Petronas

Capex

Production

During the one year period to 31 March 2008, Malaysia’s total average production increased by 3.9% to 1.67 million boe per day from 1.61 million boe per day previously, of which production of crude oil and condensates amounted to an average of 691.6 thousand barrels per day while gas production averaged at 5.9 billion cubic feet per day (equivalent to 981.9 thousand boe per day).

Total average production from the Group’s international operations was 615.1 thousand boe per day, an increase of 5.7% from the previous year. Crude oil and condensates production increased to 287.0 thousand boe per day from 246.5 thousand boe per day mainly due to higher production from Sudan, especially from Block 5A and Block 3 & 7. However, average gas production declined by 2.1% from 335.2 thousand boe per day to 328.1 thousand boe per day, mainly due to shutdown of facilities for maintenance within the Malaysia-Thai Joint Development Area.

During the one year period to 31 March 2007, total national production declined to 588.1 million boe (average of 1.61 million boe per day) due to the shutdown of several facilities for major maintenance and repair work as well as project delays. The decline resulted in a lower entitlement for PETRONAS at 70% or 411.8 million boe compared to 424.9 million boe previously.

International production rose to 581,700 boe per day, equivalent to 34% of the Group's total production.

Reserves

Domestic Exploration & Production
As at 1 January 2008, Malaysia’s total reserves declined slightly to 20.13 billion barrels of oil equivalent (boe) from 20.18 billion boe last year as a result of downward revisions in gas reserves offshore Sarawak and higher production of crude oil and gas during the year despite additions through new discoveries. Crude oil and condensates reserves grew by 1.9% to 5.46 billion boe, while natural gas reserves declined 1.0% to 14.67 billion boe from 14.82 billion boe. The reserves replacement ratio (RRR) for the year was 0.9 times.

Malaysia’s total average production increased by 3.9% to 1.67 million boe per day from 1.61 million boe per day previously, of which production of crude oil and condensates amounted to an average of 691.6 thousand barrels per day while gas production averaged at 5.9 billion cubic feet per day (equivalent to 981.9 thousand boe per day).

International Exploration & Production
The Group’s international reserves stood at 6.24 billion boe, compared to 6.31 billion boe last year. Crude oil and condensates reserves were lower by 5.1% to 2.42 billion boe from 2.55 billion boe previously. Natural gas reserves, however, rose by 1.6% to 3.82 billion boe from 3.76 billion boe.

As at 1 January 2007, Malaysia's total reserves grew by 1.4% to 20.18 billion barrels of oil equivalent (boe) from 19.91 billion boe last year as a result of the continuous exploration campaign undertaken by PETRONAS and its Production Sharing Contractors. The addition resulted in a respectable Reserves Replacement Ratio (RRR) of 1.4 times for the country, comparable to the industry average. Crude oil and condensates reserves grew by 2.1% to 5.36 billion boe, while natural gas reserves rose by 1.1% to 14.82 billion boe.

During the one year period to 31 March 2007, the group successfully increased its international reserves by 6.2% to 6.31 billion boe from 5.94 billion boe last year. Crude oil and condensates reserves increased significantly by 8.5% to 2.55 billion boe while natural gas reserves increased by 4.7% to 3.76 billion boe. The year saw the Group achieve an RRR of 3.2 times for its international E&P operations, which is amongst the highest in the industry.

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