• Petronas posted a 19% drop in first-half 2025 net profit to $5.7 billion.
• The Malaysian oil giant is cutting costs, trimming staff, and focusing on its most profitable assets.
• African projects in Angola and Egypt face pressure as Petronas reshapes its global portfolio.

Malaysia’s Petronas reported on August 29 that its net profit for the first half of 2025 fell 19% to 26.2 billion ringgit ($5.7 billion), down from 32.4 billion ringgit ($7.67 billion) a year earlier.

The company cited “increasingly daunting headwinds,” including lower benchmark oil prices, foreign exchange effects, and the termination of some activities. In response, Petronas announced a strategic overhaul centered on its most profitable assets.

The shift involves streamlining its portfolio and cutting costs. In June, the company reduced its workforce by 10% and confirmed it would refocus on priority projects. While its statement did not single out African operations, these fall within the scope of the restructuring.

In Angola, Petronas is a partner in the $6 billion Kaminho project with TotalEnergies and Sonangol, aimed at developing the Cameia and Golfinho fields to produce 70,000 barrels per day starting in 2028. In Egypt, a $222 million deal with Shell targets higher gas output from the West Delta Deep Marine block.

Such projects are directly exposed to Petronas’s new strategy of prioritizing high-return assets. For host states, this raises immediate economic concerns. The company’s exit from South Sudan in 2024, following a failed sale to Savannah Energy, shows how portfolio adjustments can threaten public revenues and fiscal stability in producing countries.