KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) will pay a total of RM40 billion in dividends to the government this year, which is RM5 billion more than the initial RM35 billion announced earlier.

Executive vice-president and group chief financial officer Liza Mustapha said the dividend payment was based on Petronas' affordability.

"It is a longer term projection in discussions we have with our shareholders. We take the long view (in our) discussions, not just for the next 12 months but let's say, further to 2030.

"(On the question of) whether what we spend on new business will affect dividend, actually I would like to put it the other way around, we orchestrate a top-down (approach) in capital allocation.

"We will put aside 20 per cent of our capital expenditure (capex) on an average basis for new business and investment to source new energy," she told reporters at the announcement of Petronas' first half of 2023 financial performance.

Meanwhile, Petronas president/group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said the national oil company has to ensure that the security of energy supply using hydrocarbons continues.

"Energy demand will grow. The new (energy) system is not going to be ready within one or two years...we need to make sure that the (current) demand is serviced," he said, adding that the group needs to set aside "buffers" to continue its business as usual.

-- BERNAMA