Saturday, 15 July 2017

Gas Malaysia raises natural gas prices

Gas Malaysia Bhd has revised up the natural gas tariff for Peninsular Malaysia’s non-power sector to an average base tariff of RM28.05 per MMBtu (one million British thermal units).

However, a government subsidy will lead to lower effective tariff rates for all tariff categories for the period from July 1 to Dec 31, 2017, compared with the existing rates.

In a filing with Bursa Malaysia, the gas distributor said  the Government, through the Energy Commission, had approved on Friday for Gas Malaysia to effect the revision for the six-month period.

The Government has prescribed the incentive based regulation (IBR) framework, which sets the base tariffs for a period of three years from January 2017 and allows changes in the gas costs to be passed through via the Gas Cost Pass Through (GCPT) mechanism every six months.

Wednesday, 12 July 2017

Malaysia’s oil and gas industry on the road to recovery

There is optimism that the nation’s oil and gas industry is on the road to recovery, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

“If 2016 was the ‘year of tough decisions’ for the oil and gas industry, then 2017 could well be the year for the road to recovery,” he said when launching the 16th Oil and Gas Asia 2017 Exhibition.

He cited the examples of the Organisation of Petroleum Exporting Countries’ market forecast and recent survey by Reuters that Brent crude oil could average US$58.20 (RM250.12) per barrel this year as examples of positive signs for the industry.

“The interim Q4 (fourth quarter) and FY (financial year) of Malaysia’s state giant Petronas noted a 12% year-on-year growth in profit after tax despite revenues that were some 17% lower,” he said.

Tuesday, 11 July 2017

One killed in Bintulu tanker explosion

An oil tanker burst into flames in a horrific accident at the Medan Jaya traffic lights in front of Bintulu Medical Centre around 11am, Monday.

Based on unofficial statement, one person was killed, after the tanker collided with a pickup truck that resulted in three other vehicles being burnt in the accident.

Ten firefighters in one fire engine were rushed to the scene after receiving a distress call at 11.53am.

As of press time, the flames have been brought under control.

The authorities are now in the process of trying to identify the burnt victim.

Friday, 7 July 2017

China Petroleum to build olefins storage units in Pengerang for Petronas

A consortium of China Petroleum Pipeline Bureau (CPP) & CPP Petroleum Engineering (M) Sdn Bhd has been signed on to build additional olefins storage units in Pengerang for Petroliam Nasional Bhd's unit.

Petronas said on its unit PRPC Refinery & Cracker Sdn Bhd (PRPC RC) recently signed the engineering, procurement, construction and commissioning (EPCC) contract for the facilities within the Pengerang Integrated Complex.

The national oil company said the consortium would undertake the EPCC for four 1,750MT butadiene bullet tanks; four 2,500MT propylene sphere tanks; and one 12,000MT double-walled cryogenic ethylene tank.

“The construction of the butadiene bullet tanks is expected to be completed by end 2018, while the propylene sphere tanks and the cryogenic ethylene tanks are scheduled to be ready by end Q1 and Q3 2019, respectively,” it said. The value of the contract was not disclosed.

Thursday, 6 July 2017

Damansara Realty secures RM26mln contract for Petronas' Pengerang project

Damansara Realty Bhd has bagged a RM26.21 million contract to provide security management services for Petroliam Nasional Bhd’s (Petronas) Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang, Johor.

In a filing to Bursa Malaysia
, the company said the contract can be extended to include additional services worth RM9.77 million.

It said Petronas subsidiary PRPC Utilities and Facilities Sdn Bhd awarded the contract to a consortium comprising Damansara Realty’s subsidiary TMR Urusharta (M) Sdn Bhd (TMR), ACME Security Sdn Bhd and AHS Security Sdn Bhd.

It said under the terms of the contract, the consortium will operate and maintain security for utilities, interconnecting and offsite facilities at RAPID, the second mega project in Johor’s Pengerang Integrated Petroleum Complex, which is slated to be the region’s largest oil and gas hub.

Wednesday, 5 July 2017

Sarawak tubuh Petros bagi cari gali minyak dan gas

Syarikat cari gali minyak dan gas luar pantai milik Sarawak akan memulakan operasinya dalam masa enam bulan lagi, Ketua Menteri Datuk Amar Abang Johari Tun Openg.

Katanya, Petroleum Sarawak (Petros), 100 peratus milik kerajaan negeri, akan bekerjasama dengan syarikat minyak nasional, Petronas,

Pengumuman itu dibuat ketika Sarawak menuntut royalti minyak yang lebih tinggi daripada kerajaan persekutuan.

Bernama turut memetik Abang Johari, sebagai berkata, perkara berkaitan pelaburan awal syarikat itu masih dibincang, tetapi Petros akan memulakan operasinya dalam masa enam bulan lagi.

Beliau berkata keuntungan yang diraih akan dikongsi antara kerajaan negeri dan Petronas berdasarkan ekuiti.

Tuesday, 4 July 2017

JX Nippon produces first gas from Layang field, offshore Sarawak

JX Nippon Oil & Gas Exploration Corporation’s subsidiary, JX Nippon Oil & Gas Exploration (Malaysia) Limited, is the operator of Block SK10 offshore Sarawak, Malaysia, with a participating interest of 75%, where the Layang field is located. Petronas is its partner with the remaining 25% interest.

