Malaysia's Petronas and Brunei's government have agreed to jointly develop one of two offshore blocks off Borneo island, the Malaysian government said on Wednesday.
The offshore exploration areas, formerly designated as Block L and Block M and now renamed CA1 and CA2, were awarded to Petronas and Murphy Oil Corp in 2003 but were cancelled in April after Malaysia and Brunei agreed that the blocks were not part of Malaysia.
Petronas and Brunei on Tuesday signed the production sharing agreement for Block CA1. Both countries hoped that the agreement for Block CA2 would be finalised soon.
"Both leaders noted that the signing represented a significant step forward in the development of cooperation between the petroleum authorities of both countries in this area," the Malaysian government said in a statement.
Malaysia and Brunei also said there was potential for future cooperation beyond Block CA1 and CA2 and a possible joint venture in a third country in oil and gas exploration. - Reuters
Thursday, 23 September 2010
Wednesday, 22 September 2010
OMV to buy Petronas interests in Pakistan
OMV AG has signed an agreement to purchase the exploration and production interests in Pakistan of Petronas International Corp. Ltd.
The interests include the Mubarak, Mehar, and Daphro exploration licenses and Mehar and Mubarak development and production licenses. Terms of the agreement, which must be approved by the government, weren’t disclosed.
The only current production is from Rehmat gas field on the Mubarak block in Sindh Province, where output averaged 14 MMscfd of gas and 34 b/d of condensate in 2008-09 but is declining, according to Government Holdings Private Ltd. (GHPL), a partner.
A later discovery on the block, Saqib 1A, tested 25 MMcfd of gas in March 2008 and is being developed to produce through the Rehmat gas plant.
A gas discovery on the Mehar block in Sindh Province has been approved for development. GHPL estimates the field holds 564 bcf of gas and 82 million bbl of condensate in place.
The interests include the Mubarak, Mehar, and Daphro exploration licenses and Mehar and Mubarak development and production licenses. Terms of the agreement, which must be approved by the government, weren’t disclosed.
The only current production is from Rehmat gas field on the Mubarak block in Sindh Province, where output averaged 14 MMscfd of gas and 34 b/d of condensate in 2008-09 but is declining, according to Government Holdings Private Ltd. (GHPL), a partner.
A later discovery on the block, Saqib 1A, tested 25 MMcfd of gas in March 2008 and is being developed to produce through the Rehmat gas plant.
A gas discovery on the Mehar block in Sindh Province has been approved for development. GHPL estimates the field holds 564 bcf of gas and 82 million bbl of condensate in place.
Tuesday, 21 September 2010
Saipem Wins Onshore Contracts Worth Around $500 Million
Italian oil services company Saipem SpA said it has won onshore contracts in Africa worth a total of around $500 million.
In Algeria, Sonatrach has awarded Saipem a contract at the Hassi Messaoud oil center.
Saipem has also received a contract from the joint venture between the Nigerian National Petroleum Corp. and Chevron Corp. (CVX) for engineering, procurement and construction at the Olero Creek Restoration project.
In Congo, the Porte Noire Port Authority has awarded Saipem an engineering, procurement and construction contract to build an 800-meter-long pier.
In Algeria, Sonatrach has awarded Saipem a contract at the Hassi Messaoud oil center.
Saipem has also received a contract from the joint venture between the Nigerian National Petroleum Corp. and Chevron Corp. (CVX) for engineering, procurement and construction at the Olero Creek Restoration project.
In Congo, the Porte Noire Port Authority has awarded Saipem an engineering, procurement and construction contract to build an 800-meter-long pier.
Monday, 20 September 2010
Syria, Iraq to build pipeline
Syria and Iraq have signed an initial agreement to build two crude oil pipelines to the Mediterranean Sea, an Iraqi official said.
Iraqi government spokesman Ali al-Dabbagh said the larger pipeline with a 1.5 million barrel daily capacity would carry heaver crudes and the smaller pipeline with a 1.25 million daily capacity would carry lighter crude oil, the Global Arab Network Web site reported Sunday.
The Iraqi spokesman said a third pipeline for gas, already approved by his government, will also be constructed by the two countries in the future.
