Dialog last week told Bursa Malaysia it had secured two contracts totalling RM132mil from Malaysian Refining Co Sdn Bhd (MRC), a joint-venture company between Petroliam Nasional Bhd and Conoco Asia Ltd, to provide mechanical and maintenance services to its Malacca refinery.
OSK Research estimated in an update report that these contracts would boost Dialog’s current order book to RM1.5bil and contribute to its earnings for the financial year ending Dec 31, 2009.
“We believe the profit margins for these maintenance contracts are better than the margins for a typical engineering, procurement, construction and commissioning project as the latter is normally more sensitive to cost fluctuations, particularly amid the prevailing high steel raw material price environment,” OSK said. It anticipated a gross margin of 10% to 15% from the MRC contracts.
RHB Research said in a report that while the new maintenance contracts were positive for Dialog's earnings, the company remained focused on longer-term recurring income from specialist businesses of advanced catalyst handling and tank terminals.
“However, the maintenance business provides an important inroad for Dialog’s specialist services. For example, we believe the MRC project puts Dialog in a stronger position to provide advanced catalyst handling services to the refinery,” it said.
The bank-backed brokerage foresaw significant organic growth for Dialog over the next two years due to the global expansion of its advanced catalyst handling services to the US and Europe, and its Tanjong Langsat tankage development project.
“In the shorter term, Dialog’s RM1bil-plus contracts will underpin earnings growth,” RHB Research noted.
Technically, the stock is tracing a widening wedge formation. Having recently rebounded from a low of RM1.15, it is however, on the decline again.
Dialog is expected to trade in a choppy manner with current support at RM1.10 with resistance at RM1.40. A break in either direction will likely set its subsequent move.
However, with its overbought/oversold indicators in position of weakness below the neutral line, Dialog is more likely to stay under selling pressure.
OSK said the recent weakness in Dialog's share price provided a good opportunity to accumulate, hence the research house was maintaining its “buy” rating with a target price of RM2.35.
RHB Research maintained its “outperform” recommendation with a target price of RM1.93.
Source : The Star
Wednesday, 16 July 2008
Tuesday, 15 July 2008
Gas price revision won’t hurt MMC in the short term
The government’s revised gas subsidy is unlikely to affect MMC Corporation Bhd’s associate Gas Malaysia in the short term, according to analysts.
“Although the gas price is reduced for Gas Malaysia’s consumers, we are assuming a similar pass-through to what the company enjoyed previously. As such, Gas Malaysia should still make the same operating profit regardless of the price of gas,” according to OSK Research.
This should provide some relief for MMC which has seen its share price tumble on fears that the newly gazetted windfall tax for independent power producers (IPPs) will eat into the cash flow of its subsidiary and the country’s largest IPP, Malakoff Bhd.
According to MMC’s latest annual report for FY2007, the company’s main revenue source is its energy and utilities segment — which includes its power business and Gas Malaysia — that contributes 75% of group turnover.
“Gas Malaysia has been a significant contributor to MMC all this while and the revised gas prices, while higher, is also less steep. This would mean that a fewer number of consumers would actually look to switch to alternatives,” said an analyst.
However, one caveat is that under the new gas pricing structure, the government is actually looking to reduce the amount of subsidy for natural gas in order to match global prices.
“Noting that gas prices will be increased gradually over 11 years and the slowdown in the global economy over the next two years, we are paring down volume growth for Gas Malaysia from 10% and 8% in FY2009 and FY2010 to 5% and 4% respectively,” said OSK.
MMC’s share price closed at a 12-month low of RM2.30 yesterday.
Last Friday, the government released its revised gas subsidy structure that saw the price of natural gas increasing by a smaller percentage than previously announced. On June 4, the government announced that the price for natural gas would increase between 117.6% and 187.6%.
However, intense lobbying by manufacturers and consumers had prompted the government to delay the implementation of the new gas prices. Now gas is priced 111% higher at RM23.88 per mmbtu (million British thermal units) for industrial players who consume more than two mmscfd (million standard cubic feet per day). For those who use below that benchmark, gas is priced 71.4% higher at RM22.06.
Source : The Edge
“Although the gas price is reduced for Gas Malaysia’s consumers, we are assuming a similar pass-through to what the company enjoyed previously. As such, Gas Malaysia should still make the same operating profit regardless of the price of gas,” according to OSK Research.
