KNM Registers Pre-Tax Profit Of RM69.05 Million For FY12

KNM Group Bhd posted a pre-tax profit of RM69.05 million for the financial year ended Dec 31, 2012, as compared to a pre-tax loss of RM155.88 million in 2011.

Revenue surged to RM2.37 billion from the RM1.96 billion recorded previously, the companysaid in a filing to Bursa Malaysia today.

"The positive results this year are due to higher job progress recognition on a stronger order book and stable contribution margin from projects.

"The Asia and Oceanic segment has continued to contribute positively and has recorded a marked turnaround compared to the immediate preceding year," it added.

For the next financial year, the board is expected to focus on cost efficiency and productivity initiatives for the Asia and Oceanic segment, while the European segment profitability is expected to continue with its order book carried forward into 2013.


-- BERNAMA

Petronas Chemicals on RM2b expansion

Petronas Chemicals Group Bhd has earmarked RM1.9bil for business expansion that includes acquisition plans as a result of its revision in the utilisation of its initial public offering (IPO) proceeds.

According to the company’s filing with Bursa Malaysia yesterday, as the company had sufficient liquidity from its investments, it has decided to reallocate the proceeds initially earmarked for working capital towards the purpose of business expansion and synergistic growth acquisitions for the group.

A total of RM3.64bil was raised from the listing of the company on Nov 26, 2010, of which RM505mil had been utilised up to Sept 30, 2012. The current balance of RM1.2bil from the IPO proceeds will be used for working capital and general corporate purposes.

Will Floating LNG Revolutionise The Natural Gas Industry?

Floating liquid natural gas, the notion of performing gas liquefaction offshore on a floating vessel near the point of extraction, has seen a growth in interest since around 2006. Several companies prepared a Floating LNG concept and performed research to develop some non-existing, though indispensable, technological components. During the following years, the industry was marked by some long debates about whether the technology had progressed sufficiently for the deployment of the first unit. After years of discussion and investments, the first Floating LNG project, Shell’s Prelude, has finally been announced in 2011. Today the industry counts over 20 other FLNG projects and its business is sized to exceed 60 Billion USD for the next decade.

While liquefaction is traditionally performed onshore, Floating LNG literally displaces the entire process on top of a vessel, located nearby an offshore gas field. Thanks to this shift, the need for an extensive pipeline structure to shore as well as a production platform is eliminated, thereby potentially reducing the cost of taking the gas to the market. Moving the liquefaction offshore also facilitates the permitting process, reduces the risks for neighboring communities as well as the impact on the environment. Additionally, there is a possibility to relocate the vessel at the end of a field life

Although the Floating LNG concept is attractive, its true potential ultimately depends on several other factors. Without sufficient gas supplies, there is no incentive to perform the R&D required to develop this technology. This explains why Floating LNG initially emerged as a solution for the substantial amount of stranded gas fields that are difficult to monetize due to their long distance to shore. Today it is also seen as a possible solution for associated gas, since continuous flaring is prohibited. As a matter of fact, FEED studies have been performed to evaluate its feasibility in regions with abundant oil fields, like the Brazilian pre-salt.

By unlocking these potential gas fields, the energy industry can respond to the projected rise in demand, fueled by the increasing global population and growth of emerging economies. In addition, by offering a cleaner alternative, Floating LNG can contribute to the reduction of CO2 emissions. Thanks to the technological achievements of the LNG industry, gas is also expected to be increasingly traded as a commodity, like oil. The expectations are high, as some even speak of the “golden age for gas,” which is encouraging news for Floating LNG.  

However, the surge of unconventional gas developments has had an important impact on the global gas picture. While the US was thought to become a major gas importer, it is now considered as a potential future gas exporter. This induces some uncertainty to the projected demand and therefore to the future price developments. The latter are already complex due to their strong regional components: Asian gas prices are higher than ever since the Fukushima incident. As prices form the basis for the calculation of the expected return of such a project, their projected evolution is key to Final Investment Decisions.

As with any emerging technology, the deployment of the first Floating LNG unit has a technological risk component. This can be reduced by incorporating as much proven technology as possible, thanks to the existing experience in onshore liquefaction plants and offshore platforms. It should therefore not be a surprise that most Floating LNG concepts are proposed by experienced offshore engineering firms in collaboration with LNG technology providers. For some environmental conditions, Floating LNG has required the development of some very specific technological components that are key to its performance.

