Monday, 31 December 2012

Petronas awards Block SB311 offshore Sabah contract

PETRONAS has awarded a Production Sharing Contract (PSC) for Block SB311 offshore Sabah to a partnership of ConocoPhillips Sabah Gas Ltd., Shell Energy Asia Limited and PETRONAS Carigali Sdn Bhd.

The block, measuring 1,046 square kilometres, is located in the central part of the Sabah Basin in water depths ranging from 50 to 100 metres. The area is located within a proven hydrocarbon fairway with key discoveries such as Kebabangan, Kinarut, and Erb West.

Under the terms of the PSC, ConocoPhillips will operate the block with a participating interest of 40 per cent. PETRONAS Carigali and Shell Energy Asia will each own a 30 per cent interest in the block.

For the SB311 PSC, the partners are committed to drill two wildcat wells, acquire 400 line km of new 2D seismic data and re-process existing 3D seismic data on the block.

The PSC was signed at the PETRONAS Twin Towers in Kuala Lumpur. PETRONAS was represented by its Executive Vice President of Exploration and Production Business Dato’ Wee Yiaw Hin and ConocoPhillips by its President of ConocoPhillips Asia Pacific, Mr. Joseph P. Marushack.

The other two partners, Shell Energy Asia Pacific and PETRONAS Carigali were respectively represented by its Vice President Malaysia & Chairman Shell Malaysia, Mr. Iain Lo and PETRONAS Vice President & Chief Executive Officer of PETRONAS Exploration, Encik Effendy Cheng Abdullah.

Issued by

Media Relations Department
Group Corporate Affairs Division

Thursday, 27 December 2012

Shell fokus teknologi alam, jimat tenaga

Syarikat minyak dan gas, Shell Malaysia, kini giat memfokuskan terhadap inovasi dan nilai tambah kepada rakan strategik dan pelanggannya, khususnya dalam menghasilkan produk yang bersih kepada alam sekitar dan penggunaan yang efisien.

Pengarah Urusan Shell Malaysia Trading Sdn. Bhd. dan Shell Timur Sdn. Bhd., Azman Ismail berkata, syarikatnya percaya teknologi minyak dan minyak pelincir kekal sebagai kunci utama penawaran jenama Shell bagi memenuhi kepenggunaan dan keperluan tenaga.

Pihaknya menamakan fokus syarikatnya itu sebagai 'Smarter Mobility'.

Jelas Azman, inisiatif yang mahu dilaksanakan oleh Shell itu akan membantu sektor pengangkutan dan industri untuk menjimatkan penggunaan tenaga serta menjaga kebersihan alam sekitar.

"Produk seperti Shell Diesel dengan formula minyak ekonomi, manakala Shell Fuel Oil Plus merupakan produk yang menghasilkan kesan tenaga yang bersih dan penggunaanya lebih efisien," katanya dalam kenyataan itu.

Monday, 24 December 2012

Malaysia: Pengerang Terminal Ready for VLCCs

Dialog Group Bhd, the country’s second-biggest oil and gas services provider, said it has signed some customers for the RM1.9bil storage terminal, it is developing with Royal Vopak NV.

Talks with other potential customers were continuing, Dialog managing director Ngau Boon Keat said in an interview at Pengerang in Johor.

Dialog, Vopak and the Johor government are developing the site at Pengerang, with initial capacity of 1.3 million cu m, to meet rising demand for oil storage in Asia and as space in Singapore dwindles. The companies were betting on the terminal’s location to capture trade flow between China, India and Asia, Ngau said at the site.

“Our location is blessed with 24-m deep natural berth able to bring in very large crude carriers,” said Law Say Huat, chief executive officer of the venture developing the Pengerang terminal.

“We are offering an alternative to the crude oil traders, refiners, or the suppliers to be able to bring here to blend up, to break bulk or to make bulk.”

The tanks would be for clean products and crude oil and would begin operating from 2014, Ngau said.

Clean products include fuels such as gasoline, naphtha, diesel and kerosene. The company has no immediate plans to build fuel oil tanks.

“At the moment, there is quite a lot fuel oil storage,” Ngau said. “We’re more targeting crude oil storage.”

The project would help drive annual profit growth at Dialog by more than 20% in the next few years, Ngau said. Earnings would also be supported by ventures to provide services to oil and gas explorers, he said.

Tuesday, 18 December 2012

Petrochemical Industry Likely To See Moderate Growth Next Year

The petrochemical industry will likely see moderate growth next year with prices of products firming up.

President and CEO of Petronas Chemicals, Dr Abd Hapiz Abdullah said the outlook next year will also depend on how fast the economies of China, India and within the Asia Pacific region pick up.

The Asian region is where most of its products are exported to currently.

He said the European debt crisis this year has had a crippling impact on the Asian economies.

Nevertheless, opportunities are also there in new markets such as Myanmmar and Cambodia, he said during a media briefing here Tuesday.


Friday, 14 December 2012

KNM forms O&G JV with HMS

KNM Group Bhd has signed a shareholders cum joint-venture agreement with HMS Oil and Gas Sdn Bhd to form KNM HMS Energy Sdn Bhd (KHE) to secure opportunities in the upstream oil and gas (O&G) sector in Malaysia.

KNM will hold a 70% stake in KHE with the balance 30% being held by HMS, KNM said in a Bursa Malaysia’s filing.

Thursday, 13 December 2012

Petronas awards production sharing contract for Sabah block

Petronas has awarded a contract for a partnership including ConocoPhillips Sabah Gas Ltd and Shell Energy to extract natural gas from a block in Sabah.

A partnership comprised of the two firms and Petronas’s upstream unit will operate a block measuring 1,046-sq km located near key discoveries such as Kebabangan, Kinarut and Erb West, the company said today.

ConocoPhillips will operate and own 40 per cent of the block, while Shell Energy Asia Limited and Petronas Carigali will own 30 per cent each. Petronas gave no probable reserves or value of the contract.

Petronas, which concluded a US$5.3 billion (RM16 billion) takeover of Canada’s Progress Energy Resources Corp , has seen earnings fall as production declines due to natural field depletion and operational challenges.

Petronas made seven new oil discoveries and inked two production sharing contracts in Malaysia in the quarter ended September 30, when net profit fell more than 21 per cent to RM12.4 billion as production in Sudan remains on hold.

It has collaborated with partners such as Exxon Mobil Corp and Shell to derive more oil from marginal fields, in a bid to meet the government’s goal of attracting US$444 billion in investment by 2020. — Reuters

Petronas completes US$5.3bil takeover of Canada's Progress

CALGARY, Alberta: Malaysia's Petronas completed its C$5.2 billion ($5.3 billion) takeover of Progress Energy Resources Corp on Wednesday, a deal that was expected to have sailed through Canada's approval process but got ensnared in a heated national debate about foreign control of energy assets.

The government of Prime Minister Stephen Harper approved the transaction on Friday, along with the $15.1 billion acquisition of Nexen Inc by China's state-owned CNOOC Ltd , following months of deliberation.