The field is located approximately 7 km east of the producing Helang Gas Field in Block SK10.

Natural gas produced from Layang field, together with natural gas from Helang gas field, will be supplied through subsea pipelines to the MLNG Tiga Sdn. Bhd. liquefaction plant in Bintulu, Sarawak, which is partly owned by JXTG Nippon Oil & Energy Corporation. The natural gas will be sold as LNG after liquefaction to its customers including buyers in Japan.

The initial production of natural gas and condensate from Layang field is estimated about 12,000 boed.

Tuesday, 20 June 2017

PBJV Group bags RM61.2m offshore job

Barakah Offshore Petroleum Bhd has bagged a US$14.28 million contract from Samling Resources Sdn Bhd to supply a well intervention vessel, a support vessel and services for abandonment and decommissioning of Chinguetti and Banda fields, offshore Mauritania.

In a filing with Bursa Malaysia, Barakah said its wholly-owned subsidiary PBJV Group Sdn Bhd has received the letter of award from Samling Resources for the project, which is expected to commence this month.

The Chinguetti oil field is located approximately 80km west of the coastline and 90km from Nouakchott, Mauritania. The project involves temporary plugging of 15 wells.

"The contract is for the provision of a well intervention vessel, a platform supply vessel and all necessary parts, spares, repairs, refurbishments and/or modifications to the well intervention vessel and all coordination, technical support and supervisory works in relation thereto," Barakah said.

Monday, 19 June 2017

Petronas: We have right to terminate contract with MHS Aviation over safety concerns

Petronas Carigali Sdn Bhd’s termination notice of its contract with MHS Aviation Bhd for the services of five EC225 helicopters is within its contractual rights, citing its service suspension since April 2016 due to safety concerns.

The concerns arose from a fatal accident involving the same aircraft model in Norway in April 2016.

Under the contract dated June 29 2011, MHS Aviation, a 51% subsidiary of Boustead Holdings Bhd, provides the services of five EC225 helicopters from Kertih, Terengganu, for the transport of personnel to offshore facilities.

“The suspension of the EC225 service by Norwegian and UK civil aviation authorities has yet to be lifted. Most major oil and gas companies have also ceased using the aircraft model pending assurance of its safety and airworthiness. The safety of its employees remains Petronas Carigali’s top-most priority. The company has had appropriate discussions and negotiations with MHS Aviation prior to reaching the decision to terminate the agreement,” Petronas said in a statement yesterday.

PCSB to terminate RM3bil contract given to MHS Aviation

Petronas Carigali Sdn Bhd is terminating a June 2011 contract involving the charter of five Eurocopter EC225 helicopters from Boustead Holdings Bhd’s subsidiary MHS Aviation Bhd.

The 10-year contract, with an option to extend for another five years, was previously estimated to be worth about RM3bil.

In a filing with Bursa Malaysia, Boustead said its 51%-owned subsidiary MHS, the country’s largest civil helicopter operator, had received a letter dated June 9 from Petronas Carigali giving a 90 days’ notice of its intention to terminate “without cause” the contract for the provision of rotary wing aircraft, equipment and services for heavy type aircraft - EC225.

MHS received the notice of termination while discussions between the parties regarding arbitration proceedings were ongoing, Boustead said.

Friday, 16 June 2017

Hengyuan To Invest US$160 Mln In Port Dickson Projects

Hengyuan Refining Company Bhd's (HRC) board of directors has given the approval for two projects costing a total of US$160mil or (RM684.5mil) at its refining complex in Port Dickson.

The refiner,  formerly known as Shell Refining Company (Federation of Malaya) Bhd, said on Friday the board approved the investment for a Euro 4M mogas plant.

The total investment cost for the project is US$135mil +/- 10% and it is expected to come on-stream by the second half of 2018.

The Euro 4M plant is an integrated complex to desulphurise the full range cat cracked gasoline produced by its long residue catalytic cracking unit (LRCCU).

It explained the design uses a combination of hydro-processing and liquid-liquid extraction technology.  The technology was used successfully by the Shandong Hengyuan Petrochemical Company Ltd in its Shandong based refinery and chemical complex which produces Euro 6 grade mogas.

Sumatec gets 25-year extension on Kazakhstan oil field mining lease

Kazakhstan Energy Ministry has expanded the oil and gas exploration area given to CaspiOilGas LLP (COG), which Sumatec Resources Bhd is in the process of acquiring for US$205mil (RM873mil), and extended its mining lease by up to 25 years.

Sumatec, which provides management and oversight of COG’s concession area (i.e. the Rakushechnoye oil and gas field in West Kazakhstan), said that COG planned to drill up to six more new wells within the field apart from the existing drilling plan proposed by Sumatec.

(Under the joint investment agreement signed in March 2012, Sumatec is entitled to 100% of the profit for the first two million barrels while from the third year onwards, the profit will be split 50:50 between Sumatec and COG.)

In a filing with Bursa Malaysia on Wednesday, Sumatec said COG’s general director Ruslan Keshubayev confirmed that COG had received an official letter from the Energy Ministry extending the exploration area within the Rakushechnoye lease allotment.