While side-by-side offloading can use offloading arms that have been widely used by the industry, more severe environmental conditions require tandem offloading that demand specific tandem offloading systems and dedicated LNG tankers. The margin for technological uncertainty in the offloading system is very low, as it can disrupt the product delivery and therewith jeopardize the entire viability of the project. A second key uncertainty arises from the onboard LNG storage that could suffer from sloshing. This phenomenon occurs when the liquid inside the tanks resonates with the excitation caused by the waves and can lead to very high peak loads on the tanks’ walls. Although its effect has been investigated, the phenomena is still not entirely controlled and it is a challenge to adequately predict the forces that will arise on the walls of an LNG tank. LNG carriers have been sailing the seas for years with certain filling prescriptions (less than 10% or over 90%) as to reduce the risk of sloshing. However, when a Floating LNG is moored at a fixed location, the filling of its tanks will vary continuously in accordance with the LNG production and offloading schemes. Hence a Floating LNG has an increased exposure to sloshing risks. Further technological uncertainty arises from the liquefaction equipment itself that was designed for onshore applications, for example due to maldistribution or fatigue resistance A 50 meter distillation tower will suddenly have to perform under the vessels continuous motions, which means that the top will continuously shift about 5 meters for 6 degree roll. Although the onshore liquefaction equipment designs have been adapted to function on sea, there is some uncertainty around their real performance once they are deployed. Further uncertainties can arise around LNG spill containment, which has not been managed on a platform before.

Although overall Floating LNG seems an attractive concept, the ultimate finance decision will depend on the specifics of each project.  Investors are likely to see the technological risk diminish as they consider more benign environments. The vessel can also help mitigate political risk, since the entire liquefaction plant can be displaced, contrary to an onshore plant. There is the option to redeploy de unit after field depletion and financing parties can even seize the asset if they see the need. On the other hand, the fact that the whole plant is located on a single vessel means that the failure of a critical component can compromise the entire investment.

 The novelty of Floating LNG technology has not impeded the industry from investing about 15 Billion USD. The whole world is watching as Petronas´ Kanowit and Shell’s Prelude tackle the challenges they encounter on their paths towards production, planned to start in 2015 and 2016 respectively. Surely, their experience will provide the industry with some valuable data to optimize the Floating LNG solution and bring it to the next level.

Shell Nafi Spekulasi Tutup Operasi Di Sarawak

Shell Malaysia menafikan spekulasi bahawa syarikat bercadang untuk menutup operasi di Sarawak tetapi mengesahkan bahawa perumahan kakitangan di Kem Piasau akan ditutup menjelang September tahun ini.

Kem Piasau wujud sejak tahun 50-an.

Pengerusi Shell Malaysia Iain Lo berkata Miri akan terus menjadi ibu pejabat Shell bagi operasi huluan dan untuk membuktikan komitmen jangka panjangnya, syarikat merancang untuk menambah baik pejabat di Lutong, di sini, untuk mewujudkan persekitaran kerja yang lebih kondusif.

"Kami mengembangkan perniagaan kami di Sarawak. Mengikut Kontrak Perkongsian Pengeluaran (PSC) dengan Petronas pada tahun lepas sahaja, kami telah menandatangani tujuh perjanjian.

"Lima blok eksplorasi dan selebihnya untuk tujuan lanjutan," katanya kepada pemberita pada majlis rumah terbuka Shell Malaysia Exploration and Production di sini hari ini.

"Saya sendiri akan berpindah ke Miri," katanya, sambil menambah, walaupun Kem Piasau akan ditutup, Shell Malaysia tidak akan melepaskan tanah itu, kecuali bagi lot tepi sungai.

Beliau berkata beberapa kakitangan Shell yang berpangkalan di sini akan dipindahkan ke Sabah sebagai sebahagian rancangan syarikat itu untuk menyokong pertumbuhan industri minyak di sana.

-- BERNAMA

Untung Pracukai MHB Susut Kepada RM218 Juta

Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) mencatat keuntungan sebelum cukai yang lebih rendah, sebanyak RM218 juta bagi tempoh 12 bulan berakhir 31 Dis, 2012, berbanding RM364 juta yang direkodkan pada tahun 2011.

