This article first appeared in The Edge Financial Daily on August 2, 2018

KUALA LUMPUR: Datuk Ahmad Nizam Salleh has been appointed as new chairman of the board of Petroliam Nasional Bhd (Petronas) with immediate effect, while Tan Sri Wan Zulkiflee Wan Ariffin will remain as president and chief executive officer (CEO) of the group.

This was announced by the Prime Minister's Office (PMO) yesterday in a statement.

According to the PMO, Ahmad Nizam has 37 years of experience in the oil and gas (O&G) industry, and had served Petronas in several positions for the majority of his career. He replaces Tan Sri Mohd Sidek Hassan who completed his tenure as Petronas chairman on June 30, 2018. Mohd Sidek was appointed Petronas chairman on July 1, 2012.

Ahmad Nizam has been an independent non-executive director in construction and O&G outfit WZ Satu Bhd since April 2016. According to WZ Satu’s latest annual report, Ahmad Nizam holds a bachelor’s degree in business administration from Ohio University, the US, and attended the Advanced Management Programme at Wharton School of the University of Pennsylvania in the US. He was previously with Petronas corporate head office from 1981 to 1987, where he held various positions such as analyst, planner and project coordinator in corporate planning and finance sectors. Subsequently, he held various senior positions in Petronas from 1988 to 2002, including head of crude oil group and then, group treasury. In 2004, he became managing director (MD) of Malaysia LNG Group of Companies and was promoted to vice-president, corporate services division of Petronas in 2007. From July 2010 to August 2015, he was MD of Engen Ltd, a subsidiary of Petronas in South Africa.

When contacted by The Edge Financial Daily, MIDF head of research Mohd Redza Abdul Rahman commended the appointment of Ahmad Nizam as Petronas chairman, and Wan Zulkiflee remaining as president of the national oil company.

 “He certainly has a wealth of background in the oil and gas industry and in key areas too. Tan Sri Wan Zul staying on is a good omen for Petronas, considering he has been with [the group] since he started his professional career, having served in various capacities.

“Petronas needs able hands for the roles of president and chairman, in facing new challenges in the oil and gas sector considering it is a key revenue contributor to the government,” he said.

Etiqa Insurance and Takaful chief strategy officer Chris Eng Poh Yoon is positive about Wan Zulkiflee staying on as president of Petronas. “We welcome the fact that Tan Sri Wan Zulkiflee will remain as CEO of Petronas, noting his long career and performance in [the group],” he said.