Industry Minister Christian Paradis initially rejected the takeover of Progress, a mid-size natural gas producer, in October, saying it would not have been a net benefit to Canada, but invited the Malaysian state oil company to resubmit its application.

On Friday, the Harper government also issued new guidelines for takeovers of Canadian energy businesses by foreign state-owned enterprises, restricting future bids for control over oil sands assets and suggesting the other energy deals will also be difficult.

Petronas and Progress have announced plans to build a liquefied natural gas export plant on Canada's West Coast that could cost up to C$11 billion.

Progress's chief executive said last week that a completed takeover could lead to a larger project because Petronas would have access to all of Progress's gas reserves, not just the ones that were part of the companies' previous joint venture.

Shares of Progress were up 1 Canadian cents at C$21.98 on the Toronto Stock Exchange, a penny below Petronas's bid price. - Reuters

Wednesday, 12 December 2012

Medan minyak baru milik Terengganu

Kawasan medan minyak yang baru di Blok PM 307 Bertam di luar pantai Semenanjung antara Terengganu dan Pahang adalah milik Terengganu.

Menteri Besar Datuk Seri Ahmad Said berkata, kerajaan negeri telah menulis surat secara rasmi kepada Petronas untuk mendapatkan penjelasan mengenai penemuan minyak di blok berkenaan dan setakat ini jawapan rasmi masih belum diperoleh.

"Kita menerima surat dari syarikat Lundin Oil (syarikat carigali yang berpangkalan di Sweden) yang melaksanakan kerja-kerja carigali di kawasan berkenaan (dengan kerjasama Petronas Carigali) mengesahkan bahawa ia adalah di kawasan perairan Terengganu," katanya dipetik Bernama.

Beliau berkata demikian ketika menjawab soalan Dr Syed Azman Syed Ahmad Nawawi (Pas-Batu Buruk) yang ingin tahu status hak milik kerajaan Terengganu ke atas medan minyak berkenaan dan kedudukan terakhir tuntutan royalti minyak dari Petronas dan Kerajaan Pusat pada Persidangan Dewan Undangan Negeri Terengganu, hari ini.

Pada 30 Oktober lalu, Menteri Besar Pahang, Datuk Seri Adnan Yaakob berkata, penemuan rizab minyak tambahan di medan minyak Bertam, di luar pesisiran pantai Semenanjung Malaysia bertentangan Pahang, bukan sekadar memberi manfaat kepada negeri ini, malah dikongsi manfaatnya oleh negeri-negeri lain. 

Adnan berkata, pengumuman Perdana Menteri Datuk Seri Najib Tun Razak pada hari yang sama, 30 Oktober lalu bahawa Pahang dijangka menerima wang ihsan sekitar RM100 juta setahun, juga dilihat bakal memberi impak besar kepada ekonomi Pahang.

Perdana Menteri mengumumkan Petronas Carigali Sdn Bhd dan Lundin Oil menemui rizab minyak tambahan di medan minyak Bertam, yang terletak di Blok PM 307.

Medan minyak itu terletak kira-kira 160 kilometer di luar pesisiran pantai Semenanjung Malaysia bertentangan Pahang, pada kedalaman air 76 meter.

Najib yang juga Menteri Kewangan berkata, negeri Pahang dijangka menerima wang ihsan sekitar RM100 juta setahun, bergantung kepada anggaran pengeluaran, apabila pengeluaran bermula pada suku ketiga tahun 2014.  

Dalam kenyataannya hari ini, Ahmad juga berkata, kerajaan negeri dimaklumkan bahawa keseluruhan bayaran tuntutan minyak dari kerajaan negeri bakal diterima dari Petronas melalui kerajaan pusat pada Mac 2013.
Katanya bayaran itu diberi setelah kedua-dua kerajaan persekutuan dan kerajaan negeri mencapai kata sepakat mengenai tuntutan itu.
Mengenai penarikan balik saman kerajaan negeri terhadap Petronas, Ahmad berkata, ia berasaskan kepada persetujuan Kerajaan Pusat untuk menjelaskan kesemua bayaran dari Petronas kepada kerajaan Terengganu yang dipanggil Dana Khas sebagaimana perjanjian asal.

"Sebelum ini, Petronas membuat bayaran dua kali iaitu minggu pertama bulan Mac dan September manakala kerajaan pusat akan membayar minggu keempat kepada kerajaan negeri dan semua bayaran akan dibuat sepenuhnya pada tahun hadapan tanpa sebarang potongan," katanya bagi menjawab soalan tambahan Dr Azman.

Berasaskan kepada perkara itulah, Ahmad berkata, kerajaan negeri bersetuju menarik balik saman tersebut kerana yang penting kerajaan negeri mendapat keseluruhan wang yang sepatutnya diterima dari Petronas.

Pada sidang medianya selepas itu, Ahmad berkata, tahun ini, Terengganu menerima RM2 bilion Dana Khas dari Petronas berbanding RM1.6 bilion tahun lalu.
"Penemuan medan rizab minyak baharu di PM307 dijangka memberi tambahan lima peratus atau sekitar RM100 juta setahun, bergantung pada anggaran pengeluaran, apabila pengeluaran bermula pada suku ketiga 2014," katanya.

Monday, 10 December 2012

Exxon Mobil awards RM165m contract to MMHE

Exxon Mobil Corporation's subsidiary has awarded a RM165mil contract to Malaysia Marine and Heavy Engineering Sdn Bhd to build the facilities for the Damar gas development project.

It said on Thursday the contract awarded by ExxonMobil Exploration and Production Malaysia Inc. would require MMHE to build the topsides and platform jacket for the project.

Damar is one of several investments that would enable ExxonMobil and Petronas Carigali Sdn Bhd to develop natural gas assets.

The Damar project is about 200km off the east coast of Peninsular Malaysia in 55 metres of water.

The project follows the previously announced Telok gas project, which ExxonMobil is developing for startup in the first quarter of 2013.

The Damar project consists of one four-legged gas satellite platform.

Installation of facilities is planned to start in the third quarter of 2013 and startup is targeted for later in the year.

Friday, 7 December 2012

Petronas, Progress Move Forward with LNG Project

PETRONAS Carigali Canada and Progress Energy Resources announced that their proposed LNG export facility is moving into the next phase of engineering.

The project’s detailed feasibility study for a LNG export facility on Lelu Island in the District of Port Edward has been successfully completed and the project is moving into the pre front-end engineering design (Pre-FEED) phase. The Pre-FEED phase will be undertaken to provide certainty around project scope and a further understanding of construction timelines, costs and labour force requirements.

“We are excited to have completed the Detailed Feasibility Study phase and are now moving into the next phase of our engineering work, which will include the submission of our project description to Canadian regulators in early 2013,” said Michael Culbert, President and CEO, Progress. “In addition, we are pleased to have officially named our project Pacific Northwest LNG and will continue to move the project forward at an aggressive pace.”

