Sunday, 31 March 2013

Talisman gives priority to locals

Talisman Malaysia Ltd, a wholly-owned subsidiary of Talisman Energy Inc, a global, diversified, upstream oil and gas company headquartered in Canada, says it is committed to providing employment opportunities to national staff in all the locations it operates in. 

Vice president and Country manager for Talisman Malaysia Ron Aston said in Malaysia, the majority of its workforce, numbering around 800 permanent or contract staff, consists of Malaysians, including Sabahans. 

"We will shortly open an office in the KK Times Square with an interior built by a local contractor and we will engage local companies to provide support services to run that office. 

"In addition, Talisman employees from the Kuala Lumpur office will regularly travel to Sabah for business which will contribute towards local economic growth," he said in his remarks at the Talisman and Sabah media social networking event here last night attended by Sabah Journalists Association 
president Datuk Joniston Bangkuai.

Aston said in May last year, Talisman was awarded a new production sharing contract (PSC) - the Kinabalu Oil PSC for the continued development and recovery from the Kinabalu Field which had previously been operated by Shell. 

"We assumed operatorship of this mature field on Dec 26 last year," he said. 

He said uder the terms of the PSC, Talisman and Petronas Carigali are committed to investing around US$1 billion on the field through an extensive programme of rejuvenation and redevelopment aimed at fully realising the recovery potential of the field. 

On corporate social responsibility (CSR), Aston said Talisman is committed to investing in the communities where it operates. 

"We see this as our responsibility and firmly believe that business is not just about making a profit, but also doing the right thing. As such, we conduct our business in an ethical, socially and environmentally responsible manner. 

"Our community investments are focused on the three key pillars of education, the environment, and health and well-being," he said. 

Under its scholarship programme from 2008 through to 2014, Talisman Malaysia will award almost US$0.5 million to the best and brightest engineering and geology students from across Malaysia at a number of prestigious universities in Peninsular Malaysia. 

Aston said to date Talisman Malaysia has contributed almost RM400,000 to the Malaysian Nature Society to facilitate environmental monitoring for marine and coastal ecosystems in Terengganu, and in Sabah. 

"The project is designed to empower local stakeholders to monitor the condition of coastal ecosystems within their surrounding area. Local stakeholders are trained to undertake monitoring activities using simple monitoring methods in order to understand the state of these ecosystems over time, and future CSR activity in Sabah will include working with local NGOs," he added. 

Aston said Talisman Malaysia recognises that a strong relationship with local media will go a long way in creating credibility, reliability and trust which will result in a win-win situation.-- Bernama 

Friday, 29 March 2013

GOM Resources, MedcoEnergi Ink MoA On O&G Cooperation

PT Medco Energi Internasional Tbk (MedcoEnergi), a publicly-listed Indonesian company, launched its first venture to Malaysia with the signing of a Memorandum of Agreement (MoA) with GOM Resources Sdn Bhd. 

GOM Resources Chairman Tan Sri Dr Wan Abdul Aziz Wan Abdullah said the new partnership will provide an avenue for technical cooperation on the latest technology available to provide solutions for challenges in exploration between the two companies. 

He also hoped that the partnership would allow the sharing of expertise and resources to strengthen energy capacity. 

"The purpose of this MoA is to enable GOM to bid for marginal field development projects and risk service contract projects in Malaysia as well as exploration and production regionally," he said in his speech before the MoA signing ceremony here Wednesday. 

He added that GOM aims to leverage on these capabilities by creating synergy with MedcoEnergi. 

Meanwhile, MedcoEnergi president director and chief executive officer Lukman Mahfoedz said the MoA signing shows the company's continuous effort to look for opportunities to grow in the exploration and production sector. 

"We value GOM Resources as a strategic local partner in this new venture and GOM Resources will bring significant contributions to the consortium," he said.

Both companies have further agreed to jointly carry out evaluation and study of technical data to assess the viability of identified opportunities. 

