Kerajaan negeri Kelantan memfailkan afidavit tambahan ke dalam kesnya bagi mendesak Petronas mendedahkan penyelesaian luar mahkamah yang dicapainya dengan kerajaan negeri Terengganu.
Exco kerajaan negeri, Datuk Husam Musa dalam kenyataannya berkata, affidavit tambahan telah pun difailkan 23 April 2012 untuk memohon mahkamah mengarahkan Petronas mendedahkan terma-terma penyelesian luar mahkamah yang telah dimeterai.
Ini adalah kerana perjanjian antara kedua-dua negeri dengan Petronas adalah 100 peratus sama.
Husam bertindak ekoran laporan The Edge Financial Daily pada Isnin lalu yang melaporkan bahawa kerajaan negeri Terengganu telah menggugurkan kes saman terhadap Petronas dan Kerajaan Persekutuan berhubung royalti petroleum dan mencapai penyelesaian bersama luar mahkamah.
Bagi Husam (gambar kanan), Petronas perlu melayan kerajaan negeri Kelantan sama seperti badan berkanun itu melayan kerajaan negeri Terengganu.
Pada tahun 2002, kerajaan negeri Terengganu yang dipimpin PAS ketika itu telah menyaman kerajaan Persekutuan dan Petronas kerana tidak memberikan wang royalti minyak 5 peratus kepada kerajaan negeri.
Ini berikutan tindakan kerajaan pusat menjadikan wang royalti itu sebagai wang ehsan selepas Terengganu dimenangi PAS pada pilihan raya tahun 1999.
Tahun lalu, Kelantan juga menyaman Petronas kerana tidak memberikan royalti kepada kerajaan negeri walaupun petrol diambil oleh Petronas dari perairan negeri itu.
Ekoran tindakan Petronas menyelesaikan saman dengan kerajaan negeri Terengganu di luar mahkamah, Kelantan juga katanya berhak mendapat layanan yang sama.
Husam memaklumkan, perbicaraan Pendengaran Rayuan Kelantan Berkenaan Penzahiran Dokumen (Discovery) Royalti Petroleum akan berlangsung esok, 26 April 2012, jam 9 pagi di Mahkamah Rayuan Istana Kehakiman Putrajaya.
Sunday 29 April 2012
Saturday 28 April 2012
Three Malaysia wells for Newfield
US independent Newfield Exploration said it plans to drill three offshore exploration wells this year in Malaysia where its net oil production is at a record-high 30,000 barrels per day.
Newfield said its production is driven by the East Piatu, Puteri and East Belumut fields, and there is potential through further development drilling to add production growth.
The company said more details will be provided on the exploration wells in the months ahead.
Chief operating officer Gary Packer said the results of the three exploration wells in the second half this year would help shape "a path forward".
"One unnamed project that we'll be drilling on a more recent deal we've put together from an exploratory standpoint, and then we'll be following up on our discoveries at SK 310, and I'm optimistic we'll get our deep water follow-up to our discovery that we made in Paus drilled this year," said Packer.
Friday 27 April 2012
Petronas says not involved in Terengganu oil royalty settlement
Petronas confirmed today that the Terengganu government has withdrawn its RM2.8 billion oil royalty suit against oil company and Putrajaya, but stressed it has no links to any out-of-court settlement over the matter.
According to The Edge Financial Daily on Monday, the Barisan Nasional Terengganu government had withdrawn its civil suit against Petronas and the federal government on March 21 but did not provide details of its out-of-court settlement.
"Petronas wishes to place on record that the Terengganu suit was discontinued by the Government of the State of Terengganu and the discussions reported by The Edge (if any)- and of which I have no knowledge- between the Government of the State of Terengganu with the Federal Government of Malaysia does not involve Petronas," Petronas Legal Division vice-president Datuk Mohammed Azhar Osman Khairuddin said.
The Petronas official was quoted as saying so in a court affidavit filed yesterday to the Court of Appeal in response to queries raised by lawyers representing Kelantan in a separate oil royalty tussle with the national oil company.
The affidavit-in-reply was made available to reporters today during the Kelantan government's Court of Appeal hearing against Petronas and the federal government.
"Indeed, Petronas can confirm that it was not (and is not) currently in any negotiations with the Government of the State of Terengganu or the Federal Government to settle the Terengganu suit," Mohammed Azhar added.
Petronas had signed a profit-sharing deal shortly after being incorporated in 1974 where the states of the federation receive five per cent in royalties for fossil fuel discovered in their territories and sold by Petronas.
But when Terengganu fell to PAS in 1999, then prime minister Tun Dr Mahathir Mohamad ordered Petronas to rescind oil royalties in September 2000 on the grounds that the opposition party did not have the ability to manage the funds of over half a billion ringgit annually.
The royalties were instead channelled through wang ehsan (goodwill payments) which opposition leaders and some BN politicians have claimed were mismanaged and directed to prestige projects such as the Monsoon Cup and the Crystal Mosque.
Datuk Seri Abdul Hadi Awang's administration filed the suit in March 2001 insisting the federal government's orders were illegal as the state's agreement was exclusively with Petronas.
The case has not proceeded significantly and in 2009, Putrajaya decided to reinstate the royalty payments to the state which had already returned to BN rule.
But the east coast state still demanded RM2.8 billion in compensation for the nine-year lapse, rejecting the federal government's offer of RM1.7 billion.
Terengganu received RM7.13 billion in royalties for the 22 years up to March 2000 when Petronas halted the payments.
During this period, global oil prices averaged at just over US$20 (RM61) per barrel but in the last six years, it was US$87.
In August 2010, PAS-controlled Kelantan launched a suit against Petronas for failing to pay royalty for oil and gas extracted within its territory including the overlapping areas with Terengganu, Thailand and Vietnam which has seen joint-development deals with the federal government.
It says it is owed RM800 million annually since 2005 but Putrajaya has disputed the state's claims over the territorial waters where the joint-development projects are located.
Pressure is now mounting on Terengganu Mentri Besar Datuk Seri Ahmad Said and his state leaders to explain why their administration suddenly dropped its RM2.8 billion oil royalty suit, a move that threatens to become a key campaign issue for the opposition in the coming polls.
Pakatan Rakyat (PR) leaders are already drumming up demands on the Barisan Nasional-led (BN) state and Putrajaya to reveal the terms of the controversial out-of-court settlement, which they claim was resolved in a hushed fashion.
According to The Edge Financial Daily on Monday, the Barisan Nasional Terengganu government had withdrawn its civil suit against Petronas and the federal government on March 21 but did not provide details of its out-of-court settlement.
