Reuters reports that PETRONAS profits have quadrupled (from RM 1.68 billion to 7.06 billion) because of higher oil prices and improved margins and as a result the amount paid to the Malaysian Government will rise from the previously committed RM 13 billion to 16 billion. The announcement of increased payments is timely for the Malaysian Government they have announced massive infrastructure projects in the run-up to the general election that must be called by mid-2018. PETRONAS recently cancelled its massive investment plans in British Columbian LNG industry and Reuters quotes PETRONAS CEO as saying that the corporation is “finalizing our strategy on how to monetize our North American gas assets. All options are being looked at.” It is of note that PETRONAS has absorbed other major losses in its world-wide LNG investments for instance the Australian Gladstone LNG Project For those involved with PETRONAS and its subsidiaries in Canada, it is surely of significance that this fortune 500 company is in fact a Crown corporation, potentially subject as much to global market forces as to domestic political imperatives.
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