Nik Hamdan resigns as Barakah president/CEO

Barakah Offshore Petroleum Bhd's founder Nik Hamdan Daud has resigned from his posts as group president and chief executive officer with immediate effect.The company, in a filing with Bursa Malaysia yesterday, said Nik Hamdan had left the company due to "personal reasons". 

Nik Hamdan is the single largest shareholder in Barakah with a 33% stake. 

To take over his role, the company has appointed Abdul Rahim Awang as acting group CEO with immediate effect until the appointment of a new group president and CEO is made. 

Barakah is currently in the midst of restructuring its debts. 

The company and its subsidiaries recorded total liabilities of RM335.6mil in its fourth quarter ended Dec 31, 2018. 

"The company is still in the midst of formulating a debt-restructuring scheme to settle the group's debt. At this juncture, the actual amount of debt to be restructured has yet to be determined," it said in a statement on March 18. 

On March 6, the High Court of Malaya granted that the restraining order be extended for 90 days from Jan 14. 

The restraining order was applied as one of the proactive measures taken by Barakah to manage the debt levels of the company and its wholly owned subsidiary – PBJV Group Sdn Bhd.

Sarawak O&G players set to gain under Petros

Sarawak oil and gas players are set to benefit as the state transitions into the new administration of its oil resources under Petroleum Sarawak Bhd (Petros), with plans to increase local participation in the industry.

UOB Kay Hian Research singled out Serba Dinamik Holdings Bhd as among the major beneficiaries, aside from other Sarawak-listed companies like Dayang Enterprise Holdings Bhd, Petra Energy, KKB Engineering and Brooke Dockyard. 

The research house recently attended the Sarawak oil & gas seminar and exhibition, said the issues covered during the conference included Petros' plans, and matters relating to vendor development and reserves data. 

By end-2019, it said, Petros would take firm action to implement the state's mandate, particularly in relation to revenue sharing and local participation. 

"We believe this is necessary to kick start delayed greenfield projects," it said in a note. 

The research house, which maintained its "market weight" stance on the sector, said Petros CEO Sauu Kakok clarified during the seminar that their key targets included driving more share of revenue from Sarawak O&G resources and boosting participation of Sarawakians. Petros, it said, was actively working towards meeting the "hard target timeline" of Dec 31 for measures including setting up governance policies. 

"This implies that the one-year grace period for Petronas, Putrajaya (and its key advisors), and Sarawak state will conclude. 

"We understand further delays are unlikely as all stakeholders are working hard to reach firm agreements," the research house said. 

Petros, which was set up in August 2017, is in charge of regulating upstream production, governed under the oil mining ordinance 1958. It is also regulating the gas distribution governed under the distribution of gas ordinance.

A technical session during the seminar revealed that the Sarawak basin has 23% of Malaysia's oil and 51% of natural gas.

For the overall sector, UOB Kay Hian said many O&G stocks remained "too locally dependent".

It noted that Petroliam Nasional Bhd (Petronas) would focus on overseas upstream capex, while domestic upstream capex is set to improve from RM12bil in 2018 to RM15bil in 2019.

"We understand local activity levels have generally increased, especially for maintenance/brownfield works, with maintenance, construction and modification contractors like Dayang Enterprise and Petra Energy guiding high activity levels in 2019 although rates remain low," it said.

The research house said it favoured internationally competitive companies, like engineering, procurement, construction and commissioning and storage operator Dialog Group Bhd and Yinson Holdings.

Video viral bukan kebakaran kilang di Gebeng

Jabatan Bomba dan Penyelamat Malaysia (JBPM) Pahang menafikan dakwaan berlaku kebakaran sebuah kilang di Taman Perindustrian Malaysia China Kuantan (MCKIP) Gebeng di sini, seperti rakaman video yang tersebar di media sosial.

Kebakaran itu sebaliknya disebabkan oleh pembakaran lebihan gas yang terhasil daripada proses pembakaran arang batu.

Pengarah JBPM negeri, Nor Hisham Mohammad, berkata insiden berkenaan bukan membabitkan kebakaran kilang, Allience Steel (M) Sdn Bhd seperti yang tersebar.

Katanya, sepasukan anggota dari Balai Bomba dan Penyelamat Gebeng bersama empat pegawai penyiasat kebakaran ke lokasi pada jam 11.45 malam tadi sebelum mendapati kejadian itu berlaku di blok relau pembakaran arang batu (Coal Coking Plant).

"Bukan kebakaran kilang seperti yang didakwa. Sebaliknya, kejadian jam 9.40 malam itu tercetus selepas berlaku gangguan bekalan elektrik di dalam kawasan kilang itu," katanya dalam satu kenyataan, hari ini.