Syarikat itu bagaimanapun merekod perolehan sebanyak RM3,330 juta bagi tempoh 12 bulan berakhir 31 Dis, 2012, meningkat berbanding RM3,060 juta yang dicatat pada tempoh yang sama pada 2011.

Dalam satu kenyataan, MHB berkata segmen perniagaan luar pesisir berjaya melaksanakan peningkatan projek sistem pengeluaran pengapungan GumusutKakap, sistem yang pertama kali diperkenalkan di rantau ini dan kedua di Asia Pasifik, merupakan kejayaan besar projek dalam tempoh kajian ini.

MHB berkata segmen perniagaan marin mencatat keputusan yang lebih baik dalam tempoh itu menerusi sumbangan projek Unit Penyimpanan Terapung (FSU) Lekas dan juga selepas berjaya melaksanakan lebih banyak projek baik pulih kapan gas asli cecair (LNG), memandangkan kumpulan itu memberi tumpuan terhadap kapal berkaitan tenaga.

Penggunaan kemudahan segmen perniagaan marin seperti dermaga kering juga meningkat.

"MHB mengekalkan keuntungan bersih RM242 juta. Pendapatan sesaham yang boleh diagihkan kepada pemegang saham MHB ialah 15.1 sen bagi tahun kewangan berakhir 31 Dis, 2012.

"Menerusi pelaburan berterusan dalam program mengoptimumkan dermaga dan pengambilalihan East Yard Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE), harta, kilang dan peralatan syarikat telah meningkat 32 peratus kepada RM1.4 bilion.

"Jumlah ekuiti telah meningkat kepada RM2.5 bilion dan dividen akhir sesaham 10.0 sen sesaham dicadangkan dibayar kepada pemegang saham bagi tahun kewangan berakhir 31 Dis, 2012," katanya.

Pengarah Urusan dan Ketua Pegawai Eksekutif Dominique de Soras, berkata MHB sudah melalui transformasi selama setahun.

Beliau berkata kumpulan itu mengambil alih, menyepadukan MMHE East Yard, dan melancarkan inisiatif peningkatan perniagaan.

"Bagi 2013, kami akan terus memberi tumpuan ke arah menyiap dan menyediakan projek sedia ada kepada pelanggan kami.

"Ia merupakan satu lagi kejayaan tahun ini apabila MHB memulakan platform pengapungan ketiga untuk medan air dalam di Malaysia, projek TLP Malikai Deepwater, selepas menerima Surat Anugerah daripada pelanggan kami.

"MHB Group terlibat dalam pembinaan penyelesaian pengapungan laut dalam di Malaysia," katanya.

-- BERNAMA

Petronas adds platform at Yetagun offshore Myanmar

Petronas Carigali has contracted Larsen & Toubro (L&T) for a new wellhead platform offshore Myanmar.

This will be installed on the Yetagun North field, operated by Petronas Carigali Myanmar (Hong Kong) in partnership with Petronas Carigali Myanmar, Myanma Oil and Gas Enterprise, PTTEP International, and JX Nippon Oil Exploration (Myanmar).

L&T’s contract, valued at more than $100 million, calls for engineering, procurement, construction, installation, and commissioning of the platform and associated subsea pipeline, to be installed in 108 m (354 ft) water depth.

Scope includes tie-in works on an existing platform in the Yetagun complex. L&T’s yard in Kattupalli on India’s eastern coast will perform the fabrication work.

Wah Seong Secures US$198 Million Pipe Coating Services Contract

Wah Seong Corp Bhd's (WSC) pipe coating business unit has been awarded a US$198 million contract by Norwegian-based Statoil.

The contract is for the total scope of coating work for the Polarled development project, including anti corrosion coating, internal flow coating and concrete weight coating.

The award also includes the coating works for the Kristin project, the company said in filing to Bursa Malaysia today.

"The contract involves coating of approximately 520 km of pipes which is expected to commence in the third quarter of the year and be completed in 2015," it added.

The contract is expected to contribute positively to WSC Group earnings over the contract period.

-- BERNAMA

Hibiscus unit gets Norway nod for oil and gas projects

Lime Petroleum Norway AS (Lime Norway), a subsidiary of Hibiscus Petroleum Bhd, has obtained pre-qualification to operate as an oil and gas player in Norway by the Norwegian Ministry of Petroleum and Energy.