"Petronas wishes to place on record that the Terengganu suit was discontinued by the Government of the State of Terengganu and the discussions reported by The Edge (if any)- and of which I have no knowledge- between the Government of the State of Terengganu with the Federal Government of Malaysia does not involve Petronas," Petronas Legal Division vice-president Datuk Mohammed Azhar Osman Khairuddin said.
The Petronas official was quoted as saying so in a court affidavit filed yesterday to the Court of Appeal in response to queries raised by lawyers representing Kelantan in a separate oil royalty tussle with the national oil company.
The affidavit-in-reply was made available to reporters today during the Kelantan government's Court of Appeal hearing against Petronas and the federal government.
"Indeed, Petronas can confirm that it was not (and is not) currently in any negotiations with the Government of the State of Terengganu or the Federal Government to settle the Terengganu suit," Mohammed Azhar added.
Petronas had signed a profit-sharing deal shortly after being incorporated in 1974 where the states of the federation receive five per cent in royalties for fossil fuel discovered in their territories and sold by Petronas.
But when Terengganu fell to PAS in 1999, then prime minister Tun Dr Mahathir Mohamad ordered Petronas to rescind oil royalties in September 2000 on the grounds that the opposition party did not have the ability to manage the funds of over half a billion ringgit annually.
The royalties were instead channelled through wang ehsan (goodwill payments) which opposition leaders and some BN politicians have claimed were mismanaged and directed to prestige projects such as the Monsoon Cup and the Crystal Mosque.
Datuk Seri Abdul Hadi Awang's administration filed the suit in March 2001 insisting the federal government's orders were illegal as the state's agreement was exclusively with Petronas.
The case has not proceeded significantly and in 2009, Putrajaya decided to reinstate the royalty payments to the state which had already returned to BN rule.
But the east coast state still demanded RM2.8 billion in compensation for the nine-year lapse, rejecting the federal government's offer of RM1.7 billion.
Terengganu received RM7.13 billion in royalties for the 22 years up to March 2000 when Petronas halted the payments.
During this period, global oil prices averaged at just over US$20 (RM61) per barrel but in the last six years, it was US$87.
In August 2010, PAS-controlled Kelantan launched a suit against Petronas for failing to pay royalty for oil and gas extracted within its territory including the overlapping areas with Terengganu, Thailand and Vietnam which has seen joint-development deals with the federal government.
It says it is owed RM800 million annually since 2005 but Putrajaya has disputed the state's claims over the territorial waters where the joint-development projects are located.
Pressure is now mounting on Terengganu Mentri Besar Datuk Seri Ahmad Said and his state leaders to explain why their administration suddenly dropped its RM2.8 billion oil royalty suit, a move that threatens to become a key campaign issue for the opposition in the coming polls.
Pakatan Rakyat (PR) leaders are already drumming up demands on the Barisan Nasional-led (BN) state and Putrajaya to reveal the terms of the controversial out-of-court settlement, which they claim was resolved in a hushed fashion.
Wednesday 25 April 2012
SapuraKencana to emerge as second largest non-Petronas player
Analysts are positive on the enlarged SapuraKencana entity anticipicated to emerge post merger for its scale and global track record that is likely to be the second largest non-Petronas player once it is listed by early-mid May.
According to the research arm of Kenanga Investment Bank Bhd (Kenanga Research), for the record, in July 2011, both SapuraCrest Sdn Bhd (SapCrest) and Kencana Petroleum Bhd (Kencana) announced that they had received an offer by a special purpose vehicle, Integral Key Sdn Bhd to merge them by way of share swap and cash payments.
“We foresee a two-year net profit of compounded annual growth rate (CAGR) at 12.2 per cent for the newly merged entity on the back of the financial year of 2012 to 2014 estimate (FY12-14E) net profits of RM580.9 million, RM709.1 million and RM852.6 million respectively.
“Driven by organic growth of its existing engineering, procurement, construction, installation and commissioning (EPCIC) businesses and start-up of Berantai marginal field earnings.” said the research house.
Given the individual share price of RM5.05 per share for SapCrest and RM3.35 per share for Kencana, the research house believed the new entity would be relisted at a price closer to RM2.20 per share.
In addition both companies had announced that their shares would be suspended from May 2, three market days before the entitlement date on May 8, 2012.
The listing of the new entity was tentatively set for mid-May.
The merged entity would have a variety of assets such as tender rigs, pipelay and derrick lay barges as well as offshore marine vessels (OSV).
Furthermore, there were also seven assets under construction that would be progressively completed within the calendar year 2014 (CY2014).
It also had a fabrication yard capacity of 100,000 metric tonnes per annum (mtpa) in Lumut and Labuan, and would have a combined 50 per cent stake in Malaysia’s first marginal field, Berantai, which was co-owned with Petrofac (M) Ltd (Petrofac). It also benefited from the existing strategic partnerships and track record previously forged by SapCrest.
The enlarged entity’s order book stood at RM13.5 billion as of January 2012, with the synergistic benefits being the ability to control resources allocation, optimise operating costs and cross-sell service ranges such as EPCIC or turnkey contractor, which would eventually lead to higher margins for the overall group.
As such, Kenanga Research saw more value beyond the merger. It added that it took a longer term view in regards to SapuraKencana as the research house believed that there would be contributions from the new acquisitions of Clough (M) Sdn Bhd (Clough) and AME (M) Sdn Bhd (AME).
This also included the Berantai marginal field, which would be evident in the group’s CY13 earnings and would be more reflective of the true value of the combined entity.
Kenanga Research’s CY13 proforma earnings forecast of RM730 million implied a fair value of RM2.63 per share or a market cap of RM13.1 billion for SapuraKencana,
Additionally, it also implied a fair value of RM5.82 per share and RM3.79 per share for SapCrest and Kencana respectively.
Tuesday 24 April 2012
Petronas bags Singapore, Indonesia gas deals
Petronas made a major coup in the past two weeks, securing two gas supply deals in Singapore and Indonesia.
In the latest deal, Petronas signed a gas sales agreement (GSA) with Keppel Energy Pte Ltd, a subsidiary of Singapore-listed Keppel Corp Ltd to supply 43 million standard cubic feet per day (mmscfd) of natural gas to the latter, a deal which is believed to be worth US$2.2 billion (RM6.74 billion).
“Based on historical oil prices, the contract value is estimated to be about US$2.2 billion.
The gas will be used to support the energy needs of Keppel Energy investments,” Keppel Corp said in a statement issued last Friday.
According to the statement, Petronas will source the natural gas from its various supply networks.
