Petronas Carigali Sdn Bhd, the exploration and production arm of Petronas, has made two significant gas discoveries in the shallow waters off west coast of Sabah.
In a statement, Petronas said the first discovery was via the Zuhai East-1 well, which was located in the Samarang Asam Paya Block about 130km south-west of Kota Kinabalu.
"The current estimate of gas-initially-in-place is about 550 billion standard cu ft," it said.
Similar reservoirs in a nearby well about 5 km to the east of the Zuhai East discovery were tested to flow gas at a maximum rate of 21 million standard cu ft per day, it said.
Petronas Carigali is the sole equity holder of the production-sharing contract (PSC) of the Samarang Asam Paya Block.
It said the second discovery, at the Menggatal-1 well, was located in Block SB312, about 110km north-east of Kota Kinabalu.
"The Block SB312 PSC is a joint-venture between Petronas Carigali with 60 per cent equity and KUFPEC Malaysia (SB 312) Ltd, a subsidiary of Kuwait Foreign Petroleum Exploration Co, which holds the remaining interest," it said.
Sunday, 31 July 2011
Saturday, 30 July 2011
Online recruitment programme a scam, cautions Petronas
The public should disregard an e-mail being circulated of a job recruitment programme purportedly by Petroliam Nasional Bhd (Petronas).
The e-mail under the heading “Petronas Job Opportunity”, urges readers to submit their personal details to a “Petronas manager”.
Doing so would enable them to obtain jobs with the giant company, it promises.
Those behind the scam pose as Petronas recruitment department personnel and charge job seekers a certain sum to secure positions in the company.
In a statement issued yesterday, the national oil company clarified that Petronas did not go into e-mail-based recruitment exercise nor did it engage third-party personnel or on-line employment agencies for such a purpose.
“The public should not respond to such e-mails,” it added.
Petronas clarified that its official online talent scouting portal is www.discoverpetronas.com.
“Petronas does not request any payment or charges any fee for processing job applications,” it said.
Any online communication on recruitment are via its officials e-mail domains discoverpetronas.com and petronas.com.my.
The e-mail under the heading “Petronas Job Opportunity”, urges readers to submit their personal details to a “Petronas manager”.
Doing so would enable them to obtain jobs with the giant company, it promises.
Those behind the scam pose as Petronas recruitment department personnel and charge job seekers a certain sum to secure positions in the company.
In a statement issued yesterday, the national oil company clarified that Petronas did not go into e-mail-based recruitment exercise nor did it engage third-party personnel or on-line employment agencies for such a purpose.
“The public should not respond to such e-mails,” it added.
Petronas clarified that its official online talent scouting portal is www.discoverpetronas.com.
“Petronas does not request any payment or charges any fee for processing job applications,” it said.
Any online communication on recruitment are via its officials e-mail domains discoverpetronas.com and petronas.com.my.
Petronas Chemicals aims to raise US$1.5 bln for plant by the end of this year
Petronas Chemicals Bhd (Petronas Chemicals) hopes the fund–raising exercise for the development of its fertiliser plant in Sipitang, Sabah, can be concluded by year-end.
Its chairman Datuk Wan Zulkiflee Wan Ariffin said the company was looking for internal and external sources of funding for the estimated US$1.5 billion (some RM4.434 billion) gross development value project.
“We have an active capital management programmers, it make a lot sense for us to go out and get some external funding.
“Also, we may have some partners to undertake the project,” he told reporters after Petronas Chemicals’ annual general meeting here, yesterday.
For the partnership with other companies, Wan Zulkiflee said Petronas Chemicals was willing to offer an up to 30 per cent stake in the project.
Commenting on the collaboration with BASF SE, he said Petronas Chemicals currently has two collaborative stream works with the chemical company.
“The first is to undertake a feasibility study to expand some of our facilities in Gebeng, Pahang, which includes an investment of RM4 billion, and expected to be completed by year-end.
“The other stream is a rapid project, undertaken by Petroliam Nasional Bhd and expected to be completed by the end of next year, at a total investment cost of about RM60 billion,” Wan Zulkiflee said.
On the outlook for the company, he reminded all players in Petronas Chemicals, to be always ready.
“We are in a cyclical industry and have seen a lot of price fluctuations recently due to the tsunami in Japan, the Middle-East Crisis and so forth,” he added.
Its chairman Datuk Wan Zulkiflee Wan Ariffin said the company was looking for internal and external sources of funding for the estimated US$1.5 billion (some RM4.434 billion) gross development value project.
“We have an active capital management programmers, it make a lot sense for us to go out and get some external funding.
“Also, we may have some partners to undertake the project,” he told reporters after Petronas Chemicals’ annual general meeting here, yesterday.
For the partnership with other companies, Wan Zulkiflee said Petronas Chemicals was willing to offer an up to 30 per cent stake in the project.
Commenting on the collaboration with BASF SE, he said Petronas Chemicals currently has two collaborative stream works with the chemical company.
“The first is to undertake a feasibility study to expand some of our facilities in Gebeng, Pahang, which includes an investment of RM4 billion, and expected to be completed by year-end.
“The other stream is a rapid project, undertaken by Petroliam Nasional Bhd and expected to be completed by the end of next year, at a total investment cost of about RM60 billion,” Wan Zulkiflee said.
On the outlook for the company, he reminded all players in Petronas Chemicals, to be always ready.
“We are in a cyclical industry and have seen a lot of price fluctuations recently due to the tsunami in Japan, the Middle-East Crisis and so forth,” he added.
Friday, 29 July 2011
Najib denies US$100b pipeline deal
Datuk Seri Najib Razak has denied giving the green light to a little-known local company to develop an 8,000km gas pipeline linking Asean countries, including Malaysia, with China.
The prime minister looked perplexed when quizzed by reporters today over PanelPoint Sdn Bhd’s claim that Najib had given his “blessing” for the deal it claimed was worth US$100 billion (RM300 billion).
“No, no such thing. It was never discussed,” he said after chairing an Umno supreme council meeting.
PanelPoint had faced a hostile press pack yesterday when announcing it would form a consortium to develop what it dubbed the Trans-Asian Oil and Gas (TOAG) Pipeline.
President and chief executive Che Nordin Ismail had said that it had received the prime minister’s blessing in black-and-white but failed to produce documented proof to back up its claims.
Although Che Nordin had dodged questions on how his company would fund the project, he insisted that PanelPoint has “quite a lot of money” for pursuing the project, which has been in the works for seven years.
He said that TOAG, the region’s first natural gas pipeline network, will link Mersing with Jakarta, the Northern Natuna Islands, Ho Chi Minh City, Hanoi, Guangzhou and Hong Kong upon completion.
Gas, mainly from Indonesia, will be routed through the 8,000-kilometre pipeline to buyers in energy-hungry China when it is completed in 10 years, the company said.
TOAG will be built by a consortium comprising Hubei Weiguang Municipal Gas Investment and Development Co Ltd, PWS Manufacturing Sdn Bhd, the Malay Contractors Association of Malaysia (PKMM), Asia Bolts and Nuts Group, Lotus Action Sdn Bhd and Techknow Industrial Sdn Bhd.
Funding for the project will come from US-based Rochester Foundation Inc, whose chairman, Robert Smith Sr, is also a partner in PanelPoint.
A search with the Companies Commission of Malaysia showed that PanelPoint has a paid-up capital of RM100,000.
Che Nordin had also said that the company had signed a memorandum of understanding with the Vietnamese government and entered into talks with potential gas buyers in China.
However, he admitted that PanelPoint has not entered into any talks with potential gas suppliers but intends to begin official discussions with state oil firm Petronas in two months’ time.
The prime minister looked perplexed when quizzed by reporters today over PanelPoint Sdn Bhd’s claim that Najib had given his “blessing” for the deal it claimed was worth US$100 billion (RM300 billion).
“No, no such thing. It was never discussed,” he said after chairing an Umno supreme council meeting.
PanelPoint had faced a hostile press pack yesterday when announcing it would form a consortium to develop what it dubbed the Trans-Asian Oil and Gas (TOAG) Pipeline.
President and chief executive Che Nordin Ismail had said that it had received the prime minister’s blessing in black-and-white but failed to produce documented proof to back up its claims.
Although Che Nordin had dodged questions on how his company would fund the project, he insisted that PanelPoint has “quite a lot of money” for pursuing the project, which has been in the works for seven years.
He said that TOAG, the region’s first natural gas pipeline network, will link Mersing with Jakarta, the Northern Natuna Islands, Ho Chi Minh City, Hanoi, Guangzhou and Hong Kong upon completion.
Gas, mainly from Indonesia, will be routed through the 8,000-kilometre pipeline to buyers in energy-hungry China when it is completed in 10 years, the company said.
TOAG will be built by a consortium comprising Hubei Weiguang Municipal Gas Investment and Development Co Ltd, PWS Manufacturing Sdn Bhd, the Malay Contractors Association of Malaysia (PKMM), Asia Bolts and Nuts Group, Lotus Action Sdn Bhd and Techknow Industrial Sdn Bhd.
Funding for the project will come from US-based Rochester Foundation Inc, whose chairman, Robert Smith Sr, is also a partner in PanelPoint.
A search with the Companies Commission of Malaysia showed that PanelPoint has a paid-up capital of RM100,000.
Che Nordin had also said that the company had signed a memorandum of understanding with the Vietnamese government and entered into talks with potential gas buyers in China.
However, he admitted that PanelPoint has not entered into any talks with potential gas suppliers but intends to begin official discussions with state oil firm Petronas in two months’ time.
Company makes audacious US$100b pipeline project announcement, claims PM’s blessings
Little known local company PanelPoint Sdn Bhd faced a hostile press today after announcing it would form a consortium to develop an 8000km gas pipeline linking Asean countries, including Malaysia, with China, in a deal it claimed was worth US$100 billion.
Skeptical reporters pressed on but received little information about how the company intended to fund what it called the Trans-Asian Oil and Gas (TOAG) Pipeline.
The company also said it had received the “blessing” of the prime minister in black-and-white, but did not show any document.
“Talking about the financials, we try and put it on a very low profile... because we don’t want to reveal so much,” PanelPoint president and chief executive Che Nordin Ismail told reporters after the announcement at the swanky Mandarin Oriental Hotel here this afternoon.
He also said PanelPoint has spent “quite a lot of money” so far pursuing the project, which has been in the works for seven years, but declined to specify an amount.
TOAG, the region’s first natural gas pipeline network, will link Mersing with Jakarta, the Northern Natuna Islands, Ho Chi Minh City, Hanoi, Guangzhou and Hong Kong upon completion.
Gas, mainly from Indonesia, will be routed through the 8000-kilometre pipeline to buyers in energy-hungry China when it is completed in 10 years, the company said.
TOAG will be built by a consortium comprising Hubei Weiguang Municipal Gas Investment and Development Co Ltd, PWS Manufacturing Sdn Bhd, the Malay Contractors Association of Malaysia (PKMM), Asia Bolts and Nuts Group, Lotus Action Sdn Bhd and Techknow Industrial Sdn Bhd.
Funding for the project will come from US-based Rochester Foundation Inc, whose chairman, Robert Smith Sr, is also a partner in PanelPoint.
