Monday, 30 June 2008

Mechmar aims to clear debts by 2010

SHAH ALAM: Boiler manufacturer Mechmar Corporation Bhd hoped to clear its debts of RM43 million and shake off the Practice Note 1 tag by 2010, the company said.

“We are making efforts to repay the debts. The process is going on smoothly,” executive director Loh Kiat Loon told The Edge Financial Daily recently.

For its first quarter ended March 31, 2008, the company’s net profit almost doubled to RM8.9 million from RM4.8 million a year earlier despite a 26.6% drop in revenue to RM40.3 million from RM54.9 million.

The lower revenue was due to the low off-take from Tanzanian Electricity Co (Tanesco). Mechmar is assured of profits from the project via contractual capacity charge payable irrespective of the actual power off-take.

The company’s balance sheet as at March 31, 2008 had RM289.6 million in short-term borrowings secured in the financing of the Tanzania power generation project.

Loh said Mechmar was looking at the possibility of expanding its business in Southeast Asia and Central America to increase and diversify its revenue stream. He said overseas businesses accounted for some 67.3% of the company’s total revenue. Mechmar has operations in Hong Kong, Indonesia, Sri Lanka and Singapore.

“We have sold out six units of palm oil boilers, valued at RM4 million each, in Honduras this year. We are also focusing on Southeast Asian countries, such as Vietnam and Cambodia,” Loh said.

He added that the company had mitigated the impact of surging steel prices by direct purchases from mills in China and Korea. He said the company began direct bulk purchases two years ago at 30% discount to market prices.

Loh said the company was also looking at promoting biomass power plants with a capacity of 5MW to 10MW to process renewable resources such as wood waste. The company’s biomass power plant had received enquiries from Indonesia and Thailand, he added.

“We are targeting two projects, each valued at US$10 million (RM33 million), in the next 18 months. We have secured a project in Indonesia in principle,” said Loh

Source : The Edge

CP27 : Code of Ethics for PCN Certificate Holders

Individuals certified within the PCN Scheme must recognise that personal integrity and professional competence are the fundamental principles on which their testing activities are founded. Accordingly, it is a condition of PCN certification that certificate holders shall undertake to:

1. comply with this code of ethics;
2. undertake only those non-destructive testing assignments for which they are competent by virtue of their training, qualification and experience;
3. only sign documents for work of which they have personal professional knowledge and/or direct supervisory control;
4. engage, or advise the engagement of, such specialists as are required to enable assignments to be properly completed;
5. conduct themselves in a responsible manner and utilize fair and equitable business practices in dealing with colleagues, clients and associates;
6. at all times, be aware of and uphold the provisions/ requirements of codes, regulations and standards under which they are working;
7. immediately report to their supervisor/employer any perceived violation(s) of codes, regulations or standards. In the event that their supervisor/employer provides no satisfactory explanation or takes no corrective action, the certified individual shall report the situation direct to the British Institute of NDT;
8. perform their professional duties with proper regard for the physical environment and the safety, health and well-being of the public;
9. protect to the fullest extent possible, consistent with the well being of the public and the provisions of this code of ethics, any information given to them in confidence by an employer, colleague or member of the public;
10. avoid conflicts of interest with the employer or client, but when unavoidable, forthwith disclose the circumstances to the employer or client;
11. strive to maintain their proficiency by updating their technical knowledge as required to properly practice NDT in the certified methods and levels.
12. indicate to the employer or client any adverse consequences which may result from an overruling of their technical judgment by a non-technical authority;
13. not falsify nor permit misrepresentation of their own or their associate’s academic or professional qualifications, training, experience or work responsibilities;
14. refrain from making unjustified statements or from performing unethical acts which would discredit the PCN scheme;
15. immediately report to the British Institute of NDT any perceived violation(s) of this code of ethics;

16. immediately report to the British Institute of NDT any attempt to pressure or force an individual certified under the PCN Scheme to violate this code of ethics;
17. inform their employer in the event that their PCN certificate is suspended, cancelled or withdrawn.

Source : BINDT

Sunday, 29 June 2008

Perisai confident of winning more contracts

KUALA LUMPUR: Perisai Petroleum Teknologi Bhd is confident of securing more contracts for its marginal field and deepwater development solutions by leveraging on the expertise of companies and vessels that it is acquiring.

