Saturday, 3 October 2015


Former Securities Commission Malaysia chairman Tan Sri Zarinah Anwar and Maybank Investment Bank Bhd (Maybank IB) managing director and co-head of client coverage Datuk Sharifah Sofianny Syed Hussain have joined Petroliam Nasional Bhd's (Petronas) board of directors effective Aug 17 and Oct 1 respectively.

In a statement yesterday, Petronas said Zarinah currently chairs the Malaysia Venture Capital Development Council and is a member of the Performance Management & Delivery Unit's board of trustees. She brings with her a wealth of experience and leadership positions in other financial institutions.

Wednesday, 30 September 2015


Oil and gas company Shell Malaysia announced on Tuesday a re-organisation of its upstream division, which will see a reduction of 1,300 jobs over the next two years.

Shell Malaysia, a unit of Royal Dutch Shell PLC, said in a statement the programme aims to improve efficiency and removing complexity to become a more agile and competitive company. It has a total workforce of about 6,500 staff.

Below is the full statement issued on Tuesday:

Shell Malaysia transforms upstream division to improve efficiency and competitiveness

Sunday, 23 August 2015


Talisman Malaysia will continue to pump investments into Kinabalu oilfield operations despite lower global oil prices.

In May, Spanish oil firm Repsol acquired Talisman Energy for US$8.3 billion, but the lower oil prices dented Repsol's second-quarter profits.

But despite this, its Kinabalu Assets Manager Duncan Smart on Thursday said the transfer of ownership has not impacted its daily operations in Malaysia.

Saturday, 22 August 2015


Kerajaan Kedah sedang meneliti cadangan pelabur yang berhasrat membangunkan industri minyak dan gas di kawasan Kerpan, kata Menteri Besar, Datuk Seri Mukhriz Mahathir.

Beliau bagaimanapun menegaskan kerajaan negeri tidak mahu bertindak meluluskan cadangan itu secara melulu sebelum melihat impaknya daripada pelbagai aspek.

"Kita sedang tengok (menelitinya) secara mendalam...boleh atau tidak, sesuai atau tidak di kawasan itu, kesannya kepada alam sekitar dan peluang pekerjaan yang tentu ada impaknya," katanya ketika berucap merasmikan Mesyuarat Perwakilan Pemuda UMNO Bahagian Jerlun di sini, Sabtu.

Friday, 21 August 2015


Petroliam Nasional Bhd (Petronas) has fully taken over Malaysia LNG Dua Sdn Bhd (MLNG Dua) from Sarawak Shell Bhd (Shell), who had a 50% equity stake in the firm.

In a statement, Petronas said hand-over of Shell’s equity stake was officiated in a ceremony yesterday, and thus its unit Petronas Carigali Sdn Bhd (PCSB) now owns 90% stake in MLNG Dua, while the remaining 10% is held by PCSB’s subsidiary, E&P Malaysian Ventures Sdn Bhd (EPMV).

Consequently, PCSB and EPMV are now the operators of MLNG Dua.

Previously, MLNG Dua was operated by Shell via a production sharing contract (PSC) signed with Petronas in 1993. The PSC expired yesterday.


Petronas merancang untuk terus mengekalkan langkah-langkah penjimatan kosnya dan tidak memilih memberhentikan pekerja serta menjual aset bagi mengharungi senario suram dalam sektor minyak dan gas sekarang.

Naib Presiden Kanan Strategi Korporat dan Risikonya Adif Zulkifly berkata sehingga kini Petronas  berjaya berjimat sebanyak RM640 juta dengan mengoptimumkan logistik.

"Ini sangat memberangsangkan... ada beberapa inisiatif penjimatan kos lagi yang akan dilaksanakan," katanya semasa sesi ucap tama pada Sidang Kemuncak Asia Tenggara 2015 yang dipengantarakan oleh Kevin Plumberg, Editor Kanan The Economist, penerbitan yang berpangkalan di Britain.


Bayan Baru MP Sim Tze Tzin has urged Putrajaya not to choke Petronas, which is seen as the country's cash cow, in a bid to maintain its lavish spending in difficult economic times.

This is amid reports that Petronas was forced to dip into its reserves to pay dividend to the federal government, as falling oil prices had seriously dented its profits.

"Petronas has been Malaysia’s cash cow and sovereign oil fund. We urge the federal government of Malaysia to take a long-term view in milking Petronas.

"Some even regard Petronas as the government’s banker of last resort, providing ready funds in the event of a crisis.

Wednesday, 19 August 2015


Wah Seong Corp Bhd ( Financial Dashboard) has bagged a RM188.96 million sub-contract from Penta-Ocean Construction Co Ltd for the supply and delivery of coated steel pipe piles for the Pengerang Deepwater Petroleum Terminal Project in Johor.