Tuesday, 13 June 2017

Sarawak govt to set up oil company for offshore oil and gas exploration - CM

The Sarawak government is planning to establish a state-owned offshore oil and gas exploration company in order to participate in the industry, said Chief Minister Datuk Amar Abang Johari Tun Openg.

He said the plan was discussed with national oil corporation, Petronas, which was very receptive to the idea of the state-owned company partaking in upstream and downstream oil and gas exploration activities.

“I had discussions with Petronas, we are adopting a new approach.

“Sarawak will participate in both upstream and downstream oil and gas activities.

“In the upstream sector, this will be Sarawak’s maiden venture, as such, we need to set up a state-owned company in order to join Petronas  in oil and gas exploration in the South China Sea.

Friday, 9 June 2017

Sapura Energy wins RM879mil O&G contracts

Sapura Energy Bhd has won contracts involving engineering, procurement, construction and installation (EPCI) works with a combined value of approximately US$205.96mil (RM879.01mil) from PT Gunanusa Utama Fabricators (PTG).

A stock exchange filing showed PTG as the main contractor and PTTEP International Ltd as the client for this project.

The subcontract works consist of EPCI of associated pipelines, transportation and installation of new offshore wellhead platforms, brownfield modifications of existing platforms and the installation of telecommunication and control system integrated to existing facilities.

Wednesday, 7 June 2017

More multinationals moving to Malaysia from Singapore, particularly in oil and gas sector

More multinational corporations, particularly in the oil and gas (O&G) sector, are moving their operations here from Singapore because of lower costs due to the depreciation of the ringgit.

“Over the the past two to three years, we have seen more multinationals with regional or significant operations in Singapore, relocating some of their departments or expatriates to Kuala Lumpur,” said ECA International regional director for Asia Lee Quane.

“Between 10 to 20 multinationals in the O&G sector moved significant numbers of expatriate staff from Singapore to Malaysia because benefits such as housing are much cheaper here thanks to the lower value of the ringgit,” he told.

Tuesday, 6 June 2017

Construction Of TNB's Large-Scale Solar Project To Start Next Month

Tenaga Nasional Bhd (TNB) is scheduled to commence construction of its first Large-Scale Solar project on a 97-hectare (ha) site in Mukim Tanjung 12, Kuala Langat, Selangor next month.

The land, which is being cleared in phases, will be developed into solar farms (68 ha), while the remaining is occupied by an existing high-voltage transmission line (29 ha), the electric utility company said in a statement today.

"Once completed and fully operational by November 2018, the project will generate and transmit 50 megawatt (MW) of electricity to the national grid," it said.

TNB's wholly-owned subsidiary, TNB Sepang Solar Sdn Bhd was awarded the project by the Energy Commission through a competitive bidding exercise.

Monday, 5 June 2017

Oil and gas (O&G) sector is on recovery - Maybank

Maybank Investment Bank Bhd opined that the oil and gas (O&G) sector has bottomed and is on a cyclical recovery.

“An accelerated rebalancing of global crude oil market (via supply cut by OPEC & non-OPEC members) will spur capex recovery. Our crude oil price assumption of US$55 per barrel average for 2017 is unchanged. Petronas’ RM60bil capex target for 2017 is another positive,” it said.

“On the domestic front, we are seeing a revival in upstream activities (i.e. rising drilling works), a positive. Tenders pipeline are also on the rise, of which most (i.e. OSV, maintenance) are back-loaded into 2H17,” Maybank said.

The research house said Petroliam Nasional Bhd (Petronas) 1Q17 YoY earnings rebound was positive but was expected, generally in tune with its peers

Sabah Shell files over RM4b counterclaim against unit of Petronas

Sabah Shell Petroleum Company Ltd (SSPC) has filed in a statement of defence and counterclaim (SDCC) of US$1.023 billion (US$1=RM4.279) against MISC Bhd's unit, Gumusut-Kakap Semi-Floating Production System (L) Ltd (GKL).

In a filing to Bursa Malaysia, SSPC refuted claims by GKL, a unit of Petroliam Nasional Bhd (Petronas), and is counter-claiming against GKL for alleged defective work and limited functionality of the Gumusut-Kakap Semi-Floating Production System, liquidated damages and a refund of the full amount paid to GKL under the adjudication decision rendered in the proceedings.

GKL commenced the legal proceedings seeking resolution on contractual disputes covering claims for outstanding additional lease rates, payment for completed variation works and other associated costs under the lease agreement dated Nov 9, 2012, between GKL and SSPC for the construction and lease of the Gumusut-Kakap Semi-Floating Production System (Semi-FPS) for production of crude oil.

Thursday, 1 June 2017

Bumi Armada’s Q1 net profit more than doubled

Bumi Armada Bhd got off to a good start with its net profit in the first quarter ended March 31 improving to RM48.1mil, from RM23.4mil achieved in the same corresponding period last year.
Revenue for the international offshore energy facilities and services provider, however, came in 6.2% lower year-on-year (y-o-y) to RM404.2mil in the quarter.

At the floating production and operation (FPO) business segment level, revenues increased by 10.7% y-o-y, mainly from initial revenue streams relating to first oil and first gas on Armada Olombendo and Armada LNG Mediterrana respectively. However, the offshore marine services (OMS) segment saw a decline in revenue of 23.2%, due to a lower utilisation of the offshore support vessel fleet.