“The agreement is not expected to have material impact on the net tangible assets or earnings per share of Keppel Corp for the current financial year,” the statement said.
From its humble beginnings as a local shiprepair yard, the Keppel group has become one of the largest conglomerates in Singapore.
Meanwhile, Petronas Carigali Sdn Bhd, the exploration and production arm of Petronas, has signed a GSA to supply some 50 mmscfd of natural gas to PT Jatim Utama (PJU) in Indonesia.
The company, through its subsidiary Kontraktor Kontrak Kerjasama PC Ketapang II Ltd (KKS Contractor) and PJU signed the agreement
on April 13.
In a statement, BP Migas, the upstream oil and gas executive agency in Indonesia, said under the agreement KKS Contractor will supply gas to PJU from Bukit Tua field of Block
Ketapang in East Jawa.
“PJU will then distribute the gas to PT Pembangkitan Jawa Bali in Gresik,” BP Migas said.
However, the value of the contract was not disclosed.
“This approval marks Petronas’ contribution to the development of oil and gas as well as the power sector to generate electricity in a costeffective utilisation of gas from Bukit Tua field.
“Petronas hopes this will strengthen cooperation with the government of East Timur,” BP Migas said, quoting a statement from Petronas.
At oil production peak, the Bukit Tua field is expected to reach 20,000 barrels per day, with follow-up gas at 50 mmscfd.
“This field is expected to start production in mid-2014,” BP Migas said, adding that Petronas Carigali operates in over 20 countries, including Indonesia. Currently, the national oil company is participating in 10 cooperation contracts in
Indonesia.
In the latest deal, Petronas signed a gas sales agreement (GSA) with Keppel Energy Pte Ltd, a subsidiary of Singapore-listed Keppel Corp Ltd to supply 43 million standard cubic feet per day (mmscfd) of natural gas to the latter, a deal which is believed to be worth US$2.2 billion (RM6.74 billion).
“Based on historical oil prices, the contract value is estimated to be about US$2.2 billion.
The gas will be used to support the energy needs of Keppel Energy investments,” Keppel Corp said in a statement issued last Friday.
According to the statement, Petronas will source the natural gas from its various supply networks.
“The agreement is not expected to have material impact on the net tangible assets or earnings per share of Keppel Corp for the current financial year,” the statement said.
From its humble beginnings as a local shiprepair yard, the Keppel group has become one of the largest conglomerates in Singapore.
Meanwhile, Petronas Carigali Sdn Bhd, the exploration and production arm of Petronas, has signed a GSA to supply some 50 mmscfd of natural gas to PT Jatim Utama (PJU) in Indonesia.
The company, through its subsidiary Kontraktor Kontrak Kerjasama PC Ketapang II Ltd (KKS Contractor) and PJU signed the agreement
on April 13.
In a statement, BP Migas, the upstream oil and gas executive agency in Indonesia, said under the agreement KKS Contractor will supply gas to PJU from Bukit Tua field of Block
Ketapang in East Jawa.
“PJU will then distribute the gas to PT Pembangkitan Jawa Bali in Gresik,” BP Migas said.
However, the value of the contract was not disclosed.
“This approval marks Petronas’ contribution to the development of oil and gas as well as the power sector to generate electricity in a costeffective utilisation of gas from Bukit Tua field.
“Petronas hopes this will strengthen cooperation with the government of East Timur,” BP Migas said, quoting a statement from Petronas.
At oil production peak, the Bukit Tua field is expected to reach 20,000 barrels per day, with follow-up gas at 50 mmscfd.
“This field is expected to start production in mid-2014,” BP Migas said, adding that Petronas Carigali operates in over 20 countries, including Indonesia. Currently, the national oil company is participating in 10 cooperation contracts in
Indonesia.
Monday 23 April 2012
Terengganu drops Petronas suit
The Terengganu government has dropped its long-standing legal battle with national oils corporation Petroleum Nasional Bhd (Petronas) and the federal government over unpaid oil royalty payments amounting to several billion ringgit.
Sunday 22 April 2012
Sapura eyes Kazakhstan O&G sector
Sapura Kencana Petroleum Bhd, the new entity formed post-merger of Kencana Petroleum Bhd and SapuraCrest Petroleum Bhd, is keen to establish a footprint in Kazakhstan's oil and gas industry.
Kencana Petroleum Bhd Group chief executive officer Datuk Mokhzani Mahathir said the company is planning to send a reconnaisance team to study what is needed to establish its business in that country.
"We are looking at the rejuvenation of marginal fields and old fields as well as infrastructure for offshore support study," he added.
He was speaking to reporters after the Kazakhstan-Malaysia Business Exhibition, held in conjunction with the two-day official state visit by the President of Kazakhstan, Nursultan Nazarbayev.
Earlier, the President took time off to grace the business exhibition, which among others, showcased the products and services of some of Malaysia's leading companies.
It also helped facilitate business matchings between various companies from both countries.
Mokhzani said during the tour, the President visited Sapura Kencana's booth, and he was very keen to see it investing in the Central Asian country.
"We explained to him what the company does and he was very keen to see us investing in Kazakhstan. That is our priority.
"We will see what the country has to offer now and try to build on what is there.
"Of course Sapura Kencana has vast experience in all areas related to the oil and gas sector. So, we will focus fully, Sapura Kencana's strength in Kazakhstan," he added.
He said after the reconnaisance mission, the company will prepare a proposal and submit it to the relevant authorities in Malaysia and Kazakhstan.
With total assets of approximately RM11.85 billion, Sapura Kencana is one of the world's top five oil and gas service support players by asset base. -- Bernama
Kencana Petroleum Bhd Group chief executive officer Datuk Mokhzani Mahathir said the company is planning to send a reconnaisance team to study what is needed to establish its business in that country.
"We are looking at the rejuvenation of marginal fields and old fields as well as infrastructure for offshore support study," he added.
He was speaking to reporters after the Kazakhstan-Malaysia Business Exhibition, held in conjunction with the two-day official state visit by the President of Kazakhstan, Nursultan Nazarbayev.
Earlier, the President took time off to grace the business exhibition, which among others, showcased the products and services of some of Malaysia's leading companies.
It also helped facilitate business matchings between various companies from both countries.
Mokhzani said during the tour, the President visited Sapura Kencana's booth, and he was very keen to see it investing in the Central Asian country.
"We explained to him what the company does and he was very keen to see us investing in Kazakhstan. That is our priority.
"We will see what the country has to offer now and try to build on what is there.
"Of course Sapura Kencana has vast experience in all areas related to the oil and gas sector. So, we will focus fully, Sapura Kencana's strength in Kazakhstan," he added.
