Myanmar awarded 10 onshore oil and gas blocks to eight firms in its biggest energy tender in years and is now offering nine offshore blocks, two Yangon-based sources with direct knowledge of the deals told Reuters last week.
The winning firms were mostly from Asia, including Malaysia’s Petronas and Thailand’s PTT Exploration and Production, as Western firms have shied away from the country.
Myanmar has been moving fast to implement political reforms and attract investment, drawing praise from western nations but no easing of sanctions that analysts say may see oil majors miss out on opportunities.
The political opening has gathered pace since the tender closed on August 23, and could see bids from further afield for the next round, with one of the sources saying Japanese firms had shown an interest.
Myanmar failed to strike deals on the remaining eight blocks as these were not seen as lucrative, said the sources, who could not be identified as they are not authorised to speak to the media.
The Ministry of Energy and state-owned Myanma Oil and Gas Enterprise are now offering nine offshore blocks, of which five are deepwater. No details were available on the bidders for the offshore blocks.
“The Ministry of Energy has asked for proposals. Some oil and gas companies have come for the data presentations. There has been a lot more interest in the deepwater blocks coming from the Japanese,” said the first source.
Japanese Trade Minister Yukio Edano was due to visit Myanmar on January 12-14 with a business delegation that includes the president of Japan’s top refiner JX Nippon Oil and Energy.
A trade ministry official said the trip would promote cooperation in the energy and mining field, including pushing for investment in oil and natural gas in Myanmar.
Myanmar’s proven gas reserves at 11.8 trillion cubic feet at the end of 2010, or 0.2 percent of the world’s total according to the BP Statistical review, have drawn interest from China and India where resilient economic growth is fuelling energy demand.
Southeast Asian countries are also facing rising demand to use cleaner-burning gas for power generation.
Countries in Southeast Asia bagged the bulk of the awards, led by Petronas and PTT winning two blocks each. Petronas officials were not immediately available for comment. Little known Indonesian firm PT ITSTECH Resources Asia won the rights to explore one block.
Interest from major, state-linked Chinese players was lukewarm, paving the way for lesser-known Tianjin New Highland and Hong Kong-listed EPI Holding to secure a block each, the sources said.
With limited interest from the usually aggressive Chinese resource firms, India’s Jubilant Energy also bagged one production sharing block.
The sources said Switzerland-based Geopetrol International Holdings Inc secured the rights for a marginal oil field. Russian-linked CIS Nobel Oil Company also won a production sharing contract for one oil and gas field.
Myanmar’s aggressive oil and gas pitch to investors comes as western diplomats hold talks with pro-democracy leader Aung San Suu Kyi, whose political participation is now key for a civilian government hoping to end economic sanctions.
These trade embargoes were put in place over the past two decades due to the country’s poor human rights record under the military junta, leaving the resource rich country poverty stricken.
After a new civilian government took power last year, which in turn initiated talks with Suu Kyi, released political prisoners and reached out to armed ethnic groups, hopes for an unwinding of sanctions have grown. On January 6, British Foreign Secretary William Hague met separately with Myanmar’s government and Suu Kyi, seeking the same reforms and offering similar concessions as US Secretary of State Hillary Clinton did late last year.
“Myanmar is opening up its country and its oil and gas sector almost in unison with Clinton leading the way,” said Victor Shum, an oil consultant at Purvin & Gertz in Singapore.
“Many western oil majors may take a wait and see approach with this due to the sanctions but in doing so, they could miss the boat,” he added.
The second Yangon-based source said in the event of still weak interest from western and also Chinese oil companies for the deepwater and shallow blocks, Myanmar could fall back on investment from Southeast Asian countries. – Reuters
Monday, 9 January 2012
Saturday, 7 January 2012
Petronas to go ‘full throttle’ on O&G projects
National oil and gas (O&G) corporation Petroliam Nasional Bhd (Petronas) is gearing to sustain and optimise production on the back of its massive capital expenditure (capex) to catalyse key drivers in mega projects involving enhanced oil recovery (EOR), petrochemicals, storage facilities and extraction from recently identified oilfields.Elaborating on the sector’s prospects for 2012 was HwangDBS Vickers Research Sdn Bhd (HwangDBS Research) analyst Quah He Wei who opined, “We expect Malaysia’s O&G upcycle to start in 2012 with Petronas going full throttle to sustain oil production.
“Petronas’ record RM300 billion, five-year capex will be a strong re-rating catalyst for Malaysian O&G players. Critical gas shortage in the country has also prompted Petronas to fast-track upstream activities, which will benefit local players.”
To recap, Petronas announced last year several plans including the development of marginal oil fields (RM5 billion), enhanced oil recovery (RM46 billionn), and North Malay Basin project (RM15billion).
Malaysia’s O&G sector was identified as a key transformation area to help propel the country into a high income nation. Petronas has been increasing capex spending in Malaysia over the past two years, with domestic capex at 67 to 72 per cent of its total capex (versus 55 per cent previously).
Petronas’ blueprint comprised a three-prong development plan: to enhance oil recovery at existing mature oilfields by better managing its technological reservoir, develop marginal oilfields and rationalise its international operations.
Downstream activities were picking up, led by the RM5 billion Pengerang deepwater petroleum terminal, while Petronas’ RM60 billion Refinery and Petrochemical Industrial Development (RAPID) project in southern Johore would conclude a feasibility study by end-2012.
