The south east corner of Johor is best known as a destination for fresh seafood and golf for Singaporeans who arrive every weekend via ferry from Changi just a few kilometers away.
There is a stark contrast however between the impressive development that characterises the economic powerhouse just across the narrow Johor Strait, and the rural towns and villages that stretch from Tanjung Kapal to Sungai Rengit that appear to be in a state of stagnation.
All that could change however if Ngau Boon Keat, executive chairman of the Dialog Group has his way.
Rising from the seabed just off Tanjung Kapal are acres upon acres of freshly reclaimed land that could be the catalyst for making south Johor a petrochemical hub to rival Rotterdam, Houston and Singapore.
To hear Ngau explain it, this corner of Johor, now simply referred to as Pengerang after the parliamentary district of which it is a part, has divine attributes that puts it in the sweetest of sweet spots to take advantage of Asia’s economic boom.
At a media briefing on the Pengerang Independent Deepwater Petroleum Terminal (PIDPT) project on Friday, Ngau who joined Petronas as one of its pioneer engineers 1978 before leaving to start Dialog in the 1984, reeled off facts and figures to back his vision.
Pengerang, he said has water that is 24 meters deep as compared to Singapore’s 18 meters and Rotterdam’s 20-22 meters, allowing the berth of very large crude carriers (VLCCs) and ultra large crude carriers (ULCCs).
He noted that Rotterdam, the world’s largest refining centre, has an oil storage capacity of 28 million cubic meters to cater for a base population of 400 million while Singapore has an independent storage capacity of only 10 million cubic meters for a regional population of 3 billion.
The under-construction RM5 billion oil terminal, which has a planned capacity of 5 million cubic meters, also has the advantage of being located at the entrance to one of the world’s busiest shipping lanes and in an oil and gas exporting country to boot.
“This type of port cannot be made by humans,” said Ngau.
The vision however has not been without its troubles.
Dialog and its partners were slapped with a lawsuit last week by fishermen who are seeking to suspend the project unless they are compensated for alleged loss of income from the land reclamation.
The massive RM60 billion oil refinery and petrochemical complex, known as RAPID, being built by Petronas in Pengerang, was also hit last month with accusations that it would cause unacceptable pollution and displacement of local villagers.
Ngau returns to his vision of a Rotterdam east to refute Pengerang’s detractors.
“Rotterdam is one of the most beautiful port cities in the world,” he said while showing images of the Dutch city under a pale blue sky on a projection screen.
“They were reclaiming land in 1978 and they are still reclaiming land today. They are the largest oil refining centre in the world. We want Pengerang to be the Rotterdam of Asia.”
He also noted that Singapore, known to be strict with environmental regulations, is the third largest oil refining hub globally.
“If Singapore can do it, why can’t we? Take a drive in Jurong in Singapore and you will see refineries in the Jurong town itself and not on Jurong island.”
He noted that Dialog’s partner — Dutch company Vopak which is the largest independent oil terminal operator in the world — manages facilities in developed countries with strict anti-pollution measures.
“They operate in Europe and US which have stringent environmental standards and they can survive,” he said. “Our technology today is more advanced so why should we have problems unless Malaysians are very sloppy.”
Vopak Malaysia’s managing director Law Say Huat told The Malaysian Insider that the 400 year old company was very concerned about sustainability.
“The standards today are even higher than before,” he said.
The project manager for the Pengerang oil terminal, Chong Chong Wooi said he believed the project was the first in Malaysia to use online monitoring — whereby the Department of the Environment could remotely access sensors in real time to check sediment levels in the waters off Pengerang.
For Ngau, Pengerang is also about the future of Malaysia.
The oil and gas veteran came back to Kuala Lumpur from his studies in New Zealand in 1972 but failed to secure a job even after sending out 200 resumes.
A friend then advised to him to try for a job in Singapore.
He landed a job with Mobil Singapore after just one interview.
“Singapore was just starting to build refineries then and eight out of ten people working on the refineries were Malaysians,” said Ngau. “Singapore doesn’t even have one drop of oil. In 2012, most of the people in Singapore refineries are still Malaysians.”
