Perdana Menteri Datuk Seri Najib Razak mengumumkan pelantikan Tan Sri Mohd Sidek Hassan, yang tempohnya sebagai Ketua Setiausaha Negara (KSN) tamat esok, sebagai pengerusi Petronas.
Beliau berkata pelantikan itu akan berkuatkuasa sebaik selesai beberapa urusan dalaman.
Menurut Najib, pelantikan itu sebagai menghargai kepimpinan dan integriti Mohd Sidek yang telah menunjukkan perkhidmatan cemerlang dalam sector perkhidmatan awam.
“Saya yakin dan percaya Tan Sri Mohd Sidek akan memberi sumbangan yang besar dan meningkatkan hubungan antara Petronas dan kerajaan,” katanya ketika mengumumkan pelantikan itu pada majlis makan malam penghargaan Mohd Sidek di sini malam ini.
Turut hadir isteri Perdana Menteri Datin Seri Rosmah Mansor, Timbalan Perdana Menteri Tan Sri Muhyiddin Yassin dan isteri Puan Seri Noorainee Abdul Rahman serta isteri Mohd Sidek, Puan Sri Wan Noorlina Wan Hussin.
Pada masa ini, jawatan pengerusi Petronas dipangku oleh Presiden dan Ketua Pegawai Eksekutifnya, Datuk Shamsul Azhar Abbas.
Mohd Sidek dilantik menerajui perkhidmatan awam sebagai KSN pada 3 September 2006. Perkhidmatan beliau disambung sebanyak tiga kali sejak 2009 sehingga kini atas kepentingan negara.
Jawatan KSN yang baru akan disandang oleh Ketua Pengarah Unit Kerjasama Awam Swasta (UKAS) di Jabatan Perdana Menteri, Datuk Seri Dr. Ali Hamsa, 57, berkuat kuasa 24 Jun ini.
Najib berkata dalam tempoh enam tahun menerajui perkhidmatan awam, Mohd Sidek telah meningkatkan tahap perkhidmatan awam sehingga mampu menjadi penanda aras global sebagai sektor perkhidmatan yang boleh dicontohi.
“Sepanjang kepimpinan Tan Sri Mohd Sidek, kerjasama erat antara sektor awam dan swasta ditingkatkan, beliau juga meningkatkan tatacara pengurusan perkhidmatan awam dengan memperkenalkan pembayaran bil-bil kerajaan dalam tempoh 14 hari.
“Perubahan yang amat berjaya ialah Strategi Lautan Biru yang telah membawa hasil yang sangat membanggakan,” katanya.
Najib berkata beliau yakin sebagai penjawat awam yang telah berkhidmat sebagai 38 tahun, Mohd Sidek bukan seorang yang mencari populariti peribadi, tetapi lebih senang sejarah sumbangannya dinilai oleh rakyat sendiri.
Dalam pada itu, Mohd Sidek berkata pengumuman Perdana Menteri mengenai pelantikannya sebagai Pengerusi Petronas adalah satu kejutan besar buat dirinya.
“Saya ingat sebagai ketua setiausaha dan setiausaha kepada Kabinet, tidak harus ada rahsia antara kami tetapi pengumuman ini merupakan satu rahsia kepada saya. Saya hanya tahu apabila perdana menteri mengumumkannya,” katanya.
Bagaimanapun, Mohd Sidek berkata beliau amat menghargai pelantikan itu dan berjanji akan melakukan yang terbaik agar tidak menghampakan harapan semua pihak. — Bernama
Saturday, 23 June 2012
Friday, 22 June 2012
Hess and PETRONAS Sign Partnership Agreements to Develop North Malay Basin
Hess Corporation HES has signed agreements with PETRONAS to develop the North Malay Basin, located offshore Peninsular Malaysia.
The agreements creating the North Malay Basin Integrated Gas Development Project include amendments to the existing Production Sharing Contract for Block PM302, which is operated by Hess. The amendments enlarge the contract area to include nine discovered fields in the North Malay Basin for production of natural gas.