The MoA is expected to strengthen the relationship between Malaysia and Indonesia, and includes further developing shared knowledge and collaborative efforts between GOM Resources and MedcoEnergi. 

GOM Resources, a service provider for offshore construction services in the Malaysian oil and gas industry, is a wholly-owned subsidiary of Puncak Oil and Gas Sdn Bhd, which in turn is wholly owned by Puncak Niaga Holdings Bhd. 

MedcoEnergi is an integrated energy company focusing on exploration and production of oil and gas, with petroleum operations in Indonesia, Oman, Libya, Yemen and the US. 


Tuesday, 26 March 2013

RM4.6bil West Sepat job up for grabs

A pre-qualification call for a US$1.5bil (RM4.6bil) fast-track high-carbon dioxide gas development at the West Sepat field off Malaysia is expected to draw submissions this week from as many as 18 leading names in the domestic and international contracting scene, according to international oil and gas (O&G) publication Upstream.

Upstream reported that Petroliam Nasional Bhd had organised a shortlisting exercise through the petroleum management unit for a front-end engineering and design competition, which would eventually lead to the award of an engineering, procurement, construction, installation and commissioning contract for an unindentified high-carbon dioxide gas field development.

Alliance Research O&G analyst Arhnue Tan said major contracts coming out of West Sepat would be fabrication and installation as well as pipelaying. Besides this, equipment and services would be required as well as offshore support vessels and subsea expertise.

Tan said the fabrication portion for the central processing platform (CPP) and both the wellhead platforms would likely account for some 50% of the RM4.6bil project value.

She added that while the tender was open to international players, local heavyweights like SapuraKencana Petroleum Bhd and Malaysia Marine And Heavy Engineering Holdings Bhd (MMHE) would vie for the CPP prize.

MMHE currently has 50% capacity in its east yard, while SapuraKencana would have room by June 2013, as it would have several projects delivered by then.

Regional competition could emerge from the likes of McDermott International Inc (together with its partner TH Heavy Engineering Bhd) or Singapore's SMOE Pte Ltd and Thai yards like Nippon Steel.

“Installation and pipelaying would again see SapuraKencana in the fray, given its assets for the job. However, competition would be stiff, with regional competitors like McDermott, Technip, Swiber and Emas Offshore vying for the job,” said Tan.

She noted that other beneficiaries included Wah Seong Corp Bhd for pipe coating, Tanjung Offshore Bhd and Deleum Bhd for equipment supply and Bumi Armada Bhd, Alam Maritim Resources Bhd, Perdana Petroleum Bhd and SILK Holdings Bhd for vessel support with hook-up commissioning.

Upstream said the Malaysian unit of Norway's Aker Solutions had been deemed as an early frontrunner, given its involvement in conceptual studies for West Sepat.

The other names touted by Upstream were US-based Bechtel, Technip, MMC Oil & Gas Engineering, Petrofac-RNZ and Ranhill WorleyParson.

The gas field is understood to be the gas leg of the producing Sepat oilfield now being developed using a mobile offshore production unit and floating storage offloading vessel.

The first phase of development plans includes a 27,000-tonne CPP and wellhead platform.

Meanwhile, the second phase involves a second wellhead platform tied to an anchor production facility. Upstream said some 200km of pipeline would be required to connect gas from the field to onshore facilities in Terengganu. 

Monday, 25 March 2013

Malaysia faces oil and gas ‘brain drain’

Malaysian oil and gas workers are being lured away from home by foreign companies, leading to a shortage of skilled labour, according to the deputy director-general of the country's Manpower department.

Multinational oil and gas firms based in Singapore and the Middle East are attracting Malaysian workers with higher salaries, Syed Mohamad Noor Syed Mat Ali told The Star.

He added that foreign countries were reaping the benefits of Malaysia’s efforts to train locals, who subsequently left to work abroad.

“There is nothing much that Malaysia can do to stop highly skilled locals in the O&G sector from working in other countries,” said Mr Mohamad Noor.

