Kejuruteraan Samudra wins Petronas deal

Kejuruteraan Samudra Timur Bhd has won a contract from Petronas Carigali to provide tubular handling equipment and services. 

The contract was for the D-21, Samarang Phase 2AD and Tangga Barat Cluster Development Phase 1 projects from September 28 this year to August 31, 2013, it said

Event : SUBSEA Asia 2012

Show Title: 

SUBSEA Asia 2012

Status: 

3rd Asia’s SUBSEA Conference and Exhibition

Venue:

Kuala Lumpur Convention Centre (KLCC)

Date:

3 October 2012 (Conference)

4 -5 October 2012 (Exhibition)

Subsea: Malaysia positioned to be global oil & gas hub Read more: Subsea: Malaysia positioned to be global oil & gas hub

Malaysia is strategically positioned to be one of the world's four deepwater oil and gas hubs alongside the US, Brazil and Europe, said Subsea Asia chief executive officer Neil Gordon.

"Many (oil and gas) companies are looking at where they want to base themselves and Malaysia is in a good position (to become a global hub)," he said in an interview with Business Times here yesterday.

Gordon is in the city for the three-day Subsea Asia 2012 exhibition and conference to be held at the Kuala Lumpur Convention Centre. 

The conference will be held from today, while the exhibition will start tomorrow.

"Of course Malaysia is going to be a significant part for companies to look at and invest. Many UK companies will be here looking at how they would be developing their businesses, with the possibility of setting up base here.

"So, it's very significant opportunities for the local economy and supply chain," he said.

Gordon lauded the incentives and initiatives for the oil and gas sector announced by Datuk Seri Najib Razak under the 2013 Budget recently.

The Prime Minister announced a 100 per cent income tax exemption for a period of 10 years, exemption of withholding tax and exemption of stamp duty to be given to public-private partnership projects in the development of oil and gas industry.

"An incentive to attract investment is very positive for the industry and good for the area," he said.

Malaysian Exhibition Services Sdn Bhd (MES) general manager Alun Jones said the incentives will enhance the country's capability, especially in providing an ecosystem to support the development of the chain of refining, storage and trading of oil and gas.

"The incentives will also support the participation of private operators in the development of the oil and gas industry," he said.

On the Subsea Asia 2012, Jones said the organiser expects some 2,000 trade visitors from 25 countries to attend.

MES is the organiser of the exhibition segment of Subsea Asia 2012.

Subsea UK is the industry body and focal point for the entire British subsea industry and aims to increase business opportunities at home and abroad for the sector.

RM23b bina paip minyak, gas

Industri minyak dan gas dijangka membelanjakan sebanyak AS$7.2 bilion (RM23 bilion) bagi pembinaan saluran paip sepanjang 2,490 kilometer untuk pembangunan laut dalam bagi tempoh lima tahun.

Pelaburan tersebut menyaksikan Malaysia mempunyai saluran paip minyak dan gas terpanjang di Asia.

Laporan Perspektif Luar Persisir Minyak dan Gas Asia menjangkakan pembangunan minyak dan gas laut dalam Malaysia akan terus berkembang dengan 84 pelantar tetap dan lapan buah pengeluaran terapung akan dibangunkan antara 2011 hingga 2015.

Lembaga Pengarah Persidangan Teknologi Luar Persisir (OTC), Dr Arnis Judzis berkata, Malaysia dijangka menjadi peneraju pembangunan 'subsea' dengan 57 buah pelantar akan dibangunkan dalam tempoh lima tahun.

''Dunia dan rantau akan terus mencari sumber hidrokarbon yang belum ditemui serta memaksimumkan pengeluaran dari medan (minyak) sedia ada, perbelanjaan modal (capex) bagi aktiviti eksplorasi dan pengeluaran (E&P) adalah penting kepada negara-negara seperti Malaysia.

''Pelaburan capex tersebut adalah bagi menangani isu pengurangan pengeluaran dan terus bersaing dengan pemain-pemain industri baru dari negara-negara lebih kecil seperti Bangladesh dan Myanmar yang memasuki pasaran,'' katanya.

Beliau berkata demikian pada majlis pelancaran OTC Asia 2014 di sini baru-baru ini.

Hadir sama pada majlis tersebut, Presiden dan Ketua Pegawai Eksekutif Petroliam Nasional Bhd. (Petronas), Tan Sri Shamsul Azhar Abas.

