Govt's NEP study to determine energy sector's policy, way forward

To be conducted by the Economic Planning Unit, Prime Minister's Department, the study will touch on the challenges in the energy sector, including those faced by the oil and gas industry, among others, said Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed.

"The study will identify new growth opportunities by taking into account energy transition trends as well as energy trilemma challenges, which emphasises the balance of policies to achieve affordability and access, energy security and environmental sustainability.

"The NEP study is expected to be launched in the first quarter of 2021 (Q1 2021)," he said in a written reply in Dewan Rakyat today.

Mustapa was replying to a question by Datuk Seri Saifuddin Nasution Ismail (PH-Kulim Banda Baharu) who requested information on Petronas' current losses, causes and strategies to overcome them.

He said the Petronas group recorded a loss after tax (LAT) of RM21 billion in Q2 2020 ended June 30, 2020, compared to a profit after tax (PAT) of RM14.7 billion in the same period in 2019.

The loss was attributed to lower income and the significant depreciation of assets following the decline in oil prices due to weaker demand resulting from the COVID-19 pandemic as well as the oversupply in the market, said Mustapa.

"In Q2 2020, Brent crude fell to an average of US$29.20 per barrel compared with US$68.83 per barrel in Q2 2019," he said.

As its long-term strategy, Mustapa said Petronas will continue to focus on implementing a three-pronged strategy; namely maximising cash generation; expanding core businesses and intensifying efforts to sustain the organisation in times of change; as well as ensuring the company's long-term sustainability through involvement in new business opportunities.

"Petronas will also continue to explore new business opportunities and portfolios to further strengthen its resilience in the face of a very challenging global market environment, especially in renewable energy such as solar and wind energy," he said.