Mr Mohamad Noor said that a certified welder working offshore in Malaysia could expect to earn the equivalent of up to 50,000 baht per month.

The same worker could earn up to the equivalent of 120,000 baht per month in Singapore or up to the equivalent of 300,000 baht per month in the Middle East.

He claimed that the only way to stop highly skilled Malaysians from working in foreign countries was to provide them with a good monthly salary and benefits package. 

Mr Mohamad Noor said the Manpower department would continue to train highly skilled workers at its 23 industrial training institutes and five advanced technical centres.

He said that 23% of Malaysians are highly skilled workers, a figure the country aims to increase to 33% by 2015 and 50% by 2020.

“We have shifted our focus from producing semi-skilled workforce previously to highly skilled Malaysians, in line with the country's aspiration to become a developed nation by 2020," he said.

Mr Mohamad Noor compared the problems faced by Malaysia’s oil and gas industry to the aviation sector, which has lost experienced local pilots to better-paying foreign airlines, especially those from the Middle East. 

- Bangkok Post

Friday, 22 March 2013

UMW Unit Secures PetroVietnam O&G Job

UMW Standard Drilling Sdn Bhd has secured a contract from PetroVietnam Drilling & Well Services Corporation (PV Drilling) for the provision of a jack-up drilling rig and services.

The contract secured by the wholly-owned unit of UMW Holdings Bhd is for a duration of six months with an option for another six months.

The contract, which was signed in Ho Chi Minh City, Vietnam Thursday, involves the provision of one of UMW's jack-up drilling rigs, Naga 2, and related drilling services to PV Drilling to drill wells for the end client, Hoang Long Joint Operating Co.

"With the contract secured, the jack-up drilling rig Naga 2 will operate in Vietnam and is expected to be in Vietnam waters in May, after completing its contract in Indonesia with Hess (Indonesia-Pangkah) Ltd, which is expected to end in April.

"We will be completing our current drilling campaign in Indonesia soon and I believe our international operational experience there will be handyfor our coming operation in Vietnam," President of UMW Oil & Gas Corporation Sdn Bhd, Rohaizad Darus, said in a statement.

Naga 2 is a premium independent-leg cantilever jack-up rig with a drilling depth capability of 30,000 ft. (9,144m.) and a rated operating water depth of 350 ft. (106.7m.)


Thursday, 21 March 2013

Petronas capex should focus on developing M’sian oilfields

RHB Research expects Petronas’ capital expenditure (capex) focus for financial year 2013 until 2016 will be more centred to developing Malaysian oilfields as it remains committed to increasing domestic production.

Last year, Petronas discovered 24 new oilfields, of which 22 were domestic.

Notable finds include two major gas reserves in offshore Sarawak – Kuang North and Tukau Timur fields.

“The two combined gas fields are estimated to contain over four trillion cubic feet (TcF) of gas, which is equivalent to about five per cent of Malaysia’s total gas reserves of 86 TcF as at end-2011,” the research house said in a statement.

Petronas also discovered additional oilfield block PM307 of the Bertam oilfield, off the Pahang coast.

Last year, Petronas spent RM63.4 billion in capex. Of the total amount, about 50 percent or RM32 billion was spent in various developments in Malaysia, and the remainder on developments outside Malaysia.

The total spent was in line with the company’s five-year RM300 million capex plan, it added.


Tuesday, 19 March 2013

Petronas to get production boost with resumption of oil export from South Sudan after peace deal

Petronas is set to be the biggest beneficiary in terms of boosting oil production following the resumption of oil export from landlocked South Sudan through pipelines in Sudan, according to Moody's Investors Service.

Petronas jointly owns a production facility in South Sudan which had been shut down for the most of 2012 due to a dispute between neighbouring countries.

The national oil company holds a 30% stake, China National Petroleum Corp (CNPC) 40%, Oil and Natural Gas Corp (ONGC) of India 25% and Sudapet, the national oil company of Sudan, the remaining 5% in the facility.