Tambah Judzis, Asia dilihat semakin penting sebagai lokasi eksplorasi minyak dan gas dunia kerana disokong oleh fundamental kukuh, termasuk pertumbuhan ekonomi yang baik dan peningkatan harga minyak.

''Perkara itu menyebabkan banyak pengendali antarabangsa mengembangkan aktiviti eksplorasi dan pengeluaran minyak di rantau ini.

''Memandangkan permintaan semakin tinggi, kami menjangkakan pemain-pemain industri memerlukan teknologi terkini dalam mempercepatkan proses E&P dalam beberapa tahun akan datang,'' jelasnya.

Judzis berkata, dengan penganjuran OTC Asia 2014, permintaan terhadap teknologi terkini industri akan dapat dipenuhi kerana menyediakan platform perkongsian pengalaman dan pengetahuan teknikal.

OTC Asia 2014 akan diadakan pada 25 hingga 28 Mac 2014 di Kuala Lumpur.

Penganjuran tersebut dijangka menarik minat 10,000 jurutera, eksekutif, pengendali, saintis dan pengurus dari industri E&P mewakili 50 negara.

Govt still in talks with Petronas to cut dependence on oil revenue

The government is still in talks with Petroleum Nasional Bhd (Petronas) to lessen its dependence on the state oil company's contribution to the government's revenue.

Secretary-general of the Ministry of Finance Datuk Mohd Irwan Serigar Abdullah said before the contribution could be lessened further, a full revamp of the country's tax structure must be put in place.

"It (the gradual reduction in dependence on oil-related revenues) will coincide with a more firm (overall) tax structure," he told pressmen after the post-2013 Budget dialogue organised by the Malaysian Economic Association and University of Malaya's Faculty of Economics and Administration here yesterday.

He noted that the government has gradually reduced dependence on oil-related revenues, where a lower dividend of RM28 billion was imputed for 2012 from Petronas, compared with RM30 billion in 2011.

"The dividend to be paid by Petronas to the government will be further reduced by RM3 billion to RM27 billion next year," said Mohd Irwan.

Mohd Irwan said both parties have been in talks for the last two years in seeking to cut revenue from oil money.

He said less dividend payout from Petronas would mean more cash to reinvest for the oil company and the government could in turn collect more money from tax.

Asked if the plans to reduce dependence on oil-related revenue could coincide with the introduction of the Goods and Services Tax (GST), Mohd Irwan replied "maybe".

The government says it wants to introduce the GST to widen the revenue base where only about 10 per cent of the workforce pays income taxes and to cut the fuel subsidies that are among Asia's highest.

Meanwhile, chairman of Taxand Malaysia Bhd Veerinderjeet Singh said the government should strive to reduce corporate tax rate to 20 per cent from 25 per cent presently.

He said a 20 per cent corporate tax rate is the best rate to attract foreign investors as well stimulate private sector growth.

"The government should announce a plan to reduce corporate tax rate 1 per cent annually to achieve the 20 per cent tax rate," he said.

RM8.5bil new O&G storage facility to be undertaken by Halim Saad’s Armada

A new facility for oil and gas (O&G) storage and refining to be known as Sabah Oil Terminal, is being planned in Sipitang, Sabah at an estimated cost of RM8.5bil, sources said.

The sources said that a 1,000-acre site at the Sipitang Oil and Gas Industrial Park has been allocated for this development which would be undertaken by Armada Sdn Bhd beginning next year.

Armada is a special purpose vehicle (SPV) set up by businessman Tan Sri Halim Saad and the SPV had received the green light from the Government, the sources added.

Halim had been working on the project and those in the know claimed that he had managed to convince some international oil and gas companies to use the facilites for storage and refining of crude oil to be exported within the Asian region.

Halim could not be reached for comments.

The Sipitang O&G project, the sources said, would be developed over two phases, the first costing RM4.7bil would cover storage, supporting infrastructure facilities, housing and mixed development.

The second would involve the development of a refinery and other support facilities at an estimated cost of RM3.8bil. The entire project would be developed over a four to five years .

The sources could not give any details on the funding for the project.

The entire complex would be used to cater for storage of crude oil and petroleum products, blending and refinery facilities. Phase 0ne would cover the development of storage facilities to cater up to 1.5 million cu m of crude oil and 50,000 barrels of crude oil for refinery, supporting infrastructure facilities, housing and mixed development.