A search with the Companies Commission of Malaysia shows that PanelPoint has a paid up capital of RM100,000.
Che Nordin said the company has entered talks with the Vietnamese government and potential gas buyers in China over the pipeline but admitted that no formal agreement has been signed with any government.
But he stressed that PanelPoint has already secured an agreement in principle from Vietnam based on a memorandum of understanding (MoU) signed between the two in 2005 to develop the oil and gas industry in the Southeast Asian nation.
“Our agreements with Vietnam are still valid until now. It’s just a matter of following up with the agreements and details of the work,” he said.
Che Nordin also said PanelPoint has not entered into any talks with potential gas suppliers but intends to begin official discussions with state oil firm Petronas in two months.
Skeptical reporters pressed on but received little information about how the company intended to fund what it called the Trans-Asian Oil and Gas (TOAG) Pipeline.
The company also said it had received the “blessing” of the prime minister in black-and-white, but did not show any document.
“Talking about the financials, we try and put it on a very low profile... because we don’t want to reveal so much,” PanelPoint president and chief executive Che Nordin Ismail told reporters after the announcement at the swanky Mandarin Oriental Hotel here this afternoon.
He also said PanelPoint has spent “quite a lot of money” so far pursuing the project, which has been in the works for seven years, but declined to specify an amount.
TOAG, the region’s first natural gas pipeline network, will link Mersing with Jakarta, the Northern Natuna Islands, Ho Chi Minh City, Hanoi, Guangzhou and Hong Kong upon completion.
Gas, mainly from Indonesia, will be routed through the 8000-kilometre pipeline to buyers in energy-hungry China when it is completed in 10 years, the company said.
TOAG will be built by a consortium comprising Hubei Weiguang Municipal Gas Investment and Development Co Ltd, PWS Manufacturing Sdn Bhd, the Malay Contractors Association of Malaysia (PKMM), Asia Bolts and Nuts Group, Lotus Action Sdn Bhd and Techknow Industrial Sdn Bhd.
Funding for the project will come from US-based Rochester Foundation Inc, whose chairman, Robert Smith Sr, is also a partner in PanelPoint.
A search with the Companies Commission of Malaysia shows that PanelPoint has a paid up capital of RM100,000.
Che Nordin said the company has entered talks with the Vietnamese government and potential gas buyers in China over the pipeline but admitted that no formal agreement has been signed with any government.
But he stressed that PanelPoint has already secured an agreement in principle from Vietnam based on a memorandum of understanding (MoU) signed between the two in 2005 to develop the oil and gas industry in the Southeast Asian nation.
“Our agreements with Vietnam are still valid until now. It’s just a matter of following up with the agreements and details of the work,” he said.
Che Nordin also said PanelPoint has not entered into any talks with potential gas suppliers but intends to begin official discussions with state oil firm Petronas in two months.
Thursday, 28 July 2011
China oil spill six times size of Singapore
The spill from the oil field, which the United States' ConocoPhillips operates with China's state-run oil giant CNOOC, has polluted a total area of almost 4,250 square kilometres (1,650 square miles), government figures showed.
The figures, which were announced on the State Oceanic Administration website earlier this week but only reported on Friday, were almost five times the size of the 840-square-kilometre area previously reported.
The administration says that area remains worst affected by the spill, but that another 3,400 square kilometres have also been contaminated to a lesser degree by the oil.
The spill was kept secret by the authorities for several weeks before being made public this month, sparking suspicions of an official cover-up, and the disaster has triggered a furious public response in China.
State media said the government was considering seeking compensation from ConocoPhillips over the spill.
Dim lights
"We have made an initial plan to claim compensation from ConocoPhillips China," the business daily 21st Century Business Herald quoted an unnamed official from the State Oceanic Administration as saying.
"But whether and how it will be implemented still depends on the status of plugging the leak."
CNOOC said last week the spill was "basically under control" while ConocoPhillips told reporters the leaks had been plugged.
But on Wednesday the oceanic administration said oil was still leaking into the ocean and ordered ConocoPhillips to stop operations at several rigs in the polluted area until the source of the spill was fully plugged.
"There has been oil seeping continuously into the sea for days from platforms B and C in the Penglai 19-3 oilfield and there is still a slick in the surrounding marine areas," it said in a statement.
"Another spill could happen at any time, which has posed a huge threat to the oceanic ecological environment."
CNOOC has been slammed by state media and green groups over the spill, and it emerged on Tuesday that the firm was cleaning up another slick after a breakdown at a rig off the northeast coast.
ConocoPhillips said Thursday the spill was the equivalent of 1,500 barrels of oil.
The figures, which were announced on the State Oceanic Administration website earlier this week but only reported on Friday, were almost five times the size of the 840-square-kilometre area previously reported.
The administration says that area remains worst affected by the spill, but that another 3,400 square kilometres have also been contaminated to a lesser degree by the oil.
The spill was kept secret by the authorities for several weeks before being made public this month, sparking suspicions of an official cover-up, and the disaster has triggered a furious public response in China.
State media said the government was considering seeking compensation from ConocoPhillips over the spill.
Dim lights
"We have made an initial plan to claim compensation from ConocoPhillips China," the business daily 21st Century Business Herald quoted an unnamed official from the State Oceanic Administration as saying.
"But whether and how it will be implemented still depends on the status of plugging the leak."
CNOOC said last week the spill was "basically under control" while ConocoPhillips told reporters the leaks had been plugged.
But on Wednesday the oceanic administration said oil was still leaking into the ocean and ordered ConocoPhillips to stop operations at several rigs in the polluted area until the source of the spill was fully plugged.
"There has been oil seeping continuously into the sea for days from platforms B and C in the Penglai 19-3 oilfield and there is still a slick in the surrounding marine areas," it said in a statement.
"Another spill could happen at any time, which has posed a huge threat to the oceanic ecological environment."
CNOOC has been slammed by state media and green groups over the spill, and it emerged on Tuesday that the firm was cleaning up another slick after a breakdown at a rig off the northeast coast.
ConocoPhillips said Thursday the spill was the equivalent of 1,500 barrels of oil.
Wednesday, 27 July 2011
KNM, Zecon in RM17b petroleum complex deal
KNM Group Bhd and Zecon Bhd signed preliminary deals worth RM17bil in total with Gulf Asian Petroleum Sdn Bhd (GAP) yesterday to build an integrated petro-chemical complex in Teluk Ramunia, Johor.
In a Bursa Malaysia filing yesterday, KNM said that the engineering, procurement, construction and commissioning contracts were for a 150,000/200,000 barrels per day petroleum refinery and 400,000/525,000 million tonnes per annum polypropylene unit with a total project value of US$5bil (RM15bil) and also, a RM2bil petroleum storage terminal facility comprising four terminals with a total storage capacity of 2.328 million cu m.
GAP is 50%-owned by Mubadala Capital Sdn Bhd (MCSB) and the balance owned by Abdul Aziz Hamad Al-Dulaimi who is the president of Gulf Petroleum Ltd, an integrated oil and gas group based in Doha, Qatar.
MCSB's controlling shareholder is Datuk Zainal Abidin Ahmad, who is also the group managing director and chief executive officer and controlling shareholder of Zecon.
Under the deal, KNM Group and Zecon together with an international Korean or Chinese contractor will form a consortium to undertake the petroleum refinery and polypropylene unit projects.
The consortium will take up to 20% equity in GAP, which is estimated at US$180mil (RM540mil).
The petroleum refinery and polypropylene unit projects will be funded by 30% equity and the balance through project financing using export credit agencies or other financial instruments including sukuk issuance. The facilities are due for completion in 40 months from the financial close of the deal, which should be finalised within the next three months.
Meanwhile, another consortium will be formed by KNM Group and Zecon for the petroleum product storage terminal facility project via a special purpose vehicle (SPV) company.
KNM Group plans to take up to 30% equity in the SPV company, and the balance will be held by GAP and its nominated parties. The SPV has a estimated equity value of RM200mil.
Also, KNM and GAP will form a joint-venture company to undertake the operations and maintenance of the facilities upon project completion for 25 years, with a reputable operator as a partner in the first five years.
The petroleum product storage terminal facility is due to be completed in 18 months from the financial close of the deal, which should be finalised within the next three months.
GAP will arrange for a financial guarantee from a local investment fund for up to RM1.5bil during the construction period, to be converted into a long-term loan thereafter, and a facilitation fund of up to RM300mil, while KNM will arrange a sukuk issuance of up to RM1.5bil to cover project financing during construction.
The Johor state government has given its approval for 650 acres in Teluk Ramunia for the projects.
GAP, which has appointed Evercore Partners New York as its financial adviser, is in discussion with the Johor state government concerning its equity participation which has yet to be finalised.
The projects are expected to contribute positively to both KNM Group and Zecon's earnings for the next four financial years. Approval from Zecon shareholders will be required for the deals, and its proposed investments in the equity of GAP and the SPV company as it is a related-party transaction.
In a Bursa Malaysia filing yesterday, KNM said that the engineering, procurement, construction and commissioning contracts were for a 150,000/200,000 barrels per day petroleum refinery and 400,000/525,000 million tonnes per annum polypropylene unit with a total project value of US$5bil (RM15bil) and also, a RM2bil petroleum storage terminal facility comprising four terminals with a total storage capacity of 2.328 million cu m.
GAP is 50%-owned by Mubadala Capital Sdn Bhd (MCSB) and the balance owned by Abdul Aziz Hamad Al-Dulaimi who is the president of Gulf Petroleum Ltd, an integrated oil and gas group based in Doha, Qatar.
MCSB's controlling shareholder is Datuk Zainal Abidin Ahmad, who is also the group managing director and chief executive officer and controlling shareholder of Zecon.
Under the deal, KNM Group and Zecon together with an international Korean or Chinese contractor will form a consortium to undertake the petroleum refinery and polypropylene unit projects.
The consortium will take up to 20% equity in GAP, which is estimated at US$180mil (RM540mil).
The petroleum refinery and polypropylene unit projects will be funded by 30% equity and the balance through project financing using export credit agencies or other financial instruments including sukuk issuance. The facilities are due for completion in 40 months from the financial close of the deal, which should be finalised within the next three months.
Meanwhile, another consortium will be formed by KNM Group and Zecon for the petroleum product storage terminal facility project via a special purpose vehicle (SPV) company.
KNM Group plans to take up to 30% equity in the SPV company, and the balance will be held by GAP and its nominated parties. The SPV has a estimated equity value of RM200mil.
Also, KNM and GAP will form a joint-venture company to undertake the operations and maintenance of the facilities upon project completion for 25 years, with a reputable operator as a partner in the first five years.
The petroleum product storage terminal facility is due to be completed in 18 months from the financial close of the deal, which should be finalised within the next three months.
GAP will arrange for a financial guarantee from a local investment fund for up to RM1.5bil during the construction period, to be converted into a long-term loan thereafter, and a facilitation fund of up to RM300mil, while KNM will arrange a sukuk issuance of up to RM1.5bil to cover project financing during construction.
The Johor state government has given its approval for 650 acres in Teluk Ramunia for the projects.