He said after the reconnaisance mission, the company will prepare a proposal and submit it to the relevant authorities in Malaysia and Kazakhstan.
With total assets of approximately RM11.85 billion, Sapura Kencana is one of the world's top five oil and gas service support players by asset base. -- Bernama
Keppel Corp. unit in natgas pact with Petronas
Singapore conglomerate Keppel Corp. Ltd. said that unit Keppel Energy Pte. Ltd. has entered into a gas sales agreement with Petronas to import an additional 43 million cubic feet per day of natural gas from their various supply networks.
In a filing to the Singapore Exchange late Friday, Keppel said that based on historical oil prices, the contract value is estimated to be about US$2.2 billion.
The gas would be used to support the energy needs of Keppel Energy's customers, it said.
In a filing to the Singapore Exchange late Friday, Keppel said that based on historical oil prices, the contract value is estimated to be about US$2.2 billion.
The gas would be used to support the energy needs of Keppel Energy's customers, it said.
Saturday 21 April 2012
Petronas in talks with 10 potential investors for Rapid project
Petronas is talking to 10 potential investors and companies involved in the oil and gas related activities to set up their operations at its refinery and petrochemicals integrated development (Rapid) project.
Rapid executive project director Wan Yusoff Wan Hamat said they came from all over the world and had shown strong interest to invest in the complex in Pengerang, Johor.
“We can't reveal their names right now because the talks are still ongoing,'' he said at media briefing on Rapid yesterday.
The RM60bil complex is located in the southeast Johor and the proposed 300,000 barrels per day crude oil refinery capacity is larger than the combined capacities of Petronas' existing refineries in Malacca, Kertih and Gebeng.
Wan Yusoff said it was vital to attract world-class, oil, gas and petrochemical companies to invest in the project as they would contribute to the country's aspiration to become a high-income nation by 2020.
“Although we will undertake the development of the project, these investors are the ones that will churn out their products from the complex,” he said.
There were several options for the investors to invest in the complex by setting up their own operations or through joint-venture with Petronas.
He said construction of the complex on a 2,428.11ha would start in mid-2013 and by 2016, it was expected to have 60 plants with 4,000 permanent workers.
“We want to optimise the cost by adding synergistic to our operations and to be able to market the products in the region,” he said on the purpose of developing Rapid.
Rapid's close proximity with Singapore could create potential collaboration in term of logistics and products disposal, Wan Yusoff said adding that being close to the sources of demand, particularly Indonesia, was an added advantage
Rapid executive project director Wan Yusoff Wan Hamat said they came from all over the world and had shown strong interest to invest in the complex in Pengerang, Johor.
“We can't reveal their names right now because the talks are still ongoing,'' he said at media briefing on Rapid yesterday.
The RM60bil complex is located in the southeast Johor and the proposed 300,000 barrels per day crude oil refinery capacity is larger than the combined capacities of Petronas' existing refineries in Malacca, Kertih and Gebeng.
Wan Yusoff said it was vital to attract world-class, oil, gas and petrochemical companies to invest in the project as they would contribute to the country's aspiration to become a high-income nation by 2020.
“Although we will undertake the development of the project, these investors are the ones that will churn out their products from the complex,” he said.
There were several options for the investors to invest in the complex by setting up their own operations or through joint-venture with Petronas.
He said construction of the complex on a 2,428.11ha would start in mid-2013 and by 2016, it was expected to have 60 plants with 4,000 permanent workers.
“We want to optimise the cost by adding synergistic to our operations and to be able to market the products in the region,” he said on the purpose of developing Rapid.
Rapid's close proximity with Singapore could create potential collaboration in term of logistics and products disposal, Wan Yusoff said adding that being close to the sources of demand, particularly Indonesia, was an added advantage
Friday 20 April 2012
FINAL INVESTMENT DECISION ON PETRONAS RAPID PROJECT DUE MID-2013
National oil company, Petronas will announce the final investment decision regarding the massive RM60 billion Refinery and Petrochemical Intergrated Development (RAPID) project in Pengerang in MID-2013.
Nevertheless, RAPID Executive Project Director Wan Yusoff Wan Hamat said the project was highly likely to proceed and come on stream in 2016 to turn Pengerang, in South-eastern Johor, into the Asia Pacific petrochemical hub.
"Because of its potential, the project (RAPID) is highly likely to go on as planned," he told a press briefing on RAPID at Kota Iskandar, Nusajaya.
Prime Minister Datuk Seri Najib Tun Razak announced the RAPID project in May last year which would expand Petronas'' downstream business and create massive spin-off to the national economy.
Petronas, Wan Yusoff said, proposed to embark on the project in anticipation of strong future growth in the demand for differentiated and specialty chemicals, identified as a potential contributor to further enhance Malaysia's petrochemical industry.
"RAPID presents an opportunity for Petronas to further expand and divesify its petrochemical business through volume growth, a more diversified products base and a move into high-value and premium specialty chemicals market," said Wan Yusoff.
He said, currently the RAPID project had progressed to a front-end engineering design stage and Petronas was finalising the selection of potential partners, as well as, licensors for the various facilities within the project.
Petronas completed a detailed feasibility study and a site topographical survey and soil investigation work May last year.
He said the RAPID project in Pengerang would be the largest greenfield development in a single location in the country.
"The scope and scale of RAPID is greater than that of the Petronas''s Melaka, Kertih and Gebeng complexes combined in a single location," he said adding that, to optimise cost and be competitive, petrochemical facilities must be integrated.
RAPID will comprise a crude oil refinery with a processing capacity of 300,000 barrels per day and a Naphtha Cracker with a combined annual production capacity of three million tonnes of Ethylene, Propylene and C4 and C5 Olefins.
It will also have petrochemicals and polymer complex for differentiated and highly specialised products as well as C4 (Butanes) and C5 (Penthanes) derivates complexes focusing on various grades of synthetic rubber.
Wan Yusoff also said to support the development of RAPID, Petronas was also assessing the feasibility of developing a new Liquefied Natural Gas (LNG) receiving and re-gasification terminal and co-generation power plant.
"The facilities will cater to the energy needs of the RAPID complex and contribute towards the efforts of diversifying the sources of gas and energy supply to meet existing and future demand in Peninsular Malaysia," he said.
The new re-gasification terminal will have receiving facilities for LNG carriers and a new pipeline to tie-in to the existing Peninsular Gas Utilisation System.
He said, apart from meeting the internal RAPID requirements for power and steam, any excess capacity from the co-generation plant may be supplied to others.