Ngau said that if Malaysia, which was an oil exporting country didn’t invest in adding value to its oil and gas resources now, it would not be able to create high paying high quality jobs for the future.
“If Malaysia just wants to sell raw materials then fine, you will end up working for Singapore,” he said.
Ngau said that history was at risk of repeating itself with liquified natural gas (LNG) as Singapore was already building LNG terminals.
He said that he first had the idea of a deepwater oil terminal in Pengerang in 2007.
“I took the state government to Rotterdam to have a look and told them we could be like Rotterdam,” he said. “After 40 years, Singapore has no more land to build on. We have a deepwater port, we are close to the third largest refiner in the world and we can add value to our own oil and gas.”
About four years after he first had his brainwave, land reclamation work started on Pengerang last October.
Ngau gives Pengerang 15-20 years to reach Rotterdam-like levels of scale in petroleum storage and refinery.
“Malaysians then will no longer have to go to Singapore and the Middle East to look for high value jobs,” he said.
Saturday, 14 April 2012
Friday, 13 April 2012
Petronas’s South African Unit Suspends Oil Imports From Iran
Petroliam Nasional Bhd. (PET)’s Engen unit, the biggest South African importer of Iranian crude, said it has suspended imports of oil from the Middle Eastern nation amid economic sanctions by the U.S. and the European Union.
The company has contingency supplies in place, Engen spokeswoman Tania Landsberg said in an e-mailed response to questions. Engen, which operates the country’s second-biggest refinery based in Durban and with a capacity of 135,000 barrels a day, normally buys about 80 percent of its supplies from Iran.
Engen is “under heavy pressure” to halt Iranian imports because of sanctions, Petronas Chief Executive Officer Shamsul Azhar Abbas, said in a March 30 interview. Engen has sought alternative supplies but hasn’t yet received any, he said.
President Barack Obama signed a law on Dec. 31 that denies foreign banks that do business with the Central Bank of Iran access to the U.S. financial system. The U.S. may impose penalties should a country not make “significant” reductions in Iranian crude oil purchases in the first half of this year. A South African governmental team will submit a report to cabinet by the end of May that will advise on Iran, Energy Minister Dipuo Peters said today.
Sasol Ltd., which operates the Natref refinery in partnership with Total SA in Sasolburg, south of Johannesburg, said last month that it halted crude purchases from Iran, which provided about 20 percent of supply. Refineries operated in the country by BP Plc and Chevron Corp. don’t use Iranian oil. Royal Dutch Shell Plc will comply with U.S. sanctions, CEO Peter Voser said Feb. 2.
The company has contingency supplies in place, Engen spokeswoman Tania Landsberg said in an e-mailed response to questions. Engen, which operates the country’s second-biggest refinery based in Durban and with a capacity of 135,000 barrels a day, normally buys about 80 percent of its supplies from Iran.
Engen is “under heavy pressure” to halt Iranian imports because of sanctions, Petronas Chief Executive Officer Shamsul Azhar Abbas, said in a March 30 interview. Engen has sought alternative supplies but hasn’t yet received any, he said.
President Barack Obama signed a law on Dec. 31 that denies foreign banks that do business with the Central Bank of Iran access to the U.S. financial system. The U.S. may impose penalties should a country not make “significant” reductions in Iranian crude oil purchases in the first half of this year. A South African governmental team will submit a report to cabinet by the end of May that will advise on Iran, Energy Minister Dipuo Peters said today.
Sasol Ltd., which operates the Natref refinery in partnership with Total SA in Sasolburg, south of Johannesburg, said last month that it halted crude purchases from Iran, which provided about 20 percent of supply. Refineries operated in the country by BP Plc and Chevron Corp. don’t use Iranian oil. Royal Dutch Shell Plc will comply with U.S. sanctions, CEO Peter Voser said Feb. 2.
Sapura founder sues sons for millions
The publicity-shy Tan Sri Shamsuddin Abdul Kadir of Sapura Group is in the news but not for his entrepreneurial skills.
He is taking his two sons to court.
Shamsuddin, who got married to then 30-year-old Mariam Parineh Nariman from Iran in 2007, had filed a lawsuit against his children at the Shah Alam High Court in February.