GAP, which has appointed Evercore Partners New York as its financial adviser, is in discussion with the Johor state government concerning its equity participation which has yet to be finalised.
The projects are expected to contribute positively to both KNM Group and Zecon's earnings for the next four financial years. Approval from Zecon shareholders will be required for the deals, and its proposed investments in the equity of GAP and the SPV company as it is a related-party transaction.
Tuesday, 26 July 2011
Terminal LNG PETRONAS Gas siap ikut jadual
Kemudahan di Sungai Udang beroperasi tahun depan
KEMUDAHAN memproses gas milik PETRONAS Gas Bhd di Sungai Udang, Melaka akan memulakan operasinya mengikut jadual iaitu pada pertengahan tahun depan, sekali gus membolehkan penyaluran bekalan gas tambahan secara lebih konsisten di Semenanjung.
“Ia berjalan mengikut jadual. Kerja memasang cerucuk di Pelabuhan Sungai Udang sudah siap dan kami juga sudah memasang paip dari terminal untuk disambungkan ke rangkaian saluran paip Penggunaan Gas Semenanjung.
“Kemudahan itu dijangka bersedia menerima penghantaran gas asli cecair (LNG) pertama pada pertengahan tahun depan,” kata Pengarah Urusan dan Ketua Eksekutif PETRONAS Gas, Samsudin Miskon.
PETRONAS Gas sebelum ini berkata, kemudahan terminal di Sungai Udang itu membabitkan pembinaan kemudahan penggasan semula, unit penyimpanan terapung dan saluran paip dasar laut dengan kapasiti penghantaran gas keluar maksimum 3.8 juta tan setahun.
Penggasan semula adalah proses penyejatan untuk menukar LNG kembali ke dalam bentuk gas yang membolehkan ia diangkut ke terminal pengedaran.
Terminal LNG itu dijangkakan menerima gas daripada projek Gladstone LNG (GLNG) di Queensland, Australia.
Sementara itu, Pengerusi PETRONAS Gas, Datuk Anuar Ahmad, berkata kemudahan di Sungai Udang itu dijangkakan memberi pendapatan tambahan sebanyak 10 peratus setahun kepada PETRONAS Gas.
Dalam perkembangan lain, beliau berkata, kumpulan itu bercadang mengumpul dana RM1.2 bilion bagi membiayai sebahagian daripada projek Loji Jana Kuasa Kimanis di Sabah.
Dana itu mewakili 80 peratus daripada jumlah kos membina loji gas berkuasa 300 megawatt itu yang bernilai RM1.5 bilion, manakala baki 20 peratus dibiayai dana dalaman.
Anuar yang juga Naib Presiden Eksekutif Perniagaan Gas dan Tenaga PETRONAS berkata, PETRONAS Gas kini sedang berunding dengan bank tempatan dan asing untuk memuktamadkan pembiayaan projek berkenaan.
Perjanjian pembelian kuasa untuk loji itu pula, katanya, akan dilaksanakan tidak lama lagi.
Loji kuasa yang akan menjadi pengeluar kuasa bebas terbesar di Sabah itu, dimajukan secara bersama menerusi usaha sama 60:40 antara Petronas Gas dan NRG Consortium (Sabah) Sdn Bhd, anak syarikat Yayasan Sabah.
Dalam perkembangan lain, Samsudin berkata, PETRONAS Gas akan memperuntukkan RM800 juta untuk perbelanjaan modal tahun ini dan antara RM800 juta hingga RM1 bilion tahun depan menggunakan dana dalaman.
KEMUDAHAN memproses gas milik PETRONAS Gas Bhd di Sungai Udang, Melaka akan memulakan operasinya mengikut jadual iaitu pada pertengahan tahun depan, sekali gus membolehkan penyaluran bekalan gas tambahan secara lebih konsisten di Semenanjung.
“Ia berjalan mengikut jadual. Kerja memasang cerucuk di Pelabuhan Sungai Udang sudah siap dan kami juga sudah memasang paip dari terminal untuk disambungkan ke rangkaian saluran paip Penggunaan Gas Semenanjung.
“Kemudahan itu dijangka bersedia menerima penghantaran gas asli cecair (LNG) pertama pada pertengahan tahun depan,” kata Pengarah Urusan dan Ketua Eksekutif PETRONAS Gas, Samsudin Miskon.
PETRONAS Gas sebelum ini berkata, kemudahan terminal di Sungai Udang itu membabitkan pembinaan kemudahan penggasan semula, unit penyimpanan terapung dan saluran paip dasar laut dengan kapasiti penghantaran gas keluar maksimum 3.8 juta tan setahun.
Penggasan semula adalah proses penyejatan untuk menukar LNG kembali ke dalam bentuk gas yang membolehkan ia diangkut ke terminal pengedaran.
Terminal LNG itu dijangkakan menerima gas daripada projek Gladstone LNG (GLNG) di Queensland, Australia.
Sementara itu, Pengerusi PETRONAS Gas, Datuk Anuar Ahmad, berkata kemudahan di Sungai Udang itu dijangkakan memberi pendapatan tambahan sebanyak 10 peratus setahun kepada PETRONAS Gas.
Dalam perkembangan lain, beliau berkata, kumpulan itu bercadang mengumpul dana RM1.2 bilion bagi membiayai sebahagian daripada projek Loji Jana Kuasa Kimanis di Sabah.
Dana itu mewakili 80 peratus daripada jumlah kos membina loji gas berkuasa 300 megawatt itu yang bernilai RM1.5 bilion, manakala baki 20 peratus dibiayai dana dalaman.
Anuar yang juga Naib Presiden Eksekutif Perniagaan Gas dan Tenaga PETRONAS berkata, PETRONAS Gas kini sedang berunding dengan bank tempatan dan asing untuk memuktamadkan pembiayaan projek berkenaan.
Perjanjian pembelian kuasa untuk loji itu pula, katanya, akan dilaksanakan tidak lama lagi.
Loji kuasa yang akan menjadi pengeluar kuasa bebas terbesar di Sabah itu, dimajukan secara bersama menerusi usaha sama 60:40 antara Petronas Gas dan NRG Consortium (Sabah) Sdn Bhd, anak syarikat Yayasan Sabah.
Dalam perkembangan lain, Samsudin berkata, PETRONAS Gas akan memperuntukkan RM800 juta untuk perbelanjaan modal tahun ini dan antara RM800 juta hingga RM1 bilion tahun depan menggunakan dana dalaman.
Monday, 25 July 2011
Qatar agrees to supply LNG to Malaysia for 20 years
Qatargas agreed to supply Petronas LNG Ltd 1.5 million tonnes of liquefied natural gas annually for at least 20 years from 2013, the world’s biggest LNG producer said today.
“It is the first time Qatargas has signed a HOA (heads of agreement) for supplying LNG to the South East Asian market,” Qatargas CEO Khalid Bin Khalifa Al Thani said in a statement.
“We are very pleased with this achievement as it represents the first long-term agreement for supplying LNG to one of the world’s fastest growing LNG markets,” he added.
The LNG supply from Qatar would be equivalent to about 5 per cent of Malaysia’s current annual domestic natural gas demand, the statement said.
Qatar, the world’s biggest LNG exporter, can produce up to 77 million tonnes of LNG a year. — Reuters
“It is the first time Qatargas has signed a HOA (heads of agreement) for supplying LNG to the South East Asian market,” Qatargas CEO Khalid Bin Khalifa Al Thani said in a statement.
“We are very pleased with this achievement as it represents the first long-term agreement for supplying LNG to one of the world’s fastest growing LNG markets,” he added.
The LNG supply from Qatar would be equivalent to about 5 per cent of Malaysia’s current annual domestic natural gas demand, the statement said.
Qatar, the world’s biggest LNG exporter, can produce up to 77 million tonnes of LNG a year. — Reuters
Saturday, 23 July 2011
Keppel on track to complete FSO for Bumi Armada
Keppel Shipyard is on track to complete the fast-track conversion of FSO Sepat, a floating production and storage (FSO) unit, for Bumi Armada Navigation Sdn Berhad.
With a storage capacity of 500,000 barrels of oil, FSO Sepat will be deployed in offshore Malaysia for the development of the Sepat field for PETRONAS Carigali Sdn Bhd.
Naming the vessel today was the Lady Sponsor Datin Aspalela Mohd Yusop, the spouse of Datuk Abdullah Karim, President of PETRONAS Carigali Sdn Bhd.
Mr Nelson Yeo, Managing Director of Keppel Shipyard, said, "We are pleased to have been entrusted with all of Bumi Armada's FPSO and FSO conversion projects to date. FSO Sepat is another conversion unit that Keppel is delivering to Bumi Armada this year. It follows shortly after our delivery of FPSO Armada TGT 1 in June. We are also grateful and honoured to be able to contribute to Petrofac and PETRONAS Carigali's oil and gas activities in Malaysia.
"The fast-track conversion of FSO Sepat was enabled by Keppel, Bumi Armada, Petrofac and Petronas' strong teamwork and shared commitment. I am pleased to inform that there has been no reportable lost-time incident on this project."
FSO Sepat had been converted from the tanker AMORE, and work at Keppel Shipyard is expected to complete in the third quarter of 2011. Keppel Shipyard's work scope on the FSO includes refurbishment and life extension works, fabrication and installation of the cargo offloading balcony and helideck, installation and integration of a 12-point spread mooring system, and the upgrading of accommodation facilities.
With a storage capacity of 500,000 barrels of oil, FSO Sepat will be deployed in offshore Malaysia for the development of the Sepat field for PETRONAS Carigali Sdn Bhd.
Naming the vessel today was the Lady Sponsor Datin Aspalela Mohd Yusop, the spouse of Datuk Abdullah Karim, President of PETRONAS Carigali Sdn Bhd.
Mr Nelson Yeo, Managing Director of Keppel Shipyard, said, "We are pleased to have been entrusted with all of Bumi Armada's FPSO and FSO conversion projects to date. FSO Sepat is another conversion unit that Keppel is delivering to Bumi Armada this year. It follows shortly after our delivery of FPSO Armada TGT 1 in June. We are also grateful and honoured to be able to contribute to Petrofac and PETRONAS Carigali's oil and gas activities in Malaysia.
"The fast-track conversion of FSO Sepat was enabled by Keppel, Bumi Armada, Petrofac and Petronas' strong teamwork and shared commitment. I am pleased to inform that there has been no reportable lost-time incident on this project."
FSO Sepat had been converted from the tanker AMORE, and work at Keppel Shipyard is expected to complete in the third quarter of 2011. Keppel Shipyard's work scope on the FSO includes refurbishment and life extension works, fabrication and installation of the cargo offloading balcony and helideck, installation and integration of a 12-point spread mooring system, and the upgrading of accommodation facilities.
Friday, 22 July 2011
Petrofac mahu ambil alih saham RNZ
Telaga minyak laut dalam PETRONAS pikat syarikat besar
PETROFAC Ltd, gergasi kejuruteraan minyak dan gas Britain sedang berunding untuk mengambil alih sebahagian besar kepentingan dalam RNZ Integrated (M) Sdn Bhd, iaitu sebuah daripada enam syarikat kejuruteraan berlesen luar pesisir utama PETRONAS.