Petronas was gearing up its exploration and production activities to meet increasing demand with 11 new production sharing contracts (PSCs) in Malaysia awarded by Petronas in 2011 in contrast to just four PSCs in the previous year.
Malaysia’s crude oil and condensate reserves remained healthy at 5.86 billion barrels of oil equivalent as at January 2011, implying approximately 26 years of production.
“We expect Malaysian O&G players to ride on Petronas’ rising capex and major development plans going forward.
“The government started the ball rolling in late 2010 when it granted tax incentives to enhance the commercial viability of abandoned marginal fields.
“There are another 22 marginal oilfields identified for development, and we could see more RSC by mid-2012 given that bidders would submit proposals by the first quarter of 2012 (1Q12),” Quah said.
Petronas was also focusing on enhanced oil recovery (EOR) because of declining output at mature producing fields, where the average recovery factor was only half the 46 per cent average in the North Sea.
EOR implementation was expensive with cost of deploying chemical EOR up to US$13 per barrel but the initiative would be supported new tax incentives for marginal field development as well as bullish oil prices.
Foreign players with qualified technical expertise and sound financials would be required to partner up with local listed partners with at least 30 per cent equity ownership. O&G players with proven track records were set to benefit from this expertise-sharing requirement and this could be the game changing plan for local players to move up the value chain.
Malaysia has 106 marginal oil fields (producing 30 million barrels of oil equivalent or less) with combined 580 million barrels of oil reserves, and Petronas had firm plans to develop a quarter of these fields.
Quah expected favourable RSC terms to entice more Malaysian O&G players to participate in subsequent marginal field projects, especially after they see the results of the first two RSCs awarded last year.
Addressing price risks involved in the sector, Quah remarked, “The huge spending could be derailed if oil prices tumble from about US$100 per barrel currently. However, it is unlikely to fall below US$80 per barrel.
“We view that as long as oil prices remain above US$70 per barrel, Petronas will continue to invest heavily in exploration and production.”
Downplaying project delays, the analyst noted, “This concern is not new, as we have seen delays and pullback of development projects over the years for various reasons. The difference now is that the risks are more diluted.”
Sunday, 1 January 2012
Kuantan MP: Pahang DOE telling ‘half-truths’ about Lynas plant safety
Kuantan MP Fuziah Salleh today accused the Pahang Department of Environment (DOE) of covering up facts concerning the radioactive dangers of Lynas Corp’s factory in Gebeng, saying the state DOE director had spoken “half-truths” on the matter during a December 29 closed-door briefing with the public.
She took offence when Dr Ahmad Kamarul Najuib Che Ibrahim said that the Lynas factory “is a chemical factory and not a radioactive factory”, and charged that his remarks on the safety of Lynas and its future plans were misleading.
She pointed out that he had not mentioned that the Lynas factory would be producing waste materials which have already been classified as radioactive, and that the factory would become one of the world’s biggest rare earth plants after those in China.
“Is it not the responsibility of the director of the JAS (DOE) to tell the truth to the people and not be used as a political tool by the ruling government who wants to twist the real facts?” Fuziah said in a statement.
“The Lynas plant uses material brought from Australia to be processed in Gebeng where its radioactive waste will be disposed of here,” she added.
Lynas Corp has already resorted to placing full-page advertisements in mainstream newspapers to defend itself from criticisms over its nearly-completed rare earth refinery.
Through the advertisements, the Australian mining firm explained several frequent allegations against its operations, including offering its promise that it complies with all Australian, international and Malaysian standards.
The controversial RM1.5 billion plant being built in the prime minister’s home state of Pahang is now said to be more than 85 per cent complete and is expected to power up by early next year.
The rare earth refinery, touted to be the biggest in the world, aims to break China’s near-complete stranglehold of the minerals required to manufacture high-technology products like hybrid cars, smartphones to bombs.
But public protests by local residents and environmental groups over the possible radioactive hazard posed by the plant this year put the brakes on Lynas’ plans.
The outcry prompted a review by a nine-man panel of experts from the International Atomic Energy Agency (IAEA), who instructed the Sydney-based company to provide a better long-term waste management plan.
Putrajaya, which imposed tighter environmental safety standards on the proposed plant in June following the high-profile protests, has yet to issue a pre-operating licence for the plant.
The Australian government’s Department of Mines and Petroleum issued a statement on December 16 stating that Lynas Corp’s operations were safe and that it abided by international safety conventions.
She took offence when Dr Ahmad Kamarul Najuib Che Ibrahim said that the Lynas factory “is a chemical factory and not a radioactive factory”, and charged that his remarks on the safety of Lynas and its future plans were misleading.
She pointed out that he had not mentioned that the Lynas factory would be producing waste materials which have already been classified as radioactive, and that the factory would become one of the world’s biggest rare earth plants after those in China.
“Is it not the responsibility of the director of the JAS (DOE) to tell the truth to the people and not be used as a political tool by the ruling government who wants to twist the real facts?” Fuziah said in a statement.
“The Lynas plant uses material brought from Australia to be processed in Gebeng where its radioactive waste will be disposed of here,” she added.
Lynas Corp has already resorted to placing full-page advertisements in mainstream newspapers to defend itself from criticisms over its nearly-completed rare earth refinery.
Through the advertisements, the Australian mining firm explained several frequent allegations against its operations, including offering its promise that it complies with all Australian, international and Malaysian standards.
