout offer price forMISC Bhd. (MISC)after criticism from minority shareholders that its too low.Its the right number, ShamsulAzhar Abbas, chief executive officer of Petroliam Nasional, or Petronas, told reporters in Kuala Lumpur today, after announcing a 57 percent drop in fourth-quarter profit. Its a premium. Everyone has the right to choose.Petronas offered 5.30 ringgit per share in January for the rest of the world second-largest liquefied natural gas shipping company it doesnt already own. The Employees Provident Fund, MISCsbiggest minority shareholder, wants a higher price, AzlanZainol, chief executive officer of the countrys biggest pension fund said March 1. Penang Development Corp. and Pacific Mutual Fund Bhd. have also said the offer undervalues the company.Fourth-quarter net income fell to 5.97 billion ringgit in the three months ended Dec. 31 from 13.81 billion ringgit a year earlier after suspending production in South Sudan and booking impairments on assets inEgypt, Petronas said in a statement today. Revenue fell 1.6 percent to 76.77 billion ringgit.We continue to face headwinds due to the weaker global economy, Shamsul said.Petronas owns 63 percent of MISC shares, while EPF holds 9.6 percent, according to data compiled by Bloomberg.

Liner ExitMISCfell0.2 percent to 5.27 ringgit as of 4:30 p.m. in Kuala Lumpur before todays earnings announcement, tracking a 0.1 percent decline in the benchmark FTSE Bursa Malaysia KLCI Index. Petronas offer price was a 19 percent premium to the stocks last traded price of 4.45 ringgit before the Jan. 31 bid, a level last seen in April 2012.MISC completed a rights issue at 7 ringgit per share in February 2010. The stock subsequently tumbled as the company booked losses and exited the liner industry.A buyout would provide Petronas with greater flexibility in revamping MISC, the group said when making the offer. Minority shareholders can join us in this misery if they wish, Shamsul said today.Petronas and its partners were forced by SouthSudans government to shut down oil production at TharJath field in Unity state amid a dispute with its northern neighbor Sudan over transportation fees for its exports. This led to a loss of about 120,000 barrels of oil equivalent per day production, the Malaysian energy group said in todays presentation.Total production for the quarter was 2.08 million barrels of oil equivalent per day compared to 2.1 million barrels during the same period last year, Petronas said.

THE GLOBAL MANAGEMENT Petroliam NasionalBhd (Petronas)announced its 2008 annual results, with year ending (YE) 31 March 2009 with RM 264 Billion turnover and RM 89.4 Billion EBITDA. This is a really large contribution to the nations coffer, as RM 74 Billion was made as payout to Federal and relevant State Governments, in terms of income tax, dividends and royalties. Undoubtably, this is a very impressive performance considering the world market oil price is no longer hovering at USD 130 per barrel.Bernama.com has the story:June 25, 2009 15:07 PMPetronas Revenue Up 18.4 Percent To RM264.2 BillionKUALA LUMPUR, June 25 (Bernama) Petroliam NasionalBhd (Petronas) recorded another year of satisfactory performance for its financial year ended March 31, 2009, with an 18.4 percent increase in revenue to an all-time high of RM264.2 billion.However, the groups pre-tax profit fell 6.7 percent to RM89.1 billion while net profit declined 13.9 percent to RM52.5 billion.At a press conference to announce the results, Petronas president and chief executive officer Tan Sri Hassan Marican said the stronger revenue was driven by higher sales volume and liquefied natural gas (LNG) prices.The lower pre-tax profit, according to him, resulted from higher production and operating costs.However, he said the drop was well within the decline recorded by major oil and gas companies which ranged between 6.4 and 25.7 percent.Notwithstanding the lower profit, the group declared a total dividend of RM30 billion, which was 25 percent higher than the previous year.Its total asset increased by 14.4 percent to RM388.1 billion from RM339.3 billion previously while shareholders funds rose by 15.1 percent to RM232.1 billion.Despite the lower profit, Hassan said that Petronas continued to make higher payments to federal and state governments.During the financial year, the group paid RM74.0 billion to governments, bringing the total payment to RM471.3 billion since its incorporation in 1974.Of the RM74.0 billion payment for the year, RM67.8 billion went to the federal government, comprising RM30.0 billion of dividend, RM20.3 billion of petroleum income tax, RM9.1 billion of corporate income tax, RM2.2 billion of export duties and RM6.2 billion of royalty payment.Another RM6.2 billion was paid in royalty payments to the state governments, with RM3.0 billion for Terengganu, RM2.3 billion for Sarawak and RM0.9 billion for Sabah.The RM74.0 billion total payment to the governments represented 71.4 percent of Petronas pre-tax profit, royalty and export duty, with the group retaining only 21.1 percent of its profit during the year for reinvestment and the balance of 7.5 percent for foreign taxes and minority interests.During the financial year, Petronas increased its capital expenditure to RM44.0 billion from RM37.6 billion previously.As at Jan 1, 2009, Malaysias total hydrocarbon reserves rose to 20.18 billion barrels of oil equivalent (boe) from 20.13 billion boe last year as a result of ongoing exploration efforts and field growth activities.International reserves increased by 9.6 percent to 6.84 billion boe, following a number of significant gas discoveries in Turkmenistan and Mozambique. BERNAMA********************The fact is that since its inception 35 years ago, Petronas has dished out more than RM 471 Billion, in the form of income tax, petroleum tax, dividends and royalties to the Federal and relevant State Governments. Of which RM 263 Billion was within the last six years. For YE 2008, RM 29.4 Billion was paid as income tax to the Federal Government, which is effectively 30% of RM 88.5 Billion 2009 expected collection by the Inland Revenue Board. Petronas global turnover of RM 264.2 Billion is actually 28% more than the Federal Government 2009 expected income. Accumulated asset of Petronas amounting to RM388 Billion, if whichistaken at par value is inadvertently comparable to 38% of the market capitalisation of Bursa Malaysia. If in 2007 PM Flip-Flop Dato Seri Abdullah Ahmad Badawi claimed that the Malaysian economy is calculated at RM 1 Trillion, then last years Petronass results meant that 26% of the nations GNP comprises from one corporations contribution.

