No more marginal oil field awards for now

PETRONAS will not proceed with the awarding of new marginal oil fields unless the price of Brent crude settles above US$80 per barrel.

According to Petronas president and chief executive, although the breakeven for marginal oil fields is US$65 per barrel, they will not look into any such proposals until the global price situation stabilises.

“We would be comfortable to embark on marginal oil fields only when the price settles down at more than US$80 per barrel,” he said.

Petronas Q3 profit falls 12.4% on weak oil prices

Petroliam Nasional Bhd (Petronas) reported today a 12.4% fall in third-quarter profit on weakness in oil prices, the US dollar and liquefied natural gas (LNG) sales.

Net profit totalled RM15.07 billion in July-September from RM17.2 billion a year earlier, Petronas said in a statement. Revenue declined marginally to RM80.4 billion.

Chief Executive Shamsul Azhar Abbas told reporters after the earnings release that payments to the government in the form of dividends, tax and royalties could be 37% lower in 2015 if oil stays around US$75 a barrel.

The CEO also said Petronas' decision to invest in the Pacific Northwest liquefied natural gas project in Canada is 75% complete, and that the company is now in the process of negotiating with bidders of related contracts. – Reuters

Oil falls as OPEC opts not to cut production

The Organization of Petroleum Exporting Countries (OPEC) decided on Thursday not to cut oil production, despite sliding oil prices.

Brent crude oil fell more than $3 to under $75 a barrel - a fresh four-year low - on the news while West Texas Intermediate dropped below $70. Global oil prices have plunged since peaking in June, and Brent crude has lost around a third of its price from $115 a barrel.

Following a meeting of OPEC in Vienna, the oil minister of leading member Saudi Arabia, Ali Al-Naimi, was asked whether the group had decided not to reduce its output from 30 million barrels per day. He responded: "That is right".

Speaking to CNBC, Nigeria's Petroleum Minister and newly elected OPEC president, Diezani Alison-Madueke, said that non-OPEC oil producers had to "share the burden" of any future cut in production.

"Of course we are hoping over the next year we will see more stability," she added.

OPEC issued a statement after the highly-anticipated, five-hour meeting claiming that the ministers "in the interest of restoring market equilibrium" had decided to maintain its current production levels.

"As always, in taking this decision, member countries confirmed their readiness to respond to developments which could have an adverse impact on the maintenance of an orderly and balanced oil market," the statement said.

Petronas award blocks SB331 and SB332 to SapuraKecana

PETRONAS on Thursday awarded two Production Sharing Contracts (PSC) for Blocks SB331 and SB332 onshore Sabah to SapuraKencana Energy Sabah Inc, M3nergy Berhad and PETRONAS Carigali Sdn Bhd.

The award was made after a competitive bidding exercise where PETRONAS invited bids from upstream companies for these blocks.

Blocks SB331 and SB332, measuring 13,114 square kilometres and 17,933 square kilometres respectively are located in the eastern part of Sabah. There have been minimal activities in the blocks but the presence of oil and gas seeps indicate a probable working petroleum system.

Under the term of both PSCs, SapuraKencana will operate the blocks with participating interest of 70 per cent while M3nergy will own up to 25 percent of the equity.

The partners are committed to drill two wildcat wells and acquire 500 line kilometres of new 2D seismic data in Block SB331 as well as to drill one wildcat well and acquire 100 line kilometres of new 2D seismic data in Block SB332. In addition, they will also carry out other integrated studies based on existing data for the two blocks.

The PSCs were signed today in Kuala Lumpur and present to sign the contracts were Executive Vice President and CEO Upstream of PETRONAS, Dato’ Wee Yiaw Hin; President and Group CEO of SapuraKencana Petroleum Berhad, Tan Sri Dato’ Seri Shahril Shamsuddin; Chairman of M3nergy Berhad, Tan Sri Datuk Seri Panglima Sukarti Wakiman; and President and CEO of PETRONAS Carigali Sdn Bhd, Datuk M Anuar Taib.


Issued by

Media Relations
Group Strategic Communications
PETRONAS

TH Heavy unit bags Bukit Tua job

The Bukit Tua field is located 35km north off the coast of Madura Island. 

TH Heavy Engineering Bhd’s (TH Heavy) 30%-owned unit Berlian McDermott Sdn Bhd has bagged a contract from PC Kelapang II Ltd, a unit of state-controlled Petroliam Nasional Bhd (Petronas), for transportation, installation and pre-commissioning works at the Bukit Tua Development in East Java, Indonesia.

Berlain McDermott’s main asset is a 128-metre derrick lay barge known as the DB 30. The DB 30’s main selling points are its crane capacity of about 3,000 tonnes, and its ability to install pipes of up to 60 inches (1.5m) in diameter.

While details of the job, such as the value of the contract, are not clear, TH Heavy officials confirmed the awarding of the contract. United States-based McDermott International Inc, which owns the remainder 70% of Berlian McDermott, announced the award of the job last month.