Sudan and South Sudan signed an agreement to restart oil exports, setting a two-week deadline to resume the process of sending oil, a week ago.

Moody's vice-president and senior analyst Simon Wong said Petronas would be the biggest beneficiary among the partners, owing to its Sudanese operations being a larger contributor to overall production.

Crude production in Sudan and South Sudan accounted for about 7% of the company's total hydrocarbon production in 2011.

“In contrast, production in Sudan accounted for less than 4% of ONGC's and CNPC's total output.

“The successful resumption of production in South Sudan could see Petronas' production increase by about 120,000 barrels per day. Its production in Sudan was reduced by over 84% to 23,000 from 147,000 in 2012,” he said in statement.

Petronas Global Sukuk Ltd is rated as A1 stable, ONGC at Baa1 stable and CNPC at Aa3 positive.

Petronas president and chief executive officer Tan Sri Shamsul Azhar Abbas said during the company's 2012 results announcement that there could be a five to six-month lag from the time production in Sudan resumed before crude exports restarted.

“As a result, we do not expect a material cash flow contribution from South Sudan until 2014,” opined Wong.

The lost production in Sudan, coupled with an impairment charges taken on its gas assets in Egypt, contributed to a 14% decline in Petronas' net profits in 2012 to RM59bil.

Its portfolio of international exploration and production assets include production from emerging countries such as Sudan, Egypt and Iraq, where geopolitical risk is high.

South Sudan is landlocked and depends on pipelines running through its northern neighbour Sudan to transport oil out of the country.

A disagreement over pipeline charges paid to Sudan resulted in South Sudan shutting down its 350,000-barrels-per-day crude output since January 2012.

While both economies rely heavily on oil exports for revenue, ongoing disputes have delayed the restart of oil production.

Both countries recently agreed to install a meter system to measure the volume of fuel transported through the pipelines to mitigate future disputes.

Sunday, 17 March 2013

Malaysia to award EPCC contact to Japanese for liquefied natural gas Train 9 Project

Petronas will soon award a US$2billion contract to Japan’s JGC Corporation.

The engineering, procurement, construction and commissioning (EPCC) contract is for Petronas’ liquefied natural gas Train 9 Project at its LNG Complex in Bintulu, Sarawak.

The LNG Train 9 project will add 3.6 million tonnes per annum to the Bintulu complex's existing 24 mtpa capacity. It is expected to increase the flexibility of Petronas' LNG portfolio while supporting the overall growth of the region's natural gas industry.

Upon completion, the LNG Train 9 project is expected to include gas receiving facilities and units comprising acid gas removal, dehydration and mercury removal, fractionation and liquefaction and LNG rundown units.

Thursday, 14 March 2013

ExxonMobil starts natural gas production from Telok Field

ExxonMobil Exploration and Production Malaysia Inc, a subsidiary of Exxon Mobil Corp, has started natural gas production from the Telok field to meet increasing demand for natural gas in Peninsular Malaysia.

The field is located 200 kilometres offshore the east coast of Peninsular Malaysia in the South China Sea.

ExxonMobil in a statement today said the Telok A platform marked the first phase of the Telok gas development project under a gas production sharing contract between ExxonMobil as the operator and Petronas Carigali Sdn Bhd (PCSB).

ExxonMobil and PCSB each hold a 50 per cent interest in the project.

“It is one of several upstream investments announced under Malaysia’s Economic Transformation Programme (ETP) in 2011.

“It will see ExxonMobil and PCSB invest over RM10 billion in new oil and gas assets to help ensure reliable and sustainable energy supplies for Malaysia,” it added.

ExxonMobil Exploration and Production Malaysia Inc Chairman, J Hunter Farris said building on experience from ExxonMobil’s previous satellite fields development projects in Malaysia, the development concept of “design one, build many”, was utilised to efficiently develop it and shorten construction and installation timelines.