Sumber industri berkata, pengambilalihan pegangan saham majoriti RNZ Integrated itu bertujuan mengukuhkan kedudukan syarikat berpangkalan di Jermyn Street London itu untuk membida lebih banyak kontrak perkhidmatan pembangunan telaga minyak kecil dan laut dalam yang lebih berisiko dengan PETRONAS.
“Kegiatan pembangunan telaga minyak kecil dan laut dalam di Malaysia kini semakin mendapat perhatian syarikat besar antarabangsa berikutan komitmen serius kerajaan dalam usaha menambahkan lagi jumlah simpanan minyak negara.
“Bersandarkan perkembangan berkenaan, syarikat Britain itu sedang menyusun strategi untuk meningkatkan lagi jangkauan pembabitannya dalam industri minyak dan gas di Malaysia dengan mengambil alih syarikat tempatan berpotensi, dengan RNZ menjadi sasaran pengambilalihan itu.
“Rundingan membabitkan kedua-dua pihak (Petrofac dan RNZ Integrated) sedang berlangsung dan difahamkan gergasi kejuruteraan minyak dan gas Britain itu berminat mengambil alih 50 peratus kepentingan dalam RNZ Integrated.
“Bagaimanapun semuanya masih lagi pada peringkat awal dan belum ada sebarang perjanjian dimuktamadkan,” katanya kepada Berita Harian di Kuala Lumpur.
RNZ Integrated yang diterajui Pengarah Urusan dan Ketua Eksekutifnya, Rozali Ahmad, bagaimanapun gagal dihubungi bagi mengulas perkembangan itu.
Sumber itu berkata, Petrofac berminat dengan RNZ kerana syarikat milik penuh Bumiputera yang ditubuhkan pada 1994 itu mempunyai reputasi baik hasil kejayaannya melaksanakan pelbagai projek di Malaysia, Sudan, India, Vietnam, Turkmenistan, Iran dan Qatar.
Antara projek utama syarikat itu adalah projek pembangunan bersepadu Sumandak Selatan, luar pantai Sabah; projek pembangunan Bunga Tulip A, sempadan Malaysia-Vietnam; projek pembangunan minyak Pelabuhan Tanjong Langsat, Johor; projek pembangunan Lembangan Muglad dan projek terminal marin Bashayer 2, Sudan serta projek pembangunan Monopod, India.
Sebagai kontraktor utama PETRONAS, RNZ Integrated turut memiliki kelebihan kerana memperoleh pensijilan ISO9001 bagi penyediaan perkhidmatan kejuruteraan, reka bentuk, bantuan pemerolehan dan pengurusan projek bagi pembangunan dan pengubahsuaian kemudahan pengeluaran, pemasangan dan proses minyak dan gas.
PETROFAC Ltd, gergasi kejuruteraan minyak dan gas Britain sedang berunding untuk mengambil alih sebahagian besar kepentingan dalam RNZ Integrated (M) Sdn Bhd, iaitu sebuah daripada enam syarikat kejuruteraan berlesen luar pesisir utama PETRONAS.
Sumber industri berkata, pengambilalihan pegangan saham majoriti RNZ Integrated itu bertujuan mengukuhkan kedudukan syarikat berpangkalan di Jermyn Street London itu untuk membida lebih banyak kontrak perkhidmatan pembangunan telaga minyak kecil dan laut dalam yang lebih berisiko dengan PETRONAS.
“Kegiatan pembangunan telaga minyak kecil dan laut dalam di Malaysia kini semakin mendapat perhatian syarikat besar antarabangsa berikutan komitmen serius kerajaan dalam usaha menambahkan lagi jumlah simpanan minyak negara.
“Bersandarkan perkembangan berkenaan, syarikat Britain itu sedang menyusun strategi untuk meningkatkan lagi jangkauan pembabitannya dalam industri minyak dan gas di Malaysia dengan mengambil alih syarikat tempatan berpotensi, dengan RNZ menjadi sasaran pengambilalihan itu.
“Rundingan membabitkan kedua-dua pihak (Petrofac dan RNZ Integrated) sedang berlangsung dan difahamkan gergasi kejuruteraan minyak dan gas Britain itu berminat mengambil alih 50 peratus kepentingan dalam RNZ Integrated.
“Bagaimanapun semuanya masih lagi pada peringkat awal dan belum ada sebarang perjanjian dimuktamadkan,” katanya kepada Berita Harian di Kuala Lumpur.
RNZ Integrated yang diterajui Pengarah Urusan dan Ketua Eksekutifnya, Rozali Ahmad, bagaimanapun gagal dihubungi bagi mengulas perkembangan itu.
Sumber itu berkata, Petrofac berminat dengan RNZ kerana syarikat milik penuh Bumiputera yang ditubuhkan pada 1994 itu mempunyai reputasi baik hasil kejayaannya melaksanakan pelbagai projek di Malaysia, Sudan, India, Vietnam, Turkmenistan, Iran dan Qatar.
Antara projek utama syarikat itu adalah projek pembangunan bersepadu Sumandak Selatan, luar pantai Sabah; projek pembangunan Bunga Tulip A, sempadan Malaysia-Vietnam; projek pembangunan minyak Pelabuhan Tanjong Langsat, Johor; projek pembangunan Lembangan Muglad dan projek terminal marin Bashayer 2, Sudan serta projek pembangunan Monopod, India.
Sebagai kontraktor utama PETRONAS, RNZ Integrated turut memiliki kelebihan kerana memperoleh pensijilan ISO9001 bagi penyediaan perkhidmatan kejuruteraan, reka bentuk, bantuan pemerolehan dan pengurusan projek bagi pembangunan dan pengubahsuaian kemudahan pengeluaran, pemasangan dan proses minyak dan gas.
Thursday, 21 July 2011
Renegotiation Of Petronas Gas Contract Yields Results
Upstream oil and gas regulator BPMigas has reached a deal with Malaysia’s Petronas to set a new price on a natural gas contract, putting an end to negotiations that started last month.
“We are waiting for final approval from the energy minister,” BPMigas chairman Raden Priyono said on Wednesday.
The parties agreed to set the rate at “close to $6 per million British thermal units [mmbtu],” he added, which was close to the price the Indonesian government had proposed.
BPMigas had been deadlocked in negotiations over a new price for natural gas from a lucrative block in the Natuna Sea operated by US oil and gas giant ConocoPhillips. It said foreign buyers were stuck on $5.5 per mmbtu at that time, though the government wanted a higher rate.
“It is close enough to the price that we wanted,” Priyono said, although he declined to disclose the final price.
Industry analysts said that as long as the government came up with a decent proposal for foreign gas buyers, they could renegotiate the terms of sale.
Pri Agung Rakhmanto, an energy analyst from the Reforminer Institute, said the positive result of the renegotiation with Petronas showed that Indonesia had a good bargaining position with overseas buyers.
“If there is political will to renegotiate the contracts, I think the buyers will understand,” he said.
The government, he added, should also review other sales contracts, although he declined to name which ones.
Officials at Petronas Carigali, a subsidiary of Malaysia’s state-owned energy firm, declined to comment on the issue.
Petronas Carigali signed a contract in 2002 to source gas from the Natuna block. The Indonesian government, however, is looking to raise the price of the gas from Natuna’s Block B as part of efforts to make contracts more profitable as global energy prices increase.
Discussions to change the purchasing price on the natural gas contract had been scheduled in 2009 but only started last month.
As much as 300 million cubic feet of gas from the field is sold to Malaysia every day and is delivered to Petronas’s Duyong offshore gas facility in the state of Terengganu at $2.80 per mmbtu.
ConocoPhillips holds a 40 percent stake in Block B, while Japan’s Inpex has a 35 percent stake. The remaining shares are owned by Chevron.
Jusuf Kalla, who was vice president from 2004 to 2009, has voiced his concerns over unfair contracts. He has called for the renegotiation of a 2002 contract with China, which was signed during President Megawati Sukarnoputri’s tenure.
Under that contract, Indonesia agreed to sell gas to China at $2.40 per mmbtu for 25 years.
“We are waiting for final approval from the energy minister,” BPMigas chairman Raden Priyono said on Wednesday.
The parties agreed to set the rate at “close to $6 per million British thermal units [mmbtu],” he added, which was close to the price the Indonesian government had proposed.
BPMigas had been deadlocked in negotiations over a new price for natural gas from a lucrative block in the Natuna Sea operated by US oil and gas giant ConocoPhillips. It said foreign buyers were stuck on $5.5 per mmbtu at that time, though the government wanted a higher rate.
“It is close enough to the price that we wanted,” Priyono said, although he declined to disclose the final price.
Industry analysts said that as long as the government came up with a decent proposal for foreign gas buyers, they could renegotiate the terms of sale.
Pri Agung Rakhmanto, an energy analyst from the Reforminer Institute, said the positive result of the renegotiation with Petronas showed that Indonesia had a good bargaining position with overseas buyers.
“If there is political will to renegotiate the contracts, I think the buyers will understand,” he said.
The government, he added, should also review other sales contracts, although he declined to name which ones.
Officials at Petronas Carigali, a subsidiary of Malaysia’s state-owned energy firm, declined to comment on the issue.
Petronas Carigali signed a contract in 2002 to source gas from the Natuna block. The Indonesian government, however, is looking to raise the price of the gas from Natuna’s Block B as part of efforts to make contracts more profitable as global energy prices increase.
Discussions to change the purchasing price on the natural gas contract had been scheduled in 2009 but only started last month.
As much as 300 million cubic feet of gas from the field is sold to Malaysia every day and is delivered to Petronas’s Duyong offshore gas facility in the state of Terengganu at $2.80 per mmbtu.
ConocoPhillips holds a 40 percent stake in Block B, while Japan’s Inpex has a 35 percent stake. The remaining shares are owned by Chevron.
Jusuf Kalla, who was vice president from 2004 to 2009, has voiced his concerns over unfair contracts. He has called for the renegotiation of a 2002 contract with China, which was signed during President Megawati Sukarnoputri’s tenure.
Under that contract, Indonesia agreed to sell gas to China at $2.40 per mmbtu for 25 years.
Wednesday, 20 July 2011
Petronas Gas to be a likely beneficiary of evolving energy landscape
Petronas Gas Bhd (Petronas Gas) is likely to be a beneficiary of the evolving energy landscape towards natural gas, says Amresearch Sdn Bhd (AmResearch).
This would be supported by favourable news flow from several events such as heightened global concerns over nuclear power following Japan’s Fukushima Daiichi nuclear meltdown, rising coal costs and the aborted attempts to revive the 1,600–megawatt (MW) Bakun undersea cable project, which would likely turn intention back to gas-fired power plants, AmResearch in a research note yesterday.
It also said the government’s strategy to gradually remove natural gas subsidies by 2015, would lead to a more viable pricing mechanism for electricity generation.
AmResearch said ongoing projects such as the group’s 60 per cent-owned 300MW Kimanis gas-fired power plant expected to be completed by end-2013, and investment opportunities in the RM60–billion Refinery and Petrochemical Integrated Development in Pengerang, Johor, could ensure higher earnings for Petronas Gas.