PETRONAS has also awarded Blocks PM325 and PM326B to Hess and PETRONAS Carigali that will be explored, appraised and developed.
"The North Malay Basin Integrated Gas Development Project is consistent with our strategy to invest in long life, low risk reserves with attractive returns and exploration upside. It also builds upon our strategic partnership with PETRONAS," said Greg Hill, President of Worldwide Exploration and Production for Hess.
Hess will have a 50 percent working interest and become operator of the project, which is expected to add discovered net resources of 80 million to 100 million barrels of oil equivalent to Hess' portfolio. First production is forecast to commence in 2013 at a net rate of approximately 40 million cubic feet of natural gas per day and increase in 2015 to an estimated 125 million cubic feet per day. The project will require a net investment for Hess of approximately $250 million in 2012 and an estimated $400 million per year between 2013 and 2015.
Hess Corporation, with headquarters in New York, is a global integrated energy company engaged in the exploration, production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum products. More information on Hess Corporation is available at http://www.hess.com .
Forward Looking Statements
Certain statements in this conference call may constitute "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, uncertainties inherent in the measurement and interpretation of geological, geophysical and other technical data.
SOURCE: Hess Corporation
The agreements creating the North Malay Basin Integrated Gas Development Project include amendments to the existing Production Sharing Contract for Block PM302, which is operated by Hess. The amendments enlarge the contract area to include nine discovered fields in the North Malay Basin for production of natural gas.
PETRONAS has also awarded Blocks PM325 and PM326B to Hess and PETRONAS Carigali that will be explored, appraised and developed.
"The North Malay Basin Integrated Gas Development Project is consistent with our strategy to invest in long life, low risk reserves with attractive returns and exploration upside. It also builds upon our strategic partnership with PETRONAS," said Greg Hill, President of Worldwide Exploration and Production for Hess.
Hess will have a 50 percent working interest and become operator of the project, which is expected to add discovered net resources of 80 million to 100 million barrels of oil equivalent to Hess' portfolio. First production is forecast to commence in 2013 at a net rate of approximately 40 million cubic feet of natural gas per day and increase in 2015 to an estimated 125 million cubic feet per day. The project will require a net investment for Hess of approximately $250 million in 2012 and an estimated $400 million per year between 2013 and 2015.
Hess Corporation, with headquarters in New York, is a global integrated energy company engaged in the exploration, production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum products. More information on Hess Corporation is available at http://www.hess.com .
Forward Looking Statements
Certain statements in this conference call may constitute "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, uncertainties inherent in the measurement and interpretation of geological, geophysical and other technical data.
SOURCE: Hess Corporation
Thursday, 14 June 2012
Terengganu home for refinery
MALAYSIA will house Asia's largest biorefinery complex in Terengganu.
The complex, which the government has allocated RM170 million for its infrastructure, is expected to generate a cumulative gross national income of RM20.4 billion by 2020 and produce 2,500 green-jobs.
The East Coast Economic Region Development Council (ECERDC) has teamed up with the Terengganu government and Malaysian Biotechnology Corp Sdn Bhd (BiotechCorp) to facilitate the project.
ECERDC chief executive officer Datuk Jebasingam Issace John said with the biorefinery project, ECER now had secured more than RM10 billion in investments.
From the total, RM2.1 billion investments were from Pahang, RM5 billion from Johor and RM500 million from Kelantan. Terengganu makes up the balance.
ECERDC expects total investments to hit RM15 billion this year.
Jebasingam said the complex would be the first in Malaysia to use cellulosic feedstock to produce bioderivatives such as advanced carbohydrates, biochemicals, biomaterials, biofertilisers and active feed ingredient.
He was speaking after the signing ceremony, which was witnessed by Menteri Besar Datuk Seri Ahmad Said, here yesterday.
BiotechCorp CEO Datuk Mohd Nazlee Kamal said the 1,000ha complex was expected to be occupied by eight global industrial biotechnology players by 2015, with estimated RM6.8 billion in foreign direct investment.