The project will include two trains, or liquefaction plants, when initially constructed. Planning will include the ability to expand with the addition of a third train in the future. The LNG throughput is currently designed for about 3.8 million tonnes per annum per train based on the LNG Export Joint Venture that was announced between the two companies in 2011.

If the proposed acquisition of Progress by PETRONAS, that is currently being reviewed by the federal government is approved, the throughput of natural gas at the LNG export facility is expected to increase by approximately 60 per cent to 6 million tonnes per annum per train which will also result in concurrent enhancements to the productivity and efficiency of related upstream activities.

Overall, Pacific Northwest LNG represents significant revenue and royalties to the provincial and federal governments, and the opportunity for economic benefits to the local First Nations and communities. A final investment decision for the project continues to be expected in late 2014, followed by the first LNG exports in 2018.

Pacific Northwest LNG will be opening its Vancouver, British Columbia office in early 2013 and will be growing its project team.

If Pacific Northwest LNG proceeds, the estimated investment in the LNG export facility is expected to be between $9 billion and $11 billion, depending on the final project scope. The construction phase would result in up to 3,500 direct jobs and the long-term operations of the facility would result in 200 to 300 direct jobs.

Tuesday, 4 December 2012

Oil rig platform tilts during test in Singapore shipyard, injuring 89 workers

SINGAPORE - Officials say 89 workers have been injured, some seriously, in an accident at a Singapore shipyard.

The Ministry of Manpower says the accident occurred Monday on an oil exploration rig being built by Jurong Shipyard Pte. Ltd.

The rig consists of a platform on three legs that can be raised or lowered. A shipyard spokeswoman says one of the legs failed to operate when workers were testing the rig, causing it to tilt to one side.

The ministry says the injured workers were taken to hospitals and 80 were later discharged. Three remained in an emergency ward.

An investigation of the accident is continuing.

Jurong Shipyard is a subsidiary of offshore engineering group Sembcorp Marine Ltd.

RM3 Billion Pulau Daat O&G Project To Continue As Scheduled

LABUAN – The issues that have caused the RM3 billion integrated oil and gas (O&G) project off Pulau Daat to be stopped temporarily will be resolved, said Minister of Federal Territories and Urban Wellbeing Datuk Raja Nong Chik Raja Zainal Abidin.

He said discussions would take place soon with stakeholders to come up with better solution to ensure the mega project will continue as scheduled.

“The project is rather important and it is one of the Economic Transformation Programme (ETP) projects, and we will discuss the issues with stakeholders,” he said at a press conference after the presentation of Parent Teachers Association (PTA) contribution today.

He said the land is a private land and the government had look at ways and means for an effective solution.

A total of 104 families with Malaysian citizenship and permanent resident status as reported earlier would be provided with houses to enable the project to be implemented smoothly.

The 237 families living in Pulau Daat have been compensated earlier with RM1,000 for each family, with half of them having left the island to look for dwellings elsewhere.

Not only the living will have to go, but the dead too have been relocated since May last year, with the help of the Labuan Religious Department (Jawi) which started a massive relocation of old graves, with some even having been there for more than 40 years, to the Sungai Labu Muslim Cemetery.

Most of those staying on the island are IM13 holders of the United Nations High Commissioner for Refugees (UNHCR).

Former secretary-general of the ministry Datuk Ahmad Phesal Talib had said a meeting with various agencies and departments, including the National Security Department, had been held.

“We need the consensus from all relevant parties as those staying there are also Malaysians,” he said.

Meanwhile, Jimmy YM Tang, group project director of RG Oil and Gas, the main contractor for the project, has confirmed the relocation of all the families would be carried out soon and agreed to provide them with houses.

“We do not foresee any problems in negotiating with the families concerned for their relocation as the construction of houses would be borne by us,” he said.

Tang said the integrated O&G hub, which would provide land-based logistics and support services, would be built over four phases.

“Earthworks for the first phase of the project will be completed by year-end.

“We expect the first phase to commence operations by end-2012 or early 2013,” he said.

The hub is one of the nine new Entry Point Projects of the ETP.

Tang said the first phase, with an investment of RM500 million, would involve the building of a storage tank terminal with a capacity of 300,000 cubic metres.

“The other three phases include building a 1.5 million cu metre storage tank terminal, engineering fabrication yard and other facilities including water storage facilities,” he said.

The hub would likely benefit from the opening of new oilfields around the area, he said.

“Besides, it is also strategically located, nearer to South Korea and China that could be potential customers,” he said.

The proposed Labuan O&G hub would complement the Sabah Oil and Gas Terminal (SOGT) being develop by Petronas in Kimanis.


Wednesday, 28 November 2012

Petronas upbeat on two LNG projects

Petroleum Nasional Bhd (Petronas) has announced successful gas production from the Berantai Field and the drilling and testing of the first well at the Balai Cluster, Malaysia’s first and second risk service contract (RSC) areas respectively.

Petronas also announced the discovery of gas in Block PM307.

Berantai’s Gas liquefied natural gas (LNG) production from the Berantai Field has come on stream on October 20.

The gas is currently being exported at a rate of 50 mmscfd from the field’s first three wells and is expected to achieve 80 mmscfd with the addition of two wells by year-end.

The gas is processed at the Berantai FPSO and exported to the existing onshore terminal at Kerteh.

The RSC for the Berantai Field, which is located offshore Terengganu, was awarded by Petronas in January last year to Petrofac Energy Developments Sdn Bhd and SapuraKencana Petroleum Bhd.

The Bentara-2 well, the first well to be drilled in the Balai Cluster RSC area, has been successfully tested, achieving a stable oil flow-rate that ranges between 1,600 and 2,200 barrels per day.

The well has achieved its target depth of 2,830 m and initial estimates show that it contains a reserve of 100m of hydrocarbon reservoirs. — Bernama

Dialog expects up to 20% return from US$1.2bil Bayan

Oil and gas services provider Dialog Group Bhd has projected an internal rate of return (IRR) for the Bayan oilfield project located offshore Bintulu to be around the mid-teens to 20% of the costs of US$1.2bil.

The company recently signed a 50:50 joint venture with Halliburton International Inc to redevelop the oilfield over a 24-year period, the second upstream venture after the development of the Balai marginal field cluster, a joint venture with Sydney-based Roc Oil Co Ltd and Petronas Carigali Sdn Bhd, the unit of Petroliam Nasional Bhd (Petronas) involved in exploration.

Dialog's executive chairman Ngau Boon Keat said at a media briefing following the company's AGM that the IRR would depend largely on how much of the oil could be recovered with the available technology.

“If we have the technology that can help push more oil out, then the IRR will be better,” he said, adding that visible growth in the company's upstream oil and gas business would take several years.

Ngau said the venture into the upstream business has been “very positive” for the company with the Balai marginal field (in which Dialog has a 32% stake) having produced first oil before Petronas' second-half 2013 deadline.