At the helm of this success story is Tan Sri Hassan Merican. A chartered accountant by profession and former partner of a big five firm, HanafiahRaslanMohamad, Hassan was brought in as a finance man and took over the CEOship from Tan Sri AzizanZainalAbidin fourteen years ago. His stewardship provided clear strategic plans andinitiatives, that movedPetronas to be a global oil and gas company. Partnership and strategic alliance were formed and now, Petronas is able to compete with some its original production sharing partners, in very competitive international markets. Presently, with offices and operations in more than 64 countries, Petronas is the most respected and profitable state owned oil corporation. Not only ranked as the 95th largest corporation in the worldin therenownedFortune 500 list, Petronas is now regarded as one of theNew Seven Sisters.PetronasDaganganBerhad, its downstream creature is now listed at Bursa Malaysia. Proud of posting over RM 800 million in profits, it has the largest network of petrol and diesel retail in Malaysia. The Mesra convenient stores have now earned its place amongst Malaysian hearts.

Petronas not only successfully played the role as the nations largest bread winner. It alsoplayed role to propel the needs of the nation, which include psychological bastion like being the highly respected super developer of KLCC and master developer of Putrajaya. Being the proud owner of the much sought after address in the KLCC complex, Petronas now calls the most prestigous and world renowned twin towers as its home. Petronas also successfully put Malaysia into the limelight of Formula 1 motorsport when it became a partner of world class racing team Sauber. Today, Petronas is a major sponsor for the BMW-Sauber team and Malay engineers have mastered some skill sets of the highly technical sporting event. Petronas acquired national shipping line MISC t synergise the logistic management of the produce and made a lot of money from operations. On top of that, Petronas also own, fund and run a highly respected private technical university,Universiti Teknologi Petronas.

KLCC was officially dedicated on National Day, 1999. After 42 years of independence, the worlds tallest office complex is now home for the largest and most profitable Malaysian company, which is actually a Malay-run-state-owned corporation. In the dedication speech, Fourth Prime Minister Dato Seri Dr Mahathir Mohamad quipped, Malaysians need to stand tall as other races of the world. KLCC is the box that will help Malaysians stand the same level as others. It was a demonstration of nations Vision 2020 policy to be a developed nations status by year 2020, is being geared up on the way. KLCC is Petronass way to announcing to the world, We have arrived. We are here to stay, for a long time. Its now a world renowned national icon.Petronas success is not only a Malaysian success. It is aMalay corporate success. All of itsboard of directorsandalmost all of its executivesand professionals are Malays. They do the strategic thinking, planning, negotiating and execution. The strategic partnerships forged, especially with bigger players were proven to be the key to all these success stories. These are those whooriginated from humble beginnings and most of them actually benefitted from the New Economic Policy (NEP), especially from the provisions of education and human capital development, which was implemented since 1971. Like the NEP, Petronas was formed during Tun Abdul Razak Husseins premiership (1970-1976).Petronass role in making the NEP a success is best illustrated from the Vendor Development Program (VDP), which successfully nurtured many Malay companies to be suppliers, service providers and fabricators of the high technology induced and very competitive industry. Developed under the auspicious and close monitor of Fourth Prime Minister Tun Dr. Mahathir Mohamad, many former oil and gas Malay professionals found opportunities to nurture their entrepreneurism from Petronass VDP and now able to compete at regional and international markets. The recent concluded and highly successfulOil and Gas Asia 2009showcased hundreds of such local talents. Some of these Malay owned and managed corporations even got listed.Petronas grew termendously in size, quantity and quality of productivity under the premiership of Fourth Prime Minister Tun Dr. Mahathir Mohamad. It is by far the national pride and treasure.It is imperative that Petronas continues to be managed by professionals and independent from the clutchesof personalities, who have ulterior motives. This include politicians and political appointments into the BOD and top executive positions.

Infrastructure, Utilities & PowerPETRONAS Infrastructure, Utilities & Power business focuses its efforts towards ensuring long term security and sustainability of the gas market in Malaysia and expanding its portfolio of infrastructure and power positions in high growth markets. The business is leveraging on its widely respected operational excellence and sustainable energy developments. PETRONAS, through its majority-owned subsidiary, PETRONAS Gas Berhad (PGB),operates the Peninsular Gas Utilisation (PGU) system, comprising six processing plants and approximately 2,505 km of pipelines to process and transmit gas to end-users in the power, industrial and commercial sectors in Peninsular Malaysia. PETRONAS also exports gas for power generation to Singapore.The PGU system is the principal catalyst for the development of Peninsular Malaysias offshore gas fields, the use of natural gas products for power generation and utilities, and the expansion of Malaysias petrochemical industry through the use of gas derivative products, such as ethane, propane, butane and condensates.PGB is also developing Malaysias first LNG Regasification Terminal in Melaka, which is due for completion in July 2012. This will facilitate the importation of LNG by PETRONAS and third parties towards ensuring security of gas supply for the nation in the future.Globally, PETRONAS has investments in pipeline operations in Argentina, Australia, Indonesia and Thailand, as well as gas storage and LNG regasification facilities in Europe.PETRONAS is also committed to further grow in the power and renewable energy business, leveraging on existing capabilities and venturing into opportunities in key focus markets in Asia and the Middle East. Entry into the power business will support PETRONAS vision to be an integrated energy company.