"To ensure uninterrupted downstream operations, 30,000ha have been set aside as dedicated feedstock plantations that will produce 10.5 million tonnes of wood chips annually from Acacia mangium and Leucaena leucocephala," he said.
Construction of the complex, located at the Kertih Biopolymer Park, is slated to begin in August, with operations starting early 2014.
BiotechCorp and ECERDC have already secured RM2 billion investment from a joint-venture between Korea's CJ CheilJedang and France's Arkema to build the world's first bio-methionine facility there.
The complex, which the government has allocated RM170 million for its infrastructure, is expected to generate a cumulative gross national income of RM20.4 billion by 2020 and produce 2,500 green-jobs.
The East Coast Economic Region Development Council (ECERDC) has teamed up with the Terengganu government and Malaysian Biotechnology Corp Sdn Bhd (BiotechCorp) to facilitate the project.
ECERDC chief executive officer Datuk Jebasingam Issace John said with the biorefinery project, ECER now had secured more than RM10 billion in investments.
From the total, RM2.1 billion investments were from Pahang, RM5 billion from Johor and RM500 million from Kelantan. Terengganu makes up the balance.
ECERDC expects total investments to hit RM15 billion this year.
Jebasingam said the complex would be the first in Malaysia to use cellulosic feedstock to produce bioderivatives such as advanced carbohydrates, biochemicals, biomaterials, biofertilisers and active feed ingredient.
He was speaking after the signing ceremony, which was witnessed by Menteri Besar Datuk Seri Ahmad Said, here yesterday.
BiotechCorp CEO Datuk Mohd Nazlee Kamal said the 1,000ha complex was expected to be occupied by eight global industrial biotechnology players by 2015, with estimated RM6.8 billion in foreign direct investment.
"To ensure uninterrupted downstream operations, 30,000ha have been set aside as dedicated feedstock plantations that will produce 10.5 million tonnes of wood chips annually from Acacia mangium and Leucaena leucocephala," he said.
Construction of the complex, located at the Kertih Biopolymer Park, is slated to begin in August, with operations starting early 2014.
BiotechCorp and ECERDC have already secured RM2 billion investment from a joint-venture between Korea's CJ CheilJedang and France's Arkema to build the world's first bio-methionine facility there.
Wednesday, 13 June 2012
Gumusut full start-up delayed to H2 2013
The full start-up of Malaysia's 135,000 barrels per day (bpd) Gumusut-Kakap deepsea oilfield has been delayed to the second half of 2013 from 2012, an official at Petroliam Nasional Bhd (Petronas) said yesterday.
Construction of the floating production facility for the field has taken longer than expected, said Datuk Wee Yiaw Hin, executive vice-president for exploration and production at Petronas. "There has been some delay because we want to get fabrication complete so that when we roll out we are not faced with a lot of offshore work," Wee told reporters on the sidelines of an industry event.
"Therefore I think 2013 instead of 2012 ... sometime in the third or fourth quarters."
The company aims for 25,000 to 30,000 bpd early production from the field in the fourth quarter 2012 through linking some wells already drilled to another platform, Wee said.
Royal Dutch Shell operates the project and holds a 33 per cent stake. ConocoPhillips has a 33 per cent stake, Petronas holds 20 per cent and Murphy Oil 14 per cent. Reuters
Construction of the floating production facility for the field has taken longer than expected, said Datuk Wee Yiaw Hin, executive vice-president for exploration and production at Petronas. "There has been some delay because we want to get fabrication complete so that when we roll out we are not faced with a lot of offshore work," Wee told reporters on the sidelines of an industry event.
"Therefore I think 2013 instead of 2012 ... sometime in the third or fourth quarters."
The company aims for 25,000 to 30,000 bpd early production from the field in the fourth quarter 2012 through linking some wells already drilled to another platform, Wee said.
Royal Dutch Shell operates the project and holds a 33 per cent stake. ConocoPhillips has a 33 per cent stake, Petronas holds 20 per cent and Murphy Oil 14 per cent. Reuters
Five Petronas workers injured in oil rig fire
MIRI: Five Petronas maintenance workers were injured, three of them seriously, in a fire that broke out at Petronas Carigali's "Tukau B" oil drilling platform, 31 nautical miles west of here yesterday.