He declined to comment on how much barrels of oil equivalent still remained in the Bayan oilfield but said about 30% of the oil has been extracted from the 30-year-old field. Ngau was also cautious as to whether the Bayan project value could go up but expects the project to start contributing to revenue from financial year ending June 30, 2014 onwards.

“We're targeting to produce from the oilfield before the end of the year,” he said.

Ngau added that the income from the Balai marginal cluster, in which the company together with joint venture partners have a 15-year risk service contract with Petronas, would only start generating income in four to five years.

Analysts have been positive on the company's upstream venture, which they said would add to the company's recurring income stream.

The company plans to have equal 1/3 contributions to revenue from the upstream, terminal and specialist services from 2016 onwards from the two-thirds contribution coming from specialist services currently.

“This is our plan in terms of revenue contribution as the earnings grow bigger,” Ngau said, adding that the partnerships with companies such as Royal Vopak NV, Halliburton, Roc and Shell brought in the technology especially for enhance oil recovery projects.

Dialog also announced in September an expansion of the company's presense in Pengerang, Johor, where it would be part of a joint venture with Royal Vopak and the Johor state government in the building of a RM4.08bil liquefied natural gas storage terminal.

The company together with Royal Vopak is developing a RM5bil petroleum storage terminal in Pengerang. Both projects are part of Petronas' RM60bil integrated refinery and petrochemical complex expected to be commissioned by the end of 2016.

Shell Malaysia Signs New Exploration Contract

Shell Malaysia announced the signing of a new production sharing contract (PSC) with PETRONAS to explore for oil and gas offshore Sarawak.

The SK319 PSC will see Shell undertake an initial 3 year exploration program to comprehensively explore an area totalling 2727 square kilometres within block SK319 in Central Luconia, offshore Sarawak. Sarawak Shell Berhad is the operator and will partner PETRONAS Carigali with a 50:50 participating equity split.

The new PSC forms part of Shell’s Low Cost Exploration & Development (LCD) focus that will allow the company to carry out a multi-well exploration campaign to further explore and de-risk the mature carbonate pinnacle play in Central Luconia.

Iain Lo, Shell Malaysia Chairman and Managing Director of Sarawak Shell Berhad commented, “The successful execution of this new PSC and Joint Operating Agreement (JOA) marks another important milestone for Shell in Malaysia after the signing of the SK318 and 2B exploration contracts for offshore Sarawak earlier this year. This is the third operated exploration PSC that Shell Malaysia has signed in 2012 and adds to Shell’s growing exploration position in Malaysia."

As production sharing contract operator to PETRONAS, Shell is the largest gas producer in Malaysia, accounting for 60% of Malaysia’s gas production. Ninety percent of the gas produced is earmarked for the PETRONAS LNG complex in Bintulu.

Tuesday, 27 November 2012

Petronas makes major gas discoveries in Kuang and Tukau Timur

Petroleum Nasional Bhd (Petronas) has made two major gas discoveries at the Kuang North and Tukau Timur fields, offshore Sarawak with estimated gas-in-place of about 4.4 trillion std cu ft (tscf) net hydrocarbon.

The national oil company said the Kuang North field, located in Block SK316, was drilled last month via two exploration wells Kuang North-1 and Kuang North-2.

The Kuang North-2 well, which was drilled to a depth of 3,223m, penetrated 636m of gas column.

“Preliminary assessments indicated that gas-in-place for the Kuang North field is about 2.3 tscf net hydrocarbon,” it said in a statement yesterday.

It said other notable recent discoveries in Block SK316 are the Kasawari and NC8 gas fields.

Most importantly, Petronas said, unlike other previous carbonate gas discoveries, the gas at Kuang North was found in the older carbonate section, opening up a new exploration play-type with substantial hydrocarbon potential in the older carbonate reservoirs offshore Sarawak.

It said Tukau Timur Deep-1 is the first completed high pressure high temperature (HPHT) well in Sarawak and also the deepest vertical well to be drilled by Petronas.

“The well was drilled to a depth of 4,830m and discovered 12 gas bearing reservoirs with total net gas sand of 183m.

“Preliminary assessments indicate the total gas-in-place for TukauTimur Field to be about 2.1 tscf.

“Subsequent work will commence to estimate the range of recoverable resource volumes. Tukau Timur Deep-1 is located in Block SK307 which is equally operated by Petronas Carigali with Sarawak Shell Bhd as partners.

“The well was spudded in May and completed in November,” it said.

An oil and gas analyst anticipated this development would give a boost to the country's reserves that had been stagnant over the past decade.

As of January, Petronas has a reserve of about 21.4 billion barrels of oil equivalents.

Another sector analyst said that the newly-discovered gas were in shallow waters and quite sizeable.

“But, the actual development might only come in three to four years' time,” he said, adding that anything above a trillion tscf net hydrocarbon was usually worth developing.

In illustrating the price of gas, Japan pays about US$18 per mmbtu (million metric British thermal units) for liquified natural gas while in the United States, its is hovering around US$3 per mmbtu.

In Malaysia, the gas price is currently about RM14.05 per mmbtu.

Analysts recently noted that the demand for energy would rise on higher usage by households and businesses.

The gas supply of 1,250 million std cu ft per day (mmscfd) is essential to the power sector and the volume of 1,250 mmscfd of gas is critical to maintain the equilibrium of the power sector with respect to generation capacity plant-up, system security/reliability and sustainable customer tariffs.

Friday, 23 November 2012

Shell: Deepwater Gumusut-Kakap Field Commences Production

Shell Malaysia today announced the first oil production from the deepwater Gumusut-Kakap (GK) field, located about 120km offshore Sabah, Malaysia.

This early production, achieved on November 18th, 2012, is ahead of the completion of the GK's Floating Production System (FPS). This is made possible by an innovative linking or tie-back of two of GK's production wells to the Kikeh production facility, the country's first deepwater development also offshore Sabah, operated by Murphy Sabah Oil.

The GK field, located in waters up to 1,200 metres deep in Blocks J and K, is being developed using 19 subsea wells with oil to be exported via a pipeline to the Sabah Oil and Gas Terminal in Kimanis.

The project will eventually employ the FPS - the region's first deepwater FPS - once it is fully on stream. The GK Kikeh tie-back early production option is an interim measure that will produce 25,000 barrels of oil per day.

"We are delighted that we have started production from the Gumusut-Kakap field," said Iain Lo, Chairman of Shell Malaysia.

"The tie-back is an innovative solution that will allow us to produce from the GK field ahead of the completion of the FPS, currently being fabricated by Malaysia Marine and Heavy Engineering (MMHE) in Johor. We thank Murphy for their partnership and cooperation that has enabled this opportunity. We look forward to ramping up the production once the FPS goes on stream."

Projects such as GK are critical to the industry's long term sustainability in Malaysia as the country develops its deepwater resources. Shell is playing an active role in developing a deepwater service industry in Malaysia by bringing its technology and expertise into the country.

The company began deepwater exploration and production research in the 1960s and has been a global leader in deepwater exploration and production for the last 30 years.

