Saturday, 15 July 2017

Gas Malaysia raises natural gas prices

Gas Malaysia Bhd has revised up the natural gas tariff for Peninsular Malaysia’s non-power sector to an average base tariff of RM28.05 per MMBtu (one million British thermal units).

However, a government subsidy will lead to lower effective tariff rates for all tariff categories for the period from July 1 to Dec 31, 2017, compared with the existing rates.

In a filing with Bursa Malaysia, the gas distributor said  the Government, through the Energy Commission, had approved on Friday for Gas Malaysia to effect the revision for the six-month period.

The Government has prescribed the incentive based regulation (IBR) framework, which sets the base tariffs for a period of three years from January 2017 and allows changes in the gas costs to be passed through via the Gas Cost Pass Through (GCPT) mechanism every six months.

Wednesday, 12 July 2017

Malaysia’s oil and gas industry on the road to recovery

There is optimism that the nation’s oil and gas industry is on the road to recovery, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

“If 2016 was the ‘year of tough decisions’ for the oil and gas industry, then 2017 could well be the year for the road to recovery,” he said when launching the 16th Oil and Gas Asia 2017 Exhibition.

He cited the examples of the Organisation of Petroleum Exporting Countries’ market forecast and recent survey by Reuters that Brent crude oil could average US$58.20 (RM250.12) per barrel this year as examples of positive signs for the industry.

“The interim Q4 (fourth quarter) and FY (financial year) of Malaysia’s state giant Petronas noted a 12% year-on-year growth in profit after tax despite revenues that were some 17% lower,” he said.

Tuesday, 11 July 2017

One killed in Bintulu tanker explosion


An oil tanker burst into flames in a horrific accident at the Medan Jaya traffic lights in front of Bintulu Medical Centre around 11am, Monday.

Based on unofficial statement, one person was killed, after the tanker collided with a pickup truck that resulted in three other vehicles being burnt in the accident.

Ten firefighters in one fire engine were rushed to the scene after receiving a distress call at 11.53am.

As of press time, the flames have been brought under control.

The authorities are now in the process of trying to identify the burnt victim.


Friday, 7 July 2017

China Petroleum to build olefins storage units in Pengerang for Petronas

A consortium of China Petroleum Pipeline Bureau (CPP) & CPP Petroleum Engineering (M) Sdn Bhd has been signed on to build additional olefins storage units in Pengerang for Petroliam Nasional Bhd's unit.

Petronas said on its unit PRPC Refinery & Cracker Sdn Bhd (PRPC RC) recently signed the engineering, procurement, construction and commissioning (EPCC) contract for the facilities within the Pengerang Integrated Complex.

The national oil company said the consortium would undertake the EPCC for four 1,750MT butadiene bullet tanks; four 2,500MT propylene sphere tanks; and one 12,000MT double-walled cryogenic ethylene tank.

“The construction of the butadiene bullet tanks is expected to be completed by end 2018, while the propylene sphere tanks and the cryogenic ethylene tanks are scheduled to be ready by end Q1 and Q3 2019, respectively,” it said. The value of the contract was not disclosed.

Thursday, 6 July 2017

Damansara Realty secures RM26mln contract for Petronas' Pengerang project

Damansara Realty Bhd has bagged a RM26.21 million contract to provide security management services for Petroliam Nasional Bhd’s (Petronas) Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang, Johor.

In a filing to Bursa Malaysia
, the company said the contract can be extended to include additional services worth RM9.77 million.

It said Petronas subsidiary PRPC Utilities and Facilities Sdn Bhd awarded the contract to a consortium comprising Damansara Realty’s subsidiary TMR Urusharta (M) Sdn Bhd (TMR), ACME Security Sdn Bhd and AHS Security Sdn Bhd.

It said under the terms of the contract, the consortium will operate and maintain security for utilities, interconnecting and offsite facilities at RAPID, the second mega project in Johor’s Pengerang Integrated Petroleum Complex, which is slated to be the region’s largest oil and gas hub.

Wednesday, 5 July 2017

Sarawak tubuh Petros bagi cari gali minyak dan gas

Syarikat cari gali minyak dan gas luar pantai milik Sarawak akan memulakan operasinya dalam masa enam bulan lagi, Ketua Menteri Datuk Amar Abang Johari Tun Openg.