In a filing with Bursa Malaysia today, Wah Seong said its subsidiaries namely, PPI Industries Sdn Bhd and Petro-Pipe (Sabah) Sdn Bhd were awarded the sub-contract involves the manufacture and delivery of coated steel pipe piles.


Petroliam Nasional Bhd (Petronas) president and group CEO Datuk Wan Zulkiflee Wan Ariffin has announced that there will only be 14 oil rig counts by the end of the year, down from 39 last year.

The slash reflects the challenges gripping the oil and gas industry, which includes falling crude oil price.

Globally, the rig count, considered a proxy for industry activity, has fallen sharply since last June.

Tuesday, 18 August 2015

Malaysia and Brunei to enter into joint exploration for oil and gas

Malaysia and Brunei will soon enter into joint exploration for oil and gas in potentially lucrative deposits in the South China Sea along the joint maritime boundaries shared by Sarawak and the sultanate.

Prime Minister Datuk Seri Mohd Najib Tun Razak and his Brunei counterpart Sultan Hassanal Bolkiah on Tuesday held a four-eyed meeting at the palace here and both agreed that the pace of commercial exploitation for oil and gas along the shared boundaries should be hastened.

Monday, 17 August 2015


PETRONAS reported a commendable performance over the last quarter despite a difficult period, due to better operational efficiencies despite lower production entitlement and LNG volumes.

Speaking at the national oil company’s second Quarter Financial Result Media Briefing, PETRONAS President and Group CEO Datuk Wan Zulkiflee Wan Ariffin said that its past prudent cash management practices had provided sufficient financial reserves to weather the effects of the low oil price. However, PETRONAS is bracing itself for more challenges ahead as low oil prices persist.

Saturday, 15 August 2015

Untung Petronas susut RM11 bilion

Keuntungan Petroliam Nasional Bhd. (Petronas) menyusut sebanyak tiga peratus kepada RM11.1 bilion pada suku kedua tahun kewangan berakhir 30 Jun 2015 berbanding tempoh sama suku lalu.

Syarikat petroleum negara itu merekodkan perolehan sebanyak RM61 bilion pada suku dalam kajian, jatuh tujuh peratus berbanding suku pertama 2015.

Ketua Pegawai Eksekutif Kumpulan, Datuk Wan Zulkiflee Wan Ariffin berkata, penyusutan perolehan dan keuntungan itu disebabkan terutamanya oleh kejatuhan volum dan harga gas asli cecair (LNG).

Thursday, 13 August 2015

Barakah Offshore bags RM30m contract from Petronas

Barakah Offshore Petroleum Bhd has bagged a contract worth up to RM30 million from Petronas Carigali Sdn Bhd to provide cleaning pig and associated services in Sabah and Sarawak.

In a filing with Bursa Malaysia today, Barakah said its wholly-owned subsidiary PBJV Group Sdn Bhd has received a letter of award from Petronas Carigali for the proposed job.

"The total value of the contract will depend on the actual work orders to be issued by Petronas Carigali from time to time during the contract period.

Wednesday, 12 August 2015

Malaysian Hibiscus And Partner In RM398m O&G Deal in North Sea

Malaysia-based companies Hibiscus Petroleum Bhd and Ping Petroleum Ltd have agreed to acquire the Anasuria cluster of oil and gas (O&G) fields in the North Sea from Shell and Esso in a deal valued at about RM398.2 million.

The move is significant for Hibiscus, Malaysia’s first special-purpose acquisition company listed in August 2011, to achieve its balance portfolio aim of owning a combination of upstream exploration, development and production assets after some false starts.

“This acquisition will complete our company’s strategy of acquiring a balanced portfolio of assets within five years of listing.

Monday, 10 August 2015

Petronas rig squeeze

National oil company Petronas is still reeling from the effects of the oil-price slump. As part of measures to cut costs and remain profitable, it is learnt Petronas has abruptly ended or plans to end the contracts of 14 of its 18 oil rigs within a year. This could save the company billions of ringgit a year as it recuperates and plans its rebound.

Wednesday, 3 June 2015

Petronas to lead industry-wide effort involving 25 PACs

Petroliam Nasional Berhad (Petronas) is leading the Cost Reduction Alliance, Coral 2.0, an industry-wide effort towards cost discipline which involves 25 petroleum arrangement contractors (PACs).

The aim is to inculcate a cost-conscious mindset that will ultimately embrace a structural change Malaysia's upstream business environment.