Petronas said in a statement that the 9.20am fire occurred at the compressor skid of the platform and that the injured workers were airlifted to Miri Hospital by helicopter.
They landed at the Miri Airport at 12.45pm and were sent to the hospital in several ambulances.
Eleven other personnel on the platform, who were uninjured in the incident, were repatriated to the nearby "Tukau A" living quarters.
Datuk Sebastian Ting, the political secretary to the energy, green technology and water minister, visited the injured workers yesterday.
Ting identified one of the workers as Bernard Christopher, who suffered burns and is being treated in the intensive care unit.
"The doctor treating him said it was a first-degree burn," Ting told reporters.
He said Christopher was conscious and could relate to him what happened on the platform.
Christopher said the fire happened in a flash and it spread quickly.
Ting said Christopher considered himself lucky as he managed to shield his face with his hands when the compressor exploded and the fire broke out.
Petronas said the cause of the fire was still under investigation.
Petronas said in a statement that the 9.20am fire occurred at the compressor skid of the platform and that the injured workers were airlifted to Miri Hospital by helicopter.
They landed at the Miri Airport at 12.45pm and were sent to the hospital in several ambulances.
Eleven other personnel on the platform, who were uninjured in the incident, were repatriated to the nearby "Tukau A" living quarters.
Datuk Sebastian Ting, the political secretary to the energy, green technology and water minister, visited the injured workers yesterday.
Ting identified one of the workers as Bernard Christopher, who suffered burns and is being treated in the intensive care unit.
"The doctor treating him said it was a first-degree burn," Ting told reporters.
He said Christopher was conscious and could relate to him what happened on the platform.
Christopher said the fire happened in a flash and it spread quickly.
Ting said Christopher considered himself lucky as he managed to shield his face with his hands when the compressor exploded and the fire broke out.
Petronas said the cause of the fire was still under investigation.
Tuesday, 12 June 2012
Handal unit gets RM120m Petronas Carigali job
Handal Resources Bhd's unit has secured a RM120mil contract from Petronas Carigali Sdn Bhd to provide integrated crane services.
It said on Monday Handal Offshore Services Sdn Bhd would provide the services over a five-year period, starting in June this year.
Handal expected the contract to contribute to the group's revenue and earnings and net assets per share for the financial year ending Dec 31, 2012.
It said on Monday Handal Offshore Services Sdn Bhd would provide the services over a five-year period, starting in June this year.
Handal expected the contract to contribute to the group's revenue and earnings and net assets per share for the financial year ending Dec 31, 2012.
Monday, 11 June 2012
Dayang considers going into development of marginal oilfields
Dayang Enterprise Holdings Bhd, a service provider to the oil and gas industry, may venture into marginal oilfield development if the prospects are good.
Managing director Tengku Datuk Yusof Tengku Ahmad Shahruddin said the company would carry out thorough evaluations and seek guidance before deciding whether to participate in risk service contracts (RSC) for the development of marginal oilfields.
“We are currently not embarking on any study yet for marginal oilfields,” he told StarBizWeek.
Tengku Yusof said it was imperative that any decision made on the matter was with the betterment of the company in mind, setting the direction for years to come.
Petroliam Nasional Bhd (Petronas) plans to develop 25% or 27 of the 106 marginal oilfields in Malaysia which are reported to collectively contain 580 million barrels of oil equivalent.
The marginal oilfields would be put in clusters of four or five fields each for development.
In January last year, Petronas awarded the first RSC, involving two clusters of marginal oilfields Sepat and Berantai to a consortium comprising London-listed Petrofac Energy Development Sdn Bhd, Sapura Energy Ventures and Kencana Energy Sdn Bhd.
The second RSC to develop the Balai cluster oilfield, offshore Sarawak, was awarded to another consortium comprising Petronas Carigali Sdn Bhd, Dialog Group Bhd and Australia-listed ROC Oil last August.