Meanwhile, for the oil and gas sector, AmResearch remained convinced that domestic capital expenditure spending would accelerate, boosted by Petronas’ RM300 billion programme over the next five years.
This included the development of 27 marginal fields and enhanced oil recovery projects.
It said the government’s Economic Transformation Programme would also catalyse excitement in merger and acquisition news flow in the sector, with the push to create an oil field services hub in the country and consolidation of local operators into regional champions.
“Recent examples are the proposed Kencana-SapuraCrest merger and acquisition of Sime Darby’s fabrication yards by Marine and Heavy Engineering Holdings (MMHE) and its parent, Petronas,” it added.
AmResearch maintained a ‘buy’ call on Petronas Gas with a higher sum-of-parts fair value of RM15.30 against RM13.60 previously.
It also maintained an ‘overweight’ view on the oil and gas sector with the top pick being MMHE while among other ‘buy’ recommendations would be SapuraCrest Petroleum Bhd, Kencana Petroleum Bhd and Wah Seong Group. — Bernama
This would be supported by favourable news flow from several events such as heightened global concerns over nuclear power following Japan’s Fukushima Daiichi nuclear meltdown, rising coal costs and the aborted attempts to revive the 1,600–megawatt (MW) Bakun undersea cable project, which would likely turn intention back to gas-fired power plants, AmResearch in a research note yesterday.
It also said the government’s strategy to gradually remove natural gas subsidies by 2015, would lead to a more viable pricing mechanism for electricity generation.
AmResearch said ongoing projects such as the group’s 60 per cent-owned 300MW Kimanis gas-fired power plant expected to be completed by end-2013, and investment opportunities in the RM60–billion Refinery and Petrochemical Integrated Development in Pengerang, Johor, could ensure higher earnings for Petronas Gas.
Meanwhile, for the oil and gas sector, AmResearch remained convinced that domestic capital expenditure spending would accelerate, boosted by Petronas’ RM300 billion programme over the next five years.
This included the development of 27 marginal fields and enhanced oil recovery projects.
It said the government’s Economic Transformation Programme would also catalyse excitement in merger and acquisition news flow in the sector, with the push to create an oil field services hub in the country and consolidation of local operators into regional champions.
“Recent examples are the proposed Kencana-SapuraCrest merger and acquisition of Sime Darby’s fabrication yards by Marine and Heavy Engineering Holdings (MMHE) and its parent, Petronas,” it added.
AmResearch maintained a ‘buy’ call on Petronas Gas with a higher sum-of-parts fair value of RM15.30 against RM13.60 previously.
It also maintained an ‘overweight’ view on the oil and gas sector with the top pick being MMHE while among other ‘buy’ recommendations would be SapuraCrest Petroleum Bhd, Kencana Petroleum Bhd and Wah Seong Group. — Bernama
Sunday, 17 July 2011
Petrofac Signs 2 MOU Deals With Petroliam Nasional Berhad
-Petrofac Limited, an international oil & gas facilities service provider, announced Wednesday that it has signed two memoranda of understanding or MOU with Petroliam Nasional Berhad or PETRONAS, the Malaysian National Oil Company.
MAIN FACTS:
The first MOU records the undertaking by Petrofac and PETRONAS to accelerate production from Block PM304, offshore Peninsular Malaysia, with a third phase of development.
Petrofac owns a 30% equity share and is the Operator of PM304, which includes the Cendor and West Desaru fault blocks.
Petrofac intends to accelerate the development of the West Desaru fault block by introducing an Early Production System which will involve both utilizing current export facilities and also upgrading and deploying a Mobile Offshore Production Unit which is in the process of being purchased.
This approach is expected to bring forward first oil production from West Desaru into the fourth quarter of 2012.
The second phase development of the Cendor fault block, also in Block PM304, is expected to start up in the second quarter of 2013, bringing the overall production capacity of Block PM304 to around 60,000 barrels per day.
The second MOU outlines the intention between Petrofac and PETRONAS to collaborate in the area of competency development, capability building and education activities.
This will involve a technical training partnership between Petrofac Training Services and Institut Teknologi Petroleum PETRONAS or INSTEP to develop competency-based training for operations and maintenance personnel, as well as lecture and seminar programs with the Universiti Teknologi Petroleum.
Shares at 0955 GMT up 17.0 pence, or 1.1%, at 1503.0 pence.
MAIN FACTS:
The first MOU records the undertaking by Petrofac and PETRONAS to accelerate production from Block PM304, offshore Peninsular Malaysia, with a third phase of development.
Petrofac owns a 30% equity share and is the Operator of PM304, which includes the Cendor and West Desaru fault blocks.
Petrofac intends to accelerate the development of the West Desaru fault block by introducing an Early Production System which will involve both utilizing current export facilities and also upgrading and deploying a Mobile Offshore Production Unit which is in the process of being purchased.
This approach is expected to bring forward first oil production from West Desaru into the fourth quarter of 2012.
The second phase development of the Cendor fault block, also in Block PM304, is expected to start up in the second quarter of 2013, bringing the overall production capacity of Block PM304 to around 60,000 barrels per day.
The second MOU outlines the intention between Petrofac and PETRONAS to collaborate in the area of competency development, capability building and education activities.
This will involve a technical training partnership between Petrofac Training Services and Institut Teknologi Petroleum PETRONAS or INSTEP to develop competency-based training for operations and maintenance personnel, as well as lecture and seminar programs with the Universiti Teknologi Petroleum.
Shares at 0955 GMT up 17.0 pence, or 1.1%, at 1503.0 pence.
Saturday, 16 July 2011
Petrofac, Petronas Sign MOUs, Strengthen Relationship
Petrofac has signed two memoranda of understanding (MOU) with Petroliam Nasional Berhad (PETRONAS).
The first MOU records the undertaking by Petrofac and PETRONAS to accelerate production from Block PM304, offshore Peninsular Malaysia, with a third phase of development.
Petrofac owns a 30% equity share and is the Operator of PM304, which includes the Cendor and West Desaru fault blocks.
Petrofac intends to accelerate the development of the West Desaru fault block by introducing an Early Production System which will involve both utilising current export facilities and also upgrading and deploying a Mobile Offshore Production Unit which is in the process of being purchased.
This approach is expected to bring forward first oil production from West Desaru into the fourth quarter of 2012.
The second phase development of the Cendor fault block, also in Block PM304, is expected to start up in the second quarter of 2013, bringing the overall production capacity of Block PM304 to around 60,000 barrels per day.
The second MOU outlines the intention between Petrofac and PETRONAS to collaborate in the area of competency development, capability building and education activities.
This will involve a technical training partnership between Petrofac Training Services and Institut Teknologi Petroleum PETRONAS (INSTEP) to develop competency-based training for operations and maintenance personnel, as well as lecture and seminar programs with the Universiti Teknologi Petroleum (UTP).
Ayman Asfari, Petrofac Group Chief Executive, commented, "We have been working with PETRONAS since 2004, when we began the development of PM304 with the Cendor fault block. This is a relationship we value highly and which continues to deepen.
We have today entered into two arrangements that will accelerate the development of PM304 and support PETRONAS in their continuous efforts in enhancing Malaysian capability in the oil & gas sector.
In combination, we are providing a solution which addresses important strategic targets for PETRONAS and serves to underpin the strength of our Integrated Energy Services offering."
Dato' Shamsul Azhar Abbas, PETRONAS' President and Chief Executive said, "From the early stages of their entry into Malaysia's oil & gas upstream development PETRONAS has viewed Petrofac as one of its strategic partners.
This view is reflected by the MOUs we have exchanged today. Going forward, PETRONAS will be able to access and benefit from a broader range of capabilities from across the Petrofac group, building on our existing partnership.
We look forward to our continued collaboration with them."
The first MOU records the undertaking by Petrofac and PETRONAS to accelerate production from Block PM304, offshore Peninsular Malaysia, with a third phase of development.
Petrofac owns a 30% equity share and is the Operator of PM304, which includes the Cendor and West Desaru fault blocks.
Petrofac intends to accelerate the development of the West Desaru fault block by introducing an Early Production System which will involve both utilising current export facilities and also upgrading and deploying a Mobile Offshore Production Unit which is in the process of being purchased.
This approach is expected to bring forward first oil production from West Desaru into the fourth quarter of 2012.
The second phase development of the Cendor fault block, also in Block PM304, is expected to start up in the second quarter of 2013, bringing the overall production capacity of Block PM304 to around 60,000 barrels per day.
The second MOU outlines the intention between Petrofac and PETRONAS to collaborate in the area of competency development, capability building and education activities.
This will involve a technical training partnership between Petrofac Training Services and Institut Teknologi Petroleum PETRONAS (INSTEP) to develop competency-based training for operations and maintenance personnel, as well as lecture and seminar programs with the Universiti Teknologi Petroleum (UTP).
Ayman Asfari, Petrofac Group Chief Executive, commented, "We have been working with PETRONAS since 2004, when we began the development of PM304 with the Cendor fault block. This is a relationship we value highly and which continues to deepen.
We have today entered into two arrangements that will accelerate the development of PM304 and support PETRONAS in their continuous efforts in enhancing Malaysian capability in the oil & gas sector.
In combination, we are providing a solution which addresses important strategic targets for PETRONAS and serves to underpin the strength of our Integrated Energy Services offering."
Dato' Shamsul Azhar Abbas, PETRONAS' President and Chief Executive said, "From the early stages of their entry into Malaysia's oil & gas upstream development PETRONAS has viewed Petrofac as one of its strategic partners.
This view is reflected by the MOUs we have exchanged today. Going forward, PETRONAS will be able to access and benefit from a broader range of capabilities from across the Petrofac group, building on our existing partnership.
We look forward to our continued collaboration with them."
Friday, 15 July 2011
Petronas opens Turkmen terminal
Malyaisan state-run company Petronas has officially launched its Kiyanly gas treatment plant and onshore gas terminal in Turkemenistan.
Malaysian Prime Minister Datuk Seri Najib Tun Razak and Turkmenistan President Gurbanguly Berdimuhammedov opened the new plant and terminal in an official ceremony yesterday on the shores of the Caspian Sea, about 600 kilometres from the Turkmen capital Ashgabat.
The facilities consist of two process trains, with a combined production capacity of up to 500 million cubic feet per day, and a 53 kilometre pipeline that links the terminal with the export pipeline of Central Asia 3.
Malaysian national news agency Bernama quoted Najib as saying that Petronas had invested $5.2 billion in building the new facilities.
"We are honoured by the trust the Government of Turkmenistan has shown in our national oil and gas company, Petronas, in enabling them to take forward this significant development," Najib said.
“Petronas has also been able to help lay the foundations of the long-term prosperity of Turkmenistan's oil and gas industry beyond simply realising immediate value from the natural wealth of the land."
Najib said the signing of a gas sales agreement between the two countries yesterday would facilitate the commercialisation of gas from the new facilities.
Malaysian Prime Minister Datuk Seri Najib Tun Razak and Turkmenistan President Gurbanguly Berdimuhammedov opened the new plant and terminal in an official ceremony yesterday on the shores of the Caspian Sea, about 600 kilometres from the Turkmen capital Ashgabat.