Lime Norway, which is a joint venture between Hibiscus and Lime Petroleum Plc (Lime), can now directly assume participating interests in partner-operated licences in the Norwegian Continental Shelf (NCS).

In a press statement yesterday, Hibiscus said: “Lime, which is owned by Hibiscus Petroleum, Schroder & Co Banque S.A and Rex Oil & Gas Ltd (Rex), had on May 2, 2012, signed an agreement to acquire 50% of North Energy ASA's interest in at least four concessions in the NCS. This prequalification is a key step towards completing these transactions.

“We are pleased that Lime Norway has obtained this prequalification. This is a key milestone for us as it gives us the opportunity to operate alongside established E&P (exploration and production) companies,” said Hibiscus managing director and Lime chairman Dr Kenneth Pereira.

Lime already has four concessions in the Middle East and has exclusive access to Rex technologies to increase the chances of commercial oil and gas discoveries.

Further, the risked capital outlay of Lime Norway is reduced as under the Norwegian Petroleum Tax Act, 78% of exploration expenditure incurred is reimbursed at the end of each year, irrespective of whether production is achieved.

The proposed acquisition of the NCS concessions is in line with Hibiscus Petroleum's portfolio balancing strategy to acquire more moderate and low-risk assets in geo-politically stable regions.

Technip, In A Consortium With Afcons And TH Heavy Engineering, Awarded Offshore Contract In India

Technip, in a consortium with AFCONS Infrastructure Ltd and TH Heavy Engineering Berhad, was awarded a contract by Oil & Natural Gas Corporation Ltd (ONGC), worth approximately €220 million (Technip share: about €50 million), for the Heera Redevelopment (HRD) process platform project in the Arabian Sea, at approximately 70 kilometers South-West of Mumbai, India.

The scope of work covers the:
•engineering, procurement, fabrication, transportation, installation, hook-up and commissioning of the HRD process platform, •shifting of the existing cable in the seabed, •installation of a new bridge connecting the existing HRC process platform, the strengthening of the existing bridge and the modification on an existing HRC process platform to ensure interconnections between all the process lines and the utilities.

Technip’s operating center in Mumbai, India will execute the overall engineering and procurement of tagged equipment of the project. The topsides will be designed for the float-over installation using the Group’s proprietary Unideck®(1) integrated deck installation system with the support of Technip’s operating center in Paris, France. The project is scheduled to be completed in the first semester of 2015.

Samik Mukherjee, Country Manager and Vice President of Technip in India, commented: “We are very proud that ONGC chose our consortium for this important project. Technip is a world leader in float-over operations, for the installation of large topside decks onto fixed or floating platforms. As such, we will utilize our proprietary float-over installation technology for this project. This award is the first offshore project on EPCIC(2) basis for Technip in India. It will also be one of the rare float-over installations in the Indian Ocean.”

(1) Unideck® floatover: installation method of an integrated production deck (topsides) onto a fixed structure developed by Technip which permits installation in difficult sea conditions (long period swells) using a system of jacks to lower the topsides rapidly into place.

(2) Engineering, procurement, construction, installation and commissioning.

ExxonMobil to remain active in local upstream ops

Oil major ExxonMobil said its upstream operations in Malaysia would remain an integral part of its global portfolio nothwithstanding the recent disposal of its downstream businesses in Malaysia.

ExxonMobil subsidiaries in Malaysia chairman J. Hunter Farris said its new production-sharing contract for a period of 25 years with Petroliam Nasional Bhd and Petronas Carigali Sdn Bhd, signed in 2008, evidenced this.

“This partnership marks the start of the next 25-year phase of our operations in Malaysia until 2033 and sees us working with our partners to help ensure the efficient development and sustainable supply of hydrocarbon resources to meet the growing energy demands of the nation,” he said in an interview with The Business Advocate, a Malaysia International Chamber of Commerce and Industry quarterly business publication.

The company produces a fifth of the nation's crude oil and condensate and supplies about half of Peninsular Malaysia's natural gas needs.

To recap, last year, in a deal valued at RM1.8bil, Petron acquire a stake in Esso Malaysia Bhd and bought the unlisted downstream business of ExxonMobil, which includes Exxon's industrial and wholesale and aviation fuels operations and the Port Dickson refinery, along with equity interest in 10 fuel distribution terminals and 560 branded retail fuel sites.