Petronas president and chief executive officer Datuk Shamsul Azhar Abbas had said recently that it was expected to award the next round of RSCs by July.
Tengku Yusof said with a cash pile of nearly RM218mil (at end-2011), should help Dayang to venture into any new areas of business, like marginal oilfield developpment if the prospects were encouraging, and to pursue acquisitions.
He said the new incentives, like a reduction of petroleum income tax rate to 25% from 38%, a waiver of export duty on oil produced and exported from marginal field development, should spur the development of such oilfields.
Dayang has ongoing contracts worth some RM1.5bil that could last until 2016.
The single largest contract valued at RM802mil for topside structural maintenance was secured from Petronas Carigali last year.
“Our immediate priority lies in replenishing our order book,” said Tengku Yusof.
With Petronas revising upwards last year its planned capital expenditure for the development of offshore facilities to RM300bil from RM250bil over the next five years, Tengku Yusof said there could possibly be many jobs or recurring contracts worth more than RM5bil which Dayang could bid for and win.
This year, Dayang has secured two contracts - RM85mil for its workboat MV Dayang Zamrud with Brunei Shell Petroleum Company for five years and RM125mil for topside maintenance from Talisman Malaysia Ltd.
“We forsee our company being kept busy over the next few years with plenty of job opportunities,” he added. Besides, he noted that Petronas and Shell had recently signed two production sharing contracts, opening the door to US$12bil worth of enhanced oil recovery investments over the next 30 years.
Managing director Tengku Datuk Yusof Tengku Ahmad Shahruddin said the company would carry out thorough evaluations and seek guidance before deciding whether to participate in risk service contracts (RSC) for the development of marginal oilfields.
“We are currently not embarking on any study yet for marginal oilfields,” he told StarBizWeek.
Tengku Yusof said it was imperative that any decision made on the matter was with the betterment of the company in mind, setting the direction for years to come.
Petroliam Nasional Bhd (Petronas) plans to develop 25% or 27 of the 106 marginal oilfields in Malaysia which are reported to collectively contain 580 million barrels of oil equivalent.
The marginal oilfields would be put in clusters of four or five fields each for development.
In January last year, Petronas awarded the first RSC, involving two clusters of marginal oilfields Sepat and Berantai to a consortium comprising London-listed Petrofac Energy Development Sdn Bhd, Sapura Energy Ventures and Kencana Energy Sdn Bhd.
The second RSC to develop the Balai cluster oilfield, offshore Sarawak, was awarded to another consortium comprising Petronas Carigali Sdn Bhd, Dialog Group Bhd and Australia-listed ROC Oil last August.
Petronas president and chief executive officer Datuk Shamsul Azhar Abbas had said recently that it was expected to award the next round of RSCs by July.
Tengku Yusof said with a cash pile of nearly RM218mil (at end-2011), should help Dayang to venture into any new areas of business, like marginal oilfield developpment if the prospects were encouraging, and to pursue acquisitions.
He said the new incentives, like a reduction of petroleum income tax rate to 25% from 38%, a waiver of export duty on oil produced and exported from marginal field development, should spur the development of such oilfields.
Dayang has ongoing contracts worth some RM1.5bil that could last until 2016.
The single largest contract valued at RM802mil for topside structural maintenance was secured from Petronas Carigali last year.
“Our immediate priority lies in replenishing our order book,” said Tengku Yusof.
With Petronas revising upwards last year its planned capital expenditure for the development of offshore facilities to RM300bil from RM250bil over the next five years, Tengku Yusof said there could possibly be many jobs or recurring contracts worth more than RM5bil which Dayang could bid for and win.
This year, Dayang has secured two contracts - RM85mil for its workboat MV Dayang Zamrud with Brunei Shell Petroleum Company for five years and RM125mil for topside maintenance from Talisman Malaysia Ltd.
“We forsee our company being kept busy over the next few years with plenty of job opportunities,” he added. Besides, he noted that Petronas and Shell had recently signed two production sharing contracts, opening the door to US$12bil worth of enhanced oil recovery investments over the next 30 years.