Downstream BusinessPETRONAS Downstream Business plays a strategic role in enhancing the value of Malaysias oil and gas resources through its integrated operations in refining and trading, marketing of crude oil and petroleum products locally and internationally, as well as through manufacturing and marketing of petrochemical products.Refining & TradingPETRONAS owns and operates three refineries in Malaysia, two in Melaka (collectively known as the Melaka Refinery Complex) and another in Kertih (the Kertih Refinery). The first refinery in Melaka is 100% owned by PETRONAS while the second refinery is 53% owned by the Group.PETRONAS also operates a Group III base oil refining (MG3) plant in the Melaka Refinery Complex. PETRONAS also has an oil refining presence in Africa through its 80% owned subsidiary, Engen Petroleum Limited (Engen), a leading South African refining and marketing company that owns and operates a refinery in Durban, South Africa.To carry out trading activities in crude oil and petroleum products in the Malaysian and international markets (including Asia, Africa and the Indian subcontinent), PETRONAS formed a wholly-owned subsidiary, PETRONAS Trading Corporation SdnBhd (PETCO). PETCO also trades in crude oil and petroleum products produced by affiliates and third parties, and has trading operations in Dubai and London via its wholly-owned subsidiaries PETCO Trading DMCC and PETCO Trading UK Limited, respectively.Downstream MarketingPETRONAS is engaged in domestic marketing and retailing activities through PETRONAS DaganganBerhad (PDB), a majority-owned subsidiary, which markets a wide range of petroleum products, including gasoline, Liquefied Petroleum Gas (LPG), jet fuel, kerosene, diesel, fuel oil, asphalt and lubricants. PDB also has interest in Malaysias Multi-Product Pipeline and the Klang Valley Distribution Terminal that transports gasoline, jet fuel and diesel oil from the refineries to major demand centres in the Klang Valley. Besides marketing activities, PDB also jointly operates a jet fuel storage facility and hydrant line system at the Kuala Lumpur International Airport.PETRONAS has also established its downstream marketing presence in key Asian markets. PT PETRONAS NiagaIndonesia,a wholly-owned subsidiary, operates retail stations as well as markets petroleum products to industrial and commercial customers, and manages a network of local lubricant distributors in Indonesia. In Thailand similar activities are undertaken by PETRONAS Retail (Thailand) Co Ltd that also supplies jet fuel to the Don Muang International Airport and the Suvarnabhumi International Airport, Bangkok. In China and India, the Groups lubricant products are sold through PETRONAS wholly-owned subsidiary, PETRONAS Marketing China Company Ltd and PETRONAS Marketing India Private Ltd (PMIPL), respectively. PMIPL also has exclusive supply arrangements and collaborations with major Original Equipment Manufacturer (OEM) partners and car manufacturers.In Africa, PETRONAS subsidiary Engen has the largest retail network of service stations in South Africa as well as a strong retail presence in the Sub-Saharan region in countries including Botswana, Burundi, Kenya, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Runion, Swaziland, Tanzania, Zambia and Zimbabwe. In the Sudan, PETRONAS Marketing Sudan Limited (PMSL), a wholly owned subsidiary is engaged in the marketing and retailing of petroleum products and lubricants, as well as owns and operates retail stations. PMSL also provides into-plane service at the Khartoum International Airport and El-Obeid International Airport, which is the main base for the UN World Food Programmes operations in the Sudan. PMSL also supplies fuel to the UN-African Union Mission peacekeeping force in Darfur and operates refuelling stations and depots.With a presence in more than 20 countries worldwide, PETRONAS Lubricants International SdnBhd (PLISB) is the lubricants arm of PETRONAS. PLISB has established a manufacturing base and distribution channel to sell its products in the European market by virtue of acquiring the FL Selenia Group, (renamed PL Italy Group) and offers lubricants, transmission, anti-freeze and functional fluids for automobiles, trucks, agricultural tractors and earth moving machinery as well as for other industrial equipment to the market.Leveraging on PL Italy Groups strong OEM relationships and world-class research and development capabilities, PLISB currently has a long-term supply, technical, collaborative and commercial agreement for the exclusive right to supply lubricants to Fiat Italy via PL Italy Group.Also in the lubricants marketing sector, PETRONAS Base Oil (M) SdnBhd, a wholly owned subsidiary of PETRONAS, undertakes the marketing of MG3 base oil in Malaysia and the Asia Pacific region whereas marketing in Europe is handled by PETRONAS Marketing Netherlands BV. PETRONAS markets its base oil products under the brand ETRO.Apart from eight LPG bottling plants in Malaysia, PETRONAS also has LPG facilities in selected Asian countries namely in India, the Philippines and Vietnam, either through a joint venture or wholly-owned subsidiary.PETRONAS Aviation SdnBhd, a wholly owned subsidiary of PETRONAS, markets PETRONAS aviation fuel in the global market, including to Malaysia Airlines, as well as to Shell, Ceylon Petroleum Corporation and Repsol YPF for locations in Buenos Aires, Colombo and Hong Kong.2.1 PETRONAS Competitive PositionPETRONAS has a number of competitors in the oil and gas market, such as, SHELL, PROJET, BP, and ESSO. Generally, all these companies have similar products and services. What sets them apart are the variety of products, services, promotional strategy, product branding and image, company identity and marketing strategies. Currently, PETRONAS is a major player in the industrial market for oil and gas, within Malaysia, hopefully expanding its branches towards even more prospective neighbouring countries. With the support from the government, as a national oil and gas producer, PETRONAS has set its identity at a level of equal with its major competitors, mainly SHELL.With these competitions, PETRONAS looks into their marketing strategy in order to rank in more potential customers. In our report of PETRONAS marketing strategy, we analyze PETRONAS ability of:

Dealing with competition, segmenting, targeting, and positioning strategy Marketing promotion Integrated Marketing Communications (IMC) Marketing promotion The Promotion Mix3.0 ANALYSIS AND DISCUSSION3.01 SWOT Analysis

Petroliam NasionalBerhad (Petronas) is Malaysia 's national petroleum company. Over the years, it has become a fully-integrated oil and gas corporation with operations in more than 30 countries worldwide. It is ranked among Fortune Global 500's largest corporations in the world. The company delivered another record performance for the fiscal year ended March, 2008. Its strong and diversified base of upstream assets gives the company a significant competitive advantage. However, price escalations and increasing competition could lead to lower operational growth and market share for the company also suffering from supply and production disruptions in its operations.

StrengthsRobust Revenue GrowthPetronas delivered a record revenue performance for the fiscal year ended March 2008. The company recorded highest-ever revenue at $66,215 million in the fiscal year 2008, an increase of 29.9% over 2007, driven by higher sales volume and average realized prices. The company's revenues from Malaysian and international operations increased 15.07% and 34.3% respectively in 2008, demonstrating its growing operational presence. The company's profit before tax (operating profit) increased by 33.78% to $29,333 million, as the company successfully contained costs despite operating in an environment with disproportionate operating cost escalations. The net profit was $20,002 million in the fiscal year 2008, an increase of 38.4% over 2007. Petronas also had a stronger balance sheet with assets totaling $106,039 million in the fiscal year 2008, an increase of 24.4% over 2007. The long term debt burden of the company decreased to $9,314 million in 2008, as compared to $9,418 million in 2007 and $9,860 million in 2006. Robust revenue growth will allow the company to pursue strategic capital investment opportunities in the future.Diversified OperationsThe company has vertically integrated operations along the energy value chain, both locally and globally. Its operations encompass the full spectrum of oil and gas operations, in the areas of oil and gas exploration and production to oil refining; marketing and trading of crude oil and refined products; gas processing and liquefaction; operation of gas transmission pipeline network and marketing of liquefied natural gas. The company also engages in petrochemical manufacturing and marketing, shipping and property investment. Petronas operates in more than 33 countries worldwide through five business divisions, namely exploration and production, gas business, oil business, petrochemicals and logistics and maritime. The company generated 22% of the total revenues during the fiscal year 2007 from its exploration and production operations; while the gas business, oil business, petrochemicals and logistics and maritime divisions accounted for 19%, 43.8%, 5.8% and 4.5%, respectively.