Farris said in the case of the disposal of its retail operation to Petron, Exxon Mobil Corp, the parent company of Malaysian ExxonMobil subsidiaries, determined that an asset might hold more value for a new owner than the corporation, and that was the case with the share sale of its downstream businesses in Malaysia.

Other projects in the pipeline for the company this year include the Telok and Damar gas development projects, which ExxonMobil is developing for a scheduled start-up in the first and fourth quarter of 2013, respectively.

The company will invest about RM10bil for both projects to meet the growing gas demand for Malaysia's power and industrial needs. These projects were announced under the Economic Transformation Programme (ETP) in 2011.

Meanwhile, based on ExxonMobil's energy outlook, it projected the energy demand in Malaysia to be about 50% higher in 2040 compared with 2010, driven by economic growth and propelled by initiatives under the Government's ETP.

Apart from upstream operations, ExxonMobil also has a Business Support Centre that hosts the company's IT infrastructure and provides IT support across the globe.

In 2011, it took another step in promoting Malaysia as a key business support centre by establishing the ExxonMobil Research and Engineering Global Support Office in Kuala Lumpur, which provides technical, engineering and application support for ExxonMobil's global downstream businesses.

“We also have a strong market presence in the chemical industry, supplying a wide range of specialty products such as fluids, plasticisers and specialty chemicals that are used to manufacture products such as paint, tires and various types of consumer packaged goods,” Farris said.

Unit Alam Maritim Menangi Kontrak RM30.15 Juta Daripada Petronas

Anak syarikat milik penuh Alam Maritim Resources Bhd, Alam Maritim (M) Sdn Bhd, telah memenangi kontrak RM30.15 juta dari Petronas Carigali Sdn Bhd.

Dalam satu kenyataan kepada Bursa Malaysia Jumaat, Alam Maritim Resources berkata kontrak itu adalah untuk pembekalan dua unit kapal sokongan luar pantai untuk menyokong kempen penggerudian Operasi Semenanjung Malaysia Petronas.

"Kontrak itu adalah untuk tempoh tujuh bulan dengan pilihan pelanjutan tiga bulan lagi," katanya.

Alam Maritim Resources menjangka kontrak itu akan menyumbang positif kepada perolehan dan aset bersih tahun kewangan berakhir 31 Dis, 2013.

-- BERNAMA

Petronas Floating LNG Facility

PETRONAS’ first floating LNG facility will be among the world’s leading FLNG vessels, scheduled for deployment in 2015. With a 1.2 million tonnes per annum capacity, it is expected to operate at Kanowit gas field, 180km offshore Bintulu. Converting gas into LNG, its production is destined for Peninsular Malaysia and other designated areas at prevailing market prices. This ground breaking facility which possesses a design life of 20 years will enable PETRONAS to monetise its upstream stranded gas assets and eliminates substantial costs required in the provisioning of fixed infrastructure such as subsea pipelines to shore. Furthermore, it allows the Company to leverage on its FLNG experience to explore more opportunities in the LNG industry, regionally and globally.

Technip, MMHE get Malikai Deepwater TLP contract from Shell

A joint venture of Technip and Malaysia Marine and Heavy Engineering Sdn Bhd has won a contract from Sabah Shell Petroleum to engineer, procure, and construct a TLP for the Malikai Deepwater Project offshore Malaysia.

This TLP will be installed 110 km (68 mi) offshore Sabah, Malaysia, at a water depth of approximately 500 m (1,640 ft). The TLP will weigh approximately 26,000 metric tons (28,660 tons) incorporating a topsides with facilities to process 60,000 b/d of oil and 1.4 MMcm/d (49.4 MMcf/d) of gas, and a hull. The tendons will be fabricated in the U.S. Gulf of Mexico, and transported to Malaysia for installation at the Malikai field.

Technip will lead the joint venture, with engineering and procurement to be carried out at its center in Kuala Lumpur, Malaysia. Hull and moorings engineering will be performed in Kuala Lumpur by Technip MHB Hull Engineering. The Malikai TLP will be constructed and commissioned at MMHE’s fabrication yard at Pasir Gudang in Johor, Malaysia.

The work is scheduled for completion in mid-2015.

Petronas aborts Tembikai and Cenang RSC award

It was reported over the weekend that Petroliam Nasional Bhd (Petronas) had aborted the award and tender for the marginal field risk service contract (RSC) for the Tembikai and Cenang gas fields off Terengganu.