Kencana secures RM48.9m job to refurbish production unit
Kencana Petroleum Bhd has secured a RM48.9mil contract from Petrofac E & C Sdn Bhd to refurbish and convert a mobile offshore production unit.
It said its unit Kencana HL Sdn Bhd had on May 7, entered into the contract with Petrofac.
Under the contract, Kencana HL would undertake the engineering, procurement, and construction to refurbish and convert the production unit for an oilfield offshore Peninsular Malaysia.
"The total value of the contract is estimated at RM48.9mil. It is a one-off EPC contract and is expected to be delivered to the client within the third quarter of calendar year 2012," Kencana said.
It said its unit Kencana HL Sdn Bhd had on May 7, entered into the contract with Petrofac.
Under the contract, Kencana HL would undertake the engineering, procurement, and construction to refurbish and convert the production unit for an oilfield offshore Peninsular Malaysia.
"The total value of the contract is estimated at RM48.9mil. It is a one-off EPC contract and is expected to be delivered to the client within the third quarter of calendar year 2012," Kencana said.
Sunday, 10 June 2012
Puncak Niaga wins RM500m O&G jobs
Puncak Niaga Holdings Bhd, which ventured into the oil and gas industry last year, has managed to secure contracts worth RM500 million, said its executive chairman Tan Sri Rozali Ismail.
Its involvement in the industry is via wholly-owned unit, Puncak Oil and Gas Sdn Bhd (POG), which had stakes in Global Offshore (M) Sdn Bhd and KGL Ltd last year.
Rozali said the company has been involved in many projects here and was ready for expansion overseas after recruiting experienced and capable staff to expand the oil and gas operations.
"We have secured projects worth RM500 million which are expected to bring in a revenue of between RM1 billion and RM1.5 billion.
We hope it would become one of the big contributors to the company's revenue," he told a media briefing after charing the annual general meeting of the Selangor Malay Chamber of
Commerce here today.
He said the company would bid to develop the marginal fields from Petroliam Nasional Bhd (Petronas).
"We plan to do so with a foreign partner. So we are waiting for Petronas to call us for negotiation," he said.
On the water industry restructuring in Selangor, he said, Puncak Niaga looked forward to negotiations with with the state and federal governments to end the impasse.
He also Puncak Niaga would not quit the water industry which it has been involved in for 15 years not only in Malaysia but overseas as well.
"We have 4,000 staff and it is a big responsibility for the company," he said. -- Bernama
Its involvement in the industry is via wholly-owned unit, Puncak Oil and Gas Sdn Bhd (POG), which had stakes in Global Offshore (M) Sdn Bhd and KGL Ltd last year.
Rozali said the company has been involved in many projects here and was ready for expansion overseas after recruiting experienced and capable staff to expand the oil and gas operations.
"We have secured projects worth RM500 million which are expected to bring in a revenue of between RM1 billion and RM1.5 billion.
We hope it would become one of the big contributors to the company's revenue," he told a media briefing after charing the annual general meeting of the Selangor Malay Chamber of
Commerce here today.
He said the company would bid to develop the marginal fields from Petroliam Nasional Bhd (Petronas).
"We plan to do so with a foreign partner. So we are waiting for Petronas to call us for negotiation," he said.
On the water industry restructuring in Selangor, he said, Puncak Niaga looked forward to negotiations with with the state and federal governments to end the impasse.
He also Puncak Niaga would not quit the water industry which it has been involved in for 15 years not only in Malaysia but overseas as well.
"We have 4,000 staff and it is a big responsibility for the company," he said. -- Bernama
Wednesday, 6 June 2012
Exxon Mobil warns red tape risks snuffing out gas boom
Exxon Mobil Corp, the world’s largest publicly listed energy company, warned today that too much government regulation could undermine a rapid global expansion of gas output from a range of unconventional sources.