The Iraqi government has signed a series of agreements with major international oil companies to quadruple its crude oil production capacity in the next seven years, with the aim of raising Iraq's oil production to a 12 million barrel daily capacity, the report said.
Iraqi government spokesman Ali al-Dabbagh said the larger pipeline with a 1.5 million barrel daily capacity would carry heaver crudes and the smaller pipeline with a 1.25 million daily capacity would carry lighter crude oil, the Global Arab Network Web site reported Sunday.
The Iraqi spokesman said a third pipeline for gas, already approved by his government, will also be constructed by the two countries in the future.
The Iraqi government has signed a series of agreements with major international oil companies to quadruple its crude oil production capacity in the next seven years, with the aim of raising Iraq's oil production to a 12 million barrel daily capacity, the report said.
Sunday, 19 September 2010
BP's oil well near death, but disaster is not over
The impending death of BP's blown-out oil will bring one piece of the catastrophe that began five months ago to an anticlimactic end — after all, the gusher was capped in July.
This, though, is an important milestone for the still-weary residents of the Gulf Coast: an assurance that not so much as a trickle of oil will ever seep from the well that already has ruined so much since the catastrophe first started. The disaster began April 20, when an explosion killed 11 workers, sank a drilling rig and led to the worst offshore oil spill in U.S. history.
Crews had already pumped in cement to seal the well from the bottom, and officials said Saturday it had set. Once a pressure and weight test was finished, officials expected to confirm that the well is permanently plugged. That was expected to occur late Saturday, but an announcement may not come until Sunday.
People who rely on the Gulf of Mexico and its coastline for their livelihoods, though, know the disaster is far from over. They are left to rebuild amid the businesses destroyed by once-oil-coated shorelines and fishing grounds that were tainted by crude. Even where the seafood is safe, fishermen struggle to sell it to consumers fearful that it's toxic.
News that the blown out well would soon be dead brought little comfort to people like Sheryl Lindsay, who owns Orange Beach Weddings, which provides beach ceremonies on Alabama's coast.
She said she lost about $240,000 in business because of the spill as nervous brides-to-be canceled their weddings all summer long and even into the remainder of the year. So far, she has only received about $29,000 in BP compensation.
"I'm scared that BP is going to pull out and leave us hanging with nothing," Lindsay said.
The Gulf well spewed 206 million gallons of oil until the gusher was first stopped in mid-July with a temporary cap. Mud and cement were later pushed down through the top of the well, allowing the cap to be removed. But officials will not declare it dead until it is killed from the bottom.
In Louisiana's coastal Plaquemines Parish, Guy Laigast was among three deputies setting up New Orleans Saints football garb Saturday along a fence at the sheriff's office training center, preparing for an annual employees' picnic. For him, news that the plug was nearly done meant little.
"They've still got tons of oil out there, so ..." he said, his voice trailing off. "I don't think it's going to solve all the problems. They've got a lot to go."
Librarian Donna Pobrica was working Saturday in an otherwise empty library in Belle Chasse serving as a polling place Saturday for a local election.
"I know a lot of people who have been waiting for that," she said of the well's plugging. "We've waited a long time."
Pobrica said the spill "really killed the people down the road. Oysters were the main thing down here, and now it's gone."
Many of the area's oyster beds were wiped out when officials flooded the marshes with fresh water, hoping it would help keep oil out of the delicate wetlands. Oysters thrive in salt water.
For Tom Becker, a charter fishing boat captain in Biloxi, Miss., news that the well was nearly dead is too little, too late. His business has tanked, down more than 60 percent with $36,000 in lost revenue, not to mention the business he'll lose in the future.
"The phones just aren't ringing," Becker said. "The damage is done. I'm glad to hear the well is sealed because now we won't have to speculate about it happening again. Now let's worry about the future. How can we recover from this, and what do we have to do to bring people back?"
Even aboard the Development Driller III — the ship that drilled the relief well and allowed crews to pump in the cement for the plug — celebrations were muted.
"It's kind of bittersweet because we lost 11 men out here," said Rich Robson, the offshore installation manager on the DDIII vessel. "There isn't going to be any real celebration. To a lot of people, the water out here is a cemetery."
The Associated Press was the only media outlet with a print reporter and photographer aboard the ship.