Wan Yusoff said Petronas was currently engaged in discussions with up to 10 potential investors for the RAPID project.
He also said the national oil company was in the midst of discussions with Dialog Group Bhd for a possible joint-venture in an oil tankage terminal in Pengerang, to complement the RAPID project.
The Dialog Group Bhd is currently undertaking the construction of the RM5 billion Pengerang Independent Deepwater Petroleum Terminal.
Nevertheless, RAPID Executive Project Director Wan Yusoff Wan Hamat said the project was highly likely to proceed and come on stream in 2016 to turn Pengerang, in South-eastern Johor, into the Asia Pacific petrochemical hub.
"Because of its potential, the project (RAPID) is highly likely to go on as planned," he told a press briefing on RAPID at Kota Iskandar, Nusajaya.
Prime Minister Datuk Seri Najib Tun Razak announced the RAPID project in May last year which would expand Petronas'' downstream business and create massive spin-off to the national economy.
Petronas, Wan Yusoff said, proposed to embark on the project in anticipation of strong future growth in the demand for differentiated and specialty chemicals, identified as a potential contributor to further enhance Malaysia's petrochemical industry.
"RAPID presents an opportunity for Petronas to further expand and divesify its petrochemical business through volume growth, a more diversified products base and a move into high-value and premium specialty chemicals market," said Wan Yusoff.
He said, currently the RAPID project had progressed to a front-end engineering design stage and Petronas was finalising the selection of potential partners, as well as, licensors for the various facilities within the project.
Petronas completed a detailed feasibility study and a site topographical survey and soil investigation work May last year.
He said the RAPID project in Pengerang would be the largest greenfield development in a single location in the country.
"The scope and scale of RAPID is greater than that of the Petronas''s Melaka, Kertih and Gebeng complexes combined in a single location," he said adding that, to optimise cost and be competitive, petrochemical facilities must be integrated.
RAPID will comprise a crude oil refinery with a processing capacity of 300,000 barrels per day and a Naphtha Cracker with a combined annual production capacity of three million tonnes of Ethylene, Propylene and C4 and C5 Olefins.
It will also have petrochemicals and polymer complex for differentiated and highly specialised products as well as C4 (Butanes) and C5 (Penthanes) derivates complexes focusing on various grades of synthetic rubber.
Wan Yusoff also said to support the development of RAPID, Petronas was also assessing the feasibility of developing a new Liquefied Natural Gas (LNG) receiving and re-gasification terminal and co-generation power plant.
"The facilities will cater to the energy needs of the RAPID complex and contribute towards the efforts of diversifying the sources of gas and energy supply to meet existing and future demand in Peninsular Malaysia," he said.
The new re-gasification terminal will have receiving facilities for LNG carriers and a new pipeline to tie-in to the existing Peninsular Gas Utilisation System.
He said, apart from meeting the internal RAPID requirements for power and steam, any excess capacity from the co-generation plant may be supplied to others.
Wan Yusoff said Petronas was currently engaged in discussions with up to 10 potential investors for the RAPID project.
He also said the national oil company was in the midst of discussions with Dialog Group Bhd for a possible joint-venture in an oil tankage terminal in Pengerang, to complement the RAPID project.
The Dialog Group Bhd is currently undertaking the construction of the RM5 billion Pengerang Independent Deepwater Petroleum Terminal.
Tuesday 17 April 2012
Petronas hikes Tapis price factor to record
Petroliam Nasional Bhd, Malaysia’s state oil company, increased a price-adjustment factor for its flagship Tapis crude to a record high for a second month as profits from making diesel rose.
Petronas, as the Kuala Lumpur-based company is known, set the so-called alpha at US$9.50 a barrel for April, an official said today, asking not to be identified because of internal rules. It was US$8.65 for March and averaged US$5.90 in 2011.
Tapis is refined mainly for gasoil, or diesel. The product’s premium to Asian benchmark Dubai crude has climbed 2.5 per cent so far this month after a 2.2 per cent gain in March, according to data from PVM Oil Associates Ltd, a London-based broker. The so-called gasoil crack spread was at US$15.88 a barrel at the end of trading yesterday.
Petronas includes the Tapis adjustment factor in its monthly calculations of official selling prices. The formula is tied to Brent produced in the North Sea, a benchmark grade for Europe, the Mediterranean and Africa. -- Bloomberg
Petronas, as the Kuala Lumpur-based company is known, set the so-called alpha at US$9.50 a barrel for April, an official said today, asking not to be identified because of internal rules. It was US$8.65 for March and averaged US$5.90 in 2011.
Tapis is refined mainly for gasoil, or diesel. The product’s premium to Asian benchmark Dubai crude has climbed 2.5 per cent so far this month after a 2.2 per cent gain in March, according to data from PVM Oil Associates Ltd, a London-based broker. The so-called gasoil crack spread was at US$15.88 a barrel at the end of trading yesterday.
Petronas includes the Tapis adjustment factor in its monthly calculations of official selling prices. The formula is tied to Brent produced in the North Sea, a benchmark grade for Europe, the Mediterranean and Africa. -- Bloomberg
Monday 16 April 2012
Bumi Armada unit gets US$200m pipeline contract from Russia’s Lukoil
Bumi Armada Bhd's indirect unit Bumi Armada Caspian LLC has secured a US$200mil contract from Russia's OAO Lukoil for a pipeline project in the Caspian Sea.
It said on Monday the contract involved the engineering, procurement, installation and pre-commissioning of subsea in-field and inter-field pipelines for the Filanovsky field in the Russian sector of the Caspian Sea.
Bumi Armada said the completion period of the contract was estimated at 32 months and to be substantially completed by end 2014.
It said on Monday the contract involved the engineering, procurement, installation and pre-commissioning of subsea in-field and inter-field pipelines for the Filanovsky field in the Russian sector of the Caspian Sea.
Bumi Armada said the completion period of the contract was estimated at 32 months and to be substantially completed by end 2014.
Saturday 14 April 2012
Eni oil pipeline attacked in Nigeria delta
A crude oil pipeline owned by Italian oil and gas group Eni was attacked on Friday in Nigeria's onshore Niger Delta and a militant group claimed the strike.
Attacks in the restive region have been fewer since an amnesty for militants in 2009, although large-scale oil theft and sporadic pipeline sabotage still occurs.
"We can confirm a pipeline, leading to Tebidaba, in the Clough-Creek area has been attacked," an Eni spokeswoman said.
Eni's unit Agip owns the Tebidaba-Brass pipeline, which has been subject to several attacks in recent years.
The Movement for the Emancipation of the Niger Delta (MEND), which was the main militant group prior to the amnesty, claimed Friday's attack and warned of more to come.