This should provide some relief for MMC which has seen its share price tumble on fears that the newly gazetted windfall tax for independent power producers (IPPs) will eat into the cash flow of its subsidiary and the country’s largest IPP, Malakoff Bhd.
According to MMC’s latest annual report for FY2007, the company’s main revenue source is its energy and utilities segment — which includes its power business and Gas Malaysia — that contributes 75% of group turnover.
“Gas Malaysia has been a significant contributor to MMC all this while and the revised gas prices, while higher, is also less steep. This would mean that a fewer number of consumers would actually look to switch to alternatives,” said an analyst.
However, one caveat is that under the new gas pricing structure, the government is actually looking to reduce the amount of subsidy for natural gas in order to match global prices.
“Noting that gas prices will be increased gradually over 11 years and the slowdown in the global economy over the next two years, we are paring down volume growth for Gas Malaysia from 10% and 8% in FY2009 and FY2010 to 5% and 4% respectively,” said OSK.
MMC’s share price closed at a 12-month low of RM2.30 yesterday.
Last Friday, the government released its revised gas subsidy structure that saw the price of natural gas increasing by a smaller percentage than previously announced. On June 4, the government announced that the price for natural gas would increase between 117.6% and 187.6%.
However, intense lobbying by manufacturers and consumers had prompted the government to delay the implementation of the new gas prices. Now gas is priced 111% higher at RM23.88 per mmbtu (million British thermal units) for industrial players who consume more than two mmscfd (million standard cubic feet per day). For those who use below that benchmark, gas is priced 71.4% higher at RM22.06.
Source : The Edge
Monday, 14 July 2008
Long-term challenge to users of natural gas
MUCH hot air has been expended recently on the anticipated higher prices for natural gas that was finally announced on Friday.
The Economic Planning Unit (EPU) had conceded to industrial users' requests for “a staggered rise” in gas prices, by giving timeframes of 11 years for large industrial users and 13 years for small and medium enterprises (SMEs) for a gradual move to market prices.
Minister in the Prime Minister's Department Tan Sri Amirsham Abdul Aziz, who oversees the EPU, said it was important that the Government supported large industrial users and SMEs. “If we push the timeframe any further, we may find that some industries would not survive,” he said.
The decade-long timeframe, however, may only be a respite from rising natural gas prices as the EPU feels that after 11 to 13 years, industrial users would be exposed to market prices
Petroliam Nasional Bhd (Petronas) had told StarBiz last week prior to the announcement that before 1997, natural gas was supplied to Malaysian customers at market prices indexed to medium fuel oil (MFO).
It was only since May 1997 during the Asian financial crisis that the Government decided that natural gas be sold at a subsidised regulated fixed prices. “So, market prices for gas is not something new for customers in the country,” the spokesman had said.
Some industrial users are not against paying the market rate for gas.
Glovemaker Kossan Rubber Industries Bhd group corporate affairs senior manager Edward Yip said: “We in the industrial sector recognise the need to pay market rates but the rise should be gradual.”
Currently, glove and tile manufacturers are among industrial non-power users of gas in Malaysia.
There also remains the issue of insufficient supply.
According to Petronas estimates, the demand for gas in Peninsular Malaysia has increased by 97% since 1997, which has put a strain on supply facilities.
Petronas had said that its offshore production facilities and the Peninsular Gas Utilisation (PGU) system were running at full capacity to meet increasing demand.
“As our production is unable to meet demand, we have increased the purchase of gas from other sources beyond offshore Terengganu,” a spokesman said.
In 2007, 23% of Peninsular Malaysia's gas demand was met through imports. By Petronas' estimates, demand that already outstrips supply will grow to 4,900mmscf (million standard cubic feet) per day by 2027. Meanwhile, gas supply from offshore Terengganu can only be sustained at 2,000 mmscf per day (see chart).
Amirsham, at Friday's announcement, had said the issue was not the subsidy costs to Petronas, which the national petroleum company could afford, but one of economic viability and sustainability.
“There is not enough gas in any country that you can point to, so it is important we have economic viability (of industries using the gas),” he said.
As such, some sources have said that independent power producers (IPPs), who use up to 60% of natural gas in the country, need to be encouraged to seek other sources of energy.
The Association of Independent Power Producers in Malaysia (Penjanabebas) president Dr Philip Tan said: “Under the purchasing power agreements, Malaysia's IPPs receive all fuel requirements directly from Petronas or TNB Fuel Supplies. At no time are they at liberty to secure their own fuel requirements.”