Tim Speirs, BP's well site leader aboard the ship, told The Associated Press there would be no sirens, no lights flashing, once the declaration came. In fact, most of the crew would be asleep. Most of the crew was still working to set up equipment for the pressure test, breaking only at lunch to feast on grilled ribeye steaks, rabbit and chicken.
The DDIII crew began finishing their work Thursday, when the relief well being drilled intersected BP's blown-out well. The cement — which will permanently plug the blown-out well from the bottom — started flowing Friday. It had hardened by Saturday, leaving only the pressure test.
Until the test was finished, men in red work suits and mud-splattered hardhats were operating heavy hydraulic machines being used to lift the drill pipe back to the deck of the DDIII vessel. Two men sitting in black leather chairs used joysticks to maneuver the massive machines on the deck, which were lifting the equipment that was thousands of feet below.
The relief well was the 41st successful drilling attempt by John Wright, a contractor who led the team drilling the relief well aboard the DDIII vessel. Wright, who has never missed his target, told The Associated Press in August that he was looking forward to finishing the well and celebrating with a cigar and a quiet getaway with his wife.
He told the AP Saturday he plans to make good on that promise. He planned to head back to Houston and then leave for a vacation with his wife, probably to California. For him, the difficult work is finished.
"In my mind, it's already over. It's been a long, exhaustive process," he said, citing "the media attention, the government involvement, the stress levels, the pressure levels — not just on me, but on the entire team."
This, though, is an important milestone for the still-weary residents of the Gulf Coast: an assurance that not so much as a trickle of oil will ever seep from the well that already has ruined so much since the catastrophe first started. The disaster began April 20, when an explosion killed 11 workers, sank a drilling rig and led to the worst offshore oil spill in U.S. history.
Crews had already pumped in cement to seal the well from the bottom, and officials said Saturday it had set. Once a pressure and weight test was finished, officials expected to confirm that the well is permanently plugged. That was expected to occur late Saturday, but an announcement may not come until Sunday.
People who rely on the Gulf of Mexico and its coastline for their livelihoods, though, know the disaster is far from over. They are left to rebuild amid the businesses destroyed by once-oil-coated shorelines and fishing grounds that were tainted by crude. Even where the seafood is safe, fishermen struggle to sell it to consumers fearful that it's toxic.
News that the blown out well would soon be dead brought little comfort to people like Sheryl Lindsay, who owns Orange Beach Weddings, which provides beach ceremonies on Alabama's coast.
She said she lost about $240,000 in business because of the spill as nervous brides-to-be canceled their weddings all summer long and even into the remainder of the year. So far, she has only received about $29,000 in BP compensation.
"I'm scared that BP is going to pull out and leave us hanging with nothing," Lindsay said.
The Gulf well spewed 206 million gallons of oil until the gusher was first stopped in mid-July with a temporary cap. Mud and cement were later pushed down through the top of the well, allowing the cap to be removed. But officials will not declare it dead until it is killed from the bottom.
In Louisiana's coastal Plaquemines Parish, Guy Laigast was among three deputies setting up New Orleans Saints football garb Saturday along a fence at the sheriff's office training center, preparing for an annual employees' picnic. For him, news that the plug was nearly done meant little.
"They've still got tons of oil out there, so ..." he said, his voice trailing off. "I don't think it's going to solve all the problems. They've got a lot to go."
Librarian Donna Pobrica was working Saturday in an otherwise empty library in Belle Chasse serving as a polling place Saturday for a local election.
"I know a lot of people who have been waiting for that," she said of the well's plugging. "We've waited a long time."
Pobrica said the spill "really killed the people down the road. Oysters were the main thing down here, and now it's gone."
Many of the area's oyster beds were wiped out when officials flooded the marshes with fresh water, hoping it would help keep oil out of the delicate wetlands. Oysters thrive in salt water.
For Tom Becker, a charter fishing boat captain in Biloxi, Miss., news that the well was nearly dead is too little, too late. His business has tanked, down more than 60 percent with $36,000 in lost revenue, not to mention the business he'll lose in the future.
"The phones just aren't ringing," Becker said. "The damage is done. I'm glad to hear the well is sealed because now we won't have to speculate about it happening again. Now let's worry about the future. How can we recover from this, and what do we have to do to bring people back?"
