Rafizi: Petronas Profit Margins Only 10-15%, Not 95% as Claimed

PETALING JAYA: Former economy minister Rafizi Ramli has rejected claims that Petronas has taken 95% of Sarawak’s oil and gas (O&G) revenue, saying the national oil company’s profit margins are only around 10% to 15% after covering costs and dividends.

“If you take one production sharing contract (PSC), after paying a 10% dividend, you’re left with 90%. From that, likely 70% is costs, and that doesn’t even go into Petronas’s pocket. Some of those contracts are awarded to Sarawak companies. So the remaining 20% has to be shared with partners and used to cover other financial commitments. That’s why the profit margin is only about 10% to 15%,” he said in his Yang Berhenti Menteri podcast.

Petronas Profit Margins

Rafizi stressed that the assertion by Sarawak legal adviser JC Fong was “not fair” and based on “half-baked figures,” ignoring Petronas’s heavy investments in East Malaysia’s O&G sector.

“It’s not fair, it’s not true to say 95% of revenues go to Petronas,” he added.

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