PETRONAS SWOT ANALYSIS SWOT Analysis is a simple but useful framework for analyzing your organization's strengths and

weaknesses, and the opportunities and threats that we face. It helps focus on our strengths, minimize threats, and take the greatest possible advantage of opportunities available to the company. STRENGHT PETRONAS has come a long way from managing the work of foreign production sharing contractors. They have evolved their own upstream capabilities and ventured into the entire spectrum of downstream activities to add value to our petroleum resources we have developed capability as a hands on operator with a track record of successful oil and gas developments develop and produce oil and gas in Malaysia. They are also continues to strengthen their position by securing new acreages while undertaking various development projects abroad. One of the key drivers of their business growth is deep water exploration and production, with many positive prospects emerging in Malaysian acreages. It is also developed distinctive capabilities in fully integrated gas business and built a strong reputation as a trusted partner and reliable supplier of gas in Malaysia and abroad. WEAKNESSES The first weakness that exists in PETRONAS is declining in production oil and gas. This is because of PETRONASs oil fields are diminishing and assets aging, they now facing the challenge of maintaining its oil production level. Furthermore, it is causes by the lower sales prices and higher sales volume. Besides that, its profit before taxation has dropped compared to last year record. Lastly, the final weakness of PETRONAS is non

autonomy. As we all know, PETRONAS is wholly owned by the Government of Malaysia. PETRONAS has lost its autonomy because political people may interfere in the daily operation of the company. Effectiveness of PETRONAS will be influenced since PETRONAS is dependent on the government for taking important policy decisions. Because of the same reason, it result in the delay the decisions. They cannot take any decision without taking permission from government. Besides, PETRONAS lack of motivation of work. The officers of the company are least interested in operational activities. They can get the fixed salary without any share in the profit or without any responsibility for losses. OPPORTUNITIES The opportunity that exists in PETRONAS is oil discoveries. It is the major oil and gas company that has discovery. It is also can be said PETRONAS monopoly the oil and gas in Malaysia. Others, It is strategic acquisition and it is growth opportunities in Asia Pacific. They also can enter the Islamic country and has break the Africa. THREATS The rules and regulation for oil and gas Company is stringent. Plus, it is Venezuelan asset nationalization. Furthermore, the price in market is fluctuating.