Even aboard the Development Driller III — the ship that drilled the relief well and allowed crews to pump in the cement for the plug — celebrations were muted.
"It's kind of bittersweet because we lost 11 men out here," said Rich Robson, the offshore installation manager on the DDIII vessel. "There isn't going to be any real celebration. To a lot of people, the water out here is a cemetery."
The Associated Press was the only media outlet with a print reporter and photographer aboard the ship.
Tim Speirs, BP's well site leader aboard the ship, told The Associated Press there would be no sirens, no lights flashing, once the declaration came. In fact, most of the crew would be asleep. Most of the crew was still working to set up equipment for the pressure test, breaking only at lunch to feast on grilled ribeye steaks, rabbit and chicken.
The DDIII crew began finishing their work Thursday, when the relief well being drilled intersected BP's blown-out well. The cement — which will permanently plug the blown-out well from the bottom — started flowing Friday. It had hardened by Saturday, leaving only the pressure test.
Until the test was finished, men in red work suits and mud-splattered hardhats were operating heavy hydraulic machines being used to lift the drill pipe back to the deck of the DDIII vessel. Two men sitting in black leather chairs used joysticks to maneuver the massive machines on the deck, which were lifting the equipment that was thousands of feet below.
The relief well was the 41st successful drilling attempt by John Wright, a contractor who led the team drilling the relief well aboard the DDIII vessel. Wright, who has never missed his target, told The Associated Press in August that he was looking forward to finishing the well and celebrating with a cigar and a quiet getaway with his wife.
He told the AP Saturday he plans to make good on that promise. He planned to head back to Houston and then leave for a vacation with his wife, probably to California. For him, the difficult work is finished.
"In my mind, it's already over. It's been a long, exhaustive process," he said, citing "the media attention, the government involvement, the stress levels, the pressure levels — not just on me, but on the entire team."
Saturday, 18 September 2010
Petronas Gas Will Be The Winner In IPPs' Talks With Ministry, Says OSK Research
Petronas Gas will be the winner in the "reimagined" talks between first-generation Independent Power Producers (IPPs) with the Energy, Green Technology and Water Ministry, says a research firm.
OSK Investment Research said the outcome would be Petronas Gas' transporting gas business model would continue even as the domestic gas supply in Peninsular Malaysia declined.
"As such, we maintain a "Buy call" for Petronas Gas, with fair value unchanged at RM13.52," said the research house in a statement.
It was responding to a newsreport in StarBiz tFriday, quoting a source as saying the Energy, Green Technology and Water Ministry has begun fresh talks with the country's first-generation IPPs after a couple of failed attempts and a long hiatus, to convince the IPPs to compromise and "give back a little to the system" and in return, be "rewarded" by extending their concessions upon expiry in 2014-15.
The report said the government felt that there must be some degree of compromise from the IPPs as their concessions are expiring soon and they should be willing to work with the system. The government has given the ministry a deadline of year-end to reach an agreement with the players, the report said.
There are five first-generation power purchase agreements (PPAs) that were signed in 1993 that were binding for 21 years.
The IPPs are YTL Power Generation Sdn Bhd, Genting Sanyen Power Sdn Bhd, Segari Energy Ventures Sdn Bhd, Powertek Bhd and Port Dickson Power Sdn Bhd.
OSK Investment Research said it was learnt that the Energy Commission would take the lead in individual negotiations with the IPPs and it would be up to the IPPs to propose how much capacity tariff cut they could accept in exchange for an extension to their PPAs.
"The negotiations are limited to first-generation IPPs and will be generally neutral to the IPPs and Tenaga. "Instead, any savings Tenaga gets from the IPP capacity charges, they will be used to secure a long-term natural gas supply from Petronas at market price.
"This will in turn allow Petronas to build a liquefied natural gas (LNG) floating regasification terminal in Melaka and import LNG at market prices.
-- BERNAMA
OSK Investment Research said the outcome would be Petronas Gas' transporting gas business model would continue even as the domestic gas supply in Peninsular Malaysia declined.
"As such, we maintain a "Buy call" for Petronas Gas, with fair value unchanged at RM13.52," said the research house in a statement.
