theceomagazine.com | 133the first quarter of 2019, and Arif anticipates
a 3.3 million ton increase (roughly 26 per cent)
in the annual production of petrochemical products.
The RAPID project is being implemented to aid
PETRONAS Downstream in meeting an increased
demand in the Asia–Pacific region for its value-
added products. It is also geared towards increasing
the quality of life in the region, partly by creating
new opportunities for employment. The recent,
steady growth of the middle class throughout
ASEAN, a region that was once known for its
production capabilities, is seeing a corresponding
growth in consumption. “With a large population
and rising middle class, we see an increased demand
for petrochemicals,” notes Arif. “Essentially, we are
increasing the production of basic chemicals, while
at the same time moving further downstream to add
value to these products.”
The potential for local growth is vast and, as Arif
tells The CEO Magazine, “the main focus for the
downstream business moving forward is to capture
the opportunities in the region.” He mentions “new
technologies that will assist operations on the
ground, and features that allow for increased safety,
better planning and seamless integration”. Predictive
maintenance, for example, will be carried out
throughout the complex with the help of mobile
technology (mainly intelligent sensors), increasing
productivity and efficiency. And a heightened
emphasis on workers’ safety has led to the
incorporation of drone technology to increase
operational efficiency and minimise the risk of
injury. A dedication to clear communication »cohesiveness – that have been in place since the
early days of PETRONAS.
Six cultural beliefs underpin PETRONAS’
operations: superior results, trust, shared success,
accountability, open communication, and
responsibility. “We want to encourage an open
culture of accountability, and to facilitate integration
within the PETRONAS group, leading to a more
empowered organisation,” Arif says. “One thing
that we truly value is being a company that can
be trusted.” An adherence to these values can be
seen in many of the activities carried out by the
PETRONAS group, and Arif mentions one
particularly impressive example: PETRONAS’
upstream business, one that supplies liquefied natural
gas to countries around the world, has not missed
a single delivery to Japan during the 30 years they
have been in partnership. “If we say we are going
to do something, we will do it.”
These six cultural beliefs form part of a cultural
change ushered in by PETRONAS CEO Wan
Zulkiflee Wan Ariffin in 2016, when extensive layoffs
were necessary following a drop in the price of
crude oil. They have, along with PETRONAS’
long-standing commitment to operational excellence,
helped support the construction, started in 2013,
of the US$27 billion Pengerang Integrated Complex
(PIC) in Johor, Malaysia. Trading, refining,
petrochemicals and gas transmission all fall under
the purview of the Downstream group.
At present, investment is heavily directed to
the petrochemical side of the operation, and Arif is
keen to describe the US$16 billion Refinery and
Petrochemical Integrated Development (RAPID)
project. The RAPID project, which is the
centrepiece of the PIC, is a petrochemical complex
and refinery nearing completion. The complex
incorporates a 300,000-barrel-capacity refinery, and
downstream products are produced in a steam
cracker before being delivered to petrochemical
businesses and plants. Completion is scheduled for
“WITH A LARGE
POPULATION AND
RISING MIDDLE
CLASS, WE SEE
AN INCREASED
DEMAND FOR
PETROCHEMICALS.”
Interview | INVEST