The controversial RM1.5 billion plant being built in the prime minister’s home state of Pahang is now said to be more than 85 per cent complete and is expected to power up by early next year.
The rare earth refinery, touted to be the biggest in the world, aims to break China’s near-complete stranglehold of the minerals required to manufacture high-technology products like hybrid cars, smartphones to bombs.
But public protests by local residents and environmental groups over the possible radioactive hazard posed by the plant this year put the brakes on Lynas’ plans.
The outcry prompted a review by a nine-man panel of experts from the International Atomic Energy Agency (IAEA), who instructed the Sydney-based company to provide a better long-term waste management plan.
Putrajaya, which imposed tighter environmental safety standards on the proposed plant in June following the high-profile protests, has yet to issue a pre-operating licence for the plant.
The Australian government’s Department of Mines and Petroleum issued a statement on December 16 stating that Lynas Corp’s operations were safe and that it abided by international safety conventions.
Saturday, 31 December 2011
Petronas in talks with oil majors for petchem tie-up
Petronas is in talks with several global oil majors including Shell and Exxon Mobil to develop petrochemical plants within its $20 billion refinery complex in southern Malaysia, two sources with direct knowledge of the matter said.
Malaysia's national oil company is also talking to Japanese firms Itochu Corp and Mitsubishi Corp as well as to Dow Chemical Co the largest U.S. chemical maker as it seeks to tap surging Asian demand and diversify its earnings, the sources told Reuters.
Petronas is expected to make a decision on the partnerships by mid-2012, which signals it is quickly moving beyond the feasibility stage of the project.
"Petronas is getting a lot of interest for the joint venture undertakings," said one source who declined to be identified as the talks are ongoing.
"They have moved to the basic engineering and design stage and after this the tendering process for building the complex will start," the source added.
Petronas, Shell and Mitsubishi officials in Malaysia declined to comment. Itochu, Dow Chemical and Exxon Mobil were not immediately available to comment.
Petronas first unveiled the Refinery and Petrochemicals Integrated Development (RAPID) project in May and has said the complex will be commissioned by end-2016, which both sources said was on track.
The $20 billion complex is to be built in southern Johor state which borders Singapore -- the largest oil trading hub in Asia.
The project is key to Petronas' plan to join the likes of India's Reliance Industries in grabbing a larger share in the $395 billion global market for specialty chemicals -- high value raw materials used in products from diapers to higher performance tires and LCD televisions.
"In terms of markets for petrochemicals coming from RAPID, Petronas is aiming for Myanmar, Bangladesh and parts of the subcontinent," said a second source.
"The potential is there as these are huge markets or in the case of Myanmar, just opening up."
RAPID REACH
The RAPID project will include a 300,000 barrel-per-day refinery that produces naphtha, gasoline, jet fuel, diesel and fuel oil. The first source said the crude feedstock would come mostly from Petronas' equity projects in Sudan, Chad and eventually Venezuela instead of Malaysia's own higher quality and expensive crude, domestic production of which is slowing.
The crude feedstock from Petronas equity projects will also be channeled into the petrochemicals and polymer complex, including a 3 million ton-per-year (tpy) naphtha cracker and petrochemical derivatives facility focusing on synthetic rubber.
"Over 1 million tons will be for ethylene and propylene and the rest for high grade specialty chemicals," said the first source.
"Synthetic rubber is a big thing. Nearly 90 percent of a tire is made of synthetic rubber because natural rubber production is declining in Asia, so there is an opportunity for Petronas," the source added.
STRUGGLE OR SURVIVE
The RAPID project gives Petronas' downstream operations a better chance of staying afloat in times of economic downturns and poor margins as it allows Malaysia's only Fortune 500 company to tap into its global feedstock sources, analysts say.
"From a Petronas perspective, there is vertical integration opportunity," said Andrew Wong, lead analyst covering Petronas at Standard & Poor's in Singapore.
"I think the expectation for a recovery in the petrochemical sector in 2011 did not quite happen due to the external factors and there is concern whether the project will come on-stream at a good point in time of the global economic cycle," he added.
Industry players have said Malaysia and Petronas' ramp-up of oil infrastructure in the southernmost tip of the country will create a "Greater Singapore" trading hub that allows the region to keep up with competitors like China.
Petronas is counting on interest from Japanese firms which are looking to relocate their plants or re-invest outside their home base after the March tsunami and earthquake triggered uncertainty over future energy supply, the second source said.
"The interest has particularly been strong from the usual Japanese players in the petrochemical market. This project has started at the right time," the source added.
Malaysia's national oil company is also talking to Japanese firms Itochu Corp and Mitsubishi Corp as well as to Dow Chemical Co the largest U.S. chemical maker as it seeks to tap surging Asian demand and diversify its earnings, the sources told Reuters.
Petronas is expected to make a decision on the partnerships by mid-2012, which signals it is quickly moving beyond the feasibility stage of the project.
"Petronas is getting a lot of interest for the joint venture undertakings," said one source who declined to be identified as the talks are ongoing.
"They have moved to the basic engineering and design stage and after this the tendering process for building the complex will start," the source added.
Petronas, Shell and Mitsubishi officials in Malaysia declined to comment. Itochu, Dow Chemical and Exxon Mobil were not immediately available to comment.
Petronas first unveiled the Refinery and Petrochemicals Integrated Development (RAPID) project in May and has said the complex will be commissioned by end-2016, which both sources said was on track.