It was responding to a newsreport in StarBiz tFriday, quoting a source as saying the Energy, Green Technology and Water Ministry has begun fresh talks with the country's first-generation IPPs after a couple of failed attempts and a long hiatus, to convince the IPPs to compromise and "give back a little to the system" and in return, be "rewarded" by extending their concessions upon expiry in 2014-15.
The report said the government felt that there must be some degree of compromise from the IPPs as their concessions are expiring soon and they should be willing to work with the system. The government has given the ministry a deadline of year-end to reach an agreement with the players, the report said.
There are five first-generation power purchase agreements (PPAs) that were signed in 1993 that were binding for 21 years.
The IPPs are YTL Power Generation Sdn Bhd, Genting Sanyen Power Sdn Bhd, Segari Energy Ventures Sdn Bhd, Powertek Bhd and Port Dickson Power Sdn Bhd.
OSK Investment Research said it was learnt that the Energy Commission would take the lead in individual negotiations with the IPPs and it would be up to the IPPs to propose how much capacity tariff cut they could accept in exchange for an extension to their PPAs.
"The negotiations are limited to first-generation IPPs and will be generally neutral to the IPPs and Tenaga. "Instead, any savings Tenaga gets from the IPP capacity charges, they will be used to secure a long-term natural gas supply from Petronas at market price.
"This will in turn allow Petronas to build a liquefied natural gas (LNG) floating regasification terminal in Melaka and import LNG at market prices.
-- BERNAMA
Friday, 17 September 2010
Petronas sells 5% of GLNG project to Total
Total to tap Petronas’ expertise in marketing LNG in Asia
Petronas has entered into an agreement to sell a 5% stake in the Gladstone Liquefied Natural Gas (GLNG) project in Australia to Total, the Australian Associated Press (AAP) reported.
Total is the world’s fourth largest listed natural gas producer. At the same time, Santos Ltd, Australia’s third-largest oil and gas producer, stated it would sell 15% stake in the GLNG project to Total for A$650mil.
Upon completion of the transactions, Santos will retain a 45% ownership, Petronas 35% and Total 20%. Santos said the GLNG transaction was the first major investment by Total in an LNG project using unconventional gas anywhere in the world.
Chief executive David Knox said the deal with Total was a landmark agreement for the Australian LNG industry. “We are pleased to welcome Total into the GLNG project as a fully integrated joint venture partner,” Knox said in a statement yesterday.
“Total brings substantial technical LNG plant and project management expertise with respect to major LNG developments,” he said.
Total chairman Christophe de Margerie said the company was teaming up with Santos for its expertise in gas production in Australia, and with Petronas for its experience in marketing LNG in Asia.
“Total will bring to the project its experience in successfully managing major projects such as the construction of gas liquefaction plants, and its capacity to market LNG to the Asian market,” he was quoted by AAP as saying.
Santos said GLNG had also signed an agreement for the sale of 1.5 million tonnes per annum (mtpa) of LNG to Total for a period of 20 years starting in 2014. In addition, GLNG and Petronas have increased contracted volumes to 3.5 mtpa under their previously announced agreement.
The combined agreements provide for the sale of five mtpa of LNG for more than US$100bil, underpinning the development of a two-train project, Santos said.
Santos also said it would explore further potential cooperation with Total in respect to commercialising its significant contingent resources in Australia.
Proceeds from the asset sale transaction would be used to fund Santos’ significant pipeline of growth projects and general corporate purposes, including funding the company’s 45% share of GLNG project costs.
The sale agreement is subject to Australian Foreign Investment Review Board approval and other customary consents and regulatory approvals. — Bernama
Thursday, 16 September 2010
Oil industry: Nix higher offshore inspection fees
The oil and gas industry says an Obama administration plan to double fees charged for inspections of offshore operations could cost jobs.
The industry recognizes the need for improved inspections and oversight following the massive BP oil spill, American Petroleum Institute president Jack Gerard said. But doubling the fees is not appropriate, especially during a recession, he said.
"This is not the time to go back and impose additional costs on industry," Gerard said Tuesday in a conference call with reporters.
The oil and gas industry contributes billions of dollars to the U.S. government in royalty payments, taxes and other fees, Gerard said, adding that government policies should encourage development of domestic energy while making sure it is safe.