In January last year, Shell announced an investment of RM5.1 billion to further develop oil and gas facilities across the country. The major part of which were three projects that included a new diesel processing unit at Port Dickson refinery, a new solid wax plant at Shell Middle Distillate Synthesis (SMDS) in Bintulu, Sarawak and the GK deepwater development offshore Sabah.

The wax plant is now operational while the Port Dickson and GK projects are ongoing.

The Gumusut and Kakap fields were combined into a single development under a Unitisation and Unit Operating Agreement signed by co-ventures Shell Malaysia, Murphy Sabah Oil, PETRONAS Carigali and ConocoPhillips Sabah in 2006.

Shell Malaysia and ConocoPhillips Sabah each hold 33% interests in the development, PETRONAS Carigali has 20% and Murphy Sabah Oil has 14%. Shell Malaysia upstream company, Sabah Shell Petroleum Company, is the operator of the development.

Petronas announces successful gas production from Berantai Field

Petroliam Nasional Bhd (Petronas) has announced successful gas production from the Berantai Field offshore Terengganu and the drilling and testing of the first well at the Balai Cluster offshore Sarawak, respectively Malaysia's first and second risk Service Contract (RCS) areas.

Petronas also announced the discovery of gas in Block PM307.

It said natural gas production from the Berantai Field was successfully brought on stream on Oct 20, 2012.

"The gas is currently being exported at a rate of 50 mmscfd from the field's first three wells and is expected to achieve 80 mmscfd, with the addition of two wells by the end of this year," it said in a statement today.

The gas is processed at the Berantai production, storage and offloading (FPSO) facility and exported to the existing onshore terminal at Kerteh.

It said the RSC for the Berantai field, which is located offshore Terengganu, was awarded by Petronas in January 2011 to Petrofac Energy Developments Sdn Bhd and SapuraKencana Petroleum Bhd.

Meanwhile, Petronas said the Bentara-2 well -- the first well to be drilled in the Balai Cluster RSC area -- has been successfully tested, achieving a stable oil flow-rate that ranges between 1,600 and 2,200 barrels per day.

"The well achieved its target depth of 2,830m on Oct 20, 2012 and initial results indicate an estimated 100m of hydrocarbon net pay in stacked reservoirs in the Bentara Field," it said.

Petronas also said that the Balai Cluster RSC covers four fields offshore Sarawak, namely Balai, Bentara, Spaoh and West Acis.

The RSC was awarded to Roc Oil, Dialog Group and Petronas Carigali on Aug 16, 2011 and was later re-assigned to BC Petroleum Sdn Bhd, a joint venture company consisting of three shareholders. – Bernama

Gas find for Lundin offshore Malaysia : Tembakau-1

Offshore staff

STOCKHOLM, Sweden – Lundin Petroleum has discovered gas with the Tembakau-1 well in the PM307 block off Peninsula Malaysia.

The jackup West Courageous drilled the well vertically to a depth of 1,565 m (5,134 ft) in 67 m (220 ft) of water. It intersected a series of stacked gas pay sands in the Miocene objective.

Nearest oil and gas infrastructure is 30 km (18.6 mi) to the east.

Lundin and partner Petronas authorized extensive data acquisition, including rock and fluid samples, pressure profiles and mini-DSTs. Further studies will follow to assess recoverable resources.

Ashley Heppenstall, president and CEO of Lundin, said the find was “very encouraging given its location in an unexplored area of PM307. We are hopeful this discovery has the potential to be commercial on a stand-alone basis given its close proximity to existing gas infrastructure and the strong demand for gas in Peninsular Malaysia.

“The discovery paves the way to evaluate further follow-up potential in an area where Lundin Petroleum acquired a large 3D survey in 2011.”

West Courageous is heading south to drill the fifth and final well of Lundin’s 2012 exploration campaign, the Ara-1 well in the PM308A block.

Thursday, 22 November 2012

Penghantaran tiba di Kuantan, dikawal ketat polis

Lebih 100 kontena yang disyaki mengandungi bijih nadir bumi telah tiba di Pelabuhan Kuantan hampir tengah malam semalam di bawah kawalan ketat luar biasa pihak polis.

Pengerusi Gabungan Stop Lynas, Andansura Rabu, yang berada di pelabuhan, memberitahu Malaysiakini bahawa sebilangan besar anggota polis dan kakitangan Lynas berada di dok malam tadi.

Menurutnya, kira-kira 102 kontainer tiba di Pelabuhan Kuantan pada kira-kira jam 11 malam, yang beliau syaki mengandungi bahan mentah untuk loji nadir bumi Lynas di Gebeng.

Pada Isnin, Lynas mengumumkan pemprosesan bahan mentah akan 
bermula bulan depan selepas memenangi kes mahkamah terhadap aktivis yang menentang kehadiran loji, yang bimbang bahaya sisa radioaktif.

Menurut Andansura, pengangkutan kontainer tersebut ke loji tersebut, sejauh kira-kira 7km jauhnya bermula antara jam 1 pagi hingga 2 pagi. Katanya, ia dipindahkan oleh trak kontena yang diiringi oleh pihak pollis dan proses itu masih berterusan pada 8 pagi.

Tiada gambar dibenarkan

Walaupun dokumen pelabuhan tidak menyatakan bahan yang disimpan di dalam kontena tersebut, Andansura berkata kehadiran ramai polis mendorongnya untuk mempercayai bahawa ia adalah bijih nadir bumi dari Australia.

Beliau juga mendakwa bahawa polis telah menutup jalan utama dari pelabuhan ke loji tersebut, dan menggunakan tiga kereta polis untuk mengiringi trak kontena itu. Terdapat dua lagi kenderaan polis yang diletakkan di pelabuhan.

Polis menghalang Andansura dan beberapa aktivis anti-Lynas yang lain daripada mengambil gambar dan mereka berulangkali dilarang dari menghampiri kawasan itu.

Para aktivis berkata mereka mengesan ramai kakitangan dalam pakaian seragam Lynas di pelabuhan itu. Malaysiakini sedang berusaha mendapatkan pengesahan mengenainya daripada Lynas dan polis Kuantan.

Kontena yang disyaki itu, tiba ketika gabungan anti-Lynas Himpunan Hijau sedang mengadakan perarakan sejauh 300km dari Kuantan ke Kuala Lumpur, manakala satu lagi kumpulan SMSL (Save Malaysia, Stop Lynas) berada di Australia untuk melobi menentang loji tersebut. - Malaysiakini

Tuesday, 20 November 2012

Lynas Expects Malaysian Plant To Begin Production In December

RARE earths miner Lynas expects production at its controversial plant in Malaysia to begin in December after long delays caused by environmental and political concerns.

After a drawn-out approval process and several legal challenges from locals and activists, Lynas' advanced materials plant in Gebeng, Malaysia, currently has a temporary operating licence.

However, opponents, arguing the mine will pollute nearby land, are still seeking an interim stay on the licence and have appealed to the Malaysian High Court.