The $20 billion complex is to be built in southern Johor state which borders Singapore -- the largest oil trading hub in Asia.
The project is key to Petronas' plan to join the likes of India's Reliance Industries in grabbing a larger share in the $395 billion global market for specialty chemicals -- high value raw materials used in products from diapers to higher performance tires and LCD televisions.
"In terms of markets for petrochemicals coming from RAPID, Petronas is aiming for Myanmar, Bangladesh and parts of the subcontinent," said a second source.
"The potential is there as these are huge markets or in the case of Myanmar, just opening up."
RAPID REACH
The RAPID project will include a 300,000 barrel-per-day refinery that produces naphtha, gasoline, jet fuel, diesel and fuel oil. The first source said the crude feedstock would come mostly from Petronas' equity projects in Sudan, Chad and eventually Venezuela instead of Malaysia's own higher quality and expensive crude, domestic production of which is slowing.
The crude feedstock from Petronas equity projects will also be channeled into the petrochemicals and polymer complex, including a 3 million ton-per-year (tpy) naphtha cracker and petrochemical derivatives facility focusing on synthetic rubber.
"Over 1 million tons will be for ethylene and propylene and the rest for high grade specialty chemicals," said the first source.
"Synthetic rubber is a big thing. Nearly 90 percent of a tire is made of synthetic rubber because natural rubber production is declining in Asia, so there is an opportunity for Petronas," the source added.
STRUGGLE OR SURVIVE
The RAPID project gives Petronas' downstream operations a better chance of staying afloat in times of economic downturns and poor margins as it allows Malaysia's only Fortune 500 company to tap into its global feedstock sources, analysts say.
"From a Petronas perspective, there is vertical integration opportunity," said Andrew Wong, lead analyst covering Petronas at Standard & Poor's in Singapore.
"I think the expectation for a recovery in the petrochemical sector in 2011 did not quite happen due to the external factors and there is concern whether the project will come on-stream at a good point in time of the global economic cycle," he added.
Industry players have said Malaysia and Petronas' ramp-up of oil infrastructure in the southernmost tip of the country will create a "Greater Singapore" trading hub that allows the region to keep up with competitors like China.
Petronas is counting on interest from Japanese firms which are looking to relocate their plants or re-invest outside their home base after the March tsunami and earthquake triggered uncertainty over future energy supply, the second source said.
"The interest has particularly been strong from the usual Japanese players in the petrochemical market. This project has started at the right time," the source added.
Saturday, 17 December 2011
LNG terminal project in Lahad Datu to offer spin-off opportunities
Petronas’ plan to set up a liquefied natural gas (LNG) re-gasification terminal in Lahad Datu will not only solve power shortage in the district but also bring spin-off opportunities to it.
Assistant Minister to the Chief Minister, Datuk Datu Nasrun Datu Mansur, said he was aware of the proposed Petronas mega project and people in Lahad Datu fully supported it.
He said the proposed terminal, which would enable LNG to be imported and regasified for supply to the Lahad Datu Power Plant, would also be a boon to the industrial sector in the district.
“Most importantly, the occasional power disruption in the district will definitely be solved once the project is completed, and is also good for the business sector,” he added.
Nasrun, who is also state assemblyman for Lahad Datu, said the setting up of the two high impact projects was indeed very timely, especially after the government scrapped the plan to build a proposed RM2 million coal powered electricity station at Silam.
“At present, electricity supply is adequately distributed in most parts of Lahad Datu district, except for certain islands and some remote villages.
“The setting up of the Lahad Datu Power Plant and LNG regasification terminal, will definitely bring significant changes to Lahad Datu in terms of power stability,” he told Bernama, here.
He also urged Petronas to consider supplying the LNG direct to consumers in Lahad Datu via gas piping, like what was being introduced in Bintulu, Sarawak.
“I’ll be grateful if Petronas could also consider giving job opportunities to the locals, especially contractors when it embarks on the LNG terminal project,” Nasrun said.
Petronas recently announced its plan to construct an LNG terminal in Lahad Datu, which would be connected to the Lahad Datu Power Plant.
It would be jointly built by a Tenaga Nasional Bhd (TNB) consortium consisting of Petronas and a state entity.
Sabah’s projected electricity requirement by 2020 was about 1,500 megawatt and the completion of the Kimanis and Lahad Datu Power Plants was expected to contribute an additional 600 megawatts.
The two Petronas multi-billion projects were expected to be completed in 2013 and 2015 respectively.
Meanwhile, Assistant Rural Development Minister, Datuk Haji Sairin Karno, said Petronas should not be ‘distracted’ from carrying out its oil and gas (O&G) activities in Sabah by negative comments.
“By and large, Petronas has done a good job (to develop the O&G industry in Sabah) and it should continue doing so, as the people and the state are also benefiting from the group’s activities,” he added.
Sairin, who is also Liawan state assemblyman, said it was normal for any important organisation like Petronas to come into public scrutiny, more so after being successful in developing Sabah’s O&G resources.
“We cannot deny that O&G has generated substantial revenue due to Petronas’ involvement, which has in turn allowed us (Sabah) to receive petroleum royalties,” he added.
According to Petronas, Sabah had received petroleum royalties of RM6.8 billion since 1976 while the group’s total investment to develop the state’s O&G industry was RM63 billion.
