An internal candidate, rather than an outsider as some have speculated, will likely succeed Tan Sri Mohd Hassan Marican, whose contract as president and chief executive of Petronas ends in February.

Sources say Prime Minister Datuk Seri Najib Razak will choose the successor from among three senior Petronas executives. They are Datuk Shamsul Azhar Abbas, who was formerly the managing director of MISC Bhd before retiring in January last year, and Petronas board members Datuk Anuar Ahmad and Datuk Wan Zulkiflee Wan Ariffin.

Anuar is currently Petronas’ vice-president of human resources management while Wan Zulkiflee is the vice-president of gas business.

Sources say that Najib is likely to call up the three before deciding on the candidate. A decision is likely in the next few weeks.

So far there has not been any word on the renewal of Hassan’s contract, which ends early next month. Hassan is also the acting chairman of Petronas, a post he has assumed since the demise of Tan Sri Azizan Zainal Abidin in July 2004.

The late Azizan and Hassan had formed a formidable team at Petronas, strengthening the company’s ranking on the Fortune 500 list.

An accountant by qualification, Hassan was handpicked by Azizan and groomed for the CEO’s job. The duo managed Petronas well and ensured its resources were fully maximised.

Hassan joined Petronas in 1989 as senior vice-president of finance and was subsequently appointed president and CEO in February 1995. Known as a workaholic, Hassan has been the face of Petronas, especially since the passing of Azizan.

Last year, Petronas declared RM30 billion in dividends and contributed another RM44 billion in the form of taxes, export duties and royalty to federal and state governments. It is said that Petronas’ contribution makes up about 45% of the federal government’s coffers.

Hassan is known to be a vocal advocate of the country’s oil and gas resources being well managed and that returns derived are well utilised. For instance, he is known for his objection to independent power producers being given subsidised gas when they rake in hefty profits. Gas subsidies amounted to RM19.5 billion last year.

Having served under three prime ministers, starting from Tun Dr Mahathir Mohamad, Hassan is known to express strong views that Petronas should not be seen as a cash cow by the government and that sufficient cash resources should be kept as reserves to ensure it can keep growing its oil and gas reserves beyond Malaysian shores.

It is learnt that Najib is looking at a new candidate to continue Petronas’ growth to higher levels and wants to ensure the person is given a free hand in discharging his duties.

But at the same time, he wants to keep Hassan — who has a wealth of experience in the oil and gas industry — in the national oil company. It is likely that Hassan will be offered a position in an advisory role.

At the moment, Mahathir is the adviser to Petronas, but there is nothing to prevent a second adviser from being appointed. Nevertheless, it is something for Hassan to decide should he be offered the post.

Hassan is not likely to be appointed as chairman so as to allow the new chief executive to lead Petronas with a free hand, especially considering his tenure in the company.

“The retiring CEO, if it happens, is not likely to be given the post of chairman, to avoid the new man at the helm from being micro managed,” says a source.

Among the three earmarked to succeed Hassan, the most experienced is Shamsul, who retired in January last year. His last post was president and CEO of MISC Bhd, a subsidiary of Petronas.

During his tenure in Petronas, which started in 1975, Shamsul had served as executive assistant to the late Azizan for three years. It is said that Azizan normally reserves the position only for those whom he feels can be groomed to take on bigger responsibilities in Petronas.

Prior to his appointment as president and CEO of MISC in 2004, Shamsul held various senior management positions in Petronas. He had served as vice-president in the petrochemical, oil, exploration and production, and logistics and maritime businesses.

“He is known to take bold decisions and is seen as the most ideal candidate to take over from Hassan. Shamsul has the stature and commands the respect of the rest of the senior staff in Petronas,” says a source.

As for Anuar, he is known to have done a good job in Petronas Dagangan, where he is the chairman. He joined Petronas in 1977 and has been a member of the management committee since 1998. The 55-year-old Anuar has held various senior positions in Petronas, including heading its international marketing division and corporate planning unit.

Wan Zulkiflee is the youngest of the three and is said to have been earmarked to take over from Hassan. He joined Petronas in 1983 as a process engineer and rose to his current position.

Like Shamsul, the 49-year-old Wan Zulkiflee has also served as executive assistant to the president. He was the managing director and CEO of Petronas Gas from 2003 to 2007.

This article appeared in Corporage page, The Edge Malaysia, Issue 789, Jan 18-24, 2010