It was reported that Shamsuddin, who is the chairman and founder of Sapura Group, is demanding the return of shares and properties valued in excess of RM450mil from his two sons, Datuk Shahril Shamsuddin and Shahriman Shamsuddin.
It is learnt that court papers did not explain the reasons Shamsuddin, 80, is demanding the return of the assets, which include a 15% share in the family’s private investment vehicle called Sapura Holdings Sdn Bhd and other properties in the Klang Valley and Selangor.
It is also learnt that the claim stated that Shamsuddin “gratuitously and without consideration” transferred the block of shares in Sapura Holdings and a total of 23 parcels of property to a private investment holding company Brothers Capital between 2007 and 2010.
The Star had carried a report in June 2007 on how the father and son had built and fashioned a family-owned business empire.
It was stated that when Shamsuddin founded the group in 1975, the company’s core business was essentially auto, defence, energy and later, ICT.
However, in the late 1990s, when his son Shahril took over the reins and after a protracted lull, he slowly, but gradually, turned the group into what it is today – largely an oil and gas company.
It said the group had transformed itself into the country’s most integrated and largest oil and gas service provider.
He is taking his two sons to court.
Shamsuddin, who got married to then 30-year-old Mariam Parineh Nariman from Iran in 2007, had filed a lawsuit against his children at the Shah Alam High Court in February.
It was reported that Shamsuddin, who is the chairman and founder of Sapura Group, is demanding the return of shares and properties valued in excess of RM450mil from his two sons, Datuk Shahril Shamsuddin and Shahriman Shamsuddin.
It is learnt that court papers did not explain the reasons Shamsuddin, 80, is demanding the return of the assets, which include a 15% share in the family’s private investment vehicle called Sapura Holdings Sdn Bhd and other properties in the Klang Valley and Selangor.
It is also learnt that the claim stated that Shamsuddin “gratuitously and without consideration” transferred the block of shares in Sapura Holdings and a total of 23 parcels of property to a private investment holding company Brothers Capital between 2007 and 2010.
The Star had carried a report in June 2007 on how the father and son had built and fashioned a family-owned business empire.
It was stated that when Shamsuddin founded the group in 1975, the company’s core business was essentially auto, defence, energy and later, ICT.
However, in the late 1990s, when his son Shahril took over the reins and after a protracted lull, he slowly, but gradually, turned the group into what it is today – largely an oil and gas company.
It said the group had transformed itself into the country’s most integrated and largest oil and gas service provider.
Thursday, 12 April 2012
Sarawak Shell & Partner Sign New Contracts with Petronas
Shell Malaysia upstream operating company Sarawak Shell Bhd and partner Petronas Carigali Sdn Bhd today announced the signing of two new exploration and production sharing contracts (PSCs) with Petronas.
The contracts represent new Malaysian acreage for the multinational company.
In a statement today, Shell said its minimum financial commitment for activities in two blocks, both offshore Sarawak, would be in the region of US$145 million over the next four years.
"These new contracts underpin Shell’s commitment to Malaysia where the company already invests an average of around US$1 billion annually," it added.
Under the agreement, Shell would undertake an aggressive drilling campaign to comprehensively explore an area totaling an estimated 9,000 square kilometers in the two blocks over the respective exploration periods.
"Shell is operator and has an 85 percent interest in both contracts with Carigali holding the remaining 15 per cent," it added.
Shell Malaysia chairman and managing director of Sarawak Shell, Anuar Taib said :"We are pleased to continue to be a partner in Malaysia’s progress by helping to meet the country’s aspiration to sustain oil and gas production through intensifying our exploration activities.
"We thank Petronas for their continued confidence in us through the award of these blocks, and I look forward to using our global technology and expertise in a successful exploration campaign here."
- Bernama
The contracts represent new Malaysian acreage for the multinational company.
In a statement today, Shell said its minimum financial commitment for activities in two blocks, both offshore Sarawak, would be in the region of US$145 million over the next four years.
"These new contracts underpin Shell’s commitment to Malaysia where the company already invests an average of around US$1 billion annually," it added.
Under the agreement, Shell would undertake an aggressive drilling campaign to comprehensively explore an area totaling an estimated 9,000 square kilometers in the two blocks over the respective exploration periods.