In his budget speech, the Prime Minister had said that this year, some US$20bil (RM61.13bil) worth of oil and gas projects had been implemented.

Among the notable ones are Petronas's Refinery and Petrochemical Integrated Development oil and gas storage terminal in Johor, the regasification plant in Malacca and the oil and gas terminal in Sipitang, Sabah.

The new project in Sabah may not be just an oil storage facility but it could potentially be a petroleum reserve centre. The United States, China, Russia, Thailand, Singapore and Japan have such centres to keep supplies for between one and three months. Sources added that it was likely that the project management works for phase one would go to Halim's corporate vehicle Seloga Holdings Bhd.

Petronas peruntuk RM132b

Petronas memperuntukkan perbelanjaan modal sebanyak RM132 bilion untuk aktiviti eksplorasi dan pengeluaran (E&P) dalam tempoh lima tahun dalam usaha memastikan Malaysia menjadi hab minyak dan gas rantau ini.

Naib Presiden Eksekutif E&P Petronas, Datuk Wee Yiaw Hin berkata, jumlah tersebut merupakan 70 peratus daripada AS$59 bilion (RM188.8 bilion) perbelanjaan modal untuk aktiviti E&P luar persisir industri minyak dan gas.

''Dalam tempoh lima tahun akan datang Petronas sedang meninjau untuk mengekalkan dan mengembangkan pengeluaran minyak dan gas," katanya kepada pemberita pada taklimat media, baru-baru ini.

Tambah Yiaw Hin, Petronas telah melancarkan tiga langkah strategik utama untuk memastikan perkara tersebut dapat dilakukan.

''Pertama adalah untuk mendapatkan lebih banyak pengeluaran dari sumber sedia ada dan mempertingkatkan pencarian minyak. Terdapat banyak aktiviti yang dilakukan bagi mencapai misi tersebut.

''Kedua kita telah mempunyai medan (minyak) tetapi tidak dibangunkan, oleh itu Petronas melaksanakan penyelesaian inovatif bagi mendapatkan sumber pengeluaran.

''Akhir sekali, kami berusaha untuk mendapatkan lebih banyak sumber dari kawasan-kawasan baru," jelasnya.

Yiaw Hin berkata, lima tahun yang lalu negara hanya mempunyai 10 hingga 12 pelantar minyak tetapi hari ini ia telah berkembang kepada 35 buah dan akan terus meningkat pada masa hadapan.

Ditanya bila Malaysia akan diiktiraf sebagai hab minyak dan gas serantau, Yiaw Hin berkata, industri tempatan telah bersedia ke arah itu memadangkan aktiviti yang banyak dalam industri munyak dan gas selain mempunyai teknologi dan infrastruktur baru dan kemampuan untuk menarik minat pemain industri antarabangsa.

''Petronas dan kerajaan telah menggalakkan syarikat-syarikat minyak dan gas antarabangsa menjadikan Malaysia sebagai ibu pejabat mereka di negara ini.

''Kita juga telah menyediakan infrastruktur bersesuaian serta bekerjasama dengan mereka yang terlibat industri bagi memastikan hasrat menjadi hab minyak dan gas tercapai.

''Aspirasi utama negara bukan sahaja menjadi pemain industri berjaya di peringkat rantau sahaja tetapi di peringkat global," katanya.

RM183bil capital expenditure for M'sian oil and gas sector

Petronas) and the local industry are expected to invest US$59bil (RM183bil) in capital expenditure (capex) over the next five years, positioning Malaysia as a regional hub for oil and gas.

“The capex for Petronas and its production sharing contract (PSC) operators will be US$59bil in the next five years.

“It (capex) has never been this high. Petronas' capex is about 70% of the amount and the bulk of it will be for exploration and production,” Petronas executive vice-president (exploration and production business) Datuk Wee Yiaw Hin told StarBiz.

He said Petronas would be looking at maintaining and even growing its production in oil and gas.

“In order to do that, Petronas has outlined three strong strategies with the first being trying to get more out of our existing production area. We are looking into enhanced oil recovery (EOR). We are trying to get more from our existing production so there's a lot of activity there,” Wee said, adding that Petronas had earlier signed a PSC with Shell Malaysia for EOR projects offshore Sarawak and Sabah.

In January, Petronas and Shell Malaysia signed a 30-year deal worth RM37.3bil. The deal will see the implementation of the world's largest EOR projects offshore Sabah and Sarawak.

According to reports, EOR currently accounts for 4% of global oil production. This could rise to 20% by 2030.

