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Image courtesy of Petronas.

Malaysia’s Petronas is reportedly cutting its capital and operating budget by as much as $11.4 billion over the next several years.

An internal memo seen by the Wall Street Journal said the company plans to slash 50 billion ringgit, or about $11.42 billion, from its capital and operating spend over the next four years.

A copy of the memo seen by Reuters added that the plan “means that we are going to have to defer some of our projects.”

The state-owned company has also begun a review of contractor positions in its non-core activities and has started an efficiency review of its business operating model, the Wall Street Journal said.

“This review will result in a change to our existing organization structure, the details of which I hope to be able to share with you in March,” CEO Wan Zulkiflee Wan Ariffin wrote in the memo.

State-owned Petronas confirmed on Tuesday that it circulated an internal memo as ” part of its on-going efforts to optimize costs to address the impact of the continuous fall in crude oil prices.”

The company has not yet disclosed details about its plans and added that it will release more information “in due time.”

Revenues from Petronas account for up to a third of Malaysia’s budget, the Wall Street Journal said.

With benchmark crude prices hovering near 13 year lows, Malaysia is considering changes to its current budget that had assumed Brent crude prices of about $48 per barrel, the Journal added.

Malaysia is the world’s second-largest exporter of liquefied natural gas and the second-largest oil and natural gas producer in Southeast Asia, according to the U.S. Energy Information Administration.