The integrated nature of the company's business operations enables it to add value to the energy value chain and pursue strategic growth opportunities and cost savings. Further, the diversified operations of the company in terms of business divisions and geographic locations relieve it from risks related to a downturn in one particular market.

WeaknessesDeclined Upstream AssetsPetronas has strong upstream assets. The company's reserves position is strong in terms of capacity, replacement ratio and geographic diversity. At the end of the fiscal year 2008, the company's proved reserves totaled 26.37 billion boe as compared to 26.49 billion boe. The reserves replacement ratio (RRR) in 2008 was 0.9 times in Malaysia and 0.6 times internationally as compared to 1.4 and 3.2 times during 2007. Lack of proper reserve replacement as compared to the previous year could impact the company's plans of increasing its sales and maintaining a stable supply source.Refinery DisruptionThe company's overseas refinery in Durban , South Africa suffered disruption of operations during the fiscal 2008. The company's production from the plant declined by 9.1% owing to unplanned shutdowns as a result of fire. As a result the company's supply and distribution operations got affected. Disruption of operations resulted in financial losses and operational adjustments. The company also suffered similar loss by fire in its home country storage facility in 2006. Continuing disruption in operations by mishaps could lead to huge cumulative losses in the near future. It would not only affect the operations but also lengthen the sales cycles thereby reducing the profitability.

OpportunitiesIncreasing LNG CapacityPetronas is aiming to build a global, integrated LNG business. After commencing operations in the previous year 2006, the company's share of production from the ELNG project increased from 1.2 million tons to 1.8 million tons during the year 2007. Currently, the company is involved in the debottlenecking of the MLNG Dua Plant in Malaysia , which will increase the combined production capacity of the Petronas LNG Complex by 1.2 million tons per annum to about 24 million tons per annum. The debottlenecking project is scheduled for completion in 2009. Further, the Dragon LNG receiving and regasification terminal in the U.K. is expected to be operational in 2008 and will provide the company with access to the U.K. and European gas markets and a home for future LNG cargoes.

The natural gas demand, driven by the demand for LNG and high fuel prices, is expected to grow significantly. Global consumption of natural gas is projected to increase by nearly 70 percent between 2002 and 2025, to reach 156 trillion cubic feet in 2025. During 2005-2010, demand for natural gas is expected to increase at 2-3% per annum. The company's focus on natural gas and LNG, makes it well positioned to tap opportunities in the growing LNG market worldwide.Rising Demand for Oil and Natural GasThe strong economic growth in the developing countries will drive global oil and natural gas demand. The overall global energy demand will grow about 1.6% annually to 2030. With the growing transportation sector, the demand for liquid fuels is expected to rise at a rate of 1.4% per year. Driven by increasing demand for electricity, natural gas demand is expected to increase by 1.7% annually to 2030.

The majority of demand is expected to be driven by emerging Asian market. Petronas is well positioned to take advantage of emerging growth opportunities worldwide. The company's assets are well configured to supply liquids demand growth in Asia which is estimated to be average 2% per annum in the region through 2030. The projected increase in demand for liquid fuels and natural gas in the coming years would help the company boost its sales and strengthen its financial base.Growing Demand for Refined and Petrochemical Products in ChinaThe demand for refined petroleum products and petrochemicals in China is expected to rise sharply in the coming decades. China , despite substantial additions to domestic refining capacity, is expected to remain a net importer of refined products. The petrochemical industry in China has been facing demand supply gap. The country's demand and supply for ethylene is expected to be 24 million tons and 15 million tons respectively in 2010, which indicate that domestic supply can meet around 62% of the domestic demand. With the auto market booming, China 's demand for gasoline is expected to increase from 52 million tons in 2006 to 65 million tons in 2010. A positive outlook for petrochemicals is encouraging multinationals and domestic companies to create new capacity in China .

Currently, the company is involved in plant rejuvenation and debottlenecking projects at its polyvinyl chloride (PVC), methanol and ethylene plants in Malaysia , which would result in increased production capacity of 10% to 20% within the next two years. The company's Mega Methanol Project in Labuan , with a planned capacity of 1.7 million tons per year, is set to strengthen the company's position as a major supplier of methanol. The company could leverage growing demand for refined products and petrochemicals in China to drive top-line growth.

ThreatsPrice EscalationsThe fiscal year 2007 saw oil and gas companies globally operate in a highly challenging environment, as escalating costs overshadowed gains from high energy prices. Crude oil prices remained high during the fiscal year as global demand, particularly from the transportation sector, continued to increase on the back of strong economic growth, especially in China and India . Stronger demand, coupled with lack of refining capacity globally and OPEC crude production curtailment, pushed oil prices higher. The West Texas Intermediate (WTI) and Brent crudes increased during the year 2008. The increased oil prices and demand spurred intensified industry activities and consequently drove up the company's upstream costs. The escalation in cost has already led to project delays and adversely impacted the safety, efficiency and quality of the company's operations. A continuing trend of cost escalation will also negatively affect the economic viability of the company's ongoing and planned projects, thereby pressurizing its future earning capacity.Stringent Laws and RegulationsThe oil and gas industry is subject to various national, regional and local environmental laws and regulations, with regard to the exploration and production of oil and gas, petroleum and petrochemical products and other activities. According to these laws and regulations, in many regions, companies must file and get an approval for an environmental evaluation report prior to the commencement of exploration, production, refining and chemical projects. The companies must also restrict the type, quantities and concentration of various substances that can be released into the environment in connection with drilling and production activities. Further, environmental laws and regulations also limit or prohibit drilling activities within protected areas and certain other areas; and impose penalties for pollution resulting from oil, natural gas and petrochemical operations, including criminal and civil liabilities for serious pollution.

These laws and regulations also restrict air emissions and discharges to surface and subsurface water resulting from the operation of natural gas processing plants, chemical plants, refineries, pipeline systems and other facilities that the company owns. Petronas is also subject to laws and regulations relating to the generation, handling, storage, transportation, disposal and treatment of solid waste materials. Due to increasing importance given to environmental safety, it is possible for the environmental laws and regulations to become increasingly strict and rigid. In such a scenario, the company will have to incur heavy expenses in order to adhere to the industry norms in all the regions where it has operations.