Wednesday, 31 May 2017

Barakah Offshore posts RM4.6m net loss in Q1

Barakah Offshore Petroleum Bhd registered a net loss of RM4.6 million in the first quarter (Q1) ended March 31, 2017, from a net profit of RM1.27 million in the previous corresponding quarter.

Revenue dropped 25.6% to RM76.84 million, compared with RM103.3 million in the same period last year, mainly due to lower revenue from installation and construction services (ICS).

In a filing with Bursa Malaysia, the group said ICS generated a total revenue of RM45.78 million, which is a decrease of 44.32% from the corresponding quarter.

Tuesday, 30 May 2017

Petronas okays Hibiscus’ purchase of Shell stake in Sabah venture

Petronas has given the go-ahead for partner Royal Dutch Shell to sell its (Shell’s) 50% stake in their joint-venture North Sabah enhanced oil recovery (EOR) project to Hibiscus Petroleum Bhd. However, the approval is subject to certain conditions.

Hibiscus told Bursa Malaysia that Shell’s units Sabah Shell Petroleum Co Ltd and Shell Sabah Selatan Sdn Bhd - which hold the combined 50% interest - were reviewing the conditions.

“If further clarifications are required from Petronas in respect of these conditions, these will be sought in due course and the company (Hibiscus) will make further announcements, if appropriate,” it said.

Hibiscus did not disclose the conditions imposed by Petronas.

Saturday, 27 May 2017

Icon Offshore bags RM5.4m vessel provision contract

Icon Offshore Bhd has bagged a RM5.4 million contract to provide a 60-tonne bollard pull anchor handling tug supply vessel for Sarawak Shell Bhd and Sabah Shell Petroleum Co Ltd’s operations.

In a filing with Bursa Malaysia, Icon said the contract, clinched through its wholly-owned subsidiary Icon Offshore Group Sdn Bhd, is for a period of up to 10 months.

"The contract is expected to contribute positively to the earnings and net assets of Icon Group for the financial year ending Dec 31, 2017 and beyond. Notwithstanding this, the contract is not expected to have any material effects on the share capital and shareholding structure of Icon," it added.

Thursday, 25 May 2017

KUB to spend US$80 mln on joint LPG terminal project

KUB Malaysia Bhd plans to spend up to US$80 million (US$1=RM4.295) under the memorandum of understanding (MoU) it entered into with Mabanaft Pte Ltd for the joint development of a refrigerated liquefied petroleum gas (LPG) terminal at Westport, Klang, Selangor.

Its President/Group Managing Director, Datuk Abdul Rahim Mohd Zin said the investment would entitle the group to have the majority shareholding of at least 51 per cent under the MoU.

“We need at least six months or until end of the year to undertake a feasibility study, and once we have determine that, we will make the financial investment decision,” he told reporters after the group’s annual and extraordinary general meeting here, yesterday.

Monday, 22 May 2017

Sarawak still negotiating with Petronas on increase in oil royalty

Sarawak has not abandoned its negotiation with Petronas for a 20% increase in oil royalty, Chief Minister Datuk Amar Abang Johari Tun Openg said.

In his winding up speech at the 18th Sarawak legislative Assembly sitting here, he said now the time is unfavourable for the negotiation as the price of oil is low and production cost very competitive.

"Under such a situation, we have to manage this with care," he said.

Meantime, he said in lieu of the loyalty increase, he had decided that the state would continue to pursue interests in the development of the oil and gas industry in the state.

Friday, 19 May 2017

Petronas Dagangan Records Stellar 1Q17 Results

Petronas Dagangan Bhd (PetDag) recorded a stellar first quarter pre-tax profit of RM335.6 million for the three months ended March 31, 2017 against RM295.6 million recorded in the same quarter last year.

Revenue rose to RM6.69 billion from RM4.91 billion previously, thanks to the 43 per cent increase in average selling price following the increase in Mean of Platts Singapore prices.

The selling prices, however, was offset by lower sales volume of four per cent, the petroleum products provider said in a filing to Bursa Malaysia.

The group's operating profit was higher by RM39.3 million to RM336.1 million, during the quarter under review, compared with the corresponding quarter last year on the back of better operating profits from retail and commercial segments which increased to RM198.80 million and RM132.20 million, respectively.

Wednesday, 17 May 2017

Dialog Group's Q3 earnings up nearly 20%

 Dialog Group Bhd's earnings rose 19.6% to RM94.40mil in the third quarter ended March 31, 2017, boosted by higher contributions from its joint ventures particularly the Pengerang Independent Terminals.

It said on Tuesday its revenue rose 42.4% to RM913.60mil from RM641.40mil a year ago. Its earnings per share were 1.74 sen and it declared an interim dividend of 1.2 sen a share.

Dialog Group said its share of joint ventures results in Q3 FY17 increased by 90.7% to RM28.6mil from RM15mil a year ago.

The Malaysia operation remained busy during the current financial quarter with engineering, construction and fabrication activities from various on-going projects such as the Pengerang Deepwater Terminal Phase 2, jetty topside works for Samsung in Pengerang and the construction of plasticiser plant for UPC Chemicals in Kuantan. 