Petronas, on the other hand, told StarBiz the subsidised prices of gas had hampered the objectives of the National Energy Policy, in particular the Five-Fuel Energy Policy for electricity generation.
The share of gas in the Five-Fuel energy mix policy remains consistently above official targets as compared to the share of other fuel sources, namely oil, coal, hydro and renewable sources, the spokesman said.
Source : The Star
The Economic Planning Unit (EPU) had conceded to industrial users' requests for “a staggered rise” in gas prices, by giving timeframes of 11 years for large industrial users and 13 years for small and medium enterprises (SMEs) for a gradual move to market prices.
Minister in the Prime Minister's Department Tan Sri Amirsham Abdul Aziz, who oversees the EPU, said it was important that the Government supported large industrial users and SMEs. “If we push the timeframe any further, we may find that some industries would not survive,” he said.
The decade-long timeframe, however, may only be a respite from rising natural gas prices as the EPU feels that after 11 to 13 years, industrial users would be exposed to market prices
Petroliam Nasional Bhd (Petronas) had told StarBiz last week prior to the announcement that before 1997, natural gas was supplied to Malaysian customers at market prices indexed to medium fuel oil (MFO).
It was only since May 1997 during the Asian financial crisis that the Government decided that natural gas be sold at a subsidised regulated fixed prices. “So, market prices for gas is not something new for customers in the country,” the spokesman had said.
Some industrial users are not against paying the market rate for gas.
Glovemaker Kossan Rubber Industries Bhd group corporate affairs senior manager Edward Yip said: “We in the industrial sector recognise the need to pay market rates but the rise should be gradual.”
Currently, glove and tile manufacturers are among industrial non-power users of gas in Malaysia.
There also remains the issue of insufficient supply.
According to Petronas estimates, the demand for gas in Peninsular Malaysia has increased by 97% since 1997, which has put a strain on supply facilities.
Petronas had said that its offshore production facilities and the Peninsular Gas Utilisation (PGU) system were running at full capacity to meet increasing demand.
“As our production is unable to meet demand, we have increased the purchase of gas from other sources beyond offshore Terengganu,” a spokesman said.
In 2007, 23% of Peninsular Malaysia's gas demand was met through imports. By Petronas' estimates, demand that already outstrips supply will grow to 4,900mmscf (million standard cubic feet) per day by 2027. Meanwhile, gas supply from offshore Terengganu can only be sustained at 2,000 mmscf per day (see chart).
Amirsham, at Friday's announcement, had said the issue was not the subsidy costs to Petronas, which the national petroleum company could afford, but one of economic viability and sustainability.
“There is not enough gas in any country that you can point to, so it is important we have economic viability (of industries using the gas),” he said.
As such, some sources have said that independent power producers (IPPs), who use up to 60% of natural gas in the country, need to be encouraged to seek other sources of energy.
The Association of Independent Power Producers in Malaysia (Penjanabebas) president Dr Philip Tan said: “Under the purchasing power agreements, Malaysia's IPPs receive all fuel requirements directly from Petronas or TNB Fuel Supplies. At no time are they at liberty to secure their own fuel requirements.”
Petronas, on the other hand, told StarBiz the subsidised prices of gas had hampered the objectives of the National Energy Policy, in particular the Five-Fuel Energy Policy for electricity generation.
The share of gas in the Five-Fuel energy mix policy remains consistently above official targets as compared to the share of other fuel sources, namely oil, coal, hydro and renewable sources, the spokesman said.
Source : The Star
Sunday, 13 July 2008
Kelantan mahu NGV dipasang di stesen minyak di seluruh jajahan
Kelantan meminta kerajaan pusat menyediakan stesen minyak yang menyediakan kemudahan gas asli untuk kenderaan (NGV) di negeri ini seperti terdapat di negeri-negeri pantai barat.
Pengerusi Jawatankuasa Perancangan Ekonomi, Kewangan dan Kebajikan, Datuk Husam Musa berkata, penggunaan gas asli jauh lebih murah berbanding petrol atau diesel.
Oleh itu bagi menjayakan hasrat itu kerajaan negeri akan mengutuskan surat kepada Perdana Menteri, Datuk Seri Abdullah Ahmad Badawi dan Pengerusi Petronas bagi memohon menyediakan kemudahan NGV di Kelantan.
Buat masa sekarang kita belum membincangkannya dengan kerajaan pusat berhubung perkara itu,katanya di sini.