Secondly, Wee said Petronas had a lot of what it called “stranded fields”. “We have come to a stage where we will be applying more innovative contracting solution like the marginal oilfields.”

“And lastly, we are trying to add resources to our resource base. There are a lot of aggressive explorations even in new areas such as high pressure, high temperature and deepwater,” Wee said.

Five years ago, Petronas had 10-12 rigs a year. Today, it has some 35 rigs in Malaysian waters alone. In addition, the national oil company has 90 barges and boats in operation.

“This is going to continue for the next few years to grow our production. With that, the industry will have to support us in going into new technology areas. When we talk about EOR deepwater projects, these are all very technological focused,” Wee said.

Meanwhile, he said Gumusut-Kakap, which was a deepwater oilfield, was scheduled to start production either end-2013 or early 2014.

“When it comes on stream, it will produce 120,000 to 150,000 barrels per day. It is a big production as our Malaysia production is 600,000 barrels per day,” Wee said.

Petronas shut down its production in Sudan in February due to geopolitical problems in the country. The national oil company is estimated to lose US$1bil due to the halted production.

Wee said Petronas was expected to start producing there again probably by mid-2013.

Meanwhile, Wee also announced the inaugural Offshore Technology Conference (OTC) Asia which would kick off from March 25-28, 2014 in Kuala Lumpur.

“The time is right for OTC to be here. Malaysia is aspiring to be the leading hub in oil and gas. But I think we can grow to be a regional hub as well.”

Wee said a conference like OTC would provide a platform for the industry to exchange knowledge, technology and expertise.

Offshore Technology Conference (OTC) board of directors representative and OTC Asia event oversight committee member Dr Arnis Judzis said OTC could bring economic benefits to the community and the area.

He said the OTC held in Houston had many exhibitors and high level of activities.

“Today, the investment in hotel activities and trade has brought over US$2.3bil to the community as a result of the incoming people, attendees, goods and services.

“We see a similar level of activities in Kuala Lumpur. And as OTC matures over the years, more and more participants will come in,” Judzis said.

The OTC Asia is expected to attract 10,000 visitors with over 6,000 sq m of exhibits. OTC Houston last year drew 79,000 visitors. It had 75,000 sq ft exhibit space with 200 exhibitors representing 110 countries.

“OTC has always attracted a large attendance from the Asia-Pacific region. Participation from Asia-Pacific countries at the 2012 OTC in Houston was more than 4,100 people,” Judzis said.

OTC Asia project director Cordella Wong Gillett said OTC Asia would be a biannual event and 2016 had also been committed to be held in Kuala Lumpur.

Petronas president and chief executive officer Tan Sri Shamsul Azhar Abbas said the next couple of years were set to be a period of prolonged economic and financial market uncertainty but he believed energy requirements would continue to see an uptrend.

“As Malaysia continues to position itself as a regional hub for oil and gas services, we fully realise the value of participating in technological exchanges such as the OTC.

“The OTC series will undoubtedly provide significant platforms for industry captains to congregate and collectively identify avenues to propel the oil and gas industry to greater heights, amid the increasing volatilities facing the sector,” Shamsul said in his speech at an industry reception of OTC Asia 2014.

Protest begins against Petronas’ RM60b Pengerang project

The sleepy hollow of Kampung Sungai Rengit came alive this morning with animated chants and blares from portable air horns as green-clad protesters streamed in by the bus loads to rally against a RM60 billion petrochemical project that will see thousands of villagers lose their homes and livelihoods. 

The highly-anticipated Himpunan Hijau Pengerang Lestari protest kicked off peacefully to a bright and early start despite earlier fears of possible police blockades to prevent protesters from attending the mass rally. 

From 25 different locations across the country, including the east Malaysian state of Sabah, rally participants arrived from 9am onwards, all dressed in Himpunan Hijau’s signature neon green T-shirts and bearing banners that detailed the rally’s three protests — to protest the land grab, to protest the loss of livelihood, and to protest environmental destruction. 

As at 10am, the small village square where the township’s landmark steel lobster structure is located was flooded by nearly a thousand protesters. 

By noon, event organisers had number the crowd to a generous estimate of 7,000.

The atmosphere was peaceful and almost carnival-like with some rally-goers erecting small booths to sell items like T-shirts, umbrellas, face masks and light snacks, while only a handful of police personnel were seen keeping an eye on the cheerful rally participants. 