Monday, 15 May 2017

UMW-OG bags RM151m contracts from Petronas Carigali

UMW Oil & Gas Corporation Bhd (UMW-OG) has received two contracts from Petronas Carigali Sdn Bhd worth US$34.81mil or RM151.07mil to provide services to its firm and optional wells.

UMW-OG said on Monday the contracts are to provide jack-up drilling rig services.

It said the first contract is to provide drilling rig services for Petronas Carigali’s drilling programme, whereby UMW-OG will assign its UMW Naga 3 for this contract.

The contract is to drill five firm wells with the option of drilling additional five wells, starting in June 2017.

PETROL refiners and distributors benefit from volatile oil prices

PETROL refiners and distributors have been one of the bright sparks on Bursa Malaysia in recent weeks.

Petron Malaysia Refining & Marketing Bhd and Hengyuan Refining Company Bhd (previously known as Shell Refining Company (Federation Of Malaya) Bhd, for example,have seen their shares rise by over 100% since the beginning of the year.

The market is of the impression that downstream players could benefit from a lower oil price environment as it can help stimulate demand growth and raise the sales of their products.

These companies have also benefitted from the oil price environment today which is not too high nor too low and prices have recovered when compared to the same quarter of the previous year.

Sunday, 14 May 2017

Natural Gas – Flipping The Switch

by Investvine - May 2017

Our brand new free 54-page report NATURAL GAS: FLIPPING THE SWITCH – Dawn of a New Era takes a close look at the current state of the natural gas industry both in Malaysia and the wider Southeast Asia region, as well as worldwide. It aims at making people familiar with the features and benefits of natural gas as compared to other energy sources, namely coal and oil, deciphering common myths and examining and highlighting the advantages of natural gas in terms of energy efficiency, environmental impact and costs.

The report puts Malaysia’s natural gas policy in perspective to other countries in Southeast Asia, and also versus large energy consumers such as the US, China and Europe, highlighting worldwide trends, future projections and environmental consequences.

China firm to resume construction of oil terminal at Asia Petroleum Hub in Tanjung Pelepas

China Railway Engineering Corporation (CREC) has been awarded a contract worth US$400mil (RM1.8bil) for the construction of the oil terminal of the just-revived Asia Petroleum Hub (APH).

Smart Crest Sdn Bhd, which has an oil terminal at Westport, signed a framework agreement to award the engineering, procurement and construction (EPC) to CREC.

At the signing ceremony, Smart Crest’s chief executive officer Datuk Lim Kian Boon said the contract is worth US$400mil and Fajarbaru Builder Sdn Bhd will be the local joint venture partner in-charge of civil works.

“We have not defined the percentage of the joint venture yet, because the project is already 60% completed when I took over, so we are not sure how much local content is left,” Lim said.

Saturday, 13 May 2017

Mega deal loss spells joy for UMW Oil & Gas

After abandoning a deal to create one of the largest oil and gas services providers in Malaysia, UMW Oil & Gas Corp. expects to return to profit next year with the return of full utilization of its drilling rigs.
Company President Rohaizad Darus said contracts have jumped, with rig utilisation climbing to 71 percent from 20 percent in the fourth quarter as oil firms operating in Southeast Asia resume spending on exploration and production.

Activity by state-controlled companies, including Petroliam Nasional Bhd., Indonesia’s Pertamina Persero PT and Thailand’s PTT Pcl is increasing, based on tender invitations the firms have received, he said.

“We are currently bidding for 35 tenders totaling 3.4 billion ringgit” ($783.1 million), Rohaizad said in a May 9 interview at the company’s Kuala Lumpur headquarters. “We hardly hit 20” at the same point last year.

KNM bags RM159m EPCC job in Thailand

KNM Group Bhd has bagged a RM159 million contract to undertake engineering, procurement, construction and commissioning (EPCC) works for the 300,000-litre per day Impress ethanol plant — expansion (IEL Phase 2) project in Chachaengsao Province, Thailand.

In a filing with Bursa Malaysia, KNM said its wholly-owned subsidiary KNM Process Systems Sdn Bhd (KNMPS) and its 74%-owned subsidiary KNM Projects (Thailand) Co Ltd (KNMPT) have collectively secured the contract from Thailand's Impress Ethanol Co Ltd (IEL). IEL is a manufacturer and distributor of alcohol/ethanol or fuel from agricultural products and it is effectively a 72%-owned subsidiary of KNM.

The construction duration of the IEL Phase 2 project is about 18 months.

KNMPS previously built the IEL Phase 1 project, involving 200,000 litres per day of fuel-grade ethanol production plant for IEL.

Friday, 12 May 2017

Untung suku pertama sebelum cukai Gas Malaysia naik 13.9%

Gas Malaysia Bhd mencatatkan keuntungan sebelum zakat dan cukai sebanyak RM45.2 juta pada suku pertama berakhir 31 Mac,  2017,  naik 13.9 peratus berbanding RM39.7 juta dalam tempoh sama tahun lepas.

Dalam makluman kepada Bursa Malaysia, katanya peningkatan itu disebabkan keuntungan kasar yang lebih tinggi sejajar dengan peningkatan jumlah gas yang dijual dan perbelanjaan pentadbiran yang rendah.