Assistant Minister to the Chief Minister, Datuk Datu Nasrun Datu Mansur, said he was aware of the proposed Petronas mega project and people in Lahad Datu fully supported it.
He said the proposed terminal, which would enable LNG to be imported and regasified for supply to the Lahad Datu Power Plant, would also be a boon to the industrial sector in the district.
“Most importantly, the occasional power disruption in the district will definitely be solved once the project is completed, and is also good for the business sector,” he added.
Nasrun, who is also state assemblyman for Lahad Datu, said the setting up of the two high impact projects was indeed very timely, especially after the government scrapped the plan to build a proposed RM2 million coal powered electricity station at Silam.
“At present, electricity supply is adequately distributed in most parts of Lahad Datu district, except for certain islands and some remote villages.
“The setting up of the Lahad Datu Power Plant and LNG regasification terminal, will definitely bring significant changes to Lahad Datu in terms of power stability,” he told Bernama, here.
He also urged Petronas to consider supplying the LNG direct to consumers in Lahad Datu via gas piping, like what was being introduced in Bintulu, Sarawak.
“I’ll be grateful if Petronas could also consider giving job opportunities to the locals, especially contractors when it embarks on the LNG terminal project,” Nasrun said.
Petronas recently announced its plan to construct an LNG terminal in Lahad Datu, which would be connected to the Lahad Datu Power Plant.
It would be jointly built by a Tenaga Nasional Bhd (TNB) consortium consisting of Petronas and a state entity.
Sabah’s projected electricity requirement by 2020 was about 1,500 megawatt and the completion of the Kimanis and Lahad Datu Power Plants was expected to contribute an additional 600 megawatts.
The two Petronas multi-billion projects were expected to be completed in 2013 and 2015 respectively.
Meanwhile, Assistant Rural Development Minister, Datuk Haji Sairin Karno, said Petronas should not be ‘distracted’ from carrying out its oil and gas (O&G) activities in Sabah by negative comments.
“By and large, Petronas has done a good job (to develop the O&G industry in Sabah) and it should continue doing so, as the people and the state are also benefiting from the group’s activities,” he added.
Sairin, who is also Liawan state assemblyman, said it was normal for any important organisation like Petronas to come into public scrutiny, more so after being successful in developing Sabah’s O&G resources.
“We cannot deny that O&G has generated substantial revenue due to Petronas’ involvement, which has in turn allowed us (Sabah) to receive petroleum royalties,” he added.
According to Petronas, Sabah had received petroleum royalties of RM6.8 billion since 1976 while the group’s total investment to develop the state’s O&G industry was RM63 billion.
Friday, 16 December 2011
Reserves shrinking, Malaysia turns to marginal oilfields
A deep-sea platform is seen in Brazilian waters. Malaysia is also
venturing into deeper and deeper waters in search of more oil.
The government has been developing deep-water fields, rejuvenating old areas and introducing incentives to develop so-called marginal fields once deemed less profitable to explore in a bid to increase output as global energy use climbs.
It awarded licences to develop two marginal fields this year, and will double that number in 2012.
“Our production is declining so we want to find more oil to maintain that production level,” Mohd Emir Mavani, a director in charge of the energy industry at the government’s Performance Management and Delivery Unit, told Reuters in an interview late yesterday.
“What we want to do is maintain our production at 650,000 barrels per day.”
Crude oil output in Southeast Asia’s second-biggest oil and gas producer is seen rising 3.3 per cent next year, reversing a decline in 2011, the government forecast in its economic report in October.
Oil production is expected to recover to 620,000 bpd, after an estimated six per cent drop this year to 600,000 bpd, extending a 3.1 per cent decline in 2010, according to the estimate.
Mohd Emir said the marginal fields would be developed by joint-ventures between foreign and Malaysian companies on a risk-sharing basis.
The smaller fields typically produce about 30,000 barrels per day, he said.
Marginal oil fields “will grow, not only in Malaysia”, he said. “We also have Vietnam and Indonesia who equally have this kind of opportunity.”
In August, Malaysian state oil firm Petroliam Nasional awarded the Balai Cluster marginal oil field offshore Sarawak to a venture involving Dialog Group, Australia’s ROC Oil Co and Petronas’s exploration arm .
It was the second marginal field awarded by Petronas this year after a group comprising Kencana Petroleum, SapuraCrest Petroleum and Petrofac won the Berantai marginal field in January.
Mohd Emir is also chief executive of Malaysia Petroleum Resources Corp, which is tasked with developing the energy services sector.
The organisation aims to attract RM450 million of investments in the oil and gas services industry next year, after beating its goal of drawing RM320 million of investments this year.
Vitol was among the companies that pledged investments in Malaysia, Mohd Emir said.
Tuesday, 13 December 2011
Leighton Offshore opens engineering business in Malaysia - wins US$10 million Iraq contract
Leighton Offshore has officially launched a new engineering business in Malaysia. DPS Leighton Engineering Sdn Bhd (LE), a fully owned PMC subsidiary of Leighton Offshore, provides engineering and PMC solutions for Leighton’s international EPCIC and LOFS business.
Leighton’s detailed engineering and PMC arm has grown from the former oil and gas engineering consulting business of DPS Bristol (Malaysia) Sdn Bhd, which was acquired by Leighton.
LE will also be providing technical, procurement and management support to DPS Consultant Malaysia Sdn Bhd, which provides oil and gas consultancy services in Malaysia.