The facilities consist of two process trains, with a combined production capacity of up to 500 million cubic feet per day, and a 53 kilometre pipeline that links the terminal with the export pipeline of Central Asia 3.
Malaysian national news agency Bernama quoted Najib as saying that Petronas had invested $5.2 billion in building the new facilities.
"We are honoured by the trust the Government of Turkmenistan has shown in our national oil and gas company, Petronas, in enabling them to take forward this significant development," Najib said.
“Petronas has also been able to help lay the foundations of the long-term prosperity of Turkmenistan's oil and gas industry beyond simply realising immediate value from the natural wealth of the land."
Najib said the signing of a gas sales agreement between the two countries yesterday would facilitate the commercialisation of gas from the new facilities.
Thursday, 14 July 2011
McDermott in Murphy Malaysian EPIC
Murphy Oil and McDermott have signed a deal that will see the US contractor provide engineering, procurement, construction, installation and commissioning of pipelines for a project in Malaysia.
The contract, which will be carried out by McDermott’s Malaysian subsidiary, includes the transportation and installation of an umbilical and subsea hardware package, McDermott said in a release.
Financial terms of the deal were not disclosed.
Engineering work on the Kikeh Subsea Expansion Project has already begun and is expected to be completed in the third quarter of next year, McDermott said.
The Kikeh field, the site of Malaysia’s first deep-water oil discovery, is located 120 kilometres north-west of Labuan, Malaysia, in 1350 metres of water.
US independent Murphy operates the field with an 80% working interest. State-owned company Petronas holds the remaining 20%.
The contract, which will be carried out by McDermott’s Malaysian subsidiary, includes the transportation and installation of an umbilical and subsea hardware package, McDermott said in a release.
Financial terms of the deal were not disclosed.
Engineering work on the Kikeh Subsea Expansion Project has already begun and is expected to be completed in the third quarter of next year, McDermott said.
The Kikeh field, the site of Malaysia’s first deep-water oil discovery, is located 120 kilometres north-west of Labuan, Malaysia, in 1350 metres of water.
US independent Murphy operates the field with an 80% working interest. State-owned company Petronas holds the remaining 20%.
Wednesday, 13 July 2011
Acergy, Subsea 7 merge to form world's biggest subsea engineering group
Norwegian oil services company Acergy S.A. (OSL.ACY) said on Monday that it has made a deal to merge with Subsea 7 Inc. (OSL.SUB). The combined companies will form the world's biggest seabed-to-surface engineering and construction firm.
Acergy, which is a seabed-to-surface engineering and construction contractor to the offshore oil and gas industry worldwide, said that, after the merger, the combined firm will have a market value of $5.4 billion and employ 12,000 people.
The new company, Acergy said, would be called Subsea 7 and will offer "the full spectrum of subsea services." Currently, Acergy has a major presence in northern Europe, Canada, Africa, and the Mediterranean. Subsea 7 has a major presence in South America.
"Both Boards believe that the combined entity will be better able to meet the growing size and technical complexity of subsea projects, driven by the demand to access ever more remote reserves in increasingly harsh environments," Acergy said in a statement.
“The combination will create a global leader in seabed-to-surface engineering and construction able to provide clients a step-change in service offering. This includes engineering, procurement, installation, and commissioning services for Subsea Umbilical, Riser and Flowline projects (SURF), Conventional field development and Life-of-Field services (including Inspection, Repair and Maintenance, Survey and Decommissioning).”
"The new entity will provide access to a high-end, well diversified fleet, comprising in aggregate 43 vessels that will allow more flexibility to optimize fleet schedules. It will also be able to offer clients a greater depth of project management, engineering, technical expertise and high-value technologies. The excellent strategic fit of the different strengths of each company positions the new company to deliver enhanced long-term value for all stakeholders," the company said.
The deal, which is expected to close at the end of 2010 or the first quarter of 2011, will create annual synergies of at least $100 million, Acergy said, through optimization of operating costs and more efficient deployment of their vessel fleet. The new entity will trade on the Nasdaq Global Select Market and the Oslo Stock Exchange, it added.
Subsea 7's shareholders will receive 1.065 Acergy common shares for every Subsea 7 common share. Following the merger, Subsea 7's shareholders will, in aggregate, hold 46 percent ownership in the new company based on the number of share currently outstanding.
The new entity will be chaired by Subsea 7's current Chairman Kristian Siem. "The combination is an excellent strategic fit, with industry fundamentals strongly supporting the logic of the combination," Siem said.
"The size of the combined company will be in harmony with the size of the projects we perform for our clients. It also aligns perfectly with our strategy of providing high-quality subsea engineering and construction services for our clients whilst providing increased value for all our shareholders," Siem said, adding, "The combined entity will be well positioned to take advantage of future growth opportunities in the subsea market globally."
The combination with Acergy is an excellent strategic fit for both the companies, their people and clients. We believe that the combination of Acergy's and Subsea 7's people along with a diverse and highly complementary fleet, will provide a great vehicle for creation of additional client and shareholder value. This coming together is a tremendous opportunity for personal and professional development for Subsea 7 and Acergy employees," said Subsea 7's CEO Mel Fitzgerald.
According to Acergy Chairman Sir Peter Mason KBE, "The combined entity will have a stronger balance sheet, enabling efficiencies of scale and capital deployment."
"The enhanced operational capability will produce significant benefits for our clients and provide substantial growth opportunities for our people, which is expected in turn to deliver greater value creation for our shareholders," Mason said. Mason will serve as a senior independent director in the new company.
Acergy CEO Jean Cahuzac said in a conference call that the "accident in the Gulf of Mexico puts even more emphasis on the need to work together on the technology and project management side."
"The (Gulf) industry has to learn from this incident, but this will mean risk assessment will be more efficient...Projects are becoming larger and more complex, and a bigger company will be better equipped to meet these challenges," Cahuzac, who will serve as the CEO of the new entity, said.
"We have long argued the industrial logic of a deal, given it would create a subsea player which could provide the full host of services," said Evolution Securities in a note to clients. Evolution, a securities firm, is unconnected with either Acergy or Subsea 7.
According to Arctic Securities analyst Erik Toenne, the new entity will "become the world's leading subsea player." "There are large synergies from bids, land-based organizations, engineering, supply chain management and fleet allocation," Toenne said.
Rothschild is acting as financial advisor to Acergy. Citi, Deutsche Bank, and DnB NOR Markets are acting as financial advisors to Subsea 7.
Shares of Acergy, which is credited with building the world's longest underwater gas pipeline in 2006, closed up 9.64 percent at NOK110.30 on the Oslo Stock Exchange on Monday. Subsea 7 closed up 9.05 percent at NOK113.30.
Acergy, which is a seabed-to-surface engineering and construction contractor to the offshore oil and gas industry worldwide, said that, after the merger, the combined firm will have a market value of $5.4 billion and employ 12,000 people.
The new company, Acergy said, would be called Subsea 7 and will offer "the full spectrum of subsea services." Currently, Acergy has a major presence in northern Europe, Canada, Africa, and the Mediterranean. Subsea 7 has a major presence in South America.
"Both Boards believe that the combined entity will be better able to meet the growing size and technical complexity of subsea projects, driven by the demand to access ever more remote reserves in increasingly harsh environments," Acergy said in a statement.
“The combination will create a global leader in seabed-to-surface engineering and construction able to provide clients a step-change in service offering. This includes engineering, procurement, installation, and commissioning services for Subsea Umbilical, Riser and Flowline projects (SURF), Conventional field development and Life-of-Field services (including Inspection, Repair and Maintenance, Survey and Decommissioning).”
"The new entity will provide access to a high-end, well diversified fleet, comprising in aggregate 43 vessels that will allow more flexibility to optimize fleet schedules. It will also be able to offer clients a greater depth of project management, engineering, technical expertise and high-value technologies. The excellent strategic fit of the different strengths of each company positions the new company to deliver enhanced long-term value for all stakeholders," the company said.
The deal, which is expected to close at the end of 2010 or the first quarter of 2011, will create annual synergies of at least $100 million, Acergy said, through optimization of operating costs and more efficient deployment of their vessel fleet. The new entity will trade on the Nasdaq Global Select Market and the Oslo Stock Exchange, it added.
Subsea 7's shareholders will receive 1.065 Acergy common shares for every Subsea 7 common share. Following the merger, Subsea 7's shareholders will, in aggregate, hold 46 percent ownership in the new company based on the number of share currently outstanding.
The new entity will be chaired by Subsea 7's current Chairman Kristian Siem. "The combination is an excellent strategic fit, with industry fundamentals strongly supporting the logic of the combination," Siem said.
"The size of the combined company will be in harmony with the size of the projects we perform for our clients. It also aligns perfectly with our strategy of providing high-quality subsea engineering and construction services for our clients whilst providing increased value for all our shareholders," Siem said, adding, "The combined entity will be well positioned to take advantage of future growth opportunities in the subsea market globally."
The combination with Acergy is an excellent strategic fit for both the companies, their people and clients. We believe that the combination of Acergy's and Subsea 7's people along with a diverse and highly complementary fleet, will provide a great vehicle for creation of additional client and shareholder value. This coming together is a tremendous opportunity for personal and professional development for Subsea 7 and Acergy employees," said Subsea 7's CEO Mel Fitzgerald.
According to Acergy Chairman Sir Peter Mason KBE, "The combined entity will have a stronger balance sheet, enabling efficiencies of scale and capital deployment."
"The enhanced operational capability will produce significant benefits for our clients and provide substantial growth opportunities for our people, which is expected in turn to deliver greater value creation for our shareholders," Mason said. Mason will serve as a senior independent director in the new company.
Acergy CEO Jean Cahuzac said in a conference call that the "accident in the Gulf of Mexico puts even more emphasis on the need to work together on the technology and project management side."
"The (Gulf) industry has to learn from this incident, but this will mean risk assessment will be more efficient...Projects are becoming larger and more complex, and a bigger company will be better equipped to meet these challenges," Cahuzac, who will serve as the CEO of the new entity, said.
"We have long argued the industrial logic of a deal, given it would create a subsea player which could provide the full host of services," said Evolution Securities in a note to clients. Evolution, a securities firm, is unconnected with either Acergy or Subsea 7.
According to Arctic Securities analyst Erik Toenne, the new entity will "become the world's leading subsea player." "There are large synergies from bids, land-based organizations, engineering, supply chain management and fleet allocation," Toenne said.
Rothschild is acting as financial advisor to Acergy. Citi, Deutsche Bank, and DnB NOR Markets are acting as financial advisors to Subsea 7.
Shares of Acergy, which is credited with building the world's longest underwater gas pipeline in 2006, closed up 9.64 percent at NOK110.30 on the Oslo Stock Exchange on Monday. Subsea 7 closed up 9.05 percent at NOK113.30.
Tuesday, 12 July 2011
RM11.9b merger plan for Kencana, SapuraCrest
A proposed RM11.9 billion corporate exercise is in the making to merge SapuraCrest Petroleum Bhd and Kencana Petroleum Bhd to become one of the world's largest oil and gas service providers via a special purpose vehicle (SPV).