Beliau berkata, ketika gangguan bekalan elektrik, kipas penyedut (extraction fan) di blok relau pembakaran arang batu itu terhenti, menyebabkan sistem keselamatan relau berfungsi secara automatik dengan melepaskan lebihan gas yang dihasilkan melalui cerobong pelepasan haba bagi mengelakkan lebihan tekanan dalam relau.

"Berikutan suhu yang tinggi di dalam relau, gas ini terbakar apabila dilepaskan di samping mengelak berlaku pencemaran udara. Semua lapan cerobong pelepasan haba berfungsi sebagaimana direkabentuk dan membakar gas yang terhasil.

"Video dan gambar kebakaran yang tersebar adalah imej pembakaran gas terbabit. Kita sudah menyiasat kejadian ini dan memanggil pihak syarikat untuk memberikan penjelasan lanjut," katanya.

Kerajaan tiada rancangan teruskan projek paip TSGP Sabah

Perdana Menteri Dr Mahathir Mohamad tetap berpegang kepada keputusan membatalkan projek Saluran Gas Paip Trans-Sabah (TSGP) bernilai RM4.06 bilion yang disokong oleh negara China.

Beliau berkata demikian dalam sidang media di Putrajaya hari ini.

Mahathir pada Ogos tahun lepas mengumumkan dua projek saluran paip - TGSP dan projek Saluran Paip Pelbagai Produk (MPP) di Melaka - dibatalkan bersama dengan projek Laluan Rel Pantai Timur (ECRL).

Bagi produk ECRL kerajaan bagaimanapun merunding semula dengan syarikat China yang mengambil masa selama 10 bulan sebelum diteruskan dengan kos lebih murah.

Difahamkan usaha yang sama tidak dilakukan untuk projek TSGP.

Projek itu diuruskan oleh Suria Strategic Energy Resources (SSER) - anak syarikat milik penuh Kementerian Kewangan yang dbentuk khusus bagi melibatkan diri dalam industri paip dan saliran.

[Video] Kebakaran di Pengerang Integrated Complex

Sapura Energy bags contracts worth RM1.3 bil

Sapura Energy Bhd has bagged five new engineering, construction and drilling contracts worth RM1.3 billion.

In a filing with Bursa Malaysia, the company said the new wins included a submarine rescue service contract for the Royal Australian Navy. 

The group has also marked a new entry into Egypt with a contract for works in the Gulf of Suez, through a subcontract for new subsea pipelines secured by its subsidiary, Sapura Offshore Sdn Bhd, from Pan Marine Petroleum Services Company.

"The contracts demonstrate Sapura Energy's continued pursuit to deepen its presence in existing core markets, breaking into new markets and expanding its scope of services.

"The growing order book is expected to increase asset utilisation for the group and contribute to improving its financial performance," it said.

Sapura Energy also said Sapura Drilling Asia Sdn Bhd had secured two new contracts — a provision job for ExxonMobil Exploration and Production Malaysia Inc's tender assist drilling rig, Sapura T-9, as well as the extension of a contract by Petronas Carigali Sdn Bhd for the provision of semi tender assisted drilling rig, Sapura Berani.

The list of contracts also include Sapura Offshore's joint-venture with PT Timas Suplindo on a contract for engineering, procurement, construction and installation works of two 16-inch diameter offshore rigid pipelines from Indonesia's Jangkrik facility to a future manifold near the Merakes drilling centres.

Sapura Energy currently has 10 key operating centres around the globe. 

Two hurt in massive blast, fire at Petronas's Rapid in Pengerang

A massive explosion rocked Petronas's Refinery and Petrochemical Integrated Development (Rapid) at the Pengerang Integrated Complex near here, at 1.25am today.

The blast was followed by a huge blaze which could be seen kilometres away, Bernama reported.

It is understood that two Malaysian workers were injured in the incident. The extent of their injuries has yet to be established.

Videos and images of the ensuing fire at the complex have gone viral on social media, with several local netizens claiming to have felt tremors as a result of the explosion.

According to various reports, the fire was doused by about 2.30am.According to Bernama, checks at the complex at 6.30am today found no trace of the fire and that the plant was operating as usual. Buses were seen ferrying workers to the site, and lorries were heading in and out of the complex as per normal.

In confirming the incident, Petronas said its Emergency and Fire Response Team, which was immediately deployed to the scene, managed to the contain the fire within 30 minutes.

"The situation is under control and all the relevant authorities have been informed (of the incident).

"We will provide additional information in due course, as the investigation is still being carried out," it said.

MHB joint venture gets 5-year service contract from Petronas

Malaysia Marine and Heavy Engineering Holdings Bhd's (MHB) wholly-owned unit has bagged a service agreement contract from Petroliam Nasional Bhd (Petronas).