"This is not a mere cost cutting exercise. Beyond that, it is about ensuring the robustness and sustainability of our business," Petronas' chairman Tan Sri Sidek Hassan said in his speech at the opening ceremony of 15th Asian Oil, Gas and Petrochemical Engineering Exhibition (OGA 2015) today.

Petronas has announced Capex cuts of 15% and Opex cuts of 25%.

"What we can achieve individually, we can achieve even more as an alliance. The sum will definitely be greater than its parts," he said.

In his speech, Sidek described the oil and gas industry as facing a "Tale of Two Cities", as these were the best of times and yet the worst of times for the industry.

Saturday, 30 May 2015

Tanjung Offshore adopts whistle-blowing policy in push for transparency

In a bid to provide greater transparency, Tanjung Offshore Bhd (TOB) has implemented a whistle-blowing policy to provide directors and employees with a platform to raise their concerns on any malpractices within the group.

Chairman Datuk Mohd Hafarizam Harun said the move was aimed at strengthening corporate governance within the group, taking a cue from recommendations of a forensic audit by Ferrier Hodgson triggered by several "contentious transactions".

Wednesday, 20 May 2015

Sektor minyak dan gas tambah 52,300 pekerjaan menjelang 2020

Sektor minyak dan gas dijangka menambah 52,300 pekerjaan, kebanyakannya untuk pekerja berkemahiran tinggi, menjelang 2020, kata Menteri di Jabatan Perdana Menteri Datuk Seri Abdul Wahid Omar.

Beliau berkata, kerajaan sedang membangunkan modal insan yang besar dalam sektor itu dengan mengeluarkan lebih daripada 16,000 profesional teknikal berkemahiran tinggi dan bergaji tinggi.

Bilangan pekerja berkemahiran dalam sektor juga dijangka berkembang apabila Kompleks Petroleum Bersepadu Pengerang di Johor memasuki aliran dalam masa terdekat, katanya pada pelancaran Asia Centre for Reliability and Efficiency (ACRE) Schlumberger, di Zon Bebas Pelabuhan Klang hari ini.

Tuesday, 12 May 2015

1MDB hampir cagar minyak dan gas asli di laut Terengganu

Belum reda kontroversi pembelian tanah 1Malaysia Development Berhad (1MDB) oleh Lembaga Tabung Haji, bekas menteri besar Terengganu Datuk Seri Ahmad Said mendakwa 1MDB pernah hendak mencagarkan minyak dan gas asli di laut Terengganu, namun keputusan itu ditarik balik, lapor Sinar Harian.

Ahmad berkata urus niaga tersebut hampir dilaksanakan sewaktu syarikat itu mempunyai hubung kait dengan Terengganu Investment Authority (TIA) ketika penubuhannya pada awal 2008.

Monday, 11 May 2015

SapuraKencana wins USD269 million oil and gas services contracts overseas

SapuraKencana Petroleum Bhd, Malaysia's biggest oil and gas services firm by market value, said today its subsidiaries have won contracts worth up to USD269 million (RM968 million) in Mexico, Indonesia, India and Vietnam.

"The award... is expected to contribute positively towards the earnings and net assets per share of SapuraKencana for the financial year ending January 31, 2016," it said in a local stock exchange filing.

Monday, 27 April 2015

Petronas to allocate RM2.1 billion yearly for Sarawak contractors

Petronas has agreed to allocate RM2.1bil of its oil and gas contracts exclusively to Sarawak-based contractors annually.

Assistant State Communications Minister Datuk Lee Kim Shin revealed this during Chinese New Year, saying it was one of the outcomes reached in the on-going negotiations between Sarawak, the federal government and the national oil company for more oil royalties for the state.

Lee called it a boon for the state economy and attributed it to Chief Minister Tan Sri Adenan Satem for taking a firm stand on the "poor deal" the state has been getting for decades.

"It is due to his strong stand on oil royalty. He put up a very strong petition to Petronas to give more royalty or other benefits to Sarawak.

"For example, Petronas now has agreed to a few things, for example, a minimum of RM2.1bil worth of contracts to Sarawakian companies," Lee said here.

"Also, Petronas will give more shares of subsidiary companies, meaning that Sarawak will benefit more.

"All this while, Sarawakian companies were just sub-contractors. The main contractors came from outside. Most of our companies have been in the oil and gas industry for more than 100 years. We have the most experience."

Wednesday, 15 April 2015

Petronas Carigali cuts salaries by 20%

Petronas Carigali Sdn Bhd has asked its staff to take a 20% pay cut in view of the challenging market conditions caused by low global oil prices, a source told SunBiz.

According to a memo obtained by SunBiz, Petronas Carigali indicated that a 20% reduction in current salaries would be required effective May 1, 2015.