Dialog Shareholders Agreement For RM2.7 Billion Pengerang LNG Project

Dialog Group Bhd's wholly-owned subsidiaries, Dialog LNG Sdn Bhd and Pengerang LNG (Two) Sdn Bhd (PLNG-2), have entered into a shareholders' agreement with Petronas Gas Bhd for the development of liquefied natural gas (LNG) regasification facilities at Pengerang, Southern Johor.

The total estimated project cost of the Pengerang LNG project is about RM2.7 billion, Dialog Group said in filing to Bursa Malaysia.

The project comprises a regasification unit and two units of 200,000-cubic metre LNG storage tanks with an initial send out capacity of 3.5 million tonnes per annum equivalent to about 490 million standard cubic feet per day of natural gas.

Total And Petronas In Race To Win TAPI Contract

Malaysia's national oil company Petronas and Total of France are in the race to win the lucrative Turkmenistan-Afghanistan-Pakistan-India transnational gas pipeline (TAPI), Pakistan's Express Tribune reported.

It said Chevron and ExxonMobil, the top us energy firms, have dropped out following rejection of their demand for an equity stake in the project.

The report quoted sources as saying that the steering committee of the TAPI project will meet in the Turkmenistan capital, Ashgabat, on Nov 17-18 to discuss the possibility of awarding the US$10 billion construction contract.

Laut bergelora di perairan Terengganu hingga Sabtu

Amaran angin kencang dan ribut bergelora di perairan Terengganu dijangka berterusan sehingga Sabtu ini dengan ombak mencapai ketinggian sehingga 3.5 meter.

Pemangku Setiausaha Majlis Keselamatan Negara (MKN) Terengganu Roslina Ngah berkata keadaan itu juga dijangka membawa angin timur laut dengan kelajuan 40 hingga 50 kilometer sejam.

"Mengikut bacaan Jabatan Pengairan dan Saliran, setakat 7.30 pagi, semua stesen data taburan hujan di seluruh Terengganu menunjukkan purata hujan yang turun adalah bacaan normal dan tiada amaran banjir dikeluarkan setakat ini," katanya dalam kenyataan hari ini.

Bagaimanapun semua jabatan dan agensi di peringkat negeri dan daerah yang terlibat telah diminta untuk bersiap sedia menghadapi banjir.

- Bernama

KPOC Starts Gas Production From Kebabangan Field

Kebabangan Petroleum Operating Company Sdn Bhd (KPOC) has successfully started gas production from the Kebabangan (KBB) platform.

The production from the KBB field is expected to ramp up to 500 Million Standard Cubic Feet (MMSCF) per day by April 2015, KPOC said in a statement here, today.

The field is located offshore Malaysia and is part of the KBB Cluster Production Sharing Contract operated by KPOC.

KPOC is a joint operating company comprising Petronas Carigali Sdn Bhd (40 per cent), ConocoPhillips Sabah Gas Ltd (30 per cent) and Shell Energy Asia Limited (30 per cent).

182 Jawatan Kosong di PETRONAS - 30 November 2014

182 Jawatan Kosong di PETRONAS - 30 November 2014

Kekosongan jawatan terkini di PETRONAS November 2014.

Permohonan adalah dipelawa daripada warganegara Malaysia yang berkelayakan dan mempunyai potensi dan kebolehan serta komitmen yang tinggi untuk mengisi kekosongan jawatan kosong terkini di PETRONAS dalam bidang minyak dan gas sebagai :

MMHE secures RM350mil oil and gas contracts

Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) has secured two contracts worth close to RM350mil for offshore fabrication and other associated works for exploration and production projects in Peninsular Malaysia.

The first contract, the company said, was for the fabrication of well-head platform and its jacket, the connecting bridge and heavier jacket for the central processing platform for the North Malay Basin Bergading Complex.

For this project, MMHE said it would be the subcontractor for Hyundai Heavy Industries Co Ltd.

“The total weight of these structural components under MMHE’s work scope is about 14,800 tonnes and they are scheduled for delivery to the project’s ultimate client, Hess E&P Malaysia BV, by 2016.”

The complex is located offshore Peninsular Malaysia in water depths of between 55 metres and 60 metres, it said in a statement.

The second contract involves the procurement, construction, hook up and commissioning contract for the Besar–A well-head platform and its jacket as well as the associated host tie-in work for Petronas Carigali Sdn Bhd.

“With total components weight of 5,100 tonnes, the project is scheduled to be completed towards the end of 2015. The Besar Field is located offshore 185km northeast of Kerteh in Terengganu at a water depth of about 70 metres.”

In the same statement, MMHE managing director and chief executive officer Dominique de Soras said the projects were awarded after competitive bidding among regional yards.

“Hence, the award of these projects is a reflection of MMHE’s improved competitiveness, thanks to a number of initiatives and stronger management focus on the offshore business segment.

“As oil and gas companies increasingly implement more stringent project evaluation threshold levels, every project awarded becomes critical in fulfilling the overall organisational objectives of our customer,” he said.