The White House asked Congress late Monday to approve the higher inspection fees as part of a request for $80 million in new spending for the agency that oversees offshore drilling.
The proposal would more than double the amount collected from oil and gas companies, to $45 million next year from about $20 million this year.
Obama said in a letter to Congress that the fee increases and other changes are needed to strengthen oversight of offshore oil and gas operations; address deficiencies in mineral revenue collection; and complete the reorganization of the agency formerly known as the Minerals Management Service.
The drilling agency's new director said Tuesday that he was not involved in the fee increase decision, but supports additional revenue for his organization, now known as Bureau of Ocean Energy Management, Regulation and Enforcement.
"We need the additional resources to do the job that we've been asked to do," said Michael Bromwich, the drilling agency's new chief. Under its former name, the drilling agency was long plagued by staffing shortages and an overly cozy relationship with the industries it oversees.
Bromwich acknowledged those problems, but said the ocean energy bureau is turning a corner — and needs additional money to get even better.
"We've been faulted for not doing the job people expected us to do, and the central reason for that is we haven't had adequate resources. If we don't get the resources we need we won't be able to do the job effectively," Bromwich said Tuesday in a separate conference call.
Congress recently approved $29 million in emergency spending to hire hundreds of new offshore drilling inspectors and take others steps to improve the drilling agency. No new inspectors have been hired yet, but Bromwich said officials were conducting a "full-court press" to find and hire qualified inspectors to bolster the 60 or so inspectors now responsible for about 3,500 drilling rigs and platforms in the Gulf of Mexico.
In a related development, Bromwich said the Interior Department has hired McKinsey & Co., a management consulting firm, to help him reorganize the drilling agency.
Bromwich said he was not involved in the selection process — which began before he took office in June — and did not know how much the company was being paid.
Federal records indicate that McKinsey will be paid $4.4 million over the next year for its analysis and expertise. The company defeated four other bidders for the yearlong contract, which began Aug. 13.
Bromwich also said the Interior Department is "highly unlikely" to extend its six-month moratorium on deepwater drilling beyond Nov. 30.
He said he hopes to finish a report to Interior Secretary Ken Salazar by the end of September, a month ahead of a deadline to make recommendations on the drilling moratorium and other issues. It was unclear how soon Salazar will act after the report is submitted.
The industry recognizes the need for improved inspections and oversight following the massive BP oil spill, American Petroleum Institute president Jack Gerard said. But doubling the fees is not appropriate, especially during a recession, he said.
"This is not the time to go back and impose additional costs on industry," Gerard said Tuesday in a conference call with reporters.
The oil and gas industry contributes billions of dollars to the U.S. government in royalty payments, taxes and other fees, Gerard said, adding that government policies should encourage development of domestic energy while making sure it is safe.
The White House asked Congress late Monday to approve the higher inspection fees as part of a request for $80 million in new spending for the agency that oversees offshore drilling.
The proposal would more than double the amount collected from oil and gas companies, to $45 million next year from about $20 million this year.
Obama said in a letter to Congress that the fee increases and other changes are needed to strengthen oversight of offshore oil and gas operations; address deficiencies in mineral revenue collection; and complete the reorganization of the agency formerly known as the Minerals Management Service.
The drilling agency's new director said Tuesday that he was not involved in the fee increase decision, but supports additional revenue for his organization, now known as Bureau of Ocean Energy Management, Regulation and Enforcement.
"We need the additional resources to do the job that we've been asked to do," said Michael Bromwich, the drilling agency's new chief. Under its former name, the drilling agency was long plagued by staffing shortages and an overly cozy relationship with the industries it oversees.
Bromwich acknowledged those problems, but said the ocean energy bureau is turning a corner — and needs additional money to get even better.
"We've been faulted for not doing the job people expected us to do, and the central reason for that is we haven't had adequate resources. If we don't get the resources we need we won't be able to do the job effectively," Bromwich said Tuesday in a separate conference call.
Congress recently approved $29 million in emergency spending to hire hundreds of new offshore drilling inspectors and take others steps to improve the drilling agency. No new inspectors have been hired yet, but Bromwich said officials were conducting a "full-court press" to find and hire qualified inspectors to bolster the 60 or so inspectors now responsible for about 3,500 drilling rigs and platforms in the Gulf of Mexico.
