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.