"Shell is operator and has an 85 percent interest in both contracts with Carigali holding the remaining 15 per cent," it added.
Shell Malaysia chairman and managing director of Sarawak Shell, Anuar Taib said :"We are pleased to continue to be a partner in Malaysia’s progress by helping to meet the country’s aspiration to sustain oil and gas production through intensifying our exploration activities.
"We thank Petronas for their continued confidence in us through the award of these blocks, and I look forward to using our global technology and expertise in a successful exploration campaign here."
- Bernama
Sunday, 25 March 2012
Malaysia henti import minyak Iran
Perdana Menteri Datuk Seri Najib Tun Razak berkata Malaysia akan menghentikan pengimportan minyak mentah Iran.
Beliau mengesahkan satu laporan berita asing bahawa syarikat minyak negara, Petronas, akan menghentikan pengimportan minyak mentah Iran mulai April, iaitu
dua bulan sebelum sekatan Amerika Syarikat berkuat kuasa.
"Ia hanya jumlah yang kecil," katanya dalam jawapan singkat kepada para pemberita pada sidang media selepas mesyuarat Majlis Tertinggi Umno di sini hari
ini.
Menurut laporan itu hari ini, Petronas kini mengimport kira-kira 50,000-60,000 tong minyak minyak mentah Iran sehari.
Kini, China, India, Jepun dan Korea Selatan adalah empat pembeli terbesar minyak mentah Iran di Asia.
Sehingga ini, Iran menjual kebanyakan daripada 2.6 juta tong sehari (bpd) yang dieksport di rantau ini.
Beliau mengesahkan satu laporan berita asing bahawa syarikat minyak negara, Petronas, akan menghentikan pengimportan minyak mentah Iran mulai April, iaitu
dua bulan sebelum sekatan Amerika Syarikat berkuat kuasa.
"Ia hanya jumlah yang kecil," katanya dalam jawapan singkat kepada para pemberita pada sidang media selepas mesyuarat Majlis Tertinggi Umno di sini hari
ini.
Menurut laporan itu hari ini, Petronas kini mengimport kira-kira 50,000-60,000 tong minyak minyak mentah Iran sehari.
Kini, China, India, Jepun dan Korea Selatan adalah empat pembeli terbesar minyak mentah Iran di Asia.
Sehingga ini, Iran menjual kebanyakan daripada 2.6 juta tong sehari (bpd) yang dieksport di rantau ini.
Monday, 19 March 2012
Petronas Agrees To Pay More For Natural Gas From Natuna
Petronas, has agreed to pay $6 per million British thermal units of natural gas from the Natuna B Block during the 2012-2022 period, Gde Pradnyana, spokesman of oil and gas regulator BPMigas, said Thursday.
The price of the gas was previously $3.1/mmBtu.
Indonesia stands to gain $1 billion more from the price hike. The operator of the block, ConocoPhilips (COP), has been supplying gas to Petronas since 2002, Pradnyana said.
BPMigas is actively renegotiating gas prices with local and foreign buyers following a surge in oil prices worldwide in recent years.
Source : Wall Street Journal
The price of the gas was previously $3.1/mmBtu.
Indonesia stands to gain $1 billion more from the price hike. The operator of the block, ConocoPhilips (COP), has been supplying gas to Petronas since 2002, Pradnyana said.
BPMigas is actively renegotiating gas prices with local and foreign buyers following a surge in oil prices worldwide in recent years.
Source : Wall Street Journal
Tuesday, 6 March 2012
Petronas posts 34 pct profit decline, warns on outlook
Petronas posted a 34 percent decline in third-quarter profit on Monday, saying the fall was mainly due to a one-off gain in 2010 from the listing of subsidiaries.
Without that gain, Petronas' Q3 profit was higher than a year ago on the back of higher crude oil prices and improved margins, it said.
The unlisted firm said its net profit for the nine-month period ended Dec 31, 2011 was 10.6 percent higher than a year ago at 55.57 billion ringgit ($18.5 billion) due to higher crude oil prices, sales and gas production volume.
Revenue in the nine months rose 26.9 percent to 222.79 billion ringgit year on year.