3.2 Dealing with competition; segmenting, targeting, & positioning strategies

A market is anyone with needs, capable of purchasing products or services. In a market, there would be two different market categories: consumer markets and business markets.As for oil and gas company, PETRONAS falls into both market categories which are consumer markets and business markets. Consumer who uses oil and gas for self used purpose is classified as consumer markets for example household. Meanwhile, PETRONAS also considered as business market which they selling their oil and gas to business companies for resale or producing another products. To illustrate it, a food manufacturing needs fuel as raw material in order to operates its machineries to produce foods. According to website of PetronasDaganganBerhads About Us, PETRONASs consumers for fuels are motorists, households, airlines, shipping lines, transporters, plantations, processing and manufacturing plants, power stations and commercial enterprises (2006).PETRONAS level of market segmentation is classed into mass marketing because the petrol in Malaysia is the same price with other petrol station such as Shell or Esso. PETRONAS delivered its products throughout the country, directly to customers as well as through its network of service stations, LPG dealers and industrial dealers.PETRONAS major product sale are fuels and lubricants for Malaysias market. The fuels were divided into three segment that are automotive, aviation, and industrial fuels. Meanwhile, lubricant products produced by PETRONAS into five categories that are passenger car motor oil, motorcycle oil, duty engine oil, industrial & marine oil and, transmission and gear oil. Under these segments, PETRONAS offered varieties of products which key is to target different group of market and increase market shares. Referring to appendix PETRONAS Corporate Website (which I put at da folder of must print appendix)..... it shows the segmenting on fuels and lubricants products which produced by PETRONAS.PETRONAS can be seen as having the transition of entering differentiated strategy. Differentiated strategy defined as where an organization focuses on two or more segments where it is an expansion from concentrated strategy. The oil and gas industry for PETRONAS is vast and the market can be of both consumers and business purposes. Preparing and anticipating the competitors are one of the drives that cause he change in PETRONAS to diversity. In differentiated strategy field, PETRONAS equipped themselves against rivalry such as SHELL and ESSO in Malaysia by offering numerous products that target specific market for varieties consumers to strengthen the identification on the market. Thus, it boosts the total of market share. According to PetronasDaganganBhds annual reports, the CEO reported the Company strengthened its market leadership position and widened the gap against our closest competitor. Where overall market share (total all product) improved to 40% from 38.9% in the previous year, in the other hand, major competition only accounted only 30.2% (2005).

It was fact that Competitors in the same oil and gas industries business have the same, segmenting, targeting and positioning strategies because they produce same products, which are fuels and lubricants. To deal with the competitive business environments, PETRONAS should look into other marketing strategies to strengthen their products and brand in the market. Therefore, marketing promotion is extremely essential as PETRONASs promotion is to create fundamental images and brands to the markets. PETRONAS had its own ideology in attempting consumers. According to an article name Who is Master Ma? by AdAgeChina, an advertising agency, it report that PETRONAS used ads to create buzz in mysterious campaign to captured the attention of hundreds of thousands of curious Chinese viewers (Madden 2006). Refer to appendixes Chinese (I put in da folder)These unique types of ads determine why PETRONAS is successful marketing strategies to attract buyers in new market such as China.

3.3 INTEGRATED MARKETING COMMUNICATIONS (IMC)

Integrated Marketing Communications (IMC) is the coordination of promotional efforts for maximum informational and persuasive impact (Pride et al. 2006, p. 379). In another definition, IMC is claim as the concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent and compelling message about the organisation and its products (Kotler et al. 2003, p. 410).

After examining the market segmenting for PETRONAS products, PETRONAS will then have to devise a promotional effort to market their products. The promotional effort depends on PETRONAS decision on how much they would want to spend.

LEADERSHIP AND DEVELOPMENTPETRONAS has always been associated with capability building through focused human capital development. Throughout its remarkable growth over the years, PLC has been a partner in supporting the development of its leaders. This has translated into a solid core of explicit and tacit knowledge of at PLC in developing leaders who are capable of delivering superior business results.

Our faculty consists of skilled learning facilitators and learning specialists in their respective fields where their learning approach is influenced by their decades of experience. These experts are further strengthened by the expertise of our Learning Consultants who are able to consult and advise you in choosing the most effective learning solutions.

We aspire to be able to contribute impactfully to creating and transforming leaders for corporate organisations and for our nation. You will find our comprehensive faculty profiles here.

PetrochemicalsPETRONAS first ventured into the production of basic petrochemical products in the mid-1980s and later embarked on several large scale petrochemical projects with multinational joint venture partners. PETRONAS joint venture partners have included The Dow Chemical Company, BASF Netherlands BV, BP Chemicals, Idemitsu Petrochemical Co Ltd, Mitsubishi Corporation, and Sasol Polymers International Investments (Pty) Ltd.With a view to strengthening integration and improving economies of scale, PETRONAS recently consolidated its petrochemical business under the PETRONAS Chemicals Group Berhad (PCG). The leading integrated petrochemical producer in Malaysia and one of the largest in South East Asia, PCG is the listed holding entity for all of PETRONAS petrochemical production, marketing and trading subsidiaries and has a total combined production capacity of over 11 million tonnes per annum.The petrochemical business which has been consolidated under PCG, through joint ventures with multinational petrochemical companies, developed two Integrated Petrochemical Complexes (IPCs) at Kertih and Gebeng, along the eastern corridor of Peninsular Malaysia. The concept underlying the development of these IPCs is to achieve a competitive edge through the integration of petrochemical projects using common or related feedstock and common facilities within a self-contained complex.PETRONAS Kertih IPC consists principally of ethylene-based petrochemical projects, which include two ethylene crackers, a polyethylene plant, an ethylene oxide/ethylene glycol plant, a multi-unit derivatives plant, vinyl chloride monomer (VCM) and polyvinyl chloride (PVC) plants, ammonia/synthesis gas plants, anacetic acid plant, an aromatics complex and a low-density polyethylene plant. The petrochemical projects are fully integrated with the surrounding infrastructure facilities and other process plants in Kertih, including PGBs six gas processing plants and the Kertih Refinery, all of which are located within the IPC. A joint venture comprising PETRONAS (40%), Dialog Equity Group SdnBhd (30%) and Vopak Terminals Penjuru (Jurong) Pte Ltd (30%) owns and operates the storage and distribution terminal, which has a throughput of approximately 2.7 million tonnes per annum. The Kertih marine facilities include six berths that can accommodate chemical tankers up to 40,000 dead-weight metric tonnes.The Gebeng IPC comprises mainly of propylene-based petrochemical projects. The anchor project at the GebenglPC is a joint venture between PETRONAS and BASF, which owns and operates an acrylic acid/acrylic esters plant, an oxo-alcohols complex and a butanediol plant. PETRONAS, through PCG owns and operates an MTBE/propylene plant, a propane dehydrogenation plant and a polypropylene plant. The Gebeng IPC is also host to a number of multinational chemical companies, such as BP Chemicals, which owns and operates a purified terephthalic acid plant, and Eastman Chemicals, which owns and operates a copolyester plastic resin plant.Both the Kertih and Gebeng IPCs are a major step towards establishing Malaysia as a regional petrochemical production hub. The integrated development of Malaysias petrochemical industry is expected to promote the development of the countrys industrial base, especially the plastics and chemical based component manufacturing industry.