The delays to first production also has forced Lynas to raise $200 million by issuing new shares recently.

Lynas' share price has suffered, recently hitting an all-time low of 55 cents, down from $1.165 a year ago.

"I know this has been a testing year for everyone," executive chairman Nicholas Curtis told the company's annual general meeting in Sydney on Tuesday

"It has been a year when the noise around the company has reached an amplitude that is, quite frankly, not sustainable and very negative for us all.

"But, I have to say that short-term share market performance is not our main focus as management of Lynas.

"One to two tough years to bring the business to life need to be put in the context of the long-term vision we are realising.

"By the second half of calendar 2013, we expect to be moving towards full production capacity and have a business that has the potential to deliver sustainable and predictable earnings."

Production revenue was set to flow from the first quarter of calendar 2013, Mr Curtis said.

After reaching unsustainable highs, prices for rare earths have now fallen and growth in demand is expected to resume, possibly as soon as the second half of 2013, he said.

Rare earths are metallic elements used in products ranging from digital televisions, mp3 players and fluorescent light bulbs.

Friday, 16 November 2012

Petronas submits modified bid for Progress Energy

Petronas has submitted a modified bid for Canada’s Progress Energy Resources, a company source with knowledge of the matter said, after the Canadian government blocked a US$5.2 billion (RM15.6 billion) deal last month.
The oil company’s chief negotiator is back in Kuala Lumpur after submitting the revised bid in Canada, the source told Reuters today. The source did not say what the changes were from the original bid.

A Petronas spokesman declined to comment on the matter.

Canada blocked Petronas’s bid for Progress in October, with Industry Minister Christian Paradis saying it was unlikely to bring a “net benefit” to the country. Petronas and Progress are planning a multibillion-dollar liquefied natural gas plant on Canada’s west coast.

Petronas had previously said it plans to make further submissions to win approval.

The firm’s chief executive, Tan Sri Shamsul Azhar Abbas, was reported as saying by the Financial Times this week that Petronas would add more independent directors to the board of Progress to sweeten the deal.

The Canadian government, sources have told Reuters, wanted to approve the deal but was afraid doing so would tie its hands when reviewing a much more controversial US$15.1 billion bid by China’s CNOOC Ltd for Nexen Inc.

Shares in Nexen and Progress jumped about 3 per cent yesterday after a report suggested Ottawa might speed up its decision on whether to allow the Nexen deal. — Reuters

Wednesday, 14 November 2012

Petronas may add more independent directors on Progress board

Petronas aims to overcome Canada’s opposition to its US$5.2bil (RM15.94bil) bid for Progress Energy Resources by adding more independent directors to the board of the gas producer, according to the Financial Times.

The newspaper cited the Malaysian state oil company’s chief executive, Tan Sri Shamsul Azhar Abbas, as saying in an interview that Petronas was prepared to make the move to soothe Canada’s concerns about a lack of transparency after the takeover.

Canada blocked Petronas’ bid for Progress last month, with Industry Minister Christian Paradis saying it was unlikely to bring a “net benefit” to the country. Petronas and Progress are planning a multi-billion-dollar liquefied natural gas plant on Canada’s West Coast.

Petronas has said it planned to make further submissions to win approval.

“We’ve told them if they want more transparency from us we’re prepared to increase the number of independent directors (on the Progress board). It’s good governance,” Shamsul was quoted as saying by the newspaper.

Shamsul also said Petronas as a whole had become more transparent since he took over in 2010, even though he reported ultimately to Prime Minister Datuk Seri Najib Tun Razak.

“In terms of governance and transparency we are not a listed company but we behave as one. There is no interference from the Government,” Shamsul said.

Petronas is Malaysia’s largest single taxpayer and its biggest source of revenue, covering as much as 45% of the Government’s annual budget.

Shamsul said Petronas had been in talks to cut special dividend payments to the Government, which amounted to RM28bil last year. The dividend would be cut next year by RM1bil and likely fall further each year, he said. – Reuters

Friday, 9 November 2012

Shell: Construction Begins on Prelude FLNG, South Korea

Shell celebrated the cutting of first steel for the game-changing Prelude floating liquefied natural gas (FLNG) facility’s substructure with joint venture participants, Inpex and KOGAS, and lead contractor, the Technip Samsung Consortium, at Samsung Heavy Industries’ Geoje shipyard in South Korea. 

Shell’s Projects & Technology Director Matthias Bichsel commented: “We are cutting 7.6 tonnes of steel for the Prelude floating liquefied natural gas facility today, but in total, more than 260,000 tonnes of steel will be fabricated and assembled for the facility. That’s around five times the amount of steel used to build the Sydney Harbour Bridge. Today’s ceremony marks a major milestone in this project, when the innovative thinking and new technology and engineering solutions which will make FLNG possible begin to be realised.” 

When completed, the Prelude FLNG facility will be 488 metres long and 74 metres wide, making it the largest offshore floating facility ever built. When fully equipped and with its cargo tanks full, it will weigh more than 600,000 tonnes. There will be over 3,000 kilometres of electrical and instrumentation cables on the FLNG facility, the distance from Barcelona to Moscow. 

“Making FLNG a reality is no simple feat,” Matthias continued. “Shell is uniquely positioned to make it a success given our commercial capability; our LNG, offshore, deepwater and marine technology; and our proven ability to successfully deliver megaprojects.” 

In order to meet the world’s growing energy demand, bringing new supplies to market is critical. The Prelude FLNG facility will be deployed in Australian waters over 200 kilometres from the nearest point on the coast. It will produce gas at sea, turn it into liquefied natural gas and then transfer it directly to the ships that will transport it to customers. 

An expert team from Shell will manage the multi-year construction of the FLNG facility to ensure the Prelude project’s critical dimensions of safety, quality, cost and schedule are delivered. Strategic partners Technip and Samsung Heavy Industries (the Technip Samsung Consortium) along with SBM and hundreds of suppliers and contractors around the world are all contributing valuable knowledge, skills and equipment to help make the project a success. At peak levels, around 5,000 people will be working on the construction of the FLNG facility in South Korea; and another 1,000 will build the turret mooring system, subsea and wells equipment in other locations across the globe. 

In the lead up to the facility being ready to start production, a number of actions will take place, such as drilling the production wells, installation of subsea flowlines and risers and mooring chains to prepare for the arrival of the FLNG facility. 

Prelude FLNG is the latest in a line of Shell achievements in developing new technologies for the oil and gas industry, reinforcing its leadership in technology and innovation. This is the first of what Shell expects to be multiple Shell FLNG projects.

Thursday, 8 November 2012

Bursa punishes Perdana Petroleum, ex-chairman

Bursa Malaysia Securities Bhd (Bursa Securities) publicly reprimanded Perdana Petroleum Bhd (Perdana) and its former executive chairman/chief executive officer, Tengku Datuk Ibrahim Petra Tengku Indra Petra for breach of the listing requirements (LR) of Bursa Malaysia Securities Bhd.