“ExxonMobil is committed to ensuring reliable gas supplies to the nation and to using international best practices to enhance our operations in Malaysia.

“The Telok project is another successful example of collaboration between ExxonMobil and PCSB in meeting Malaysia’s growing energy needs for the power and industrial sector,” he added. – Bernama

Tuesday, 12 March 2013

Eversendai Forms JV Company With Technics Oil & Gas Ltd

Eversendai Corp Bhd (ECB)has formed a joint venture (JV) company, Eversendai Technics Pte Ltd, with Technics Oil & Gas Ltd (Technics) and Eversendai Construction (S) Pte Ltd (ECSPL).

ECSPL is a wholly-owned subsidiary of ECB, an internationally recognised and established structural steel turnkey and power plant contractor.

In a statement Monday, ECB said the purpose of the JV company is to meet the growing demand for engineering, procurement, construction and fabrication services for the oil and gas industry.

Under the JV, Eversendai Technics shall have an initial issued and paid up capital of S$1,000,000 divided into 1,000,000 ordinaryshares.

The equity participation by ECB, Technics and ECSPL is 69.9999 per cent, 30 per cent and 0.0001 per cent, respectively.

The cost of equity participation by ECB and ECSPL in the JV of S$700,000 will be satisfied in cash from internally generated funds.

The JV will be managed by a Board of Directors consisting of four directors, of which three shall be nominees of ECB, and one nominee of Technics.

The JV aims to bid for projects in the oil and gas industry, which includes without limitation detailed engineering design, construction fabrication, building and upgrading of rigs, vessels, jackets, topsides, processing modules and other oil and gas facilities, mainlyin the Middle East.

Pursuant to the shareholders' agreement, parties will explore acquiring a plot of land in the United Arab Emirates for the purpose of constructing and operating a fabrication plant and facilities for offshore and onshore works.

"Eversendai Technics was created to leverage on Technics' and our joint established track records.

"We look forward to building a stronger market presence in the oil & gas fabrication sector in this region, as well as in those where we are already well-known for our structural steel works," said Eversendai Group Executive Chairman and Group Managing Director, Datuk A K Nathan.

He said the strategic partnership will enable Eversendai to secure a stronger foothold in the oil and gas fabrication sector, which is in line with its business plan to venture into inter-related sectors.

Nathan said Eversendai would not only benefit from Technics' established track record in the aforesaid sector, but also its expertise in compression systems and process modules.

These are expected to complement Eversendai's structural steel design, engineering and construction capabilities.

"We are very excited about the growth opportunity for this alliance and are confident that the joint venture with Technics will benefit and bring synergy to accelerate growth, enhance innovation and build a stronger brand in the Middle East market and where we have a presence," he added.

Technics was established in 1990 and specialises in the design and fabrication of complex and highlycustomised process modules and equipment.

It includes gas compression packages which are integrated to form the operating system for production operations and storage applications in both onshore and offshore oil and gas exploration and production activities. 

Technics operates three waterfront yards and has offices in Singapore, Vietnam and Batam in Indonesia.

ECB is one of the most sought after structural steel turnkey and power plant contractor in the world, having served clients in over 12 countries. These include Malaysia, Singapore, Thailand, the Philippines, Indonesia, Hong Kong, India, Oman,Saudi Arabia, Bahrain, Qatar and the United Arab Emirates.


Monday, 11 March 2013

MMHE Enters Long-Term Agreements for Structural Fabrication Services

Malaysia Marine and Heavy Engineering Holdings Berhad (MHB ) said that its wholly owned subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) , has entered into long – term agreements with key subcontractors for the provision of structural fabrication services.

These agreements have an initial period of two years, with an option for extension of an additional one year.