GovernanceWith the increased attention being given to corporate governance matters in todays environment, every employee in this organization has a stake in the governance process. Maintaining an ethical, law-abiding culture provides enormous benefit to an organization like ours.As we expand and grow our business and geographies, the inculcation of our shared values across the group becomes increasingly important. Our shared values of loyalty, professionalism, integrity and cohesiveness will continue to stand us in good stead in everything we do and are the very foundation of the PETRONAS General Business Principles. This is also in keeping with the principles of the Corporate Enhancement Programme, which are aimed at positioning our mind-set and behaviour for an intensified business focus.Whilst our shared values define what we believe in and what we stand for, I believe it is timely and important for us to revise and harmonize the existing Code with our operations globally so as to enhance consistency and support effective management oversight. Accordingly, the existing Code has been revised and renamed the PETRONAS Code of Conduct and Business Ethics (CoBE). This CoBE is enhanced to accommodate developments in local and international laws and practices, as well as technological developments. Benchmarked to international standards, the CoBE together with our shared values will serve as a guiding beacon concerning how all of us are expected to conduct ourselves in our work. The CoBE will not only promote legal and procedural compliance, but it will also provide a moral compass to ensure that our individual behavior is in line with the PETRONAS Shared Values.The CoBE contains detailed policy statements on the standards of behavior and ethical conduct expected of each individual to whom the CoBE applies. The CoBE is to apply to all employees and directors within the PETRONAS Group worldwide. PETRONAS also expects that contractors, subcontractors, consultants, agents, representatives and others performing work or services for or on behalf of PETRONAS will comply with the relevant parts of the CoBE when performing such work or services. In particular, the CoBE expressly prohibits improper solicitation, bribery and other corrupt activity not only by employees and directors but also by third parties performing work or services for or on behalf of companies in the PETRONAS Group.In view of the CoBEs international application, some provisions of the CoBE will be modified to adapt the CoBE to the requirements of the local jurisdictions where PETRONAS is operating. The CoBE will have separate Country Supplements to cater to local jurisdictions applicable legislation and social mores.The CoBE is accompanied by a CoBE Guide that sets out frequently asked questions and some Dos & Donts in relation to certain specific situations. The CoBE, the Country Supplements (where applicable) and the CoBE Guide will be printed in booklets and distributed to all employees and will also be available on PETRONAS website for viewing by third parties dealing with the Company as well as the general public.As an employee of PETRONAS Group, it is incumbent upon each and every one of us to internalize and abide by this CoBE. It is the responsibility of each LINE MANAGER to ensure that our employees uphold the CoBE. The PETRONAS Board of Directors and Management attach great importance to the CoBE and urge that everyone in the PETRONAS Group make it a personal commitment to follow the CoBE.

Human Resource ManagementOf PetronasThe Human Resource Management (HR) job area in PETRONAS strives to be a strategic partner within the business, aiming to develop and deliver HR strategies, approaches and services which generate productive impact for the workforce and create value for the organisation. The various functions along the HR value chain are varied and include organisation design, people planning, talent sourcing, people development, performance management, remuneration and employee/industrial relations.

In such a dynamic environment, employees are expected to be adaptable and receptive to change while being able to undertake multi-faceted tasks and expectations. We value individuals who are inquisitive, resilient and innovative, demonstrating aptitude to grasp new ideas and information and possess ability to provide practical solutions in the workplace. Our employees are also able to recognise peoples strengths and work effectively with people of diverse styles, abilities and levels of motivation.

HR inPETRONASis one of the integral functions supporting the organisation to deliver superior business performance. It comprises of a set of people management processes that supports the business strategy to build the organisations competitive edge and ultimately aims towards attracting, retaining and developing talents.

PETRONAS`S INNOVATION The 9th of April 2011 marked yet another significant milestone for PETRONAS DaganganBerhad as we launched an advanced breakthrough fuel - the PRIMAX 95 Xtra.Our technology team has been hard at work for over two years to develop this fuel, and I am proud to say that they have successfully developed a product proven to provide greater power, smoother acceleration and better fuel mileage as compared to any other equivalent grade product in the market. PDB is proud to bring this innovative creation to you at the same price as that of the regulated price of RON 95 fuel notwithstanding its superior quality and performance.At PDB, we firmly believe in going all the way to bring the very best of our products and services to our customers. The PRIMAX 95 Xtra is a testimony of our commitment to continuously invest in developing innovative products that meet and exceed our customers expectations.The recent launch of the PRIMAX 95 Xtra showcases the importance of continuing research and improvement to the PRIMAX line of products in growing our retail business, as we believe that growth cannot only be in terms of the number of PETRONAS Service Stations we have, but also in continuously improving the quality of our fuel.We have a full-fledged PETRONAS Fuel Technician Team working with our fuel technology partners to continuously innovate and enhance our product offerings. We are excited to bring the F1 technology to the road and share it with all our customers. This is part of PDBs journey to consistently push the bar on technology to establish a new industry-wide benchmark.Extensive tests have been carried out on the fuel in laboratories and we have carried out road test through our Experience to Believe Privileged Trial and the feedback that we have received indicated that the fuel performed better as compared to their current fuel for 90% of the participants. This feedback, coupled with the positive results from independent test centres at Milbrook and Tickford in the UK, has given us the confidence that we certainly have a winning product at hand.Moreover, the launch of All The Way is a clear testimony of PDBs consistent and continuous commitment in developing products and services that exceed consumer and industry expectations. The new PRIMAX 95 Xtra, which is inspired by F1 technology, is one of such efforts to lead the market through innovation.As proven by our consistent track record all through these years, PDB is committed to go All The Way to ensure that PETRONAS remains as the Brand of 1st Choice for Malaysians.