Baru-baru ini Husam mengadakan mengadakan pertemuan dengan beberapa wakil syarikat pembekal dan stesen minyak di sini mengenai cadangan tersebut.
Menurutnya perkara itu dijangka selesai dalam tempoh dua atau tiga bulan selepas mendapat persetujuan kerajaan pusat.
Menurutnya pihak terbabit hanya perlu membekalkan bahan api itu sahaja, manakala kemudahan lain termasuk pam, pembekalan tiub NGV, setor dan pengangkutan akan diurus kerajaan negeri.
Dalam perkembangan lain beliau berkata, kerajaan negeri bercadang menerokai penggunaan kuasa solar dan bebaling angin dalam usaha menjimatkan penggunaan elektrik untuk rakyat.
Menurut beliau sekiranya berjaya ia akan dimulakan di kawasan pedalaman.
Selain itu cadangan penggunaan tenaga solar akan diterokai kerajaan negeri untuk diaplikasikan sepenuhnya di kampung-kampung sebelum ia digunakan secara meluas di tempat-tempat lain.
Penggunaan bebaling angin juga boleh dicuba kerana kini kita perlu mencari peluang menggunakan teknologi yang mampu menjimatkan kos, ujarnya.
Menurutnya pemasangan peralatan menggunakan tenaga solar diakui mahal, bagaimanapun dengan pembangunan teknologi yang semakin canggih kosnya kini sudah berkurangan.
Oleh itu, katanya kerajaan perlu merancang penggunaan tenaga yang lebih canggih seiring dengan perkembangan teknolgi moden bagi manfaat rakyat.
Source : Harakah
Pengerusi Jawatankuasa Perancangan Ekonomi, Kewangan dan Kebajikan, Datuk Husam Musa berkata, penggunaan gas asli jauh lebih murah berbanding petrol atau diesel.
Oleh itu bagi menjayakan hasrat itu kerajaan negeri akan mengutuskan surat kepada Perdana Menteri, Datuk Seri Abdullah Ahmad Badawi dan Pengerusi Petronas bagi memohon menyediakan kemudahan NGV di Kelantan.
Buat masa sekarang kita belum membincangkannya dengan kerajaan pusat berhubung perkara itu,katanya di sini.
Baru-baru ini Husam mengadakan mengadakan pertemuan dengan beberapa wakil syarikat pembekal dan stesen minyak di sini mengenai cadangan tersebut.
Menurutnya perkara itu dijangka selesai dalam tempoh dua atau tiga bulan selepas mendapat persetujuan kerajaan pusat.
Menurutnya pihak terbabit hanya perlu membekalkan bahan api itu sahaja, manakala kemudahan lain termasuk pam, pembekalan tiub NGV, setor dan pengangkutan akan diurus kerajaan negeri.
Dalam perkembangan lain beliau berkata, kerajaan negeri bercadang menerokai penggunaan kuasa solar dan bebaling angin dalam usaha menjimatkan penggunaan elektrik untuk rakyat.
Menurut beliau sekiranya berjaya ia akan dimulakan di kawasan pedalaman.
Selain itu cadangan penggunaan tenaga solar akan diterokai kerajaan negeri untuk diaplikasikan sepenuhnya di kampung-kampung sebelum ia digunakan secara meluas di tempat-tempat lain.
Penggunaan bebaling angin juga boleh dicuba kerana kini kita perlu mencari peluang menggunakan teknologi yang mampu menjimatkan kos, ujarnya.
Menurutnya pemasangan peralatan menggunakan tenaga solar diakui mahal, bagaimanapun dengan pembangunan teknologi yang semakin canggih kosnya kini sudah berkurangan.
Oleh itu, katanya kerajaan perlu merancang penggunaan tenaga yang lebih canggih seiring dengan perkembangan teknolgi moden bagi manfaat rakyat.
Source : Harakah
Saturday, 12 July 2008
Iran confirms Total's withdrawal from gas project
Iran's oil minister confirmed that French energy giant Total has dropped out of a multi-billion-dollar gas investment in the Islamic republic, the state broadcaster reported.
"In our eye Total is considered out," Gholam Hossein Nozari was quoted as saying on the state broadcaster's website.
"Total's recent move in withdrawing from phase 11 of the South Pars is a completely political move and not a commercial one," Nozari said.
"As soon as we heard this news we started work on this phase with power and will continue powerfully," he added.