In addition, Tengku Ibrahim was fined a sum of RM50,000.

Bursa Securities said in a statement yesterday that Perdana had breached paragraph 8.23(1) of the LR as its subsidiary, Perdana Resources Sdn Bhd (PRSB) had, from January 19 2001 to December 5 2006 provided financial assistance to party or parties which did not fall within the permitted categories under paragraph 8.23(1)(i) to (iii) of the LR. 

Tengku Ibrahim was found to have breached the LR where he had permitted Perdana - knowingly or where he had reasonable means of obtaining such knowledge - to commit the breach of paragraph 8.23(1) of the LR.

The breaches by Perdana and Tengku Ibrahim were detected by Bursa Securities upon further investigation into the findings of the investigative audit carried out by Ferrier Hodgson MH in the report dated April 26 2010. 

Bursa Securities views the contravention seriously as the requirements of paragraph 8.23 of the LR are one of the key investor protection requirements which serves to ensure proper preservation and employment of the company's assets and funds. 

Bursa Securities has reminded listed companies and directors against such improper conduct involving monies/assets of a listed company, including the conduct of issuing or approving blank cheques without proper inquiry, basis or safeguards in place.

Wednesday, 7 November 2012

Malaysia needs to produce more skilled workers in oil and gas sector

Malaysia needs to continue producing skilled workers for the oil and gas (O&G) sector as demand is expected to rise, says Deputy International Trade and Industry Minister, Datuk Mukhriz Tun Mahathir.

He emphasised the importance of training programmes as the country’s O&G sector will need over 40,000 skilled workers by 2015.

“The demand is now very, very fixed and efforts towards coming up with enough skilled graduates is being intensified to ensure sufficient supply,” he told Bernama here today.

He was speaking after witnessing the presentation of the American Welding Society Accredited Test Facility Certification under SIRIM Bhd to the Kedah Industrial Skills and Management Development Centre (KISMEC) here today.

He said realising the demand, it is pertinent to have quality training to equip talent with the required skills to successfully enter the workforce.

“If we are not prepared to meet the demand, it could turn potential investors away,” he added.

However, Mukhriz said the government’s Economic Transformation Programme aims to provide more skilled welding personnel including welders, welding inspectors and welding engineers, to reduce the number of foreign workers and  encourage foreign investments into Malaysia.

He hoped that the collaboration between SIRIM and KISMEC will help equip Malaysians with the required skills to fill the 3.3 million jobs available as Malaysia sprints towards becoming a high-income nation by 2020.

“We need to step up to the challenge to ensure that we do not face a shortage of skilled and semi-skilled workers in future, as 52 per cent of the jobs created from now until 2030, require at least semi-skilled  workers,” he said.

He said SIRIM had played its role as the vehicle for technology transfer, especially, in welding technology, for the local industry.

“I believe that KISMEC can now play its role in promoting and upgrading the skills of welding personnel in the northern part of Malaysia under the Northern Corridor Economic Region,” Mukhriz said. — Bernama

Tuesday, 6 November 2012

SapuraKencana in RM8.9bil rig deal

SapuraKencana Petroleum Bhd has entered into a non-binding agreement to acquire Seadrill Ltd's tender rig business for an enterprise value of US$2.9bil or RM8.9bil to be satisfied by a mix of shares and cash, a move that will see the former becoming a leading global player in the tender rigs and semi-tender rigs market.

According to a joint statement by the companies, Seadrill will receive a minimum of US$350mil in new shares of SapuraKencana that will double up Seadrill's stake in the company to 13% from the current 6.4%.

The remaining consideration will be funded by SapuraKencana through a mix of external borrowings, a seller's note of up to US$187mil, internally generated funds and equity.

Seadrill will further have the right to nominate two members to the SapuraKencana board of directors (including one alternate). Seadrill's chairman John Fredriksen is expected to be one of those members.

The total enterprise value includes US$363mil in remaining capital expenditure linked to the newbuilds programme and all debts in the tender rig business including existing bank facilities of about US$800mil as of Dec 31, 2012.

The enlarged tender rig business under SapuraKencana will comprise 16 tender rigs in operation (including the KM1 rig currently owned by SapuraKencana), five of which are already 51%-owned and managed through its existing joint venture with Seadrill in Varia Perdana Sdn Bhd and Tioman Drilling Company Sdn Bhd and an additional five units currently under construction (newbuilds).

SapuraKencana will also be offered the right to be the manager for three further tender rigs which are not part of the transaction.

The operating rigs and newbuilds are all currently contracted under long-term fixed price contracts with companies such as Chevron, Shell, PTTEP, and Petronas Carigali.

The total order backlog amounts to US$1.55bil as of end-October where the majority of the operating rigs are currently deployed in South-East Asian waters.

Of the 15 operating rigs, nine are barges and six are semi-tenders which are capable of operating in water depths of up to 6,500 ft. The organisation will continue to operate from the existing premises in Singapore.

One of the main objectives of the transaction is to develop a leading player in the East Asian market.

SapuraKencana president and group chief executive officer Datuk Seri Shahril Shamsuddin (pic) said Seadrill had been a great strategic partner for SapuraKencana for many years and this proposed transaction underpinned this commitment and significantly strengthened SapuraKencana's business profile and ability to deliver long-term value for their shareholders.

“The combination of Seadrill's deep operational expertise, world-class customer access and ongoing transfer of knowledge is expected to propel SapuraKencana's competitive position and enable it to take advantage of the growth dynamics within the industry,” he said, adding that after this transaction, total bumiputra stake in the company remained at about 40%.

Shahril said this deal provided a golden opportunity for SapuraKencana, a Malaysian company, to command almost 51% market share in the tender rigs and semi-tender rigs segment.

“Furthermore, our fleet of tender rigs are quite young, at an average of eight years,” he said.

From the integration, SapuraKencana will also have more exposure to a higher margin drilling segment, expand its reach across the value chain, provide cross-selling opportunities and complement its presence in key markets globally.

The agreement also stipulated that the parties would seek to grow their joint-venture activities in Brazil where they were awarded three pipe-laying support vessel contracts by Petrobras in 2011.

The parties also agree to establish a joint venture between Seadrill's 40%-owned subsidiary Archer Ltd and SapuraKencana where the scope of such venture will focus on developing and expanding Archer's wireline services in the East Asian markets.

Seadrill chairman, president and director John Fredriksen believed in the potential of SapuraKencana's expansion, as well as its capability to mesh its existing services with Seadrill's tender rig business and crystallise value.

“We are very supportive of the integration of our tender rig business with that of our long-term partner, SapuraKencana.”

Monday, 5 November 2012

Petronas, Progress Start Talks with Ottawa on Acquisition Resubmission

Executives from state-owned Petronas Carigali Canada (Petronas Canada) and Progress Energy Resources Corp. have met with Canadian officials regarding Petronas' $5.2 billion (CAD 5.18 billion) agreement to acquire Progress Energy, Petronas disclosed Tuesday in a published statement. 

