Tan Sri Hassan Marican’s term at the helm of national oil giant, Petroliam Nasional Berhad (Petronas) ends next week, with an announcement expected soon from the government, which will put an end to the uncertainty surrounding his future.
Speculation is rife on whether he would be reappointed to helm Petronas, Malaysia’s only Fortune 500 company that he has spearheaded since 1995.
The focus now is on the replacement for Hassan as president and Chief Executive Officer (CEO) of the oil company. He is also acting chairman to the Petronas board, a position he has held since the sudden demise of former chairman Tan Sri Azizan Zainal Abidin in 2004.
Under the Petroleum Development Act, Petronas is answerable only to the Prime Minister.
The question is whether there’s a need to replace Hassan as president and CEO, whose performance is measured by the financial strength of the oil corporation.
As at September last year, Petronas cash balances stood at US$26.6 billion (RM88.4 billion).
Petronas currently contributes 45 per cent of government revenue. Last year, the group reported RM52.5 billion in profit on revenue of RM264.2 billion, making it Malaysia’s most profitable company.
According to Singapore Business Times, “For the sake of continuity and for planning purposes, the reappointment of a chief executive of an important Malaysian government-linked company is generally announced way before his contract expires."
Some analysts say Hassan’s term is likely to be extended for another year, noting that “he is the best man for the job.”
It is felt that Hassan’s shrewd experience in the oil industry and fierce independence is also needed for Petronas as Malaysia is on the brink of charting a new economic model.
Petronas’ success in securing lucrative exploration rights in Iraq recently is also another boost for Hassan.
So why change for the sake of changing?
To quote Petronas adviser and former premier Tun Dr Mahathir Mohamad: “Perhaps, he has reached retirement age. He has been there for a long time. One has to retire, even if you are very good.”
The rumour mill is now in high gear, with Datuk Shamsul Azhar Abbas, the former managing director of Malaysian International Shipping Corp Bhd (MISC), said to be frontrunner for the post of CEO. It is learnt that the prime minister has met all three internal candidates last week.
Shamsul, 57, retired in January last year from MISC, a Petronas subsidiary and one of the world’s largest oil and gas shippers.
The other potential candidates are Datuk Anuar Ahmad (Petronas Dagangan Bhd chairman), and Datuk Wan Zulkiflee Wan Ariffin (former managing director/CEO of Petronas Gas Bhd from 2003-2007).
There is also talk that the prime minister is considering whether to fill the post of Petronas chairman when Hassan’s contract as acting chairman/CEO expires.
While the focus now is on the replacement for Hassan and president and CEO, but equally important is the position of chairman, given the fact that Petronas is the custodian of the nation’s oil and gas resources.
According to Dr Mahathir, it is important to have continuity in the oil company, and the CEO has to be someone from within.
Dr Mahathir has earlier signaled his objection to Hassan being replaced with a politician.
“The three currently shortlisted for the position are from Petronas and this means, they know the company. However, the chairman can be someone from outside. But the CEO has to be from within,” he says.
Many expect Hassan to be confirmed as chairman of Petronas.
Hassan also refused to comment on his future in the national oil company. “I think the best to comment is the government,” he says.
The ball is now in the PM’s court.
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