"At 0210 fighters of MEND attacked and destroyed one wellhead and one manifold on trunk lines belonging to Agip ... more attacks to follow," a statement e-mailed to reporters said.
MEND has been largely inactive since most of its militants agreed an amnesty with the government in 2009, ending a wave of attacks that at one stage cut oil production down by half.
Under the amnesty thousands of militants gave up their weapons, joined training schemes and drew stipends. Security sources say remaining gangs in the Niger Delta do not have the capacity to do the damage seen in the past.
But a resurgence of militant activity is an unwelcome headache President Goodluck Jonathan's administration, whose security forces are already stretched by an Islamist insurgency raging in the north.
Attacks in the restive region have been fewer since an amnesty for militants in 2009, although large-scale oil theft and sporadic pipeline sabotage still occurs.
"We can confirm a pipeline, leading to Tebidaba, in the Clough-Creek area has been attacked," an Eni spokeswoman said.
Eni's unit Agip owns the Tebidaba-Brass pipeline, which has been subject to several attacks in recent years.
The Movement for the Emancipation of the Niger Delta (MEND), which was the main militant group prior to the amnesty, claimed Friday's attack and warned of more to come.
"At 0210 fighters of MEND attacked and destroyed one wellhead and one manifold on trunk lines belonging to Agip ... more attacks to follow," a statement e-mailed to reporters said.
MEND has been largely inactive since most of its militants agreed an amnesty with the government in 2009, ending a wave of attacks that at one stage cut oil production down by half.
Under the amnesty thousands of militants gave up their weapons, joined training schemes and drew stipends. Security sources say remaining gangs in the Niger Delta do not have the capacity to do the damage seen in the past.
But a resurgence of militant activity is an unwelcome headache President Goodluck Jonathan's administration, whose security forces are already stretched by an Islamist insurgency raging in the north.
Ex-Petronas engineer hopes to turn south Johor into Asia’s Rotterdam
The south east corner of Johor is best known as a destination for fresh seafood and golf for Singaporeans who arrive every weekend via ferry from Changi just a few kilometers away.
There is a stark contrast however between the impressive development that characterises the economic powerhouse just across the narrow Johor Strait, and the rural towns and villages that stretch from Tanjung Kapal to Sungai Rengit that appear to be in a state of stagnation.
All that could change however if Ngau Boon Keat, executive chairman of the Dialog Group has his way.
Rising from the seabed just off Tanjung Kapal are acres upon acres of freshly reclaimed land that could be the catalyst for making south Johor a petrochemical hub to rival Rotterdam, Houston and Singapore.
To hear Ngau explain it, this corner of Johor, now simply referred to as Pengerang after the parliamentary district of which it is a part, has divine attributes that puts it in the sweetest of sweet spots to take advantage of Asia’s economic boom.
At a media briefing on the Pengerang Independent Deepwater Petroleum Terminal (PIDPT) project on Friday, Ngau who joined Petronas as one of its pioneer engineers 1978 before leaving to start Dialog in the 1984, reeled off facts and figures to back his vision.
Pengerang, he said has water that is 24 meters deep as compared to Singapore’s 18 meters and Rotterdam’s 20-22 meters, allowing the berth of very large crude carriers (VLCCs) and ultra large crude carriers (ULCCs).
He noted that Rotterdam, the world’s largest refining centre, has an oil storage capacity of 28 million cubic meters to cater for a base population of 400 million while Singapore has an independent storage capacity of only 10 million cubic meters for a regional population of 3 billion.
The under-construction RM5 billion oil terminal, which has a planned capacity of 5 million cubic meters, also has the advantage of being located at the entrance to one of the world’s busiest shipping lanes and in an oil and gas exporting country to boot.
“This type of port cannot be made by humans,” said Ngau.
The vision however has not been without its troubles.
Dialog and its partners were slapped with a lawsuit last week by fishermen who are seeking to suspend the project unless they are compensated for alleged loss of income from the land reclamation.
The massive RM60 billion oil refinery and petrochemical complex, known as RAPID, being built by Petronas in Pengerang, was also hit last month with accusations that it would cause unacceptable pollution and displacement of local villagers.
Ngau returns to his vision of a Rotterdam east to refute Pengerang’s detractors.
“Rotterdam is one of the most beautiful port cities in the world,” he said while showing images of the Dutch city under a pale blue sky on a projection screen.
“They were reclaiming land in 1978 and they are still reclaiming land today. They are the largest oil refining centre in the world. We want Pengerang to be the Rotterdam of Asia.”
He also noted that Singapore, known to be strict with environmental regulations, is the third largest oil refining hub globally.
“If Singapore can do it, why can’t we? Take a drive in Jurong in Singapore and you will see refineries in the Jurong town itself and not on Jurong island.”
He noted that Dialog’s partner — Dutch company Vopak which is the largest independent oil terminal operator in the world — manages facilities in developed countries with strict anti-pollution measures.
“They operate in Europe and US which have stringent environmental standards and they can survive,” he said. “Our technology today is more advanced so why should we have problems unless Malaysians are very sloppy.”
Vopak Malaysia’s managing director Law Say Huat told The Malaysian Insider that the 400 year old company was very concerned about sustainability.
“The standards today are even higher than before,” he said.
The project manager for the Pengerang oil terminal, Chong Chong Wooi said he believed the project was the first in Malaysia to use online monitoring — whereby the Department of the Environment could remotely access sensors in real time to check sediment levels in the waters off Pengerang.
For Ngau, Pengerang is also about the future of Malaysia.
The oil and gas veteran came back to Kuala Lumpur from his studies in New Zealand in 1972 but failed to secure a job even after sending out 200 resumes.
A friend then advised to him to try for a job in Singapore.
He landed a job with Mobil Singapore after just one interview.
“Singapore was just starting to build refineries then and eight out of ten people working on the refineries were Malaysians,” said Ngau. “Singapore doesn’t even have one drop of oil. In 2012, most of the people in Singapore refineries are still Malaysians.”
Ngau said that if Malaysia, which was an oil exporting country didn’t invest in adding value to its oil and gas resources now, it would not be able to create high paying high quality jobs for the future.
“If Malaysia just wants to sell raw materials then fine, you will end up working for Singapore,” he said.
Ngau said that history was at risk of repeating itself with liquified natural gas (LNG) as Singapore was already building LNG terminals.
He said that he first had the idea of a deepwater oil terminal in Pengerang in 2007.