The company said in the memo that it intends to continue investing to sustain production levels despite the low oil price environment affecting its expenditure and projects feasibility. However, it would be challenging to do so at the current cost structure and as part of its cost optimisation efforts, the company has decided to revise salary rates.

Monday, 13 April 2015

Sabah mahu ambil alih cari gali minyak

Ketua Menteri Sabah Datuk Seri Musa Aman berkata kerajaan negeri bercadang mengambil alih eksplorasi Marginal Oil Field di Sandakan kerana pendekatan itu menguntungkan dan tidak terlalu bergantung harap kepada pencarian ekuiti semata-mata.

"Bukan saja kami (kerajaan negeri) minta penambahan royalti (minyak) tetapi juga minta Marginal Field di Sandakan yang telah diluluskan oleh Petronas. Kami mahu ambil alihnya," katanya dalam sesi soal jawab pada persidangan Dewan Undangan Negeri.

Thursday, 26 February 2015

Petronas, HHI to sign US$1.1 bln novation agreement with MISC

petronas new logo

Petronas and Hyundai Heavy Industries Co Ltd (HHI) have agreed to enter into a novation agreement with MISC Bhd that will involve an expenditure of about US$1.1 billion.

The agreement is for the novation of Shipbuilding Contracts (SBCs) between Petronas and HHI to the shipping company, for the construction and delivery of new LNG carriers (Newbuild LNGCs).

In conjunction with the novation agreement, Petronas via its indirect subsidiary Petronas LNG Sdn Bhd (PLSB) has also agreed to enter into Time Charter Parties (TCPs) for the charter of the Newbuild LNGCs.

Monday, 23 February 2015

BASF, Petronas Chemicals to build 2-EHAcid plant in Malaysia

Germany's BASF and Malaysia's Petronas Chemicals Group Bhd will build the first Southeast Asian plant producing 2-Ethylhexanoic Acid (2-EHAcid), the companies said on Monday without disclosing the cost.

The plant, located in Malaysia, is expected to start production in the fourth quarter of 2016 and will have a total annual capacity of 30,000 metric tonnes of 2-EHAcid, the companies said in a statement.

2-EHAcid is a chemical intermediate used in the production of synthetic lubricants as well as oil additives

Monday, 9 February 2015

Petronas' slumping profits

In tandem with the steep decline in oil prices, Petroliam Nasional Bhd (Petronas) is expected to report less than RM10bil in pre-tax profit for its soon-to-be released fourth-quarter results for the financial year 2014 (FY14), say industry sources.

The price of Brent crude has more than halved from the high of US$115 recorded in mid-June last year to about US$55 a barrel currently, with the slide largely happening in the final three months of the year.

For the current year of operations, analysts are expecting Petronas, which is expected to announce its 2014 fourth-quarter results in the next few weeks, to record a sombre set of results.

Thursday, 22 January 2015

Oil pipeline through Myanmar to China expected to open in Jan -sources

A crude oil pipeline and a deep sea port meant to secure an alternative route for Chinese imports overland through Myanmar are set to open at the end of January, but an affiliated refinery in China is months away from completion, sources said.

The finished development should help ease China's reliance on shipments via the narrow and potentially risky Malacca Strait. Although that route, through which some 80 percent of China's oil imports now pass, would still be used for the vast majority of overseas purchases.

PetroChina, the main investor in the facilities, has built 60 percent of the refinery in Yunnan province that borders Myanmar, designed to process the crude shipped via the pipeline, a spokesman for the state energy giant said on Monday. Completion is slated for later this year.

Tuesday, 20 January 2015

Shell ends $6.5B Qatar project as oil price falls

Qatar Petroleum and Royal Dutch Shell have scrapped plans for a petrochemicals project, worth an estimated $6.5 billion, due to the slump in global oil prices.

In a statement issued on Wednesday, Shell said the Al Karaana project would not go ahead because of the "high envisaged capital cost that has rendered it commercially unfeasible, particularly in the current economic climate prevailing in the energy industry".

The joint venture between the Anglo-Dutch energy giant and state-owned Qatar Petroleum had been signed in December 2011.

At the time it was envisioned that a huge "world-scale petrochemicals complex" would be built in Ras Laffan, an industrial city some 80 kilometres (50 miles) north of Doha.

The Qatari company was to own 80 percent of the project, and Shell the remaining 20 percent.

Last year it was reported that the project would be completed in 2018.

However, the decision not to proceed was taken, said Shell, after "careful and thorough evaluation of commercial quotations".

Global oil prices have dived since last June and continued to fall on Wednesday after major crude producers insisted they would maintain current output levels despite oversupply.