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

Higher gas and power tariffs?

The Energy, Green Technology and Water Ministry has recommended to the Economic Council that electricity and gas tariffs be raised to better reflect market prices.

The government is expected to decide on electricity and gas tariffs by December. 

The last hike in gas and electricity prices was on June 1 last year. 

At that time, natural gas price sold to the power sector was raised by 28 per cent to RM13.70/mmBTU from RM10.70/mmBTU. 

The average electricity tariff went up 2.23 sen/kWh (kilowatt hour), or seven per cent, to 33.54 sen/kWh.

Electricity rebate for residential households with a monthly bill of up to RM20, however, was maintained.

"Although the tariffs have remained unchanged for more than a year, we have continued to monitor and make the appropriate recommendation on tariff revision for gas and electricity every six months," said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui.

"We have forwarded our proposal for revision in electricity and gas tariffs to the Economic Council," he told reporters after officiating the Fourth Energy Forum here yesterday.

"The ultimate decision on whether or not to raise the tariffs lies with the cabinet. My ministry can only act on cabinet's decision," he added.

Six months ago, the Energy Commission announced the groups that had submitted their bids to build a new 1,000MW-1,400MW gas-fired power plant in Prai, Penang. 

Among them were 1Malaysia Development Bhd (1MDB), which has teamed up with South Korean Hyundai Engineering & Construction, YTL Power International Bhd with Marubeni Corp of Japan, CI Holdings Bhd and Teknologi Tenaga Perlis Consortium Sdn Bhd with Daelim Industrial Co Ltd of South Korea, Amcorp Power Sdn Bhd with Mitsui & Co Ltd, and Malakoff Corp Bhd and Petronas Power Sdn Bhd with Mitsubishi Corp of Japan.

In response, Chin said the government will announce the winner next month. 

"The competitive bidding ensures the use of the latest turbines that optimise gas use. We want value for money," he said.

"We will also announce details on the extension of the first generation power purchase agreements next month," he added.

Kerteh BioPolymer Park To Draw RM7 Billion Foreign Investment By 2015

The 1,000-hectare Kerteh BioPolymer Park (KBP) in Kemaman is expected to attract several global biotechnology players with anticipated foreign direct investment worth around RM7 billion by 2015.

East Coast Economic Region (ECER) Development Council Chief Executive Officer Datuk Jebasingam Issace John cited a RM2 billion project by South Korea's CJ CheilJedang Corporation and France's Arkema to produce the world's first green biotechnology based Lmethionine.

"Physical works for their plant in KBP have already started and operations are expected to come on-stream by 2014," he told reporters.

Earlier, he attended the planting of 40,000 'petai belalang' (Leucaena leucocephala) seedlings, officiated by Menteri Besar Datuk Seri Ahmad Said, at Merchang here today.

Besides CJ and Arkema, US-based biochemical company Gevo Inc, which develops bio-based alternatives to petroleum-based products, will invest RM1.96 billion to develop a bio-isobutanol plant in KBP.

Jebasingam said ECER, the state government and Biotech Corp are also looking to build a biorefinery complex slated to be operational by 2014.

"The project is expected to generate a cumulative GNI (Gross National Income) of RM20.4 billion by 2020 and produce 2,500 green jobs in Malaysia.

"The implementation of these project in KBP will help strengthen Malaysia's position as a choice destination for biotech industry development in this region.

"We will use petai belalang to fuel the biotechnology demand in KBP, the trunks can be used to make wood board while the leaves and fruits can be used as biomass-based feedstock," he said.

-- BERNAMA

GE To Supply Gas Turbine-Driven Compressor Train Technology To Petronas

GE Oil & Gas will supply its gas turbine-driven compressor train technology to Petronas for a floating liquefied natural gas (FLNG) facility being developed off the coast of Sarawak.

GE said the project is scheduled to begin operating in the fourth quarter of 2015 and will be moored about 180 km off the coast of Bintulu, and is designed to produce 1.2 million tonnes a year (mtpa) of LNG.

"Once on stream, the facility will boost Malaysia's total LNG production capacity to 26.9 mtpa from 25.7 mtpa currently," it said in a statement today.

Its President and Chief Executive Officer (Turbomachinery) Prady Iyyanki said the contract underscores the confidence that Petronas has in GE's compressor technology to support the global LNG industry.

"We look forward to working with Petronas and its project partners to demonstrate how FLNG can help address Malaysia's energy needs," he said.

GE was awarded the contract primarily on the basis of its technology and its experience in the LNG and offshore sectors.