Under the exercise, Integral Key Sdn Bhd (IKSB), the SPV created by Mayban Ventures Sdn Bhd, has offered to acquire the assets and liabilities of SapuraCrest Petroleum Bhd and Kencana Petroleum Bhd in a share swap plus cash deal worth RM11.9 billion.
The merger offer priced both stocks at a record, but came in below some analysts' optimistic targets for the two oil and gas firms. IKSB's offer values SapuraCrest at RM4.60 a share, and Kencana at RM3 a piece — a slight premium to their closing prices last Friday of RM4.49 and RM2.80, respectively.
"It will be a merger of equals," Maybank Investment Bank CEO Tengku Datuk Zafrul Tengku Abdul Aziz said at a press briefing to announce the deal Monday.
The offer values SapuraCrest at RM5.87 billion or RM4.60 a share to be settled through RM875 million cash and 2.5 billion new IKSB shares at RM2 each. This translates into cash payment of 68.5 sen and RM3.915 of IKSB shares per SapuraCrest share.
For SapuraCrest's 40.1% stake owner, Datuk Shahril Shamsudin, his interest in the SPV is estimated at 20% post-merger.
IKSB has valued Kencana at RM5.98 billion or RM3 per share, including the new Kencana shares to be issued for the acquisition of subsea engineering firm Allied Marine and Equipment Sdn Bhd and ESOS.
Kencana will receive RM969 million and 2.51 billion new IKSB shares at RM2 each, translating into 48.6 sen cash and RM2.514 of IKSB shares for each Kencana share.
Main shareholder Khasera's 32.4% stake in Kencana will become 16.2% in IKSB.
Basically, all shareholders will see their stakes in the respective companies cut by half in the new enlarged entity.
IKSB's offer was presented to the companies Monday, and trading in both stocks was suspended for the whole of yesterday. The offer is valid until Aug 15.
The proposed exercise is similar to the Sime Darby Bhd merger deal some years ago.
While the offer was from Maybank, Tengku Zafrul said the principal shareholders of both SapuraCrest and Kencana were aware of the proposed deal even before it was announced.
"The boards (of SapuraCrest and Kencana) will need to decide whether to accept and present it to their shareholders or reject it," he said.
Assuming the deal goes through, the merger will create one of the world's biggest oil and gas service providers by market value (at RM10.9 billion as of Friday) and having total assets of RM6 billion.
The whole exercise can be completed within the next six to eight months.
Both SapuraCrest and Kencana are partners with a 25% stake each in a marginal oilfield development project awarded by Petronas on Jan 31.
The corporate exercise is jointly advised by Maybank Investment Bank and CIMB Investment Bank.
Under the exercise, Integral Key Sdn Bhd (IKSB), the SPV created by Mayban Ventures Sdn Bhd, has offered to acquire the assets and liabilities of SapuraCrest Petroleum Bhd and Kencana Petroleum Bhd in a share swap plus cash deal worth RM11.9 billion.
The merger offer priced both stocks at a record, but came in below some analysts' optimistic targets for the two oil and gas firms. IKSB's offer values SapuraCrest at RM4.60 a share, and Kencana at RM3 a piece — a slight premium to their closing prices last Friday of RM4.49 and RM2.80, respectively.
"It will be a merger of equals," Maybank Investment Bank CEO Tengku Datuk Zafrul Tengku Abdul Aziz said at a press briefing to announce the deal Monday.
The offer values SapuraCrest at RM5.87 billion or RM4.60 a share to be settled through RM875 million cash and 2.5 billion new IKSB shares at RM2 each. This translates into cash payment of 68.5 sen and RM3.915 of IKSB shares per SapuraCrest share.
For SapuraCrest's 40.1% stake owner, Datuk Shahril Shamsudin, his interest in the SPV is estimated at 20% post-merger.
IKSB has valued Kencana at RM5.98 billion or RM3 per share, including the new Kencana shares to be issued for the acquisition of subsea engineering firm Allied Marine and Equipment Sdn Bhd and ESOS.
Kencana will receive RM969 million and 2.51 billion new IKSB shares at RM2 each, translating into 48.6 sen cash and RM2.514 of IKSB shares for each Kencana share.
Main shareholder Khasera's 32.4% stake in Kencana will become 16.2% in IKSB.
Basically, all shareholders will see their stakes in the respective companies cut by half in the new enlarged entity.
IKSB's offer was presented to the companies Monday, and trading in both stocks was suspended for the whole of yesterday. The offer is valid until Aug 15.
The proposed exercise is similar to the Sime Darby Bhd merger deal some years ago.
While the offer was from Maybank, Tengku Zafrul said the principal shareholders of both SapuraCrest and Kencana were aware of the proposed deal even before it was announced.
"The boards (of SapuraCrest and Kencana) will need to decide whether to accept and present it to their shareholders or reject it," he said.
Assuming the deal goes through, the merger will create one of the world's biggest oil and gas service providers by market value (at RM10.9 billion as of Friday) and having total assets of RM6 billion.
The whole exercise can be completed within the next six to eight months.
Both SapuraCrest and Kencana are partners with a 25% stake each in a marginal oilfield development project awarded by Petronas on Jan 31.
The corporate exercise is jointly advised by Maybank Investment Bank and CIMB Investment Bank.
Monday, 11 July 2011
Helicopter crashes in sea off Myanmar, killing 3
A helicopter carrying crew from an offshore drilling rig crashed into the sea off Myanmar, killing three people on board. Eight were rescued.
An oil company employee, speaking on condition of anonymity because he is not authorized to release information, said co-pilot Ohn Thein, a retired air force officer, and two Myanmar employees died in the crash Monday.
The aircraft was carrying staff of the Malaysian oil company Petronas from the Yetagun offshore gas field in the Andaman Sea.
The oil field is operated by Petronas Carigali of Malaysia, PTTEP of Thailand and Japan's Nippon Oil company. Petronas also operates a cross-border gas pipeline to transport gas from Yetagun to Thailand.
An oil company employee, speaking on condition of anonymity because he is not authorized to release information, said co-pilot Ohn Thein, a retired air force officer, and two Myanmar employees died in the crash Monday.
The aircraft was carrying staff of the Malaysian oil company Petronas from the Yetagun offshore gas field in the Andaman Sea.
The oil field is operated by Petronas Carigali of Malaysia, PTTEP of Thailand and Japan's Nippon Oil company. Petronas also operates a cross-border gas pipeline to transport gas from Yetagun to Thailand.
Sunday, 10 July 2011
Petronas eyes 1:1 reserve replenishment ratio
Petronas wants to lower its reserve replenishment ratio from 2.5 to 1.1, the company's chief executive said in an interview with The Edge weekly newspaper.
Asked about Petronas' ratio of 2.5 times, Shamsul Azhar Abbas said it was either because the firm was not developing resources fast enough or was going after the "wrong prospects".
He said the ideal ratio for Petronas was "one-to one minimum".
"One-to-one minimum, you produce one you replace it with one," Shamsul was quoted as saying. "We have mature basins but some of the wells have been explored before; this is the second and third round of exploration."
Shamsul said depletion of Petronas' oil and gas resources was due to its conventional approach to resource development.
"We have to look for new play types. There are risks involved but they could be worth it."
Since his appointment as chief executive last year, Shamsul has led a push to boost productivity from Malaysia's marginal fields and go into deep water projects. Oil majors have so far pledged $4.9 billion.
Its most recent acquisition was the $1.09 billion purchase of a half-stake in Canadian shale gas assets, which will boost its supply of liquefied natural gas (LNG) from unconventional sources.
Asked about Petronas' ratio of 2.5 times, Shamsul Azhar Abbas said it was either because the firm was not developing resources fast enough or was going after the "wrong prospects".
He said the ideal ratio for Petronas was "one-to one minimum".
"One-to-one minimum, you produce one you replace it with one," Shamsul was quoted as saying. "We have mature basins but some of the wells have been explored before; this is the second and third round of exploration."
Shamsul said depletion of Petronas' oil and gas resources was due to its conventional approach to resource development.
"We have to look for new play types. There are risks involved but they could be worth it."
Since his appointment as chief executive last year, Shamsul has led a push to boost productivity from Malaysia's marginal fields and go into deep water projects. Oil majors have so far pledged $4.9 billion.
Its most recent acquisition was the $1.09 billion purchase of a half-stake in Canadian shale gas assets, which will boost its supply of liquefied natural gas (LNG) from unconventional sources.
Thursday, 7 July 2011
Petronas Rejects Price Hike In Natuna Natural Gas Block
Malaysia and Indonesia have hit a deadlock in negotiations for a new price of natural gas from a lucrative block in the Natuna Sea, an official said on Wednesday.
Raden Priyono, chairman of Indonesian upstream oil and gas regulator BPMigas, said Malaysia’s Petronas had refused to more than double the price from $2.80 per million British thermal units (mmbtu) to $6 per mmbtu.
“Currently, we are stuck at $5.50 per mmbtu, but we want a higher price,” Priyono said.
The Indonesian government wanted to raise the price of oil from Natuna’s Block B, operated by an Indonesian subsidiary of US giant ConocoPhillips, as part of wider efforts to make contracts more profitable amid higher global energy prices.
Talks to change the purchasing price on the natural gas contract had been planned since 2009, but no significant progress was made until this year.
Gde Pradnyana, a spokesman for BPMigas, said the deadline for a new price had been set for the second quarter of this year.
Petronas Carigali, a subsidiary of Malaysia’s state-owned energy firm, signed a contract in 2002 to source gas from the block.
Up to 300 million cubic feet of gas from the field is sold each day to Malaysia and delivered to Petronas’s Duyong offshore gas facility at $2.80 per mmbtu.
ConocoPhillips currently holds a 40 percent stake in Block B, while Japan’s Inpex holds a 35 percent stake. The remaining shares are held by Chevron.
Indonesia generally takes 80 percent of the gas that is sold from blocks such as Natuna through a production-sharing contract with the gas producers.
Calls for the government to renegotiate contracts with foreign buyers had gained momentum last month when President Susilo Bambang Yudhoyono called for a review of deals with foreign companies.
The president claimed the nation’s robust economy would give it more bargaining power.
Among other sales contracts under review by state regulators is China National Offshore Oil Corporation’s liquefied natural gas export deal with the Tangguh plant in Papua.
The contract was signed in 2002 during President Megawati Sukarnoputri’s administration, which set gas prices at the block at $2.40 per mmbtu for 25 years. - http://www.thejakartaglobe.com
Raden Priyono, chairman of Indonesian upstream oil and gas regulator BPMigas, said Malaysia’s Petronas had refused to more than double the price from $2.80 per million British thermal units (mmbtu) to $6 per mmbtu.
“Currently, we are stuck at $5.50 per mmbtu, but we want a higher price,” Priyono said.
The Indonesian government wanted to raise the price of oil from Natuna’s Block B, operated by an Indonesian subsidiary of US giant ConocoPhillips, as part of wider efforts to make contracts more profitable amid higher global energy prices.
Talks to change the purchasing price on the natural gas contract had been planned since 2009, but no significant progress was made until this year.