Helped by a boom in shale gas, Exxon Mobil has become North America’s largest natural gas producer, but energy firms face pressure for tighter regulation of the industry over concerns about the impact of drilling on the environment and also public concern that US gas prices could rise if the gas is exported.
Exxon Mobil Chief Executive Rex Tillerson (picture) said governments had to ensure the right environment for future investments in gas projects.
“Regulations should provide a clear, efficient roadmap for how to get things done, not a complex tangle of rules that are used to stop things from getting done,” Tillerson told the World Gas Conference in the Malaysian capital.
“If government puts the development of these new sources of energy at a standstill, they will find their economies walking backwards,” he added.
Tillerson did not explicitly single out US policy, but later said the country needs a “sound” energy policy and that putting off such a policy was “not particularly useful”.
Executives who attended the conference said they assumed Tillerson’s comments referred to the recent controversy over unconventional gas development in the United States and some said they were surprised by the forcefulness of his comments.
“The recent North American experience in unconventional development has reminded the world of the value of competitive and free markets for improving the lives of consumers,” Tillerson said.
“But technological breakthroughs that allow for unconventional gas recovery emanate from investments and industry in private markets, they are not the result of government policies that pick winners and losers.”
US President Barack Obama’s administration has been under pressure to rein in energy exports from the United States to protect consumers and manufacturers from price spikes.
The White House has said that while it is not opposed to exporting LNG, it will base its decision on whether or not to allow more gas export projects to proceed on an official analysis on the economic impact of sending gas abroad which will be completed later this year.
The rapid rise in production of shale gas and oil trapped in difficult reservoirs has revolutionised the industry of the United States, the world’s top fuel consumer, turning it from the biggest gas importer to a potential exporter.
Lawmakers have called for the federal government to consider four factors when weighing energy exports: national security, energy security, economic impacts and environmental protection.
ENVIRONMENTAL CONCERNS
The surge in unconventional supplies will see the United States overtake Russia as the world’s biggest natural gas producer in 2017, the International Energy Agency said today.
The IEA expects total US gas production to rise from 653 billion cubic meters (bcm) in 2011 to 769 bcm in 2017.
“Governing or setting policy and regulations based on the precautionary principle will stifle innovation and investment and bring development to a standstill,” Tillerson said.
Exxon and other energy companies such as Chevron Corp have faced calls for tighter restrictions on exploiting unconventional gas such as shale gas due to environmental risks.
Energy companies use hydraulic fracturing, or fracking, to create fissures in rock like shale that allow oil and gas to escape. In the process water, sand and chemicals are pumped at very high pressures into wells drilled deep into the ground.
France, which has some of Europe’s largest shale gas reserves, last year banned the use of fracking on worries about environmental damage.
About a year ago, South Africa also imposed a fracking moratorium on oil and gas exploration licences.
A global framework for unconventional gas development for all members of the International Energy Agency is necessary to produce unconventional gas, IEA Executive Director Maria van der Hoeven said today.
“If there is no regulatory framework for the exploration of unconventional gas – well we have seen what has happened in France and in South Africa – then the gas will stay where it is. Underground,” van der Hoeven said.
US LNG EXPORTS
Tillerson said Exxon Mobil is studying plans to export LNG from the United States. The United States has approved just one LNG export project, but 14 more have either filed for approval or are under consideration.
US natural gas prices have hit their lowest in a decade and are expected to remain low for years because of increased output from unconventional reserves including shale gas, prompting developers to look for ways to export it to higher-paying markets in Europe and Asia.
US gas futures were around US$2.40 (RM7.68) per million British thermal units (mmBtu) today, while Asian spot LNG prices were about seven times more expensive at over US$18 per mmBtu for July cargoes.
Exxon is looking at building a new petrochemical plant in Texas to take advantage of cheap shale gas, but has not decided on the level of investment nor whether it would export petrochemicals, Tillerson confirmed.
“We will see where the markets are for those chemicals,” he said speaking on the sidelines of the conference.