Leighton Offshore's CEO, Peter Cox, said: “We are growing our oil and gas business internationally from our headquarters here in Malaysia, and strengthening our engineering and PMC capacity is a core element in our growth strategy”.
Mr Cox also announced that Leighton Engineering has already been awarded its first contract with a value of approximately $US10 million to undertake the detailed engineering of two offshore platforms for the Sealine project for Iraq’s South Oil Company, which is being managed here in Kuala Lumpur by a dedicated Leighton project team.
The Leighton engineering team will also assist with the procurement and follow on engineering for the two platforms.
The Sealine project involves the design, construction and installation of two offshore platforms, a 75km, 48in oil pipeline and a single point mooring system and follows on from the US$800 million ICOEEP project currently being undertaken by Leighton Offshore.
“We have made a business decision to focus our engineering and EPIC capability here in Kuala Lumpur, where there is a wealth of oil and gas experience and a competitive engineering talent base for oil and gas projects, and we are proud to be bringing world class projects, such as the Sealine project to be performed here supporting investment and new jobs in Malaysia,” Mr Cox said.
Leighton also officially opened its new office at G Tower on Jalan Tun Razak in Kuala Lumpur and unveiled its new logo. “The new logo gives us a strong and distinctive look which reflects our heritage and is relevant to the oil and gas industry. Our new offices in G Tower, Malaysia’s first Green building (BCA Gold Greenmark) reflect our commitment to sustainability and our confidence in our strong growth prospects here in Malaysia”, added Mr Cox.
Leighton’s detailed engineering and PMC arm has grown from the former oil and gas engineering consulting business of DPS Bristol (Malaysia) Sdn Bhd, which was acquired by Leighton.
LE will also be providing technical, procurement and management support to DPS Consultant Malaysia Sdn Bhd, which provides oil and gas consultancy services in Malaysia.
Leighton Offshore's CEO, Peter Cox, said: “We are growing our oil and gas business internationally from our headquarters here in Malaysia, and strengthening our engineering and PMC capacity is a core element in our growth strategy”.
Mr Cox also announced that Leighton Engineering has already been awarded its first contract with a value of approximately $US10 million to undertake the detailed engineering of two offshore platforms for the Sealine project for Iraq’s South Oil Company, which is being managed here in Kuala Lumpur by a dedicated Leighton project team.
The Leighton engineering team will also assist with the procurement and follow on engineering for the two platforms.
The Sealine project involves the design, construction and installation of two offshore platforms, a 75km, 48in oil pipeline and a single point mooring system and follows on from the US$800 million ICOEEP project currently being undertaken by Leighton Offshore.
“We have made a business decision to focus our engineering and EPIC capability here in Kuala Lumpur, where there is a wealth of oil and gas experience and a competitive engineering talent base for oil and gas projects, and we are proud to be bringing world class projects, such as the Sealine project to be performed here supporting investment and new jobs in Malaysia,” Mr Cox said.
Leighton also officially opened its new office at G Tower on Jalan Tun Razak in Kuala Lumpur and unveiled its new logo. “The new logo gives us a strong and distinctive look which reflects our heritage and is relevant to the oil and gas industry. Our new offices in G Tower, Malaysia’s first Green building (BCA Gold Greenmark) reflect our commitment to sustainability and our confidence in our strong growth prospects here in Malaysia”, added Mr Cox.
Carigali makin mahal
Perbelanjaan bagi carigali dan pengeluaran minyak di Malaysia dijangka mencecah RM45 bilion dengan kadar pertumbuhan sebanyak 16.6 peratus pada tahun 2012.
Segmen pertumbuhan itu merangkumi projek-projek laut dalam, meluaskan penemuan minyak (EOR) dan lapangan marginal.
Menurut Pengarah Tenaga dan Sistem Kuasa Frost & Sullivan, Subramanya Bettadapura, pembekal pasaran minyak dan gas (O&G) yang bakal menerima manfaat pada 2012 adalah firma kejuruteraan, penyedia perkhidmatan penggerudian, kapal sokongan luar pesisir dan sebagainya.
‘‘Petronas telah memperoleh kejayaan hasil program eksplorasi mereka pada tahun ini dengan penemuan O&G di Sabah dan Sarawak.
‘‘Mereka kekal komited dengan strategi memberi tumpuan kepada usaha eksplorasi di perairan domestik dan telah menyediakan belanjawan sebanyak RM300 bilion untuk lima tahun akan datang sebagai modal perbelanjaan bagi mengekalkan paras pengeluaran dan beberapa pertumbuhan di sepanjang nilai rantaian integrasi bagi sektor tersebut
Bettadapura dalam kenyataannnya di sini berkata, usaha eksplorasi akan diteruskan terutama di kawasan blok perairan cetek dan dalam pada 2012.
‘‘Petronas dan rakan kongsinya dijangka akan menggerudi 20 telaga eksplorasi semasa 2012 dan projek laut dalam Malaysia kedua Gumusut/Kakap akan bermula pada awal 2012.
‘‘Manakala projek Malikai bakal bermula pada 2014 serta dua lagi projek laut dalam Jangas dan Kebabangan juga bakal bermula pada tahun tersebut,’’ jelasnya.
Selain itu, Petronas dengan kerjasama ExxonMobil serta Shell telah mengambil pendekatan agresif untuk memulihkan semula (rejuvenate) lapangan matang.
