Operational Highlights

Upstream

• PETRONAS has made significant progress in re-basing its cost in the Upstream business. In 2017, PETRONAS expects further reduction in unit production cost to an average of US$6.8 per barrel through efficiency across its value chain.

• The total production volume for the first half of 2017 was 2,342 thousand BOE per day compared to 2,391 thousand BOE per day in the corresponding period last year. This was mainly due to lower Iraq production entitlement, lower activities in Canada and higher decline rate in the Malaysia-Thai Joint Development AREA and Egypt, partially offset by the increase in production in the MLNG supply system. Five new and infill projects were brought on-stream in the second quarter of 2017, contributing to 44,000 barrels equivalent per day of production.  Total production entitlement improved to 1,778 thousand BOE from 1,731 thousand BOE in the corresponding period.