The French firm's chief Christophe de Margerie said in an interview published on Thursday that it was too politically risky to invest in Iran at present.
Total, with its expertise, was to develop phase 11 of Iran's giant South Pars gas field to produce liquefied natural gas (LNG) alongside Malaysia's Petronas.
Iranian energy officials had repeatedly said they would go ahead with the phase 11 gas project -- even if they had to abandon the idea of producing LNG -- with other foreign or domestic firms.
Iran has the world's second-largest reserves of natural gas.
The South Pars field in the Gulf has around 500 trillion cubic feet (14 trillion cubic metres) of gas, which represents about eight percent of world reserves.
Iran shares the wider Pars fields with Qatar on the other side of the Gulf.
The development of Iran's giant offshore field has been delayed amid a lack of investment in a country faced with severe gas needs of its own in winter at the same time as planning ambitious gas export projects to Asia and Europe.
Western governments have pressured firms to cut their ties with Iran over the country's controversial nuclear programme, which world powers fear could be aimed at seeking atomic weapons -- a charge vehemently denied by Tehran.
Tensions over the nuclear standoff have surged this week after Iran test-fired a broadside of missiles -- including one it says brings Israel within range -- in war games that provoked international concern.
Source : AFP
"In our eye Total is considered out," Gholam Hossein Nozari was quoted as saying on the state broadcaster's website.
"Total's recent move in withdrawing from phase 11 of the South Pars is a completely political move and not a commercial one," Nozari said.
"As soon as we heard this news we started work on this phase with power and will continue powerfully," he added.
The French firm's chief Christophe de Margerie said in an interview published on Thursday that it was too politically risky to invest in Iran at present.
Total, with its expertise, was to develop phase 11 of Iran's giant South Pars gas field to produce liquefied natural gas (LNG) alongside Malaysia's Petronas.
Iranian energy officials had repeatedly said they would go ahead with the phase 11 gas project -- even if they had to abandon the idea of producing LNG -- with other foreign or domestic firms.
Iran has the world's second-largest reserves of natural gas.
The South Pars field in the Gulf has around 500 trillion cubic feet (14 trillion cubic metres) of gas, which represents about eight percent of world reserves.
Iran shares the wider Pars fields with Qatar on the other side of the Gulf.
The development of Iran's giant offshore field has been delayed amid a lack of investment in a country faced with severe gas needs of its own in winter at the same time as planning ambitious gas export projects to Asia and Europe.
Western governments have pressured firms to cut their ties with Iran over the country's controversial nuclear programme, which world powers fear could be aimed at seeking atomic weapons -- a charge vehemently denied by Tehran.
Tensions over the nuclear standoff have surged this week after Iran test-fired a broadside of missiles -- including one it says brings Israel within range -- in war games that provoked international concern.
Source : AFP
Titan Chemicals appoints Wilder new managing director
Titan Chemicals Corp Bhd has appointed American Warren William Wilder as its new managing director to replace Thomas Patrick Grehl, who stepped down three days ago but remained as a senior advisor to the company.
In a statement yesterday, Titan said Wilder was previously senior vice president (Olefins) of Westlake Chemical Corporation, where he was responsible for the leadership and strategy of the US$2 billion revenue business. He was also directly responsible for leading its manufacturing, global procurement, marketing and sales operations. He had also worked for Exxon and Kock Industries.
With more than 20 years experience in refining and chemical manufacturing, technology, sales and marketing, corporate finance, feedstock procurement and supply chain management, Wilder is also a director of Nasdaq-listed ICO Inc and a member of the chemical sub-committee of the US National Petrochemical and Refining Association.
“Titan Chemicals is well positioned to face the challenges in our industry. There are business opportunities in the region which are very attractive,” Wilder said in the statement.
In a statement yesterday, Titan said Wilder was previously senior vice president (Olefins) of Westlake Chemical Corporation, where he was responsible for the leadership and strategy of the US$2 billion revenue business. He was also directly responsible for leading its manufacturing, global procurement, marketing and sales operations. He had also worked for Exxon and Kock Industries.
With more than 20 years experience in refining and chemical manufacturing, technology, sales and marketing, corporate finance, feedstock procurement and supply chain management, Wilder is also a director of Nasdaq-listed ICO Inc and a member of the chemical sub-committee of the US National Petrochemical and Refining Association.