Managing director Nagendran Nadarajah said the company expected higher revenue contribution from Malaysia once the acquisition of SJR Marine (L) Ltd, which is involved in leasing of vessels, was completed.

In February, Perisai proposed the acquisition of SJR Marine from Singapore's Mercury Pacific Marine Pte Ltd for about RM136.1mil in return for shares and cash of US$2mil.

“The acquisition would boost revenue as it had already secured a contract to lease a barge to a local oil and gas company until end-2012,” he said after the company AGM yesterday.

The group, via the acquisition of SJR Marine, would expect the delivery of a direct lay barge, the Enterprise 3, in July or August.

As part of its plans to become a one-stop solutions centre to provide services for marginal fields and deepwater, Perisai had also purchased a portable saturation diving system early this year.

“We hope to complete the sale of wholly-owned subsidiary Corro-Shield (M) Sdn Bhd by the third quarter to get away from the corrosion solutions business,” Nagarajah said, adding that Perisai expected equal revenue contribution from its overseas and local markets in the financial year ending Dec 31.

Chairman Datuk Mohamed Ariffin Aton said the company would not be giving out any dividends this year as it would require the funds to expand its marginal and deepwater business.

“We hope to declare quite a substantial dividend in the next two to three years,” he said.

Source : The Star

Saturday, 28 June 2008

Telaga minyak lama Terengganu akan digali semula

KEMAMAN 28 Jun — Telaga minyak lama di perairan Terengganu yang telah ditutup akan digali semula dalam usaha menangani masalah kekurangan bahan itu sekaligus mengambil peluang daripada harga minyak mentah dunia yang terus melonjak.

Menteri Besar Datuk Ahmad Said berkata beliau telah dimaklumkan mengenai perkara itu oleh pengurusan tertinggi Exxon Mobil yang baru memperbaharui kontrak pengeluaran bersama (PSC) dengan Petronas.

Syarikat berkenaan akan melabur sebanyak AS$2.3 bilion (RM7.5 bilion) untuk pengeluaran bahan mentah itu bagi tempoh 25 tahun akan datang.

Ahmad berkata beliau juga diberitahu bahawa dalam tempoh lima tahun kebelakangan ini tiada telaga minyak baru ditemui di perairan Terengganu dan setakat ini syarikat berkenaan hanya berjaya menemui dua telaga baru iaitu di Sabah dan Sarawak.

“Bagaimanapun mereka tetap berminat untuk meneruskan pelaburan dan akan membuka kembali telaga minyak lama yang telah ditutup sebelum ini untuk cari gali lebih mendalam bagi tujuan mendapatkan hasil.

“Walaupun hasilnya mungkin tidak banyak tetapi mereka merasakan ia berbaloi dengan harga minyak yang melonjak sekarang,” katanya ketika berucap pada majlis pecah tanah projek rumah mampu milik di Kampung Paya Lasir, Kijal di sini hari ini.

Sebanyak 311 buah rumah teres satu tingkat mampu milik akan dibina di tanah seluas 14 hektar dalam tempoh 18 bulan menggunakan teknologi Industrial Build System (IBS) di bawah kendalian syarikat Aqua Flora Sdn Bhd.

Ditanya jumlah telaga minyak yang akan digali semula, Ahmad berkata beliau tidak dimaklumkan mengenai perkara itu.

Sementara itu, beliau berkata kerajaan negeri akan berhubung dengan kerajaan pusat untuk mengetahui jumlah baki wang royalti minyak Terengganu yang kini berada dalam simpanan kerajaan pusat.

“...ada yang kata masih tinggal RM1 bilion, ada yang kata dah habis langsung, jadi kita pun nak tahu. Kalau masih ada baki, kita bercadang menyimpan sebanyak RM1 bilion daripada wang yang akan dikembalikan oleh kerajaan Persekutuan itu ke dalam simpanan tetap untuk tempoh 20 tahun bagi kegunaan generasi akan datang,” katanya.

Beliau berkata kerajaan negeri berharap akan mendapat jumlah royalti yang besar apabila pembayaran dibuat September ini.