Perolehan kumpulan turut meningkat sebanyak 23.5 peratus kepada RM1,187.0 juta berbanding RM961.3 juta dalam tempoh sama pada 2016,  disebabkan jumlah gas yang dijual lebih tinggi dan semakan untuk menaikkan tarif gas asli.

Mengenai masa depan, Gas Malaysia menjangka peningkatan tahunan jumlah jualan gas dan bilangan pelanggan kekal bagi tahun kewangan 2017.

Thursday, 11 May 2017

Petronas selects offshore contractor for Pan Malaysia contract

Petronas has invited a select group of offshore contractors to bid for a 2018 season of transportation and installation work.

The workscope up for grabs is understood to be linked to the Shell-E6 development, plus Petronas Carigali’s Anjung project.

It is the next installment of the Pan Malaysia transportation and installation programme for 2017 and 2018.

Sapura Energy's subsidiary TL Offshore landed a Pan Malaysia contract earlier this year from Petronas for the transport and install of platform structures and pipelines and associated works for a duration of one year covering 2017.

In the past, Petronas has awarded multi-year Pan Malaysia contracts, but this time has taken a different approach whereby a panel of contractors has been selected to bid for each scope that comes up.

The panel is understood to consist of TL Offshore, Barakah Offshore Petroleum subsidiary PBJV, Hilong Marine with Brooke Dockyard, McDermott and Alam Maritim.

Wednesday, 10 May 2017

Malaysia pengeksport LNG ketiga terbesar dunia

Malaysia merupakan peng­­eksport gas asli cecair (LNG) ketiga terbesar dunia selepas Qatar dan Australia, dan dijangka terus mengekalkan kedudukan tersebut berdasarkan kemajuan teknologi penghasilan LNG yang dimiliki oleh negara.

Menurut penyelidikan yang dilakukan oleh agensi penyelidik industri, Investvine, fasiliti Terapung LNG Petronas Satu (PFLNG Satu) yang dimiliki oleh Petroliam Nasional Bhd. (Petronas) merupakan satu daripada faktor yang akan membolehkan Malaysia mengekalkan status sebagai antara pengeluar dan pengeksport LNG terbesar dunia.

Menurut agensi itu lagi, Jepun merupakan pasaran LNG terbesar Malaysia dengan menguasai 62 peratus eksport LNG negara, di­ikuti Korea Selatan (14 peratus), China (12 peratus) dan Taiwan (sembilan peratus).

Tuesday, 9 May 2017

Petronas and Saudi Aramco Explore Petrochemicals Expansion in Malaysia

Petronas and its partner Saudi Aramco are studying projects to build more petrochemical plants to make full use of raw materials from their joint venture in Malaysia.

Aramco signed a deal in late February to take a $7 billion investment, in the RAPID (Refinery and Petrochemical Integrated Development) joint venure with Petronas in Pengerang, southern Malaysia.

Projects being studied include speciality chemicals and synthetic rubber, company officials said at an industry conference on Monday.

"We're looking at what else we can do at RAPID," said Md Arif Mahmood, executive vice president and CEO of downstream operations at Petronas.

"There will be specialty (chemicals) using the C4s (technology)," he added, referring to petrochemicals produced from naphtha crackers.

Monday, 8 May 2017

Petronas: No FID Yet For Canada LNG

Petronas said it has yet to make a final investment decision (FID) with its Pacific NorthWest liquefied natural gas (LNG) export terminal project planned in northern British Columbia, Canada.

Petronas President/Chief Executive Officer Datuk Wan Zulkiflee Wan Ariffin said exploring options to make the proposed project competitive with other LNG producers in North America was currently the main target.

"We will announce the FID when the time is appropriate," he told a press conference held at the second day of the 19th Asia Oil and Gas Conference here Monday.

Wan Zulkiflee said Petronas' resources in Canada was very significant with its proven reserve of about 26 billion cubic feet (Bcf).

"We are determined to monetise the reserves at the right price and at the right time. "The project team is still exploring all options, including the technological aspects to develop the LNG plant that will be cost competitive compared with other producers in the North America," he said.

The state-owned company is currently the world's third largest LNG exporter (after Qatar and Australia).

TNB’s RM6bil Manjung 5 plant project on track for production

Tenaga Nasional Bhd’s second ultra-supercritical (USC) RM6bil coal-fired power plant, Manjung 5 (M5), is on track to meet its scheduled commercial operation date (SCOD) this coming October or 45 months from the project’s starting date.

The power plant in Manjung l, Perak, has achieved its Initial Operation Date (IOD) on May 2, 2017, where for the first time its generator was synchronised to the national grid, TNB said on Sunday.

The plant’s operator, TNB Manjung Five Sdn Bhd, is working closely with the engineering, procurement and construction (EPC) contractor for the plant - a consortium comprising Sumitomo Corp of Japan and Daelim Industrial Co Ltd of South Korea to ensure full commissioning of the plant.

After the IOD, the plant will undergo further tests to comply with the Malaysian Grid Codes.

Additionally, it will require further tuning works to achieve full capacity of generating 1,000 megawatts (MW) of electricity.

M5 will increase TNB’s coal-fired generation capacity to almost 5,000MW, representing about a quarter of Peninsular Malaysia’s installed capacity, it added.