‘‘Petronas dan Shell Malaysia akan membelanjakan RM36 bilion ke atas untuk projek-projek EOR dan pembangunan lapangan baharu untuk mengekalkan pengeluaran.
‘‘Perbelanjaan di bawah program ini pada tahun hadapan dijangka sekitar RM3 bilion,’’ katanya.
Projek luar pesisir Sabah dan Sarawak akan menyediakan peluang kepada penyedia perkhidmatan domestik untuk membina kemampuan teknikal bagi segmen tersebut.
Sementara itu perbelanjaan ExxonMobil untuk 2012 hingga 2013 bagi program pemulihan dijangka sekitar RM2 bilion dengan kos jangkaan sebanyak RM3 bilion.
Pembangunan lapangan marginal bakal menyaksikan pelaburan berterusan pada 2012 dengan fokus mengekalkan pengeluaran minyak.
Projek North Malay Basin merupakan sebahagian inisiatif pembangunan untuk meneroka dua lapangan marginal dan sembilan lapangan dengan kandungan karbon (C02) yang tinggi dijangka bernilai RM15 bilion.
Penilaian kesesuaian untuk pusat penapisan dan penyimpanan (Projek Rapid) di Johor sedang dilalukan.
Terminal penerima dan gas semula cecair (re-gasification) gas asli cecair (LNG) akan dijadikan sebagai sebahagian daripada projek Rapid.
Keputusan pelaburan akhir untuk projek itu akan dibuat pertengahan 2012 dengan anggaran nilai sebanyak RM60 bilion.
Segmen pertumbuhan itu merangkumi projek-projek laut dalam, meluaskan penemuan minyak (EOR) dan lapangan marginal.
Menurut Pengarah Tenaga dan Sistem Kuasa Frost & Sullivan, Subramanya Bettadapura, pembekal pasaran minyak dan gas (O&G) yang bakal menerima manfaat pada 2012 adalah firma kejuruteraan, penyedia perkhidmatan penggerudian, kapal sokongan luar pesisir dan sebagainya.
‘‘Petronas telah memperoleh kejayaan hasil program eksplorasi mereka pada tahun ini dengan penemuan O&G di Sabah dan Sarawak.
‘‘Mereka kekal komited dengan strategi memberi tumpuan kepada usaha eksplorasi di perairan domestik dan telah menyediakan belanjawan sebanyak RM300 bilion untuk lima tahun akan datang sebagai modal perbelanjaan bagi mengekalkan paras pengeluaran dan beberapa pertumbuhan di sepanjang nilai rantaian integrasi bagi sektor tersebut
Bettadapura dalam kenyataannnya di sini berkata, usaha eksplorasi akan diteruskan terutama di kawasan blok perairan cetek dan dalam pada 2012.
‘‘Petronas dan rakan kongsinya dijangka akan menggerudi 20 telaga eksplorasi semasa 2012 dan projek laut dalam Malaysia kedua Gumusut/Kakap akan bermula pada awal 2012.
‘‘Manakala projek Malikai bakal bermula pada 2014 serta dua lagi projek laut dalam Jangas dan Kebabangan juga bakal bermula pada tahun tersebut,’’ jelasnya.
Selain itu, Petronas dengan kerjasama ExxonMobil serta Shell telah mengambil pendekatan agresif untuk memulihkan semula (rejuvenate) lapangan matang.
‘‘Petronas dan Shell Malaysia akan membelanjakan RM36 bilion ke atas untuk projek-projek EOR dan pembangunan lapangan baharu untuk mengekalkan pengeluaran.
‘‘Perbelanjaan di bawah program ini pada tahun hadapan dijangka sekitar RM3 bilion,’’ katanya.
Projek luar pesisir Sabah dan Sarawak akan menyediakan peluang kepada penyedia perkhidmatan domestik untuk membina kemampuan teknikal bagi segmen tersebut.
Sementara itu perbelanjaan ExxonMobil untuk 2012 hingga 2013 bagi program pemulihan dijangka sekitar RM2 bilion dengan kos jangkaan sebanyak RM3 bilion.
Pembangunan lapangan marginal bakal menyaksikan pelaburan berterusan pada 2012 dengan fokus mengekalkan pengeluaran minyak.
Projek North Malay Basin merupakan sebahagian inisiatif pembangunan untuk meneroka dua lapangan marginal dan sembilan lapangan dengan kandungan karbon (C02) yang tinggi dijangka bernilai RM15 bilion.
Penilaian kesesuaian untuk pusat penapisan dan penyimpanan (Projek Rapid) di Johor sedang dilalukan.
Terminal penerima dan gas semula cecair (re-gasification) gas asli cecair (LNG) akan dijadikan sebagai sebahagian daripada projek Rapid.
Keputusan pelaburan akhir untuk projek itu akan dibuat pertengahan 2012 dengan anggaran nilai sebanyak RM60 bilion.
Friday, 9 December 2011
Kencana raih kontrak RM1b
KENCANA Petroleum Bhd meraih kontrak bernilai RM1 bilion daripada firma perkhidmatan gas dan minyak Amerika Syarikat (AS), Bechtel International Inc.
Ia adalah kontrak terbesar bagi penyedia perkhidmatan minyak dan gas bersepadu tempatan itu bagi tahun ini.
Kontrak yang diperoleh menerusi anak syarikat milik penuhnya, Kencana HL Sdn Bhd itu adalah bagi kerja fabrikasi dan pemasangan struktur serta komponen untuk kemudahan pemprosesan gas asli cecair (LNG) di Australia.