Gde Pradnyana, a spokesman for BPMigas, said the deadline for a new price had been set for the second quarter of this year.
Petronas Carigali, a subsidiary of Malaysia’s state-owned energy firm, signed a contract in 2002 to source gas from the block.
Up to 300 million cubic feet of gas from the field is sold each day to Malaysia and delivered to Petronas’s Duyong offshore gas facility at $2.80 per mmbtu.
ConocoPhillips currently holds a 40 percent stake in Block B, while Japan’s Inpex holds a 35 percent stake. The remaining shares are held by Chevron.
Indonesia generally takes 80 percent of the gas that is sold from blocks such as Natuna through a production-sharing contract with the gas producers.
Calls for the government to renegotiate contracts with foreign buyers had gained momentum last month when President Susilo Bambang Yudhoyono called for a review of deals with foreign companies.
The president claimed the nation’s robust economy would give it more bargaining power.
Among other sales contracts under review by state regulators is China National Offshore Oil Corporation’s liquefied natural gas export deal with the Tangguh plant in Papua.
The contract was signed in 2002 during President Megawati Sukarnoputri’s administration, which set gas prices at the block at $2.40 per mmbtu for 25 years. - http://www.thejakartaglobe.com
Wednesday, 6 July 2011
RM50mil Petronas training centre ready 2013
Petronas is investing about RM50 million to set up a new industrial training centre in Kimanis to meet the growing manpower demand in the oil and gas industry in the State.
The Kimanis Petroleum Training Centre (KTC) is currently under construction and is scheduled to be ready by 2013.
Once completed, the new KTC, accredited by the Department of Skills Development under the Ministry of Human Resources will replace Petronas' temporary training premises recently established here.
"This facility will help more Sabah youths find employment in the oil and gas industry and benefit from the industry's value chain," said General Manager of Petronas Sabah and Labuan regional Office, Joseph Podtung.
"With oil and gas identified as a key driver of Sabah's economic growth, we hope the KTC will help equip our youths with special skills that match the demands of the job market," he said.
The KTC offers both full-time and part-time programmes under the framework of the Malaysian Skills Certificate (SKM) Levels 2 and 3.
These include courses like the two-year full time Industrial Instrumentation & Controls programme, and the part-time Welding Inspector and Offshore Safety training programmes.
He said on Monday, the first batch of 25 trainees had registered to commence their two-year Industrial Instrumentation & Controls programme at the KTC's temporary premises in Membakut.
Their module includes a six-month industrial training at the workplace of selected industry players.
In the coming years, the KTC is not only anticipated to contribute towards developing the capability of Sabahans and other Malaysians, but also will also support the Government's efforts to reduce the number of foreign workforce in the local industries.
He said the training centre also augmented Petronas existing training efforts in collaboration with five institutions in Sabah, namely the Insitut Kemahiran Mara, Institut Latihan Perindustrian and Kolej Yayasan Sabah in Kota Kinabalu, GiatMARA in Kimanis, and Institut Latihan Teknikal and Perdagangan in Papar.
The Kimanis Petroleum Training Centre (KTC) is currently under construction and is scheduled to be ready by 2013.
Once completed, the new KTC, accredited by the Department of Skills Development under the Ministry of Human Resources will replace Petronas' temporary training premises recently established here.
"This facility will help more Sabah youths find employment in the oil and gas industry and benefit from the industry's value chain," said General Manager of Petronas Sabah and Labuan regional Office, Joseph Podtung.
"With oil and gas identified as a key driver of Sabah's economic growth, we hope the KTC will help equip our youths with special skills that match the demands of the job market," he said.
The KTC offers both full-time and part-time programmes under the framework of the Malaysian Skills Certificate (SKM) Levels 2 and 3.
These include courses like the two-year full time Industrial Instrumentation & Controls programme, and the part-time Welding Inspector and Offshore Safety training programmes.
He said on Monday, the first batch of 25 trainees had registered to commence their two-year Industrial Instrumentation & Controls programme at the KTC's temporary premises in Membakut.
Their module includes a six-month industrial training at the workplace of selected industry players.
In the coming years, the KTC is not only anticipated to contribute towards developing the capability of Sabahans and other Malaysians, but also will also support the Government's efforts to reduce the number of foreign workforce in the local industries.
He said the training centre also augmented Petronas existing training efforts in collaboration with five institutions in Sabah, namely the Insitut Kemahiran Mara, Institut Latihan Perindustrian and Kolej Yayasan Sabah in Kota Kinabalu, GiatMARA in Kimanis, and Institut Latihan Teknikal and Perdagangan in Papar.
Tuesday, 5 July 2011
Sipitang plant to double PCG’s urea production
With a proposed new RM4.5bil world-scale fertiliser plant, Petronas Chemicals Group Bhd (PCG) is prepared to meet the growing demand for urea in the Asia-Pacific region.
PCG on Thursday announced plans to build the plant in Sipitang Industrial Park, Sabah, to add to its existing fertiliser production facilities in Gurun, Kedah and Bintulu, Sarawak.
The new plant will almost double PCG's total production capacity to 2.6 million tonnes per annum (mtpa), potentially making the company the second largest urea producer in South-East Asia in 2015 when the project is expected to be completed.
PCG is currently the third largest urea producer in South-East Asia, a Maybank Investment Bank Bhd (MIB) analyst said.
In its report, MIB said Asia Pacific's consumption rate of urea had significantly outpaced the world average growth rate and it was also the world's biggest consumer of urea with 45% share in 2009.
MIB said world demand for urea was growing at a 12-year CAGR of 3.3%. Demand in Malaysia and Asia Pacific was even greater at 4.8% CAGR due to increase in plantation acreage and farmers intensifying efforts to enhance plant yields.
According to OSK Reseach, changing food consumption patterns and Asia's growing population were also factors boosting fertiliser demand.
PCG's fertiliser division was already maxed out with capacity utilisation of over 90% and it needed more capacity to satisfy the growing demand, said MIB.
.
However, the project is not expected to have any impact on earnings forecasts for financial year ending March 31, 2012 and the share target price as it will be completed in 2015. Construction is scheduled to start in the second quarter of 2012.
The project will be managed by special purpose vehicle, Styrene Monomer (M) Sdn Bhd, which was just purchased by PCG and will be renamed Petronas Chemicals Fertiliser Sabah Sdn Bhd. The name change is pending approval from the Companies Commission of Malaysia.
The project is also conditional upon reaching agreement with the Sabah government on land-related matters.
OSK Research and MIB have maintained a buy call for PCG.
PCG on Thursday announced plans to build the plant in Sipitang Industrial Park, Sabah, to add to its existing fertiliser production facilities in Gurun, Kedah and Bintulu, Sarawak.
The new plant will almost double PCG's total production capacity to 2.6 million tonnes per annum (mtpa), potentially making the company the second largest urea producer in South-East Asia in 2015 when the project is expected to be completed.
PCG is currently the third largest urea producer in South-East Asia, a Maybank Investment Bank Bhd (MIB) analyst said.
In its report, MIB said Asia Pacific's consumption rate of urea had significantly outpaced the world average growth rate and it was also the world's biggest consumer of urea with 45% share in 2009.
MIB said world demand for urea was growing at a 12-year CAGR of 3.3%. Demand in Malaysia and Asia Pacific was even greater at 4.8% CAGR due to increase in plantation acreage and farmers intensifying efforts to enhance plant yields.
According to OSK Reseach, changing food consumption patterns and Asia's growing population were also factors boosting fertiliser demand.
PCG's fertiliser division was already maxed out with capacity utilisation of over 90% and it needed more capacity to satisfy the growing demand, said MIB.
.
However, the project is not expected to have any impact on earnings forecasts for financial year ending March 31, 2012 and the share target price as it will be completed in 2015. Construction is scheduled to start in the second quarter of 2012.
The project will be managed by special purpose vehicle, Styrene Monomer (M) Sdn Bhd, which was just purchased by PCG and will be renamed Petronas Chemicals Fertiliser Sabah Sdn Bhd. The name change is pending approval from the Companies Commission of Malaysia.
The project is also conditional upon reaching agreement with the Sabah government on land-related matters.
OSK Research and MIB have maintained a buy call for PCG.
Monday, 4 July 2011
Petronas Chemicals to build urea plant in Sabah
Petronas Chemicals Group Bhd will build a RM4.53bil urea fertiliser complex in Sipitang, Sabah with a production capacity of 1.2 million tonnes per annum.
The company said the project, also known as the Sabah Ammonia-Urea plant project (Samur), was conditional upon reaching agreement with the Sabah government on land related matters.
Petronas Chemicals said construction was expected to start in the second quarter of next year with the commissioning of the plant targeted for 2015.
The company currently operates two urea plants - one with a 750,000-tonne capacity in Bintulu, Sarawak and another in Gurun, Kedah with a capacity of 683,000 tonnes and would have a total capacity of 2.6 million tonnes with the completion of the Sipitang plant.
Petronas Chemicals chairman Datuk Wan Zulkiflee Wan Ariffin said it was part of the company’s strategy to grow the fertiliser business as Asia Pacific remained a key market.
“We’re in an advantageous position, as we’ve close proximity to the growth markets in the region. We see sustained demand in the agricultural needs for a growing population with changing food consumption patterns and the competing land utilisation for higher crop yields,” he said in a statement yesterday.
The company’s president cum chief executive officer Dr Abd Hapiz Abdullah said the new fertiliser plant would potentially make Petronas Chemicals the second largest urea producer in the region.
“The Samur project fortifies our position as a major player in the fertiliser business, as we continue to build upon our strengths and market share,” he said.
The project would be undertaken by a special purpose vehicle, the newly acquired Styrene Monomer (M) Sdn Bhd, which would be renamed Petronas Chemicals Fertiliser Sabah Sdn Bhd.
The company said the project, also known as the Sabah Ammonia-Urea plant project (Samur), was conditional upon reaching agreement with the Sabah government on land related matters.
Petronas Chemicals said construction was expected to start in the second quarter of next year with the commissioning of the plant targeted for 2015.
The company currently operates two urea plants - one with a 750,000-tonne capacity in Bintulu, Sarawak and another in Gurun, Kedah with a capacity of 683,000 tonnes and would have a total capacity of 2.6 million tonnes with the completion of the Sipitang plant.
Petronas Chemicals chairman Datuk Wan Zulkiflee Wan Ariffin said it was part of the company’s strategy to grow the fertiliser business as Asia Pacific remained a key market.
“We’re in an advantageous position, as we’ve close proximity to the growth markets in the region. We see sustained demand in the agricultural needs for a growing population with changing food consumption patterns and the competing land utilisation for higher crop yields,” he said in a statement yesterday.
The company’s president cum chief executive officer Dr Abd Hapiz Abdullah said the new fertiliser plant would potentially make Petronas Chemicals the second largest urea producer in the region.
“The Samur project fortifies our position as a major player in the fertiliser business, as we continue to build upon our strengths and market share,” he said.
The project would be undertaken by a special purpose vehicle, the newly acquired Styrene Monomer (M) Sdn Bhd, which would be renamed Petronas Chemicals Fertiliser Sabah Sdn Bhd.
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