“I took the state government to Rotterdam to have a look and told them we could be like Rotterdam,” he said. “After 40 years, Singapore has no more land to build on. We have a deepwater port, we are close to the third largest refiner in the world and we can add value to our own oil and gas.”
About four years after he first had his brainwave, land reclamation work started on Pengerang last October.
Ngau gives Pengerang 15-20 years to reach Rotterdam-like levels of scale in petroleum storage and refinery.
“Malaysians then will no longer have to go to Singapore and the Middle East to look for high value jobs,” he said.
There is a stark contrast however between the impressive development that characterises the economic powerhouse just across the narrow Johor Strait, and the rural towns and villages that stretch from Tanjung Kapal to Sungai Rengit that appear to be in a state of stagnation.
All that could change however if Ngau Boon Keat, executive chairman of the Dialog Group has his way.
Rising from the seabed just off Tanjung Kapal are acres upon acres of freshly reclaimed land that could be the catalyst for making south Johor a petrochemical hub to rival Rotterdam, Houston and Singapore.
To hear Ngau explain it, this corner of Johor, now simply referred to as Pengerang after the parliamentary district of which it is a part, has divine attributes that puts it in the sweetest of sweet spots to take advantage of Asia’s economic boom.
At a media briefing on the Pengerang Independent Deepwater Petroleum Terminal (PIDPT) project on Friday, Ngau who joined Petronas as one of its pioneer engineers 1978 before leaving to start Dialog in the 1984, reeled off facts and figures to back his vision.
Pengerang, he said has water that is 24 meters deep as compared to Singapore’s 18 meters and Rotterdam’s 20-22 meters, allowing the berth of very large crude carriers (VLCCs) and ultra large crude carriers (ULCCs).
He noted that Rotterdam, the world’s largest refining centre, has an oil storage capacity of 28 million cubic meters to cater for a base population of 400 million while Singapore has an independent storage capacity of only 10 million cubic meters for a regional population of 3 billion.
The under-construction RM5 billion oil terminal, which has a planned capacity of 5 million cubic meters, also has the advantage of being located at the entrance to one of the world’s busiest shipping lanes and in an oil and gas exporting country to boot.
“This type of port cannot be made by humans,” said Ngau.
The vision however has not been without its troubles.
Dialog and its partners were slapped with a lawsuit last week by fishermen who are seeking to suspend the project unless they are compensated for alleged loss of income from the land reclamation.
The massive RM60 billion oil refinery and petrochemical complex, known as RAPID, being built by Petronas in Pengerang, was also hit last month with accusations that it would cause unacceptable pollution and displacement of local villagers.
Ngau returns to his vision of a Rotterdam east to refute Pengerang’s detractors.
“Rotterdam is one of the most beautiful port cities in the world,” he said while showing images of the Dutch city under a pale blue sky on a projection screen.
“They were reclaiming land in 1978 and they are still reclaiming land today. They are the largest oil refining centre in the world. We want Pengerang to be the Rotterdam of Asia.”
He also noted that Singapore, known to be strict with environmental regulations, is the third largest oil refining hub globally.
“If Singapore can do it, why can’t we? Take a drive in Jurong in Singapore and you will see refineries in the Jurong town itself and not on Jurong island.”
He noted that Dialog’s partner — Dutch company Vopak which is the largest independent oil terminal operator in the world — manages facilities in developed countries with strict anti-pollution measures.
“They operate in Europe and US which have stringent environmental standards and they can survive,” he said. “Our technology today is more advanced so why should we have problems unless Malaysians are very sloppy.”
Vopak Malaysia’s managing director Law Say Huat told The Malaysian Insider that the 400 year old company was very concerned about sustainability.
“The standards today are even higher than before,” he said.
The project manager for the Pengerang oil terminal, Chong Chong Wooi said he believed the project was the first in Malaysia to use online monitoring — whereby the Department of the Environment could remotely access sensors in real time to check sediment levels in the waters off Pengerang.
For Ngau, Pengerang is also about the future of Malaysia.
The oil and gas veteran came back to Kuala Lumpur from his studies in New Zealand in 1972 but failed to secure a job even after sending out 200 resumes.
A friend then advised to him to try for a job in Singapore.
He landed a job with Mobil Singapore after just one interview.
“Singapore was just starting to build refineries then and eight out of ten people working on the refineries were Malaysians,” said Ngau. “Singapore doesn’t even have one drop of oil. In 2012, most of the people in Singapore refineries are still Malaysians.”
Ngau said that if Malaysia, which was an oil exporting country didn’t invest in adding value to its oil and gas resources now, it would not be able to create high paying high quality jobs for the future.
“If Malaysia just wants to sell raw materials then fine, you will end up working for Singapore,” he said.
Ngau said that history was at risk of repeating itself with liquified natural gas (LNG) as Singapore was already building LNG terminals.
He said that he first had the idea of a deepwater oil terminal in Pengerang in 2007.
“I took the state government to Rotterdam to have a look and told them we could be like Rotterdam,” he said. “After 40 years, Singapore has no more land to build on. We have a deepwater port, we are close to the third largest refiner in the world and we can add value to our own oil and gas.”
About four years after he first had his brainwave, land reclamation work started on Pengerang last October.
Ngau gives Pengerang 15-20 years to reach Rotterdam-like levels of scale in petroleum storage and refinery.
“Malaysians then will no longer have to go to Singapore and the Middle East to look for high value jobs,” he said.
Friday 13 April 2012
Petronas’s South African Unit Suspends Oil Imports From Iran
Petroliam Nasional Bhd. (PET)’s Engen unit, the biggest South African importer of Iranian crude, said it has suspended imports of oil from the Middle Eastern nation amid economic sanctions by the U.S. and the European Union.
The company has contingency supplies in place, Engen spokeswoman Tania Landsberg said in an e-mailed response to questions. Engen, which operates the country’s second-biggest refinery based in Durban and with a capacity of 135,000 barrels a day, normally buys about 80 percent of its supplies from Iran.
Engen is “under heavy pressure” to halt Iranian imports because of sanctions, Petronas Chief Executive Officer Shamsul Azhar Abbas, said in a March 30 interview. Engen has sought alternative supplies but hasn’t yet received any, he said.
President Barack Obama signed a law on Dec. 31 that denies foreign banks that do business with the Central Bank of Iran access to the U.S. financial system. The U.S. may impose penalties should a country not make “significant” reductions in Iranian crude oil purchases in the first half of this year. A South African governmental team will submit a report to cabinet by the end of May that will advise on Iran, Energy Minister Dipuo Peters said today.