“Titan Chemicals is well positioned to face the challenges in our industry. There are business opportunities in the region which are very attractive,” Wilder said in the statement.
Friday, 11 July 2008
Titan Chemicals MD resigns
Thomas Patrick Grehl has resigned as Titan Chemicals Corp Bhd’s managing director.
Titan Chemicals said in a statement yesterday that Grehl, however, would continue as a senior adviser to the company.
Grehl owns about one million shares in Titan Chemicals.
Titan Chemicals said in a statement yesterday that Grehl, however, would continue as a senior adviser to the company.
Grehl owns about one million shares in Titan Chemicals.
Thursday, 10 July 2008
Ahmadinejad speaks out on oil and war
Kuala Lumpur - Iran's president has blamed the West for artificially raising crude oil prices, and dismissed fears that Israel and the US could be preparing to attack his country as a "funny joke."
President Mahmoud Ahmadinejad, on a visit to Malaysia, told a news conference on Tuesday that the global production of oil is much more than consumption, suggesting economics are not behind today's record-high prices.
"So it is very clear and obvious that the market does not have a role in raising prices. There are some others that are determining the oil price for the benefit of the few, very rich people of the world," he said.
Ahmadinejad criticised Iran's arch foe, the United States, in every answer. He blamed Washington for the world economic crisis and maintaining a nuclear weapons stockpile while opposing Tehran's "peaceful" nuclear program.
He also questioned the United States' permanent membership in the UN Security Council, its occupation of Iraq, and held it responsible for illegal drug production in Afghanistan.
Ahmadinejad said the high oil prices - which are hovering around $140 a barrel - are the result of a weak dollar and a deliberate decision by the United States and some European countries to profit from high fuel taxes. In some European countries, 70 percent of the fuel cost goes to governments as tax, he said.
"The meaning of this is that the revenue of these countries is much higher than countries that produce and export crude oil," said Ahmadinejad, whose country is the second biggest producer in the Organization of Petroleum Exporting Countries.
He claimed that the US can also use the "artificially high price of crude oil" as a justification to start politically-sensitive exploration in the North Pole.
Predictably, Ahmadinejad took potshots at US President George Bush, but expressed hope that the next administration will rebuild American's reputation in the eyes of the world.
"Today, the government of the United States is on the threshold of bankruptcy - from political to economic," he said, speaking through an interpreter.
Iran's animosity with the United States and Israel stems from its nuclear program. Tehran insists it is only for peaceful purposes, such as energy production. But the Bush administration believes it is for making nuclear weapons. Although Washington says it prefers a diplomatic resolution to the standoff, the US and Israel have not ruled out a military option.
Ahmadinejad said the two countries were "focusing on propaganda and psychological war."
"Before, it would be considered as a serious issue," he said. But Iranians are so used to the threats that they now treat it as a "very funny show...These type of wars are considered as a funny joke."
He added, "I assure you that there won't be any war in the future."
Asked to clarify his previous calls for the destruction of Israel, Ahmadinejad gave a long and convoluted reply, saying he has nothing against Jews, but only against the "Zionists" who rule Israel.
He predicted that Israel's "Zionist regime" would collapse without the need for any Iranian action. - Sapa-AP
President Mahmoud Ahmadinejad, on a visit to Malaysia, told a news conference on Tuesday that the global production of oil is much more than consumption, suggesting economics are not behind today's record-high prices.
"So it is very clear and obvious that the market does not have a role in raising prices. There are some others that are determining the oil price for the benefit of the few, very rich people of the world," he said.
Ahmadinejad criticised Iran's arch foe, the United States, in every answer. He blamed Washington for the world economic crisis and maintaining a nuclear weapons stockpile while opposing Tehran's "peaceful" nuclear program.
He also questioned the United States' permanent membership in the UN Security Council, its occupation of Iraq, and held it responsible for illegal drug production in Afghanistan.
Ahmadinejad said the high oil prices - which are hovering around $140 a barrel - are the result of a weak dollar and a deliberate decision by the United States and some European countries to profit from high fuel taxes. In some European countries, 70 percent of the fuel cost goes to governments as tax, he said.
"The meaning of this is that the revenue of these countries is much higher than countries that produce and export crude oil," said Ahmadinejad, whose country is the second biggest producer in the Organization of Petroleum Exporting Countries.
He claimed that the US can also use the "artificially high price of crude oil" as a justification to start politically-sensitive exploration in the North Pole.