The plant could be online as soon as 2016, according to a US environmental filing seen. – Reuters
Helped by a boom in shale gas, Exxon Mobil has become North America’s largest natural gas producer, but energy firms face pressure for tighter regulation of the industry over concerns about the impact of drilling on the environment and also public concern that US gas prices could rise if the gas is exported.
Exxon Mobil Chief Executive Rex Tillerson (picture) said governments had to ensure the right environment for future investments in gas projects.
“Regulations should provide a clear, efficient roadmap for how to get things done, not a complex tangle of rules that are used to stop things from getting done,” Tillerson told the World Gas Conference in the Malaysian capital.
“If government puts the development of these new sources of energy at a standstill, they will find their economies walking backwards,” he added.
Tillerson did not explicitly single out US policy, but later said the country needs a “sound” energy policy and that putting off such a policy was “not particularly useful”.
Executives who attended the conference said they assumed Tillerson’s comments referred to the recent controversy over unconventional gas development in the United States and some said they were surprised by the forcefulness of his comments.
“The recent North American experience in unconventional development has reminded the world of the value of competitive and free markets for improving the lives of consumers,” Tillerson said.
“But technological breakthroughs that allow for unconventional gas recovery emanate from investments and industry in private markets, they are not the result of government policies that pick winners and losers.”
US President Barack Obama’s administration has been under pressure to rein in energy exports from the United States to protect consumers and manufacturers from price spikes.
The White House has said that while it is not opposed to exporting LNG, it will base its decision on whether or not to allow more gas export projects to proceed on an official analysis on the economic impact of sending gas abroad which will be completed later this year.
The rapid rise in production of shale gas and oil trapped in difficult reservoirs has revolutionised the industry of the United States, the world’s top fuel consumer, turning it from the biggest gas importer to a potential exporter.
Lawmakers have called for the federal government to consider four factors when weighing energy exports: national security, energy security, economic impacts and environmental protection.
ENVIRONMENTAL CONCERNS
The surge in unconventional supplies will see the United States overtake Russia as the world’s biggest natural gas producer in 2017, the International Energy Agency said today.
The IEA expects total US gas production to rise from 653 billion cubic meters (bcm) in 2011 to 769 bcm in 2017.
“Governing or setting policy and regulations based on the precautionary principle will stifle innovation and investment and bring development to a standstill,” Tillerson said.
Exxon and other energy companies such as Chevron Corp have faced calls for tighter restrictions on exploiting unconventional gas such as shale gas due to environmental risks.
Energy companies use hydraulic fracturing, or fracking, to create fissures in rock like shale that allow oil and gas to escape. In the process water, sand and chemicals are pumped at very high pressures into wells drilled deep into the ground.
France, which has some of Europe’s largest shale gas reserves, last year banned the use of fracking on worries about environmental damage.
About a year ago, South Africa also imposed a fracking moratorium on oil and gas exploration licences.
A global framework for unconventional gas development for all members of the International Energy Agency is necessary to produce unconventional gas, IEA Executive Director Maria van der Hoeven said today.
“If there is no regulatory framework for the exploration of unconventional gas – well we have seen what has happened in France and in South Africa – then the gas will stay where it is. Underground,” van der Hoeven said.
US LNG EXPORTS
Tillerson said Exxon Mobil is studying plans to export LNG from the United States. The United States has approved just one LNG export project, but 14 more have either filed for approval or are under consideration.
US natural gas prices have hit their lowest in a decade and are expected to remain low for years because of increased output from unconventional reserves including shale gas, prompting developers to look for ways to export it to higher-paying markets in Europe and Asia.
US gas futures were around US$2.40 (RM7.68) per million British thermal units (mmBtu) today, while Asian spot LNG prices were about seven times more expensive at over US$18 per mmBtu for July cargoes.
Exxon is looking at building a new petrochemical plant in Texas to take advantage of cheap shale gas, but has not decided on the level of investment nor whether it would export petrochemicals, Tillerson confirmed.
“We will see where the markets are for those chemicals,” he said speaking on the sidelines of the conference.
The plant could be online as soon as 2016, according to a US environmental filing seen. – Reuters
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