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

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.

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

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.

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.

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.

AFP

MALAYSIA OPENING - FLEXIBLE AND RISER INSPECTOR

Hi ALL,

Greetings!

We have an opening for Flexible and Riser Inspector for a Subsea project in Johor Malaysia. This would be 1-2 years contract under Hask Engineering and Management.

The Client:
Company that delivers services of classification, certification, testing and inspection (TIC Services) to guarantee excellence to organizations in the marine, environment and energy, infrastructures, transport and logistics, quality and safety and agri-food sectors. As a result of their ongoing investments in R&D and training, They have consolidated exceptional skills in certifying management systems, products, installations and personnel for companies of all sizes operating anywhere in the world, at the same time developing their core business of ship classification and certification.

Job Description:
• Diploma & Degree in Engineering preferable in Metallurgical / Material Engineering.
• At least 10 years experience in flexible and riser welding, flexible & riser inspection and testing associated with oil and gas projects with extensive experience and weld inspection procedures and techniques, including but not limited to visual inspection, magnetic particle, radiographic and ultrasonic NDT, in oil and gas environment.
• Familiar with the Code, standard, specification related flexible & riser equipment and welding (ASME, API, ASTM, ISO, MIGAS, SNI).
• Level II in NDE under ASNT-TC-001 A experience on procedures validation.
• Qualified welding inspector or recognized Certification Scheme (B4T/BKI, CSWIP, AWS or PCN).


Should you find yourself suitable and interested, please do send us a copy of your UPDATED CV (word format) along with your salary details (current and expectation) and earliest availability.

Please assist us in forwarding this mail to your friends / colleagues who might be interested in moving. For inquiries, you may reach me thru mail Lizette@haskem.com or you may call +65 6492 5852. Thank you!


Best Regards,

MISS LIZETTE
HR Consultant

HASKEM INC.
For
HASK Engineering & Management Pte. Ltd.
50 Bukit Batok St. 23
#04-23, Midview Building
Singapore 659578
Tel: +65 6492 5852
EMAIL ID: lizette@haskem.com
SKYPE ID : lizettehask;      WEBSITE : www.haskem.com

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