Offer of position will not affect investor's confidence in Petronas - Mustapa

This is because Petronas is a company that is well-managed and is led by an efficient management team.

"The confidence of the market as well as investors depend on various factors such as the country's economic growth and global trade which is severely affected by the COVID-19 pandemic which has struck the world.

"This (factor) is compounded by the sharp drop in crude oil prices and the trade war between China and the United States," he said in a written reply in the Dewan Rakyat here, today.

Mustapa was responding to a question from Lim Guan Eng (DAP-BAGAN) who asked to state Petronas' declining performance, its impact on the country and whether the offer of the position of Petronas chairman to the Gua Musang Member of Parliament is true and if it is based on a political transaction which affected the market confidence in Petronas.

Petronas, he said, will continue to explore opportunities and new business portfolio to further strengthen its resilience in facing the challenging global market environment especially in renewable energy such as solar and wind power.

"(This) market condition that is challenging and uncertain is expected to continue until the second half of 2020. The projection made by Rystad Energy in April 2020 expected global oil and gas companies to record an income loss of US$1 trillion this year following the prevailing market situation.

"In this matter, as a national oil and gas company, Petronas continues to be committed in efforts to maintain its income flow and optimise cost to balance the negative effects of low crude oil price on its profitability, at the same time, safeguard the nation's strategic interest," he said.