"Petronas Canada intends to make further submissions to the Minister in order to obtain approval of the proposed transaction," the company wrote in its statement. 

Petronas' affirmation of its commitment in pushing ahead with the deal follows closely from Ottawa's decision announced Oct. 19 to reject Petronas' acquisition bid. Industry Minister Christian Paradis said in a published statement he was "not satisfied that the proposed investment is likely to be of net benefit to Canada." 

After rejecting the Petronas bid, Ottawa gave the company another 30 days to resubmit its offer. 

Industry watchers are firmly of the opinion that Petronas will stay focused on closing the deal as the state-owned enterprise faces a growing need to meet a natural gas shortfall in Malaysia. An analyst with HwangDBS Investment Bank Berhad told Rigzone Oct. 22 that Petronas appears "very keen on the acquisition." 

As part of its deal with Progress, Petronas established a joint venture last year between the two companies to develop a portion of Progress' Montney shale assets in the foothills of northeast British Columbia and to explore additional opportunities to develop liquefied natural gas (LNG) export capacity on British Columbia's west coast.

Friday, 2 November 2012

Sapurakencana Units Bag 2 Contracts Worth RM835.8 Million

SapuraKencana Petroleum Bhd's wholly-owned unit Allied Marine & Equipment Sdn Bhd has received a contract worth RM700 million from Petronas Carigali Sdn Bhd for the provision of underwater services.

The contract includes inspection, repair and maintenance services utilising specialised vessels, equipment and personnel covering Petronas Carigali's offshore oil and gas fields in the country.

In an announcement to Bursa Malaysia, SapuraKencana said the duration of the contract is three and a half years effective from October 2012 until April 2016, with the option to extend an additional year.

The contract is expected to contribute positively towards the earnings and net assets per share of the group for the financial years ending Jan 31, 2013 to 2017, SapuraKencana said.


Thursday, 1 November 2012

CIDB to bring regional construction week 2012 to Pahang

The Construction Industry Development Board (CIDB) will bring the Regional Construction Week 2012 (RWC 2012) to Pahang for the first time to highlight the expertise of the contractors there.

CIDB Pahang state director, Suhaimi Mansor, said the event was timely given the area’s growth potentials, especially with the recent announcement of the discovery of oil 160 km off the coast of Pahang.

“We are positive this discovery will come hand in hand with the need to build more infrastructure and it was also reported that Pahang is expected to receive RM100 million per year in special payment to be used for various development projects.

“We hope RCW 2012 will fulfill its objective to be the platform to create awareness and educate industry players in various construction methods, especially in facility management as a way to cut cost,” he told Bernama here yesterday.

The three-day event from November 23 this year, would also include trade exhibitions, Go Green Awareness Campaign, Lego Young Builders Contest for the younger visitors, seminars, workshops and business-matching sessions.

“For the business-matching sessions, we want to pair small and medium contractors there with the public sector, especially for the renovation works.

“On a conservative perspective, we expect to generate over RM100,000 worth of transactions for the first year from these business-matching sessions,” he said.

Suhaimi said currently over 20 exhibitors have confirmed their participation.
“Over 10,000 visitors are expected at the event, which would be held at the Sultan Ahmad Shah International Convention Centre in Kuantan,” he said. — Bernama

Angsi plans near finish line

Petronas Carigali is finalising the development scheme for the world’s first full-field vessel-based chemical enhanced oil recovery project for the Angsi oilfield off Peninsular Malaysia. 

The Angsi field operator is understood to have formed a joint venture with Petronas’ shipping unit, MISC, to own and operate the CEOR vessel. 

The joint venture had commissioned Malaysia’s MMC Oil & Gas Engineering and Water Standard of the US to carry out the front-end engineering and design studies, now expected to be completed as early as the end of October. 

The FEED studies are said to focus on a converted vessel with 4000 tonnes of topsides for water treatment and chemical injection. The project also involves modification to the topsides of the Angsi central processing platform and a satellite structure to be connected to the vessel via subsea risers and pipelines. 

Industry sources expect the FEED duo to be well-placed for the engineering, procurement and construction contract, which is likely to be awarded in early 2013. 

Water Standard is likely to seek a role in providing the topsides including the treatment modules. 

The Angsi CEOR vessel will be equipped with 15 days of storage to support a water injection capacity of 150,000 barrels per day. 

Operational start-up is now targeted for the first half of 2014.

Wednesday, 31 October 2012

Petronas Carigali discovers additional oil fields in Bertam

Petronas Carigali Sdn Bhd and Lundin Oil have jointly discovered additional oil fields, under a production sharing contract, (PSC) at Block PM 307 of the Bertam oil field.

He said the oil field, located 160 kilometres offshore Peninsular Malaysia, is opposite the state of Pahang at the depth of 76 metres.

PM 307 PSC is operated by Lundin Malaysia which holds a 75 percent interest and Petronas holds the remaining equity.

"This is very significant because we never discovered oil in commercial quantity at Penyu Basin and this is a major breakthrough.

"Based on the findings of commercial and technical feasibility studies, crude oil production will begin at the oil fields in the third quarter of 2014 with a projected output of between 17,500 and 20,000 barrels per day," Najib told reporters after chairing the Biotechnology Implementation Council meeting here.

The Prime Minister said with the additional discovery, the Bertam oilfield is estimated to have oil reserves of 64 million barrels.

Najib, who is also Finance Minister, said Pahang was expected to receive a special payment of RM100mil a year, once production begins in the third quarter of 2014.

"This discovery proved there is oil and gas at the Southern region of the Malay Basin towards the Penyu Basin.

"The oilfield is located on the continent shelf which is under the jurisdiction of the Federal government.

"This is our policy to distribute oil wealth with five percent cash payment to Pahang," he added.

Meanwhile, Ramlan A Malek, Vice-President, Petronas Nasional Bhd, Exploration & Production Business, Petroleum Management said the commercial and technical feasibility studies were expected to be completed in the second quarter of next year.

He also said this was the first oil discovery in the Pahang state. - Bernama

Petronas agrees to Canada extension on C$5.17b Progress bid, sources say

Malaysian state oil firm Petronas has agreed to the Canadian government’s extension of a review of its C$5.17 billion (RM15.6 billion) bid for gas producer Progress Energy Resources, said two Petronas sources familiar with the deal.

The decision was made by a regular monthly Petronas board meeting, the sources told Reuters, adding the Malaysian firm is also studying additional steps to reassure Canada that the proposed acquisition will have a “net benefit” for the country, the sources said.

“Petronas will go all the way to secure this deal. It is important to Petronas that the deal is done,” one of the sources said.

Canada blocked Petronas’ bid for Progress Energy this month after Industry Minister Christian Paradis said it was not likely to bring a ‘net benefit’ to the country. He gave Petronas 30 days to make additional representations.

Progress CEO Michael Culbert has blamed a “communications breakdown” for Canada’s surprise rejection of the deal, and said he was optimistic the deal could get back on track. — Reuters