Petronas says second floating LNG facility to be operational in 2020

Petroliam Nasional Bhd said its second floating liquefied natural gas (LNG) facility will be operational in 2020.

Petronas loaded its first cargo from the Petronas Floating LNG (PFLNG) 1 in east Malaysia last month, becoming the first company to produce LNG from a floating production unit.

The second one that is under construction, PFLNG 2, will enable liquefaction, production and offloading of natural gas in the Rotan field, 240 kilometers off the east Malaysian state of Sabah upon completion. It is set to have a processing capacity of 1.5 million tonnes per annum (mtpa).

Adnan Zainal Abidin, Petronas' acting vice president LNG assets, development and production, said development of the second facility was on track and that the company has received interest from other industry players for using both the facilities.

Petronas’ first floating LNG facility to start operating next month

Petronas is ramping up its liquefied natural gas (LNG) capacity with its first floating liquefied natural gas (LNG) facility, PFLNG Satu, expected to go into commercial operation next month.

LNG assets (upstream) vice-president Adnan Zainol Abidin said as for now, the group did not have any specific clients, but if demand were to arise, priority would be given to its portfolio buyers.

“Our first cargo went to India, and next, the vessel will sit on the Kanowit gas field off Sarawak for five years, after which our development people will be looking at the next field,” he told a media briefing in Kuala Lumpur on Sunday.

The facility, which marked the world first innovation in the LNG industry, is expected to boost Malaysia’s total LNG production capacity to 32 million tonnes per annum (mtpa).

The development of PFLNG Satu began in 2010 and is scheduled for start-up in 2016 at the Kanowit gas field off Sarawak.

Sunday, 7 May 2017

Indonesia sues PTT, PTTEP for US$2 bln over oil spill

The Indonesian government is suing Thailand's state-owned PTT and PTT Exploration and Production for around $2 billion for alleged damage to the environment from an oil spill in the Timor Sea eight years ago.

The Montara wellhead operated by subsidiary PTTEP Australasia caught fire in 2009, leaking hundreds of thousands of litres of oil off the northern coast of Western Australia, according to media reports at the time.

The incident was considered one of Australia's worst oil disasters, and PTTEP was fined A$510,000 ($394,000) by a Darwin court after pleading guilty in 2011 to charges related to workplace health and safety and failure to maintain good oilfield practice.

Indonesia alleges, however, that the oil spill also fouled seawater and coastal areas in the nation's East Nusa Tenggara province, and filed a lawsuit on Wednesday in a Jakarta court against PTT, PTTEP and PTTEP Australasia, seeking 27.5 trillion rupiah ($2.1 billion) for damages and restoration costs.

Saturday, 6 May 2017

Harga minyak menjunam teruk

Harga minyak mentah menjunam semalam dan menghapuskan sepenuhnya keuntungan yang diperolehi akhir November lalu.

Reuters melaporkan minyak mentah Amerika Syarikat jatuh 5.06 peratus kepada AS$45.40 setong dan Brent berada pada paras AS$48.35, turun 4.8 peratus.

Kejatuhan ini adalah pada paras paling rendah sejak akhir November selepas OPEC dan negara pengeluar lain dijangka tidak akan melaksanakan beberapa langkah lebih drastik untuk mengurangkan lebihan bekalan minyak dunia.

"Walaupun OPEC dijangka meneruskan pengurangan pengeluaran sendiri bagi tempoh enam bulan akan datang, ia akan menjadi cabaran untuk ahli bukan OPEC menjejaki langkah sama.

Multinational O&G Companies Keen To Set Up Regional Base In Malaysia

Malaysia’s InvestKL is more than half way to completing its mission: attracting 100 multinational corporations (MNC), including top oil and gas firms, to base their regional headquarters in Greater Kuala Lumpur (KL) by 2020.

Luring oil and gas MNCs ranked among the Fortune 500 or Forbes 2000 group of firms looms large for InvestKL given Malaysia’s well established petroleum industry, anchored by national oil company (NOC) Petroliam Nasional Berhad (PETRONAS).

“It’s is not the main focus, but it’s certainly a key sector because oil and gas is one of the 12 national key economic areas. KL is also an oil and gas hub for Southeast Asia,” Daniel Teng, senior director of Marketing & Communications, Strategy, Advisory and Services at InvestKL.

Friday, 5 May 2017

Oil dives under $50/bbl again

Oil slid more than 4 percent on Thursday, to its lowest since late November as investor worries about a growing global glut of crude erased most of the gains that followed last year's OPEC's output cut.

The slide worsened after OPEC delegates said their group and other producing countries were downplayed the chance of a bigger output when the producers meet on May 25, even though they said the output cuts were likely to be extended.

U.S. crude fell $2.05 or 4.3 percent to $45.77, by 12:08 p.m. Brent was down $2.07, or 4.1 percent to $48.71.

“The market continues to hunt for a bottom," said Gene McGillian, manager of market research at Tradition Energy in Stamford, Connecticut. "We’ve dropped to a five month low.”

Late last year, the Organization of the Petroleum Exporting Countries (OPEC), together with other key producers such as Russia and Oman, announced that they would cut oil output for the first six months of this year to reduce a vast global overhang of unused crude.