PLI COMMEMORATES A CENTURY OF FLUIDS INNOVATION VIA FLUID ART MOVEMENT

Milan, Italy, 10 September 2012:PETRONAS Lubricants International (PLI) commemorated its 100th year of operation today by kicking off the worlds first on-line digital fluid art platform called Fluid Art Movement.Inspired byA Century of Fluids Innovation, the centenary slogan that the company adopts in tribute to the innovating spirit of its predecessors, Fluid Art Movement was launched by PLIs CEO, Amir HamzahAzizan. Mercedes AMG PETRONAS Formula One Team drivers Michael Schumacher and NicoRosberg were given the honour to roll out the first two art pieces. The launch event was held at the Triennale Art Gallery in Milan, Italy.PETRONAS in 2007 acquired FL Selenia, an independent lubricants and functional fluids entity that started off as a department in FIAT in 1912. Subsequent to the acquisition, PLI was formed to streamline PETRONAS global lubricants and functional fluids business.Being involved in fluid and lubricants when industrialization was taking shape in continental Europe, FL was the beneficiary of pioneering technology. PETRONAS acknowledged the legacy that it inherited. The spirit of fluid innovation that started a hundred years ago here in Italy will not only continue but will further enhance under PLIs Fluids Technology Solutions philosophy. We will be very cohesive in delivering lubricants and functional fluids that are packed with desired values, said Amir Hamzah.Through theA Century of Fluids Innovationcampaign, PLI aims to raise the profile of fluids, the substance that the public generally overlooks and takes for granted. In a short film that was premiered at the launch event, PLI portrays how fluids power machines to help make the world a better place.Amir Hamzah added: Machines, no matter how physically appealing and functional, are nothing but engineering sculptures without fluids, and the world may not be what it is today in the absence of fluids. Fluids are therefore the unsung hero of modernization.In conjunction with PLIs 100th year commemoration, we invite participation from around the world to join our Fluid Art Movement in appreciation of fluids. Inject them with colours, splash them onto canvas and show them off as art pieces to be shared with the world.The on-line initiative can be accessed through www.pli-petronas.com or directly on www.fluidartmovement.com from today until 31 December 2012. Finished fluid art pieces can be posted on an on-line gallery within the www.fluidartmovement.com for public viewing.Participants from Italy, Spain, Belgium, France, Germany, United Kingdom, Poland, Turkey, Portugal, Denmark, Malaysia, Indonesia, Thailand, China, India, Japan, South Africa, Sudan, Brazil, Argentina, Columbia and Chile will win an all-expenses-paid trip for two to the inaugural Grand Prix of America in New York in 2013 for entries that garner the most votes from each of the countries. They are encouraged to share their art work through social media sites such as Facebook, Twitter, Google, Flickr, Pinterest and many more to gain votes.About PETRONAS Lubricants International (PLI)PETRONAS Lubricants International (PLI) is a wholly-owned company of PETRONAS. It was formed following the unification of FL Selenia and PETRONAS Lubricant Unit in 2008. PLI manufactures, markets and distributes high-end lubricants, transmission, anti-freeze and functional fluids for land transportation, machinery and other industrial equipment. Ranked amongst the top 15 lubricant companies in the world, PLI has operations in more than 30 countries.PLI is also the total fluids provider to the Mercedes AMG PETRONAS Formula One Team. With Fluids Technology Solutions, PLI supplies fuel, engine oil, gear oil, hydraulics and other functional fluids for the Teams usage in official test programs and races under the FIA Formula One World Championship.

STRATEGIC PLANNING

IR PolicyPETRONAS DaganganBerhad (PDB) is the Malaysian marketing and retailing arm of downstream petroleum products for Petroliam Nasional (PETRONAS). As a company listed on the Malaysian Stock Exchange or Bursa Malaysia, PDB is committed to engage and communicate with its investors through a structured Investor Relations programme.The end objective of the Investor Relations Programme is to attain an accurate valuation of PDB from the domestic and international investing community that will enhance the company's Brand Value.

The Policy also acts as a statement of PDB's commitment on the company's intent on maintaining open, consistent and effective communication with its investing community and other stakeholders.Investor Relations ProgrammePDB will endeavour to continuously practice an effective Investor Relations Programme. The programme will be developed, implemented, managed and reviewed by the Investor Relations team currently residing within Strategic Planning Department,under Finance Division. The programme will be executed under the counsel and purview of appointed Investor Relations Spokespersons.

Material Company Information and Disclosure GuidelinesMaterial Company Information is defined as information which may be reasonably expected to have an effect on the market price or value of the company's securities and / or activity in the trading of its securities, and include key developments and events that are not exhaustive to the following:1 Major change in shareholding affecting the control of the company;2 New issues of securities by the company or a change of terms for existing securities;3 Information on dividends;4 Mergers and acquisitions, major business deals and major loss of business;5 Significant changes in the company's business, strategy or investment plans6 Major restructuring of the company;

The approving authority for the disclosure of material information by the designated spokespersons is the Board of Directors, as recommended by the Investor Relations Team in consultation with the designated spokespersons.All Material Information to be disclosed must be accompanied by a legal disclaimer as deemed appropriate by the Legal Services Department.

Material Information that has explicitly been publicly disclosed may be further disseminated at the discretion of the respective spokespersons. The designated spokespersons shall be accountable for all other non-Material Information disclosed at any engagement platforms.Investor Relations Communication and Engagement

PDB, its Board of Directors, members of its Management Committee and the designated the delivery of timely, accurate, clear and consistent Material Company Information to its investing community, beyond the obligatory disclosure requirements to Bursa Malaysia.PDB is committed to ensuring sustained shareholder engagements through the following platforms:

Over and above the commitments listed above, PDB will also respond to requests for ad-hoc meetings by analysts / institutional investors selectively, as permitted by the Investor Relations' activity calendar and availability of appropriate spokesperson/s.The Annual Report will be produced internally as a collaborative project, led by the Investor Relations team which resided in Strategic Planning Department of Financial Division, the Legal Services Department and the Branding Department. The Annual Report is a crucial communication tool between PDB and its shareholders / stakeholders, and the company is committed to ensure that the information contained in the Annual Report is substantial, valuable and accurate. The Annual Report, once endorsed by the Board of Directors, will be distributed to all shareholders in the Shareholders' Registry prior to the AGM. A copy of the Annual Report will also be made available on the company website.

Annual General Meeting (AGM)The AGM will serve as the main engagement platform between individual shareholders and the Board of Directors of PDB. The details of the event will be announced 21 days before the AGM through an official announcement to Bursa Malaysia, followed by a notice placement in at least two (2) mainstream print media. The AGM will be held at a venue reasonably accessible to all shareholders.Analysts' BriefingsPDB commits to holding quarterly Analysts' Briefings each Financial Year, in conjunction with its quarterly Financial Results Announcement. Invitations to the event will be sent to all Analysts and Institutions in the PDB database at least two (2) weeks before the event. The Analysts' Briefings will be hosted by a designated Investor Relations Spokesperson.Financial Results AnnouncementPDB will announce its financial results for each quarter to Bursa Malaysia at the latest a day after the audited financial accounts have been endorsed by the PDB Board of Directors. This will be followed by a Press Release to the local business media and news wires. A Press Conference may be called at the discretion of the Board of Directors.

