KUALA LUMPUR: Petronas has activated its business continuity protocols for its United Arab Emirates (UAE) operations to ensure operational and financial performance across the region.
In an email response to Bernama, the national oil company said as part of these measures, the group had commenced the temporary relocation of personnel from its operations in Abu Dhabi and Dubai as a precautionary step.
“All operations in the UAE continue to be managed through alternative arrangements. Operations outside of the UAE across the region continue as usual,” it added.
On Wednesday, QatarEnergy declared force majeure on its liquefied natural gas (LNG) supplies following the suspension of production at several key export facilities.
Force majeure in the oil and gas industry is a contractual provision that relieves parties from performing obligations, such as supply or exploration, due to unforeseeable and uncontrollable events, including natural disasters, wars, pandemics, or government actions that make performance impossible.
It requires a specific clause, timely notice and strict compliance and does not extend to mere economic hardship or market downturns.
In February, Petronas’s subsidiary, Petronas LNG Ltd (PLL), signed a 20-year liquefied natural gas (LNG) sale and purchase agreement (SPA) with QatarEnergy, marking the first long-term LNG supply agreement between the two companies.
Under the SPA, PLL will offtake up to two million tonnes per annum (MTPA) of LNG from QatarEnergy over a period of 20 years.
Petronas said it would continue to assess any potential material impact on its operations and financials and would also communicate proactively in accordance with its disclosure obligations.
“Petronas is committed to fulfilling its obligations as a responsible operator and will continue to take all necessary measures to safeguard its people, assets, and operations across the region,” it added.