Thursday, 4 May 2017

Shell profits soar as oil sector makes a comeback

Royal Dutch Shell reported a sharp rise in net profit on Thursday, beating analyst forecasts and joining its peers as stronger oil prices and improved refining margins boosted revenue after nearly three years of downturn.

A billion dollars in cost savings and budget cuts made over the past three years, as well as around US$20 billion of asset sales following the US$54 billion acquisition of BG Group last February, also helped increase cash flow and boost profits.

After completing the integration of BG Group in the third quarter of last year, the company and investors are turning their focus to increasing revenue and reducing debt as oil prices appear to recover.

A near 55% rise in oil prices in the first quarter compared with a year earlier to around US$54 a barrel was the main driver of earnings growth.

Wednesday, 3 May 2017

Six killed in crane collapse at Samsung shipyard in Geoje, South Korea

Six people died and more than 20 were injured when a crane collapsed at a Samsung Heavy Industries shipyard in South Korea on Monday,

The incident took place during the construction of an oil platform for French energy company Total's Martin Linge field off Norway. The extent of any damage to the platform was not immediately clear, a Total spokesman in Norway said.

Total and Samsung Heavy said it was also not clear how the incident might affect delivery of the platform, which was expected to start producing oil and gas in the North Sea in 2018.

"It's too early to say what would be the consequences for delivering the platform, but for the time being all work at the yard has been stopped and the investigation is ongoing," said Leif Harald Halvorsen, a spokesman for Total's Norwegian subsidiary.

Tuesday, 2 May 2017

16 Malaysian Companies Participate In O&G Trade Exhibition In Houston

Sixteen Malaysian companies from the oil and gas (O&G) sector and comprising mostly small and medium enterprises (SMEs), participate alongside large corporations, including Petronas, at the Offshore Technology Conference (OTC) 2017 from May 1- 4 in Houston, United States.

The event is the largest O&G trade exhibition of its kind globally .

In a statement, the Malaysia External Trade Development Corporation (Matrade) said it would coordinate participation of the Malaysian companies at the event.

In collaboration with Malaysia Petroleum Resources Corporation (MPRC), Matrade will also explore export opportunities in the O&G sector.

The exhibition is expected to attract over 80,000 O&G leaders and experts from around the world.

Monday, 1 May 2017

Muhibbah group bags Bintulu Port job worth RM584.8mil

Muhibbah Engineering (M) Bhd’s 51%-owned subsidiary Muhibbah Viccana JV has secured a RM584.84mil contract to build a wharf, jetty and other associated facilities at Bintulu Port in Sarawak.

In a filing with Bursa Malaysia, the Klang-based engineering contractor said construction works for the project, awarded by the Bintulu Port Authority, would start immediately and be completed by end-2019.

Muhibbah had in 2014 bagged a RM157mil contract to construct the conveyor system facilities at the RM1.8bil Samalaju deepsea port also located in Bintulu.

The latest win is the second major contract netted this year by the Muhibbah group. In January, 49%-owned Muhibbah Engineering Middle East LLC clinched a 356.7 million Qatari riyal (RM425.4mil) deal from the Qatari government to build roads and infrastructure works at the Um Alhoul Economic Zone.

TH Heavy Engineering woes pile up

Global auditing company Deloitte has highlighted "multiple uncertainties that may cast significant doubt" on the future of the Malaysian oil and gas fabricator TH Heavy Engineering.

At the same time, the Malaysian Securities Commission and Malaysian Stock Exchange have made a series of demands on TH Heavy as part of its Practice Note 17 requirements.

In its disclaimer opinion attached to TH Heavy's latest annual results, Deloitte said it has "not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion".

As at 31 December 2016, the current liabilities of TH Heavy have exceeded its current assets by 733.1 million ringgit ($170 million) as a result of losses incurred during the current and prior financial years, said Deloitte.

The company has no fabrication project which is in progress as at year end.

Libya's Biggest Oil Field Sharara to reopen

Libya’s biggest oil field, Sharara, reopened as crude began to move through a pipeline connected to the Zawiya refinery, according to a person with direct knowledge of the matter.

Oil began to be distributed through the pipeline on Wednesday, and is expected to reach Zawiya Thursday night, the person said, asking not to be identified because the information hasn’t been announced.

Libya’s overall production is 491,000 bopd, National Oil Corp. Chairman Mustafa Sanalla said Thursday at a conference in Paris. Daily output averaged 420,000 to 460,000 bbl over the past few days, another person with direct knowledge of production said.

Petronas Lubricants expands China plant

Petronas invested RMB600 million (RM384 million) to expand its lubricant-blending plant in Shandong, China to meet the market’s growing demand for the product.

In a statement, Petronas president and group CEO Datuk Wan Zulkiflee Wan Ariffin said the annual output of the plant within the Weifang Economic Development Zone was expected to increase from 45,000 to 150,000 tonnes, which included automotive and industrial lubricant.

“The second phase expansion at our Shandong plant adds much-needed production capacity that will help us meet the soaring demand for our products.

"This strategic expansion of our footprint in China reflects the great importance we attach to our local customers here as well as our confidence in Petronas' prospects for future growth in the Chinese market," Wan Zulkiflee said.