According to the reports, the award was cancelled mainly due to the lack of gas pipelines to transport gas from the fields for processing. The initial plan was to utilise the Angsi pipeline, the nearest gas pipeline to Tembikai and Cenang, to transport gas from the fields to processing plants in Kerteh.

However, the Angsi pipeline will most likely be utilised for the Angsi field, an enhanced oil recovery (EOR) project, for the next 10 to 15 years instead. In addition, news articles highlighted that Petronas will most likely invite bids from foreign oil and gas (O&G) players to bid for new RSCs in February or March this year.

We are neutral on the news, as we are confident that Petronas will continue to roll out its 2011 to 2015 RM300 billion capital expenditure (capex) programme with one of the main emphasis being marginal field RSCs. We believe Petronas will keep the ball rolling on RSC awards, as awarded fields have achieved significant progress. In particular, production of first oil commenced at the first field, Berantai, in December 2012.

Furthermore, fast track production at marginal fields is one of the main solutions to address the issue of projected long-term decline in reserves and domestic O&G production. In addition, high oil prices, in the range of US$90 (RM277) to US$100 per barrel are a catalyst for increased investment in O&G exploration and production. Currently, the price of crude oil is US$97 per barrel and we expect prices to average in the range of US$83 to US$88 per barrel in 2013.

In addition, the news indicates that future RSCs would most likely be oilfields, due to insufficient gas transport pipelines.

This means more pipe laying contracts may be awarded in future, benefiting the likes of SapuraKencana Petroleum Bhd (“buy”, target price: RM3.46) and pipe coating specialist, Wah Seong Corp Bhd (not rated). We believe Petronas needs to address the shortage of gas pipelines off Terengganu, which is a main area of gas production. This would in turn enable the national oil company to achieve its objective to expand production of hydrocarbon reserves to arrest declining production rates.

Out of 106 available marginal fields, Petronas has lined up 24 marginal fields for RSC awards, with nine ready for development (less Tembikai and Cenang). To date, Petronas has awarded three RSCs, hence there are 21 remaining fields that offer ample opportunities for participation by Malaysian O&G players. Bumi Armada Bhd, Dialog Group Bhd,

SapuraKencana, Perisai Petroleum Teknologi Bhd (“buy”, TP: RM1.39), Scomi Group Bhd, TH Heavy Engineering Bhd, and Daya Materials Bhd are among the local players eyeing marginal field RSCs. Maintain “overweight” on the sector as we expect rapid news flow on domestic O&G projects, fuelled by Petronas’ accelerated capex spending programme, that will provide multi-year earnings expansion for its beneficiaries. — TA Securities, Jan 29

This article first appeared in The Edge Financial Daily, on Jan 30, 2013.

Helping Malaysia become a major deepwater player

Shell is about to plunge into its second deepwater project in Malaysia, having taken final investment decision (FID) to develop the Malikai oil field about 100 kilometres offshore Sabah, Borneo.

Located in waters up to 500 metres deep, Malikai is part of the Block G Production Sharing Contract awarded by national oil company PETRONAS in 1995 – one of many shelf blocks offshore Sabah.

"Malikai is an exciting oil development in our upstream portfolio and will cement Malaysia’s position as a regional deepwater hub and centre of excellence,” said Iain Lo, Malaysia Country Chair.

He praised the Malakai project team for their work in bringing about another milestone for Shell. “We still have a long journey ahead but I am confident that with the expertise and knowledge of our people and complemented by strong teamwork, we can deliver safely and as promised,” he said.

Developing a deepwater hub

The Malikai development will be Malaysia’s third deepwater project, and the second for Shell in the country after Gumusut-Kakap, which is expected to increase national oil production by as much as 20% once fully on-stream. It will introduce the first floating production system (FPS) to Malaysia, currently under completion.

Production at Gumusut got a head start when first oil was announced in November 2012. Thanks to some innovative thinking, two of the field’s wells were tied back to the Kikeh development operated by Sabah Murphy Oil.

“The deepwater environment is a challenging one, and we thank PETRONAS for their continued confidence in us,” said Iain Lo. “This further demonstrates how Shell's innovation, technology and project delivery is supporting PETRONAS's aspiration to develop Malaysia as a regional deepwater oil and gas hub.”