The company warned of a challenging outlook ahead on lower expected crude production and weaker prices on the back of the protracted European sovereign debt crisis.
"Growth in 2012 and 2013 will be not be as strong as we have seen last year as the current crude oil prices won't last long. It is hurting the economy," Petronas' president and CEO Shamsul Azhar Abbas told reporters.
He said crude oil prices are expected to hover between $85 to $90 per barrel this year, compare to around $110 now.
Shamsul said the company's crude production was expected to be lower this year due to natural depletion.
"Challenge remains in production," he told reporters, adding that the political uncertainties in Middle Eastern were adding to the challenging outlook. Petronas' oil production declined four percent last year.
Petronas is facing depleting oil and gas reserves in Malaysia and has stepped up its deep-water exploratory activities as well as re-exploring marginal fields.
Petronas' oil production in South Sudan, which amounted to some 135,000 barrels a day or 18 percent of its total production, has ceased due to a row between Sudan and South Sudan over oil transit fees, said Shamsul.
"It's a severe reduction and we have no idea of when we will be able to get back the 135,000 barrels a day," he told reporters. "But it will be partially offset by our other production in other countries."
Petronas is part of Chinese-Malaysian oil firm Petrodar. South Sudan said in February it had expelled the head of Petrodar, which is the main oil firm in the country, after accusing Chinese firms of helping Sudan to seize the southern oil.
Oil from Sudan accounts for about 20 to 30 percent of Petronas' international oil production, making it the single largest contributor.
According to Petronas' official website, its presence in the Republic of South Sudan is via its 20 percent interest in Greater Nile Petroleum Operating Company Ltd, 40 percent in Petrodar Operating Company and 67.87 percent White Nile Petroleum Operating Company Ltd
Petronas' partners are China National Petroleum Corporation, Oil and Natural Gas Corporation, China Petroleum & Chemical Corporation and Tri-Ocean Energy.
Without that gain, Petronas' Q3 profit was higher than a year ago on the back of higher crude oil prices and improved margins, it said.
The unlisted firm said its net profit for the nine-month period ended Dec 31, 2011 was 10.6 percent higher than a year ago at 55.57 billion ringgit ($18.5 billion) due to higher crude oil prices, sales and gas production volume.
Revenue in the nine months rose 26.9 percent to 222.79 billion ringgit year on year.
The company warned of a challenging outlook ahead on lower expected crude production and weaker prices on the back of the protracted European sovereign debt crisis.
"Growth in 2012 and 2013 will be not be as strong as we have seen last year as the current crude oil prices won't last long. It is hurting the economy," Petronas' president and CEO Shamsul Azhar Abbas told reporters.
He said crude oil prices are expected to hover between $85 to $90 per barrel this year, compare to around $110 now.
Shamsul said the company's crude production was expected to be lower this year due to natural depletion.
"Challenge remains in production," he told reporters, adding that the political uncertainties in Middle Eastern were adding to the challenging outlook. Petronas' oil production declined four percent last year.
Petronas is facing depleting oil and gas reserves in Malaysia and has stepped up its deep-water exploratory activities as well as re-exploring marginal fields.
Petronas' oil production in South Sudan, which amounted to some 135,000 barrels a day or 18 percent of its total production, has ceased due to a row between Sudan and South Sudan over oil transit fees, said Shamsul.
"It's a severe reduction and we have no idea of when we will be able to get back the 135,000 barrels a day," he told reporters. "But it will be partially offset by our other production in other countries."
Petronas is part of Chinese-Malaysian oil firm Petrodar. South Sudan said in February it had expelled the head of Petrodar, which is the main oil firm in the country, after accusing Chinese firms of helping Sudan to seize the southern oil.
Oil from Sudan accounts for about 20 to 30 percent of Petronas' international oil production, making it the single largest contributor.
According to Petronas' official website, its presence in the Republic of South Sudan is via its 20 percent interest in Greater Nile Petroleum Operating Company Ltd, 40 percent in Petrodar Operating Company and 67.87 percent White Nile Petroleum Operating Company Ltd
Petronas' partners are China National Petroleum Corporation, Oil and Natural Gas Corporation, China Petroleum & Chemical Corporation and Tri-Ocean Energy.