Seen among the crowd were known Pakatan Rakyat (PR) leaders like PAS vice-president Salahuddin Ayub and Johor DAP chief Dr Boo Cheng Hau, as well as Bersih 2.0 steering committee members Wong Chin Huat and Hishammuddin Rais, who was the emcee for the event. 

The vocal activist, Hishammuddin spurred the crowd on by teaching them cheering signals and a song “Suara Rakyat” (voice of the people), which was sung along to the tune of the famous American folk ballad “Oh my darling Clementine”. 

Banners and placards condemning Petronas’ Refinery and Petrochemicals Development (RAPID) project, which will see the relocation of over 3,000 people from seven villages girdling the shore of Pengerang, have also been erected across the small Chinese-majority Kampung Sungai Rengit, the only village that has escaped the government’s relocation plans thus far. 

According to rally organisers, the government has refused to acquire land from Kampung Sungai Rengit residents due to the high value of the commercial property here. 

But a Pengerang PKR leader Taufik Jahir claimed the objective was to “force the villagers from their homes” as Kampung Sungai Rengit will turn into an island once all phases of the Pengerang Integrated Petroleum Complex (PIPC) is completed in the years ahead. 

RAPID is set to occupy over 6,424-acres of PIPC’s 22,500 acres, which is home to some 28,000 Pengerang parliamentary constituents in the southernmost tip of Johor. PIPC is a massive RM170 billion project that is expected to turn Malaysia into a mega petrochemical hub. 

“Once they have been turned into an island, the Kampung Sungai Rengit property values will drop and the residents will be forced out, having lost their means of living,” Taufik told The Malaysian Insider. 

Taking the stage during the rally later, a few local residents sought to condemn the multibillion ringgit petroleum project, telling the crowd that “we are not Taiwan’s dustbin”. 

They were referring to KuoKuang Petrochemical’s reported involvement in the project, which villagers have condemned as the firm reportedly had to abandon its plan to house a petrochemical project in Taiwan following concerns that those living in close proximity to such developments would see their lifespans reduced. 

“We will stand to protect our land. We will throw them into the dustbin,” said one villager. 

NGO Pengerang chief Anis Afida Mohd Azli later described the rally as a historical event for the local folk of Pengerang, whom she said had dared to stand up to express their disdain with the government. 

“As I stand here on this stage, I feel so much pride because I have managed to become a part of history, a history charted today that proves Malaysians are rising against cruel leaders. 

“Look around you and see how your fellow Malaysians are with you. We are not alone. We need not be afraid to defend our own lands,” she said. 

She said since RAPID was given the go-ahead in May last year, local NGOs opposed to the project, and have been “on our knees” before the people, hoping for support to keep the issue alive. 

“This October 8, we will go to the mentri besar’s office to voice the people’s wishes. Today, I think, was enough to send a message to the government that Pengerang folk want to be able to enjoy their God-given blessings,” she said. 

The protest today ended peacefully shortly after noon. There were no untoward incidents reported. - TMI

BP sells PTA plant in Malaysia for RM713mil

BP Plc will sell its purified terephthalic acid (PTA) production plant in Malaysia to India's Reliance Global Holdings Pte Ltd for US$230mil (RM713mil).

The agreement concerned BP's 100% equity in Kuantan-based BP Chemicals (M) Sdn Bhd (BPCM), British oil and gas giant said.

The transaction would be completed by the year-end, it said in a statement.

“This is an efficient plant with a good market position in the region,” said James Yim, head of BP's aromatics business in Asia.

“Recron Malaysia, part of the Reliance Group, is already our largest customer in Malaysia and Reliance Industries is a significant feedstock supplier at Kuantan, so Reliance is a natural owner of this plant,” he said.

Nick Elmslie, chief executive of BP Petrochemicals said that BP had a major, global PTA business, with around one fifth of global PTA production capacity and a track record of leading technology.

“Hence, BP would continue to concentrate its PTA strategy on deploying new technologies into high-growth markets like China where the company is in the middle of a considerable expansion programme,” he said.

BP's current net global PTA capacity is 7.5 million tonnes per year (mtpa). Its largest plant is in Zhuhai, China where expansion of its current capacity of 1.5 mtpa is expected to add a further 1.25 mtpa by 2014, making it one of the world's largest PTA manufacturing sites.

BP's acetic acid manufacturing and marketing business in Malaysia was unaffected by the sale, said BP. - Bernama