Katanya, Petroleum Sarawak (Petros), 100 peratus milik kerajaan negeri, akan bekerjasama dengan syarikat minyak nasional, Petronas,

Pengumuman itu dibuat ketika Sarawak menuntut royalti minyak yang lebih tinggi daripada kerajaan persekutuan.

Bernama turut memetik Abang Johari, sebagai berkata, perkara berkaitan pelaburan awal syarikat itu masih dibincang, tetapi Petros akan memulakan operasinya dalam masa enam bulan lagi.

Beliau berkata keuntungan yang diraih akan dikongsi antara kerajaan negeri dan Petronas berdasarkan ekuiti.

Tuesday, 4 July 2017

JX Nippon produces first gas from Layang field, offshore Sarawak

JX Nippon Oil & Gas Exploration Corporation’s subsidiary, JX Nippon Oil & Gas Exploration (Malaysia) Limited, is the operator of Block SK10 offshore Sarawak, Malaysia, with a participating interest of 75%, where the Layang field is located. Petronas is its partner with the remaining 25% interest.

The field is located approximately 7 km east of the producing Helang Gas Field in Block SK10.

Natural gas produced from Layang field, together with natural gas from Helang gas field, will be supplied through subsea pipelines to the MLNG Tiga Sdn. Bhd. liquefaction plant in Bintulu, Sarawak, which is partly owned by JXTG Nippon Oil & Energy Corporation. The natural gas will be sold as LNG after liquefaction to its customers including buyers in Japan.

The initial production of natural gas and condensate from Layang field is estimated about 12,000 boed.

Tuesday, 20 June 2017

PBJV Group bags RM61.2m offshore job

Barakah Offshore Petroleum Bhd has bagged a US$14.28 million contract from Samling Resources Sdn Bhd to supply a well intervention vessel, a support vessel and services for abandonment and decommissioning of Chinguetti and Banda fields, offshore Mauritania.

In a filing with Bursa Malaysia, Barakah said its wholly-owned subsidiary PBJV Group Sdn Bhd has received the letter of award from Samling Resources for the project, which is expected to commence this month.

The Chinguetti oil field is located approximately 80km west of the coastline and 90km from Nouakchott, Mauritania. The project involves temporary plugging of 15 wells.

"The contract is for the provision of a well intervention vessel, a platform supply vessel and all necessary parts, spares, repairs, refurbishments and/or modifications to the well intervention vessel and all coordination, technical support and supervisory works in relation thereto," Barakah said.

Monday, 19 June 2017

Petronas: We have right to terminate contract with MHS Aviation over safety concerns

Petronas Carigali Sdn Bhd’s termination notice of its contract with MHS Aviation Bhd for the services of five EC225 helicopters is within its contractual rights, citing its service suspension since April 2016 due to safety concerns.

The concerns arose from a fatal accident involving the same aircraft model in Norway in April 2016.

Under the contract dated June 29 2011, MHS Aviation, a 51% subsidiary of Boustead Holdings Bhd, provides the services of five EC225 helicopters from Kertih, Terengganu, for the transport of personnel to offshore facilities.

“The suspension of the EC225 service by Norwegian and UK civil aviation authorities has yet to be lifted. Most major oil and gas companies have also ceased using the aircraft model pending assurance of its safety and airworthiness. The safety of its employees remains Petronas Carigali’s top-most priority. The company has had appropriate discussions and negotiations with MHS Aviation prior to reaching the decision to terminate the agreement,” Petronas said in a statement yesterday.

PCSB to terminate RM3bil contract given to MHS Aviation

Petronas Carigali Sdn Bhd is terminating a June 2011 contract involving the charter of five Eurocopter EC225 helicopters from Boustead Holdings Bhd’s subsidiary MHS Aviation Bhd.

The 10-year contract, with an option to extend for another five years, was previously estimated to be worth about RM3bil.

In a filing with Bursa Malaysia, Boustead said its 51%-owned subsidiary MHS, the country’s largest civil helicopter operator, had received a letter dated June 9 from Petronas Carigali giving a 90 days’ notice of its intention to terminate “without cause” the contract for the provision of rotary wing aircraft, equipment and services for heavy type aircraft - EC225.

MHS received the notice of termination while discussions between the parties regarding arbitration proceedings were ongoing, Boustead said.