Friday, 2 March 2012
Scomi plans merger with unit
Scomi Group Bhd (SGB) and its associate company, Scomi Marine Bhd (SMB), have proposed to merge their businesses under a new company (newco) in a bid to create a larger upstream drilling services provider.
SGB said in a statement the newco would have a more diversified income stream as well as combined expertise, which include the provision of high-performance drilling fluids solutions; modern drilling waste management services; completion, well-bore, clean up and cementing services as well as offshore supply vessels to support the oil and gas industry.
The corporate exercise to be carried out over the next few months would involve an internal restructuring and capital repayment within SMB, the restructuring of legal entities within oilfield services group and the creation of the newco to take over SMB and oilfield services Eastern Hemisphere businesses.
It said the newco would assume the listing status of SMB and the enlarged entity would create a simplified and more competitive upstream drilling services company.
Post-merger, SGB said the newco would be in a stronger financial position and was expected to have greater flexibility in its future fund-raising exercises, thus allowing it to capitalise on business expansion opportunities locally and abroad.
The newco would enable shareholders of both SGB and SMB to have direct participation and also aimed to financially restructure SGB and pare down its debts and strengthen its balance sheet. SGB would have at least a 32.9% stake in the newco post-merger.
The board of SMB also intends to propose a cash distribution of up to US$45mil (RM134.7mil) to SMB shareholders via a capital repayment exercise.
Shareholders of SMB stand to gain 18.3 sen per share, assuming if SMB distributes the proceeds in full.
The proceeds of the capital repayment are from the disposal of SMB's marine logistics subsidiaries to PT Rig Tenders Indonesia TBK, a 80.54%-owned unit of Scomi Marine Services Pte Ltd, which in turn is a wholly-owned subsidiary of SMB.
SGB said in a statement the newco would have a more diversified income stream as well as combined expertise, which include the provision of high-performance drilling fluids solutions; modern drilling waste management services; completion, well-bore, clean up and cementing services as well as offshore supply vessels to support the oil and gas industry.
The corporate exercise to be carried out over the next few months would involve an internal restructuring and capital repayment within SMB, the restructuring of legal entities within oilfield services group and the creation of the newco to take over SMB and oilfield services Eastern Hemisphere businesses.
It said the newco would assume the listing status of SMB and the enlarged entity would create a simplified and more competitive upstream drilling services company.
Post-merger, SGB said the newco would be in a stronger financial position and was expected to have greater flexibility in its future fund-raising exercises, thus allowing it to capitalise on business expansion opportunities locally and abroad.
The newco would enable shareholders of both SGB and SMB to have direct participation and also aimed to financially restructure SGB and pare down its debts and strengthen its balance sheet. SGB would have at least a 32.9% stake in the newco post-merger.
The board of SMB also intends to propose a cash distribution of up to US$45mil (RM134.7mil) to SMB shareholders via a capital repayment exercise.
Shareholders of SMB stand to gain 18.3 sen per share, assuming if SMB distributes the proceeds in full.
The proceeds of the capital repayment are from the disposal of SMB's marine logistics subsidiaries to PT Rig Tenders Indonesia TBK, a 80.54%-owned unit of Scomi Marine Services Pte Ltd, which in turn is a wholly-owned subsidiary of SMB.
Thursday, 1 March 2012
Malaysian Tanjung Bin oil terminal plans to start operations in March
The ATT Tanjung Bin oil terminal, located in southern Malaysia, is planning a dry run of operations in the first week of March and start-up of fuel oil operations in the third week of the month, a spokesman for terminal owner VTTI said Monday.
Middle distillates and light-end operations would then follow in the first week of April, he added.
The new terminal will have an initial storage capacity of 841,000 cubic meters over 41 tanks, though a second stage could add an additional 820,000 cu m. Work on the second phase has not yet started, though 20 hectares of land at the site has been cleared for the expansion.
The terminal has five berths, with the largest able to accommodate a VLCC, with maximum draft of 17 meters. Further berths could be added as part of the second phase of the project, the VTTI spokesman said.