Sasol Ltd., which operates the Natref refinery in partnership with Total SA in Sasolburg, south of Johannesburg, said last month that it halted crude purchases from Iran, which provided about 20 percent of supply. Refineries operated in the country by BP Plc and Chevron Corp. don’t use Iranian oil. Royal Dutch Shell Plc will comply with U.S. sanctions, CEO Peter Voser said Feb. 2.
The company has contingency supplies in place, Engen spokeswoman Tania Landsberg said in an e-mailed response to questions. Engen, which operates the country’s second-biggest refinery based in Durban and with a capacity of 135,000 barrels a day, normally buys about 80 percent of its supplies from Iran.
Engen is “under heavy pressure” to halt Iranian imports because of sanctions, Petronas Chief Executive Officer Shamsul Azhar Abbas, said in a March 30 interview. Engen has sought alternative supplies but hasn’t yet received any, he said.
President Barack Obama signed a law on Dec. 31 that denies foreign banks that do business with the Central Bank of Iran access to the U.S. financial system. The U.S. may impose penalties should a country not make “significant” reductions in Iranian crude oil purchases in the first half of this year. A South African governmental team will submit a report to cabinet by the end of May that will advise on Iran, Energy Minister Dipuo Peters said today.
Sasol Ltd., which operates the Natref refinery in partnership with Total SA in Sasolburg, south of Johannesburg, said last month that it halted crude purchases from Iran, which provided about 20 percent of supply. Refineries operated in the country by BP Plc and Chevron Corp. don’t use Iranian oil. Royal Dutch Shell Plc will comply with U.S. sanctions, CEO Peter Voser said Feb. 2.
Sapura founder sues sons for millions
The publicity-shy Tan Sri Shamsuddin Abdul Kadir of Sapura Group is in the news but not for his entrepreneurial skills.
He is taking his two sons to court.
Shamsuddin, who got married to then 30-year-old Mariam Parineh Nariman from Iran in 2007, had filed a lawsuit against his children at the Shah Alam High Court in February.
It was reported that Shamsuddin, who is the chairman and founder of Sapura Group, is demanding the return of shares and properties valued in excess of RM450mil from his two sons, Datuk Shahril Shamsuddin and Shahriman Shamsuddin.
It is learnt that court papers did not explain the reasons Shamsuddin, 80, is demanding the return of the assets, which include a 15% share in the family’s private investment vehicle called Sapura Holdings Sdn Bhd and other properties in the Klang Valley and Selangor.
It is also learnt that the claim stated that Shamsuddin “gratuitously and without consideration” transferred the block of shares in Sapura Holdings and a total of 23 parcels of property to a private investment holding company Brothers Capital between 2007 and 2010.
The Star had carried a report in June 2007 on how the father and son had built and fashioned a family-owned business empire.
It was stated that when Shamsuddin founded the group in 1975, the company’s core business was essentially auto, defence, energy and later, ICT.
However, in the late 1990s, when his son Shahril took over the reins and after a protracted lull, he slowly, but gradually, turned the group into what it is today – largely an oil and gas company.
It said the group had transformed itself into the country’s most integrated and largest oil and gas service provider.
He is taking his two sons to court.
Shamsuddin, who got married to then 30-year-old Mariam Parineh Nariman from Iran in 2007, had filed a lawsuit against his children at the Shah Alam High Court in February.
It was reported that Shamsuddin, who is the chairman and founder of Sapura Group, is demanding the return of shares and properties valued in excess of RM450mil from his two sons, Datuk Shahril Shamsuddin and Shahriman Shamsuddin.
It is learnt that court papers did not explain the reasons Shamsuddin, 80, is demanding the return of the assets, which include a 15% share in the family’s private investment vehicle called Sapura Holdings Sdn Bhd and other properties in the Klang Valley and Selangor.
It is also learnt that the claim stated that Shamsuddin “gratuitously and without consideration” transferred the block of shares in Sapura Holdings and a total of 23 parcels of property to a private investment holding company Brothers Capital between 2007 and 2010.
The Star had carried a report in June 2007 on how the father and son had built and fashioned a family-owned business empire.
It was stated that when Shamsuddin founded the group in 1975, the company’s core business was essentially auto, defence, energy and later, ICT.
However, in the late 1990s, when his son Shahril took over the reins and after a protracted lull, he slowly, but gradually, turned the group into what it is today – largely an oil and gas company.
It said the group had transformed itself into the country’s most integrated and largest oil and gas service provider.
Thursday 12 April 2012
Sarawak Shell & Partner Sign New Contracts with Petronas
Shell Malaysia upstream operating company Sarawak Shell Bhd and partner Petronas Carigali Sdn Bhd today announced the signing of two new exploration and production sharing contracts (PSCs) with Petronas.
The contracts represent new Malaysian acreage for the multinational company.
In a statement today, Shell said its minimum financial commitment for activities in two blocks, both offshore Sarawak, would be in the region of US$145 million over the next four years.
"These new contracts underpin Shell’s commitment to Malaysia where the company already invests an average of around US$1 billion annually," it added.
Under the agreement, Shell would undertake an aggressive drilling campaign to comprehensively explore an area totaling an estimated 9,000 square kilometers in the two blocks over the respective exploration periods.
"Shell is operator and has an 85 percent interest in both contracts with Carigali holding the remaining 15 per cent," it added.
Shell Malaysia chairman and managing director of Sarawak Shell, Anuar Taib said :"We are pleased to continue to be a partner in Malaysia’s progress by helping to meet the country’s aspiration to sustain oil and gas production through intensifying our exploration activities.
"We thank Petronas for their continued confidence in us through the award of these blocks, and I look forward to using our global technology and expertise in a successful exploration campaign here."
- Bernama
The contracts represent new Malaysian acreage for the multinational company.
In a statement today, Shell said its minimum financial commitment for activities in two blocks, both offshore Sarawak, would be in the region of US$145 million over the next four years.
"These new contracts underpin Shell’s commitment to Malaysia where the company already invests an average of around US$1 billion annually," it added.
Under the agreement, Shell would undertake an aggressive drilling campaign to comprehensively explore an area totaling an estimated 9,000 square kilometers in the two blocks over the respective exploration periods.
"Shell is operator and has an 85 percent interest in both contracts with Carigali holding the remaining 15 per cent," it added.
Shell Malaysia chairman and managing director of Sarawak Shell, Anuar Taib said :"We are pleased to continue to be a partner in Malaysia’s progress by helping to meet the country’s aspiration to sustain oil and gas production through intensifying our exploration activities.
"We thank Petronas for their continued confidence in us through the award of these blocks, and I look forward to using our global technology and expertise in a successful exploration campaign here."
- Bernama
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