Di bawah kontrak itu, Kencana HL akan melaksanakan kerja fabrikasi, memasang, menguji dan memuatkan modul peralatan proses untuk Kemudahan Loji Projek Wheatstone yang terletak di utara Ashburton (berdekatan Onslow), di Australia Barat.
Projek Wheatstone, satu daripada projek industri minyak dan gas terbesar di Australia, adalah usaha sama antara anak syarikat Chevron di Australia (73.6 peratus), Apache (13 peratus), Kuwait Foreign Petroleum Exploration Company (tujuh peratus) dan Shell (6.4 peratus).
Kencana dalam kenyataannya di Bursa Malaysia berkata, projek itu akan dilaksanakan Kencana HL di limbungan fabrikasinya di Lumut Perak selama 29 bulan.
“Penyerahan struktur dan komponennya pula akan dilakukan secara berperingkat mulai suku ketiga 2014 hingga suku ketiga 2015,” katanya.
Kontrak di Australia itu adalah yang kelima diperoleh oleh Kencana bagi tahun ini.
April lalu, Kencana menerusi Kencana HL, meraih kontrak bernilai RM208 juta daripada Kebabangan Petroleum Operating Company Sdn Bhd (KPOC) bagi kerja fabrikasi struktur kecil untuk projek pembangunan Hab Utara Kebabangan di pesisir pantai Sabah.
Menerusi Kencana HL juga, Kencana turut memperoleh kontrak pembangunan platform lapangan minyak Cendor, di luar pesisir Terengganu bernilai RM216 juta pada Mac lalu.
Sebulan sebelum itu, Kencana turut memperoleh kontrak daripada Petrofac E&C Sdn Bhd untuk projek kejuruteraan, pemerolehan, pembinaan dan pelaksanaan (EPCC) Mobile Offshore Production Unit (MOPU) dan Wellhead Support Structure (WESS), bernilai RM115 juta di luar pantai Terengganu.
Awal tahun ini pula, Kencana menerusi pakatannya bersama Sapura Energy Ventures dan Petrofac Energy Developments Sdn Bhd (PED), turut dianugerahkan kontrak kerja perkhidmatan berisiko (RSC) bagi pembangunan telaga minyak kecil milik PETRONAS di luar pesisir pantai Terengganu.
Dengan projek terbaru yang diperolehnya di Australia itu, jumlah keseluruhan kontrak yang diperoleh Kencana setakat ini adalah bernilai kira-kira RM3.5 bilion.
Ia adalah kontrak terbesar bagi penyedia perkhidmatan minyak dan gas bersepadu tempatan itu bagi tahun ini.
Kontrak yang diperoleh menerusi anak syarikat milik penuhnya, Kencana HL Sdn Bhd itu adalah bagi kerja fabrikasi dan pemasangan struktur serta komponen untuk kemudahan pemprosesan gas asli cecair (LNG) di Australia.
Di bawah kontrak itu, Kencana HL akan melaksanakan kerja fabrikasi, memasang, menguji dan memuatkan modul peralatan proses untuk Kemudahan Loji Projek Wheatstone yang terletak di utara Ashburton (berdekatan Onslow), di Australia Barat.
Projek Wheatstone, satu daripada projek industri minyak dan gas terbesar di Australia, adalah usaha sama antara anak syarikat Chevron di Australia (73.6 peratus), Apache (13 peratus), Kuwait Foreign Petroleum Exploration Company (tujuh peratus) dan Shell (6.4 peratus).
Kencana dalam kenyataannya di Bursa Malaysia berkata, projek itu akan dilaksanakan Kencana HL di limbungan fabrikasinya di Lumut Perak selama 29 bulan.
“Penyerahan struktur dan komponennya pula akan dilakukan secara berperingkat mulai suku ketiga 2014 hingga suku ketiga 2015,” katanya.
Kontrak di Australia itu adalah yang kelima diperoleh oleh Kencana bagi tahun ini.
April lalu, Kencana menerusi Kencana HL, meraih kontrak bernilai RM208 juta daripada Kebabangan Petroleum Operating Company Sdn Bhd (KPOC) bagi kerja fabrikasi struktur kecil untuk projek pembangunan Hab Utara Kebabangan di pesisir pantai Sabah.
Menerusi Kencana HL juga, Kencana turut memperoleh kontrak pembangunan platform lapangan minyak Cendor, di luar pesisir Terengganu bernilai RM216 juta pada Mac lalu.
Sebulan sebelum itu, Kencana turut memperoleh kontrak daripada Petrofac E&C Sdn Bhd untuk projek kejuruteraan, pemerolehan, pembinaan dan pelaksanaan (EPCC) Mobile Offshore Production Unit (MOPU) dan Wellhead Support Structure (WESS), bernilai RM115 juta di luar pantai Terengganu.
Awal tahun ini pula, Kencana menerusi pakatannya bersama Sapura Energy Ventures dan Petrofac Energy Developments Sdn Bhd (PED), turut dianugerahkan kontrak kerja perkhidmatan berisiko (RSC) bagi pembangunan telaga minyak kecil milik PETRONAS di luar pesisir pantai Terengganu.
Dengan projek terbaru yang diperolehnya di Australia itu, jumlah keseluruhan kontrak yang diperoleh Kencana setakat ini adalah bernilai kira-kira RM3.5 bilion.
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