The jetty carries four, 30-inch fuel oil pipelines and an additional six, smaller pipelines for clean products. Fuel oil can be loaded at a rate of 7,500 cu m/hour, the spokesman said, middle distillates at 7,000 cu m/hour and light ends at 5,500 cu m/hour.
Work on the terminal's fuel oil tanks is complete, the VTTI spokesman said, while work on the middle distillates and gasoline tanks, jetty and berths are also mostly finished. The bulk of work remaining is focused on connecting the network of pipelines, he said.
The terminal is located to the west of the key Asian oil hub of Singapore, where land available for new terminal projects is scarce.
VTTI is a 50/50 joint venture between Swiss trader Vitol and Malaysian shipping company MISC. The company operates a number of terminals and tank operations around the world, but the Tanjung Bin terminal is its "largest-ever construction project," the company has said previously.
Vitol announced plans for the new terminal in September 2008, after it signed a long-term lease for the project land. A year later, in August 2009, it announced a joint venture agreement with MISC covering the Tanjung Bin terminal, and a year after that the sale of a 50% stake in VTTI to the Malaysian company.
Petco, the trading arm of Malaysian oil company Petronas, holds a lease to 100,000 cubic meters of storage at Tanjung Bin, while Vitol holds the lease for the remainder. However, the company is able to sublease some of that capacity out to other companies, a source close to the matter said.
Middle distillates and light-end operations would then follow in the first week of April, he added.
The new terminal will have an initial storage capacity of 841,000 cubic meters over 41 tanks, though a second stage could add an additional 820,000 cu m. Work on the second phase has not yet started, though 20 hectares of land at the site has been cleared for the expansion.
The terminal has five berths, with the largest able to accommodate a VLCC, with maximum draft of 17 meters. Further berths could be added as part of the second phase of the project, the VTTI spokesman said.
The jetty carries four, 30-inch fuel oil pipelines and an additional six, smaller pipelines for clean products. Fuel oil can be loaded at a rate of 7,500 cu m/hour, the spokesman said, middle distillates at 7,000 cu m/hour and light ends at 5,500 cu m/hour.
Work on the terminal's fuel oil tanks is complete, the VTTI spokesman said, while work on the middle distillates and gasoline tanks, jetty and berths are also mostly finished. The bulk of work remaining is focused on connecting the network of pipelines, he said.
The terminal is located to the west of the key Asian oil hub of Singapore, where land available for new terminal projects is scarce.
VTTI is a 50/50 joint venture between Swiss trader Vitol and Malaysian shipping company MISC. The company operates a number of terminals and tank operations around the world, but the Tanjung Bin terminal is its "largest-ever construction project," the company has said previously.
Vitol announced plans for the new terminal in September 2008, after it signed a long-term lease for the project land. A year later, in August 2009, it announced a joint venture agreement with MISC covering the Tanjung Bin terminal, and a year after that the sale of a 50% stake in VTTI to the Malaysian company.
Petco, the trading arm of Malaysian oil company Petronas, holds a lease to 100,000 cubic meters of storage at Tanjung Bin, while Vitol holds the lease for the remainder. However, the company is able to sublease some of that capacity out to other companies, a source close to the matter said.
Kenchana gets RM74m ExxonMobil job
Kencana HL Sdn Bhd has secured a RM74 million contract for the fabrication of Tapis R sub-structure for the Tapis Re-Development Project from ExxonMobil Exploration and Production Malaysia Inc.
Under the contract, Kencana HL would undertake the procurement, fabrication, testing, load-out and tie-down of sub-structures which include jacket, piles and related component which form part of Tapis R central processing platform for the project located off the coast of Terengganu, said Kencana Petroleum in a statement.
It is a one-off engineering, procurement and construction contract expected to be delivered to ExxonMobil within the second quarter of calendar year 2013, it said. - Bernama
Under the contract, Kencana HL would undertake the procurement, fabrication, testing, load-out and tie-down of sub-structures which include jacket, piles and related component which form part of Tapis R central processing platform for the project located off the coast of Terengganu, said Kencana Petroleum in a statement.
It is a one-off engineering, procurement and construction contract expected to be delivered to ExxonMobil within the second quarter of calendar year 2013, it said. - Bernama
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