In a statement today, it said Malaysia Marine and Heavy Engineering Sdn Bhd, in a joint venture agreement with Hiap Seng Engineering Ltd, was awarded a master service agreement that covers integrated plant turnaround works and daily maintenance work on mechanical static for Petronas' plants, across the group.

The agreement is valid for a period of five years, and Petronas has an option to extend it. No contract value was mentioned in the statement.

"This long-term project award is aligned with our strategy to venture into new businesses that provides recurring orders in ensuring MHB's growth sustainability. 

We are committed to execute the work efficiently, without compromising on safety and quality," said the group's managing director and chief executive officer, Wan Mashitah Wan Abdullah Sani.

Airbus Helicopters makes Malaysia Southeast Asia MRO, training hub

Airbus Helicopters, the world's leading helicopter manufacturer, is making Malaysia its maintenance, repair and overhaul (MRO) hub in Southeast Asia, following the integration of its Subang facility with its network of MRO facilities in the region.

Chief executive officer (CEO) Bruno Even said the Subang facility was previously offering only MRO services to domestic clients and supported only selected types of helicopters.

He said the type of helicopters supported by the expanded centre will include a wide range of civil and military rotorcraft such as the AS365, H120, H130, H145, H155, H225, H225M and AS555SN Fennec for all customers regionally.

He said given the helicopter industry's positive global prospects in the next 20 years, with a worldwide demand for up to 22,000 helicopters and Asia Pacific accounting for 35% of the demand, Airbus Helicopters planned to position itself in a strategic market like Malaysia.

"The main driver of the whole helicopter market will be Asia and that's important to invest in the capability here and capture the bulk of this growth, as well as to provide the right level of service.

"This is why we consider Malaysia as a key centre in Asia. Airbus have succeeded in developing a strong technical base and competency here, and we want to leverage on it," he told Bernama and the New Straits Times in an exclusive interview here today.

Even is on his maiden visit as CEO to Kuala Lumpur.

With about 50% of the market share in Malaysia and over 20% in Asia Pacific, Airbus Helicopter plans to further expand their market.

The integration of the Subang facility with its MRO network was part of the Airbus Helicopters' commitment to expand its footprint in Malaysia, and offers more products and services to customers around the world.

The facility was also expanded to include the opening of a new helicopter completion and delivery centre, as well as the addition of second flight crew training simulator for the AS365 Dauphin helicopter to the existing H225 full flight simulator.

Airbus Malaysia head of country Raymond Lim said helicopters in the region will be delivered from the new centre in Subang, which is currently at the final stages of completion, pending certification from the Civil Aviation Authority of Malaysia (CAAM).

He expects the new delivery centre, which has the capacity to deliver up to 20 helicopters annually, to be certified by CAAM by month-end.

"We are expecting (to deliver) between 10 to 12 (helicopters) for 2019," Lim added.

Meanwhile, Even said Malaysia is the only country outside of Europe that has a flight simulator for the medium-weight multipurpose twin-engine helicopter AS365 Dauphin.

He said Airbus Helicopters' customers in the military, parapublic and civil sectors will come to Subang for training and the United Arab Emirates Navy have started using the simulator for training since it began operations on April 1

Icon Offshore bags contract from Petronas Carigali

Icon Offshore Bhd's wholly owned subsidiary Icon Offshore Group Sdn Bhd (IOGSB) has secured an RM8 million contract from Petronas Carigali Sdn Bhd for the provision of straight supply vessel.

Icon Offshore, in a filing with Bursa Malaysia today, said the commencement date for the work order, for its Tanjung Pinang 2 vessel, will commence on March 7, 2019 for a period of 180 days with an extension option of 180 days.

In a separate filing, Icon Offshore said three Petroleum Arrangement Contractors (PACs) had also collectively awarded five contracts for the provision of offshore support vessels for PACs' Production Operations via five letters of award, all dated early September 2018.

Icon Offshore said it would be on a call out basis valid for a period of three years with an extension option of one year plus one year.

The company said the contracts are expected to contribute positively to the earnings, order book and net assets of the group for the financial year ending December 31, 2019 and beyond.

In June 2018, Icon Offshore announced that IOGSB, secured oil and gas (O&G) related contracts worth RM275 million in cumulative value.

One of the contracts is to provide offshore support vessels to O&G companies to support their production operations in Malaysian waters.

The contract valued at RM169 million was for a primary period of three years with an extension option of up to two years of one year each, it said in a filing to Bursa Malaysia.

The other job worth RM106 million was to provide two platform supply vessels to ExxonMobil Exploration and Production Malaysia Inc for its production operations, the company said.

The contract has two optional extension periods.