Source : Bernama

Friday, 27 June 2008

Hexagon receives LOI for RM20m contract

PETALING JAYA: Hexagon Holdings Bhd received a Letter of Intent (LOI) for a contract, valued at RM20 million, from a Malaysian joint venture petrochemical company.

Hexagon’s wholly owned subsidiary, Hexagon Tower Sdn Bhd, was awarded a LOI to undertake an engineering, procurement, construction and commissioning (EPCC) contract for an ethane spherical tank project in Kerteh, Terengganu. However, it did not name the petrochemical company.

The contract was scheduled for completion by September next year, and is expected to contribute positively to Hexagon’s earnings and net tangible assets from its financial year ending March 31, 2010 onwards.

Source : The Edge

Saipem awarded new onshore drilling contracts

San Donato Milanese (Milan), 26 June 2008 – Saipem has been awarded new onshore drilling contracts worth a total value of approximately USD 1.1 billion.

The contracts have been assigned to Saipem by various oil companies and encompass the charter of 32 onshore rigs of different power capacities, 13 of which are new-built units, for drilling activities in South America (mainly Venezuela and Peru) and in Ukraine.

The contracts will have an average life of one year for the nineteen existing units , and nearly five years for the 13 new-built units.

Drilling activities related to new contracts will commence at the expiry date of the current contracts for the existing rigs, which will be between the third quarter of 2008 and the second quarter of 2009; for the new-built units, activities will commence once the rigs are completed, which will be between the fourth quarter of 2008 and the first quarter of 2009.

The estimated overall investment for the construction of the new units is approximately USD 300 million.

Source : Saipem

Thursday, 26 June 2008

Petronas makes second gas find on Mubarak Block

KARACHI, June 25 -- Petronas Pakistan Ltd. of Malaysia has made a second natural gas discovery on the Mubarak Block in the Ghotki district of southeastern Sindh province in Pakistan. The discovery was made by the Saqib-1A well, which was drilled to the planned depth of 3,780 m.

The well was successfully tested and flowed 13.4-25.2 million scfd of gas and 47.5-63.9 b/d of condensate. The discovery is being evaluated to draw up a development plan.

Petronas Pakistan, which holds a 57% stake in the block is operator on behalf of itself, Eni Pakistan Ltd. 38%, and Pakistan's Government Holdings (Pvt.) Ltd., 5%

Previous exploration activities resulted in a discovery from the Rehmat-1 well in 2001 that was developed and brought on stream in 2005. Subsequently, the partners elected to drill Saqib-1A after extensive evaluation of the block.

Production is expected to start by 2009.

Source : Oil & Gas Journal

Monday, 23 June 2008

Pipeline deal 'soon', says India

India will soon sign an agreement with Iran and Pakistan to construct a multi-billion dollar gas pipeline, its petroleum minister has said.

Murli Deora said some "minor problems" over the pipeline had been sorted out.

The pipeline will transport gas from Iran to India through Pakistan, and is seen as crucial to Indian energy needs. Analysts say the pipeline could contribute to regional security as Iran, Pakistan and India would depend on each other more.

A deal has been stalled by disputes over transit fees and security issues.

Mr Deora, who attended a meeting of leading oil exporting countries in Saudi Arabia, told an Indian news channel that the agreement to construct the pipeline would be signed "very soon".

"There were... some issues with Pakistan that have been taken care of," he said.

In April, Iranian President, Mahmoud Ahmadinejad, had told the Indian Prime Minister, Manmohan Singh, that all obstacles holding up the long-delayed project would be resolved within 45 days.

The 2,600-km (1,620-mile) pipeline would initially transport 60 million cubic metres of gas (2.2bn cubic feet) a day.

The Indian government has said the project is feasible, but needs to be financially viable with assured supplies.

India has boycotted trilateral meetings since mid-2007, saying it wants to resolve the issues of transit fees and transportation tariffs with its long-standing regional rival Pakistan first.

Source : BBC News

Friday, 20 June 2008

Shell deepwater platform attacked as Nigerian separatists step up protests

An attack by armed separatists in speedboats has forced Royal Dutch Shell to shut down its biggest offshore oil production unit in Nigeria, removing a tenth of the Opec state's output.