Predictably, Ahmadinejad took potshots at US President George Bush, but expressed hope that the next administration will rebuild American's reputation in the eyes of the world.
"Today, the government of the United States is on the threshold of bankruptcy - from political to economic," he said, speaking through an interpreter.
Iran's animosity with the United States and Israel stems from its nuclear program. Tehran insists it is only for peaceful purposes, such as energy production. But the Bush administration believes it is for making nuclear weapons. Although Washington says it prefers a diplomatic resolution to the standoff, the US and Israel have not ruled out a military option.
Ahmadinejad said the two countries were "focusing on propaganda and psychological war."
"Before, it would be considered as a serious issue," he said. But Iranians are so used to the threats that they now treat it as a "very funny show...These type of wars are considered as a funny joke."
He added, "I assure you that there won't be any war in the future."
Asked to clarify his previous calls for the destruction of Israel, Ahmadinejad gave a long and convoluted reply, saying he has nothing against Jews, but only against the "Zionists" who rule Israel.
He predicted that Israel's "Zionist regime" would collapse without the need for any Iranian action. - Sapa-AP
Tuesday, 8 July 2008
Gulf Petroleum to start work on RM16.5b oil complex by year-end
KUALA LUMPUR: Qatar-based Gulf Petroleum Ltd hopes to commence the construction of the proposed integrated oil and gas complex in Perak by year-end.
In a statement yesterday, Gulf Petroleum said it had appointed a top international energy consultant to conduct the final feasibility study on the project after the tender and bidding process to select the consultant ended last week. The study would be completed within eight weeks.
"To date, our plans in Malaysia are still on track. If everything falls into place we should be able to commence construction by the end of this year," its director Nor Azmi Abdullah said.
The oil and gas complex comprises an oil refinery, a petrochemical project and storage facilities with an initial investment of about US$5 billion (RM16.5 billion) for the first phase of five years. It would be constructed on a 400-hectare site allocated to Gulf Petroleum from Perak state government.
Gulf Petroleum Ltd received a letter of approval by the Ministry of International Trade and Industry issued on April 25 to build the integrated oil and gas complex in Perak. The integrated complex would be Gulf Petroleum's regional hub for its activities in the Asia-Pacific region.
The target capacity of the proposed refinery is between 100,000 and 150,000 barrels per day for the first five years.
In April, the company's president Abdulaziz Hamad Al-Delaimi was quoted as saying that at least two national oil companies wholly owned by the Middle East governments would participate in the project along with other major oil and gas groups, prominent banking and insurance groups.
Gulf Petroleum's shareholders include members of the Qatar royal family, Qatar General Insurance & Reinsurance, conglomerate Al-Mana Group, National Petroleum Services and the banking group of Al-Sari.
Source (Edited) : The Edge
Gulf Petroleum appoints consultant
PETALING JAYA: Qatar’s Gulf Petroleum Ltd (WLL) has appointed a top international energy consultant to undertake a final feasibility study for its proposed integrated oil and gas complex in Malaysia, with an initial investment of about US$5bil (RM16bil).
It said yesterday the selection was made after the tender and bidding process that ended last week. The consultant was expected to complete the final feasibility study within eight weeks.
Gulf Petroleum obtained Malaysia’s regulatory approval in April for its proposed integrated oil and gas complex comprising an oil refinery, petrochemical project and storage facilities with an initial investments of about US$5bil for the first phase of five year.
The integrated complex would be Gulf Petroleum’s regional hub for its activities in the Asia Pacific region.
“As of to date, our plans in Malaysia are still on track. If everything falls into place, we should be able to commence construction by end of this year” said a director of Gulf Petroleum, Nor Azmi Abdullah.
Source : The Star
In a statement yesterday, Gulf Petroleum said it had appointed a top international energy consultant to conduct the final feasibility study on the project after the tender and bidding process to select the consultant ended last week. The study would be completed within eight weeks.
"To date, our plans in Malaysia are still on track. If everything falls into place we should be able to commence construction by the end of this year," its director Nor Azmi Abdullah said.
The oil and gas complex comprises an oil refinery, a petrochemical project and storage facilities with an initial investment of about US$5 billion (RM16.5 billion) for the first phase of five years. It would be constructed on a 400-hectare site allocated to Gulf Petroleum from Perak state government.
Gulf Petroleum Ltd received a letter of approval by the Ministry of International Trade and Industry issued on April 25 to build the integrated oil and gas complex in Perak. The integrated complex would be Gulf Petroleum's regional hub for its activities in the Asia-Pacific region.