A selected number of qualified local subcontractors had been invited to be assessed on a technical and commercial basis. After an extensive evaluation process, MMHE has now executed agreements with the following subcontractors:

  • Pristine Potential Sdn Bhd
  • First Oil Engineering Sdn Bhd
  • PFC Engineering Sdn Bhd
  • Innoseven GTI Engineering Sdn Bhd
  • Red Team Sdn Bhd

At the signing ceremony, MHB’s Managing Director & Chief Executive Officer, Mr. Dominique de Soras said, “The frame agreements are a tangible result of MHB’s ongoing transformation initiatives to enhance our core business units and operations. Through these f rame a greements, MMHE aspires to further improve the productivity and efficiency of work execution in our two fabricat ion yards in Pasir Gudang . The partnering with key subcontractors will also help establish a mutually beneficial partnership between these companies for the overall sustainability of the offshore fabrication industry .”

The frame agreements have helped MMHE to have a benchmark for costs of services and hence, have resulted in a more competitive fabrication cost structure for MMHE. The partnership forged between MMHE and the key subcontractors have enable both parties to realise the value of better cost control.

A number of contractors have also recently been awarded work packages for the fabrication projects which MMHE is now undertaking at its yards.

Friday, 8 March 2013

Untung Sebelum Cukai Petronas Susut Kepada RM89.08 Bln

Keuntungan sebelum cukai Petronas susut kepada RM89.08 bilion bagi tahun kewangan yang berakhir pada 31 Dis, 2012 daripada RM103.79 bilion pada tempoh yang sama pada 2011 dalam persekitaran yang mencabar.

Naib Presiden Eksekutif (Kewangan) Datuk George Ratilal berkata keuntungan dan keuntungan operasi bersih selepas cukai juga berkurangan, masing-masing sebanyak RM9.6 bilion dan RM7.7 bilion, berikutan margin yang rendah hasil daripada kos operasi yang tinggi dan kerugian susut nilai bagi peralatan, kilang dan hartanah tertentu.

Perolehan bagaimanapun, naik kepada RM291.0 bilion daripada RM288.5 bilion pada 2011, kata beliau pada taklimat media mengenai keputusan kewangan 2012 syarikat minyak nasional itu Khamis.

Bagi suku keempat yang berakhir pada 31 Dis, 2012, keuntungan sebelum cukai Petronas turun kepada RM15.16 bilion daripada RM25.39 bilion pada tempoh sama pada 2011.

Perolehannya susut kepada RM76.77 bilion daripada RM78.05 bilion disebabkan jumlah dagangan minyak mentah lebih rendah dan kenaikan ringgit berbanding dolar AS.

"Kami masih pada kedudukan untuk memasuki dan persekitaran sukar untuk beroperasi di negara berkenaan.

"Mengenai kemungkinan pertumbuhan, adalah diharapkan keseluruhan persekitaran akan berubah dan jurubank menjadi lebih mesra dari segi peruntukan pinjaman," katanya.

Mengenai operasi Petronas di Sudan, Shamsul Azhar berkata Petronas akan berbincang dengan pihak berkuasa Sudan untuk melanjutkan tempoh pengeluarannya.

"Sudan masih menjadi penyumbang utama kami, malah semua pelaburan kami diperoleh sepenuhnya," kata beliau.

Perolehan pengeluaran dan penerokaan syarikat menyaksikan penurunan disebabkan oleh arahan henti kerja dalam operasi Sudan Selatan serta penyusutan aset di Mesir.


Thursday, 7 March 2013

Harga Petrol RON97 Naik 10sen Kepada RM2.90

Harga petrol premium RON97 akan naik 10 sen kepada RM2.90 pada tengah malam Selasa, menurut Persatuan Peniaga Petrol Malaysia (PDAM).

Tidak akan ada perubahan harga dalam petrol RON95 harga dan diesel, kata Timbalan Presiden PDAM Datuk Zulkifli Abdul Mokti pada Selasa.

Kenaikan harga adalah disebabkan harga minyak global yang melambung tinggi yang mencecah USD120 setong, katanya.

Harga RON97 naik dan turun disebabkan kerajaan telah menarik balik subsidi petrol ini.