The raid on Bonga, a vast floating oil production and storage facility 120km offshore, has caught Nigeria's foreign oil operators by surprise. The deep water installations in the Gulf of Guinea were previously thought to be beyond the reach of the militant groups that continue to harass and disrupt oil production in the swamps of the Niger Delta.

The attack, which took place before dawn yesterday, was aimed at Bonga but the militants also attacked two drilling rigs and three supply vessels in the area. The American captain of one supply vessel, under contract for Chevron, was taken hostage. The Movement for the Emancipation of the Niger Delta (Mend), claimed responsibility for the attack and threatened further violence.

The movement said yesterday that oil companies should remove their expatriate workers and avoid sending oil and gas tankers to the area if they wished to avoid violence. “The location of today's attack was deliberately chosen to remove any notion that offshore oil exploration is far from our reach,” it said.

The militants tried but failed to get on board the Bonga facility, Shell said. “The ship is protected with electronic devices,” a spokesman added. Production was immediately stopped and the spokesman was unable to say when it would resume.

The shutdown removes 225,000 barrels per day of oil output as well as natural gas that is fed into Nigeria LNG, the country's liquefied natural gas export joint venture - another Shell-operated project.

A prolonged shutdown of Bonga would be a significant financial loss to Nigeria, which is already failing to meet its Opec production quotas because of the frequent attacks by Mend on pipelines and pumping stations. More worrying is yesterday's evidence that the deepwater offshore operations are no longer safe. Officials close to Snepco, the Shell venture that operates Bonga and Shell's other offshore projects, expressed concern about the use of boats capable of travelling several hundred kilometres at speed over the ocean.

“It's a new development. There must be somebody behind this. It is beyond the capability of the usual groups in the Delta,” one official said.

Nigeria's navy is ill-equipped and unable to patrol the area and the attack is likely to arouse calls for greater protection for offshore oil installations. The vulnerability of deepwater oil platforms in West Africa has been discussed within Nato, whose officials have proposed seconding warships to the area but no action has yet been taken.

The Bonga project has been the flagship of Shell's offshore Nigeria activities and cost $3.6 billion (£1.8 billion). Located far from shore and in depths of more than 1,000 metres, the project uses a floating production and storage vessel, a converted crude oil tanker that stores oil pumped from wells on the seabed, which is then transferred to other ships for export.

Being so far from shore, Shell and its Bonga partners, ExxonMobil, Total and Eni, believed until yesterday that it would be safe.Shell is only producting two thirds of its potential output from its onshore operations with 350,000 barrels per day still shut in because of threats of violence. More than 200 people have been abducted in the Delta by militant groups. In most cases, the hostages are released unharmed in exchange for cash.

Source : Times Online

Wednesday, 18 June 2008

Petronas awards Block SK310 to Newfield, Mitsubishi and Petronas Carigali

PETRONAS today awarded a Production Sharing Contract (PSC) for Block SK310 offshore Sarawak to Newfield Sarawak Malaysia Inc, Mitsubishi Corporation and PETRONAS Carigali Sdn Bhd.

Block SK310 is located in water depths of between 50 and 100 metres in the Central Luconia Province and covers an area of about 3,460 square kilometres.

Under the terms of the PSC, Newfield, with 30 per cent interest, will be the operator of the block, while Mitsubishi Corporation and PETRONAS Carigali Sdn Bhd will own the remaining interest of 30 per cent and 40 per cent respectively.

The partners are committed to acquire 500 square kilometres of new 3D seismic data and drill three exploration wells. The minimum financial commitment is estimated at US$43.5 million.

The PSC for the block was signed today at the PETRONAS Twin Towers in Kuala Lumpur. PETRONAS was represented by its Vice President of Exploration & Production Business, Encik Ramlan Abdul Malek; Newfield Sarawak Malaysia Inc by its President/CEO Mr. David Trice; Mitsubishi Corporation by its Executive Vice President of Energy Business Group Mr. Seiji Kato; and PETRONAS Carigali by its Managing Director/CEO Datuk Abdullah Karim.

Source : Petronas