Institutional Shareholders' Engagement SessionsEngagement sessions with institutional shareholders may be held in groups, where a designated Investor Relations Spokesperson will host five (5) to six (6) representatives of PDB's institutional shareholders. One-to-one meetings or interviews with investors, analysts and the media may also be held in addition to these engagement sessions.

Corporate Roadshows

PDB commits to participate in Corporate Roadshows or Corporate Day events that are deemed to be valuable and impactful in achieving the Investor Relations Programme objective at least twice each financial year. PDB will be represented by the Investor Relations team and a designated Spokesperson at these events, during which a corporate presentation may be made available to the participating audience. A copy of any such presentation material will be made available on the company website after the event.Extraordinary General Meeting (EGM)The EGM will be held as and when necessary to inform and receive feedback from shareholders regarding a material development in the company's business. The results of the EGM will be announced to the Bursa Malaysia, followed by a Press Release to the local business media and news wires. A Press Conference may be called at the discretion of the Board of Directors.To ensure effective and consistent dissemination of information, PDB will produce communication collaterals to present Material Company Information in a targeted and consistent manner.Communication collaterals may include but are not exhaustive to: Annual Reports, Press Releases, selected Speeches by designated Company Spokesperson/s, Advertorials, Articles / Write-ups, and selected Presentation materials.For the official announcement of material information, PDB will distribute related communication collaterals to shareholders and other stakeholders via the appropriate communication channels and engagement platforms. These collaterals will also be made available post-event to shareholders and other stakeholders via the company website or upon request.PDB endeavours to practice interactive, two-way communication under its Investor Relations programme and welcomes constructive comments or feedback from its shareholders by providing sufficient feedback mechanisms for this purpose. Engagement platforms such as AGMs, EGMs, Analysts' Briefings and Institutional Shareholder Engagement Sessions will provide for question and answer sessions. Investors and other stakeholders are also encouraged to provide feedback via the company website.

Accountability and ResponsibilityThe Board of Directors is accountable for the endorsement and adoption of this policy, following which the policy and the clauses herewith will be applicable to all company staff.In regards to the Investor Relations Programme, the accountability structure is illustrated as follows:

Investor Relations Spokespersons and Communication AuthorityThe designated spokespersons for PDB's Investor Relations matters in accordance to the organisation hierarchy are as follows: PDB Board of Directors

MD / CEO

GMFinancial Services DivisionHeadInvestor Relations

The MD/CEO as the primary executive spokesperson may appoint the GM of Financial Services Division or the Head of Investor Relations to lead and / or host any Investor Relations communication / engagement activity. Other members of the Management Committee may also be appointed as spokesperson for specific subjects at selected communication platforms.No other person/s working within or outside PDB is authorised to represent the company on its Investor Relations matters or provide Material Information on behalf of the company to the company's investing community or other stakeholders.Privileged / Confidential InformationAs a public-listed entity, information on pending major corporate or business developments can have significant impact on the company's securities and be used by independent parties for personal gain. In this regard, PDB will endeavour to the best of its abilities through strict legal procedures to protect the confidentiality of information provided to internal and external parties.Investor Relations' Role in Corporate CommunicationsCommunications to the Media and Wider PublicInvestor Relations is an important element of the overall Corporate Communications for PDB, addressing a specific segment of the company's stakeholders - Institutional and Retail Investors, Financial Analysts and selected Financial / Business Media;The Investor Relations team will engage with these stakeholders as part of the Investor Relations programme and build good working relationships directly to facilitate open, two-way communication; andOn occasions where the company is requested to respond to other stakeholders, in particular the mainstream media on matters that could potentially impact the company's shareholders, the Investor Relations team will work with the Branding Department to provide an appropriate and timely response.

Crisis Communications

In the event of a company crisis, the Investor Relations team should be part of the Crisis Communication team to ensure the following:

Matters of material consequences to the company's shareholders be appropriately written, endorsed by the Board of Directors and communicated to Bursa Malaysia and shareholders as deemed necessary; and

All other information being communicated to external parties is vetted for misrepresentation that can potentially harm the company's value.

Representation of Petroliam NasionalBerhad (PETRONAS)At any of PDB's Investor Relations event or engagement platform, members of the company's Board of Directors and Management Committee, spokespersons and the Investor Relations team represent only PDB and will exercise their designations that reflect as such.During these events, the representatives of PDB will not disclose information or respond to external queries related to PETRONAS or any other subsidiary / public-listed company within the Group, but may however, act as a liaison to direct external queries to the appropriate channels.

Endorsement and Revision of the Investor Relations Policy

The Investor Relations Policy is endorsed by the Board of Directors of PDB, and is applicable to the Board of Directors and all staff of PDBThe Policy will be reviewed on a bi-annual basis by the Investor Relations Team, and recommended amendments, if any, will be submitted for endorsement by the Board of Directors to ensure relevancy and effectiveness of the Policy in achieving the Investor Relations Programme objectives.

In the event of changes to external factors impacting the credence of the Policy, a special review may be exercised and a submission to amend the Policy presented to the Board for endorsement.

Conclusion

The negations aims to protect each party rights and interests and trying to reach a common interests. Listening to each party version of the story is important to understand the problem. The objective of negotiation is to reach understanding and resolve the points of difference. If PETRONAS is planning to move forward or speed the negations in order to reach common ground it must be ready to compromiseits demands. Negations is always two sided, so one party cannot dictate negations process.

References:

1. . Offshore Magazine. 2007-08-27. Retrieved 2008-07-15.2. . The Star. 2008-05-08. Retrieved 2008-07-15.3. .Palmer, Alison Lee (2008). Scarecrow Press. p. 209.4. Wells, Matthew (2005).Skyscrapers: structure and design.Laurence King Publishing. p. 170.5. "Information Malaysia." (2005). Berita Publ. Sdn. Bhd.6. Taranath, Bungale S. (2004).Wind and earthquake resistant buildings: structural analysis and design.CRC Press. p. 748.7. Dupr, Julie (2001).Skyscrapers.Black Dog &Leventhal Publishers. p. 114.8. Wheeler, Mark (May 96).The World's Tallest Building.

1 | Page