In a related development, Bromwich said the Interior Department has hired McKinsey & Co., a management consulting firm, to help him reorganize the drilling agency.
Bromwich said he was not involved in the selection process — which began before he took office in June — and did not know how much the company was being paid.
Federal records indicate that McKinsey will be paid $4.4 million over the next year for its analysis and expertise. The company defeated four other bidders for the yearlong contract, which began Aug. 13.
Bromwich also said the Interior Department is "highly unlikely" to extend its six-month moratorium on deepwater drilling beyond Nov. 30.
He said he hopes to finish a report to Interior Secretary Ken Salazar by the end of September, a month ahead of a deadline to make recommendations on the drilling moratorium and other issues. It was unclear how soon Salazar will act after the report is submitted.
Wednesday, 15 September 2010
Petronas to lay off its employees at Ethiopia
Petronas, which is prospecting for oil resources in the Ogaden basin, in south-eastern Ethiopia, is to lay off its employees working in the company’s Ethiopian office, it was learnt. Some of its employees told The Reporter that the company has already started laying of some off the employees working in the logistics and radio communications department. The employees said that they were informed of the management’s decision to lay off most of the employees two months ago. There are about 40 Ethiopians working full time for the company. As Petronas outsources most of the services like transport, payroll management, cooking, security and other services, it does not hire many employees.
The company also subcontracts companies, which undertake drilling and seismic studies. Petronas has drilled two wells in the Ogaden basin. The first one is in the Genale block that turned out dry. The second one is near the Hilala gas field in block 15. The testing result of the well (Hilala 5) is not yet known. However, after drilling the second well last September, the company has been hauling all its equipment and machineries out of Ogaden.
Petronas has hired Adika Tour and Travels to manage the transportation of machineries and equipment from the Ogaden to Djibouti and Addis Ababa. Reliable sources told The Reporter that the Malaysian professionals who left for Malaysia did not return to Ethiopia, adding that Petronas is sending its vehicles and machineries that it had imported duty free back to Malaysia.
Petronas has been exploring the Ogaden basin since 2006. The company acquired an exploration area covering 93,000 sq.km. The company collected numerous seismic data in the Ogaden. “They did a remarkable job,” says an industry analyst. “They drilled two wells, though the result of the second one is yet to be determined,” the analyst said.
Petronas acquired the Gambela concession in 2003. The Ministry of Mines and Energy (MME) granted 16,000 sq.km of land in the Gambela sedimentary basin near the Sudanese border. The company drilled two exploration wells in Jigaw and Jacaranda locality and both turned out dry. The company relinquished the Gambela concession in 2009. In 2007, Petronas also signed an agreement with MME to develop the Calub and Hilala gas fields.
The employees working in the company’s Ethiopian office fear that the company was pulling out of Ethiopia by abandoning all the exploration projects. The Minster of MME, Alemayehu Tegenu, said that that was not the case. Alemayehu said the company wanted to evaluate the results of the drillings.
Source
The company also subcontracts companies, which undertake drilling and seismic studies. Petronas has drilled two wells in the Ogaden basin. The first one is in the Genale block that turned out dry. The second one is near the Hilala gas field in block 15. The testing result of the well (Hilala 5) is not yet known. However, after drilling the second well last September, the company has been hauling all its equipment and machineries out of Ogaden.
Petronas has hired Adika Tour and Travels to manage the transportation of machineries and equipment from the Ogaden to Djibouti and Addis Ababa. Reliable sources told The Reporter that the Malaysian professionals who left for Malaysia did not return to Ethiopia, adding that Petronas is sending its vehicles and machineries that it had imported duty free back to Malaysia.
Petronas has been exploring the Ogaden basin since 2006. The company acquired an exploration area covering 93,000 sq.km. The company collected numerous seismic data in the Ogaden. “They did a remarkable job,” says an industry analyst. “They drilled two wells, though the result of the second one is yet to be determined,” the analyst said.
Petronas acquired the Gambela concession in 2003. The Ministry of Mines and Energy (MME) granted 16,000 sq.km of land in the Gambela sedimentary basin near the Sudanese border. The company drilled two exploration wells in Jigaw and Jacaranda locality and both turned out dry. The company relinquished the Gambela concession in 2009. In 2007, Petronas also signed an agreement with MME to develop the Calub and Hilala gas fields.