The target capacity of the proposed refinery is between 100,000 and 150,000 barrels per day for the first five years.
In April, the company's president Abdulaziz Hamad Al-Delaimi was quoted as saying that at least two national oil companies wholly owned by the Middle East governments would participate in the project along with other major oil and gas groups, prominent banking and insurance groups.
Gulf Petroleum's shareholders include members of the Qatar royal family, Qatar General Insurance & Reinsurance, conglomerate Al-Mana Group, National Petroleum Services and the banking group of Al-Sari.
Source (Edited) : The Edge
Gulf Petroleum appoints consultant
PETALING JAYA: Qatar’s Gulf Petroleum Ltd (WLL) has appointed a top international energy consultant to undertake a final feasibility study for its proposed integrated oil and gas complex in Malaysia, with an initial investment of about US$5bil (RM16bil).
It said yesterday the selection was made after the tender and bidding process that ended last week. The consultant was expected to complete the final feasibility study within eight weeks.
Gulf Petroleum obtained Malaysia’s regulatory approval in April for its proposed integrated oil and gas complex comprising an oil refinery, petrochemical project and storage facilities with an initial investments of about US$5bil for the first phase of five year.
The integrated complex would be Gulf Petroleum’s regional hub for its activities in the Asia Pacific region.
“As of to date, our plans in Malaysia are still on track. If everything falls into place, we should be able to commence construction by end of this year” said a director of Gulf Petroleum, Nor Azmi Abdullah.
Source : The Star
Monday, 7 July 2008
Petronas has never made any losses in commercial ventures, says PM
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has never made any losses in any commercial ventures that the national oil company has embarked upon, said Prime Minister Datuk Seri Abdullah Ahmad Badawi.
In his written reply at the Dewan Rakyat yesterday to Lim Kit Siang (Ipoh Timur-DAP), who had asked Petronas to list out five projects in which it had suffered major losses, also said Petronas had also undertaken non-commercial projects aimed at boosting nation-building.
Among such projects is Universiti Technologi Petronas (UTP) in Tronoh, Perak, which was established in 1997 specialising in engineering and information technology. The university incurs an operation cost of RM150 million per year and has produced 3,400 graduates to date.
Petronas had also established the Institut Teknologi Petroleum Petronas (INSTEP) in Bukit Rakit, Terengganu where it trains technicians for the oil and gas sector. Established in 1983, it has an annual operation cost of RM80 million.
Its other project is Petronas NGV Sdn Bhd, which owns 90 stations with NGV facilities and has plans to increase the number of stations to 200 by 2010. Established in 1992, the NGV is sold at 68 sen per litre and Petronas has forked out RM500 million in subsidies.
To another question by Fong Kui Lun (Bukit Bintang-DAP), Abdullah said the national oil reserve on Jan 1, 2007 was at 5.4 billion barrel, with an average output of 666,000 barrels per day for the financial year ended March 31, 2007. The Malaysian crude oil was priced at US$68.50 per barrel in the same financial year.
Source : The Edge
In his written reply at the Dewan Rakyat yesterday to Lim Kit Siang (Ipoh Timur-DAP), who had asked Petronas to list out five projects in which it had suffered major losses, also said Petronas had also undertaken non-commercial projects aimed at boosting nation-building.
Among such projects is Universiti Technologi Petronas (UTP) in Tronoh, Perak, which was established in 1997 specialising in engineering and information technology. The university incurs an operation cost of RM150 million per year and has produced 3,400 graduates to date.
Petronas had also established the Institut Teknologi Petroleum Petronas (INSTEP) in Bukit Rakit, Terengganu where it trains technicians for the oil and gas sector. Established in 1983, it has an annual operation cost of RM80 million.
Its other project is Petronas NGV Sdn Bhd, which owns 90 stations with NGV facilities and has plans to increase the number of stations to 200 by 2010. Established in 1992, the NGV is sold at 68 sen per litre and Petronas has forked out RM500 million in subsidies.
To another question by Fong Kui Lun (Bukit Bintang-DAP), Abdullah said the national oil reserve on Jan 1, 2007 was at 5.4 billion barrel, with an average output of 666,000 barrels per day for the financial year ended March 31, 2007. The Malaysian crude oil was priced at US$68.50 per barrel in the same financial year.
Source : The Edge
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