The employees working in the company’s Ethiopian office fear that the company was pulling out of Ethiopia by abandoning all the exploration projects. The Minster of MME, Alemayehu Tegenu, said that that was not the case. Alemayehu said the company wanted to evaluate the results of the drillings.
Source
Monday, 13 September 2010
Petronas Chem posts net profit of RM2.59bil
Economic conditions cause 25% drop in profit
Petronas Chemicals Group Bhd, which is headed for a listing on the Main Market this year, made an after tax profit of RM2.59bil for its fiscal year ended March 31, 25% lower than the RM3.45bil posted a year ago after the cyclical nature of the industry, economic conditions and higher feedstock costs affected earnings.
Revenue was also lower at RM12.2bil against RM12.37bil while after tax profit margins were 21.3% compared with 27.9% for 2009.
The group, controlled by state oil firm Petroliam Nasional Bhd (Petronas) had total assets of RM26.89bil as at March 31.
The figures were part of the information revealed in Petronas Chemicals’ draft prospectus which was posted on the Securities Com-mission (SC) website yesterday.
In the draft prospectus which will be available until Sept 29, petrochemicals producer Petronas Chemical did not state how much it aimed to raise in the initial public offering (IPO) but banking sources familiar with the company had valued it at some US$2bil, according to a newswire report.
“We intend to continue to explore growth opportunities that complement our products or markets, or enable us to gain footholds in countries where the Petronas Group already has oil and gas operations so that we can leverage on the group’s presence to develop vertically integrated operations in that market,” Petronas Chemicals said.
The company, a global market leader, added that it hoped to strategically increase its production capacity through enhancements to its existing facilities and potentially through investments in new facilities.
Upon the successful completion of the IPO, Petronas will continue to be the controlling shareholder of the company although it is not certain what the stake would be, according to information in the draft prospectus.
“For investors who want to participate in this industry, the presence of Petronas as a state-owned firm would give them some confidence,” Areca Capital Sdn Bhd fund manager Danny Wong said.
CIMB Investment Bank Bhd is the principal adviser, managing underwriter and retail underwriter for the IPO exercise.
The joint global coordinators and joint bookrunners are CIMB Investment Bank, Deutsche Bank AG, Hong Kong branch and Morgan Stanley & Co International plc.
Petronas Chemicals Group Bhd, which is headed for a listing on the Main Market this year, made an after tax profit of RM2.59bil for its fiscal year ended March 31, 25% lower than the RM3.45bil posted a year ago after the cyclical nature of the industry, economic conditions and higher feedstock costs affected earnings.
Revenue was also lower at RM12.2bil against RM12.37bil while after tax profit margins were 21.3% compared with 27.9% for 2009.
The group, controlled by state oil firm Petroliam Nasional Bhd (Petronas) had total assets of RM26.89bil as at March 31.
The figures were part of the information revealed in Petronas Chemicals’ draft prospectus which was posted on the Securities Com-mission (SC) website yesterday.
In the draft prospectus which will be available until Sept 29, petrochemicals producer Petronas Chemical did not state how much it aimed to raise in the initial public offering (IPO) but banking sources familiar with the company had valued it at some US$2bil, according to a newswire report.
“We intend to continue to explore growth opportunities that complement our products or markets, or enable us to gain footholds in countries where the Petronas Group already has oil and gas operations so that we can leverage on the group’s presence to develop vertically integrated operations in that market,” Petronas Chemicals said.
The company, a global market leader, added that it hoped to strategically increase its production capacity through enhancements to its existing facilities and potentially through investments in new facilities.
Upon the successful completion of the IPO, Petronas will continue to be the controlling shareholder of the company although it is not certain what the stake would be, according to information in the draft prospectus.
“For investors who want to participate in this industry, the presence of Petronas as a state-owned firm would give them some confidence,” Areca Capital Sdn Bhd fund manager Danny Wong said.
CIMB Investment Bank Bhd is the principal adviser, managing underwriter and retail underwriter for the IPO exercise.
The joint global coordinators and joint bookrunners are CIMB Investment Bank, Deutsche Bank AG, Hong Kong branch and Morgan Stanley & Co International plc.
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