-- BERNAMA

Urusniaga AGEX dijangka cecah RM307 juta

Ekspo Minyak dan Gas ASEAN (AGEX) 2012 dijangka menarik urusniaga bernilai AS$100 juta (RM307 juta) berbanding AS$80 juta (RM245.6 juta) pada tahun lepas.

Pengarah Urusan Fireworks Trade Media, Jerel Soo berkata, ekspo itu merupakan platform terbaik untuk meninjau peluang perniagaan minyak dan gas.

“Selain itu, peserta juga berpeluang mengembangkan perniagaan dan menembusi perniagaan yang baru berkembang di Sabah.

“Kita juga menjangkakan lebih ramai penggiat industri untuk turut serta," katanya pada sidang media ekspo tersebut di sini hari ini.

Turut hadir ialah Menteri Wilayah Persekutuan dan Kesejahteraan Bandar, Datuk Raja Nong Chik Raja Zainal Abidin dan Ketua Pegawai Eksekutif Labuan Shipyard & Engineering Sdn. Bhd., Mohd. Azman Nasir.

Ekspo selama tiga hari yang bermula pada 30 September dan berakhir pada 1 November ini akan berlangsung di Pusat Konvensyen Taman Kewangan Labuan.

Nong Chik berkata, industri gas dan minyak dikenal pasti sebagai tiga faktor utama yang diberi fokus Bidang Keberhasilan Utama Nasional (NKRA) dan peluang ini diambil dalam meningkatkan ekonomi Labuan.

“Labuan yang kaya dengan hasil minyak dan gas harus digunakan dengan sebaik-baiknya dan pengunjung serta peserta perlu memanfaatkan peluang ini untuk bertukar pengetahuan serta menjana pendapatan mereka," katanya. - Utusan

OTI among Eight Local O&G Companies Join Matrade's Mission To Kazakhstan

Eight Malaysian oil and gas companies will participate in the Malaysia External Trade Development Corporation's (MATRADE) Specialised Marketing Mission to Kazakhstan
from Sept 30-Oct 5.

The eight companies are Amtech Chemical Sdn Bhd, Innovative Fluid Process Sdn Bhd, Topaz Integrated Technology Sdn Bhd, Transmaris Techno-Sciences Sdn Bhd, Oilfield Technical Inspection Sdn Bhd, Tekno Logam Sdn Bhd, Pioneer Engineering Sdn Bhd and XHP Ventures Sdn Bhd.

"We choose Kazakhstan as the result of our first encounter with the country last year, especially in the oil and gas sector.

"That first meeting generated sales of more than RM30 million and we are going in again to secure more collaborations," MATRADE Deputy Chief Executive Officer, Datuk Zakaria said in a statement here today.

He believed that the few Malaysian companies that are currently operating in Kazakhstan will serve as an impetus for other local businesses to grow further there.

SapuraKencana unit wins Pearl oil contract

SapuraKencana Petroleum Bhd's wholly owned subsidiary TL Offshore Sdn Bhd (TLO) has secured some US$25mil worth of job from Pearl Oil (Amata) Ltd, a Mubadala Petroleum affiliate.

In a filing with Bursa Malaysia, SapuraKencana said the contract was for procurement, construction and installation for a production/processing platform, pipelines and pipeline end manifold for the Manora Field Development, Thailand with Pearl Oil. Pearl Oil is the operator of the Manora oil field in the G1/48 concession with partners Tap Energy (Thailand) and Northern Gulf Petroleum.

The contract comprises of procurement of equipment and bulk materials, fabrication, transportation, installation and hook-up of a wellhead processing platform and two 2km pipelines in the Manora oil field, which lies in 44 m of water about 80km from the coast of Thailand.

Two Firms Expected To Invest US$16 Billion - US$20 Billion In Pengerang

Two foreign companies are expected to invest between US$16 billion and US$20 billion in the Pengerang Integrated Petroleum Complex (PIPC), said Johor Petroleum Development Corp Bhd (JPDC).

Its chief executive officer, Mohd Yazid Jaafar, said the companies, from Taiwan and Singapore, were currently doing soil investigation in the area to see whether the said land (2,000-2,400 hectares) was suitable for their potential investments.

He said the investments from the companies would be in phases, involving the construction of facilities to refine oil, naptha cracker and petrochemical complex.

"Their investments are almost the same like Petronas' Refinery and Petrochemical Integrated Development (RAPID) project.

"If the project is smoothly implemented, PIPC will not only have one RAPID complex but three," he told Bernama here today.

Mohd Yazid, who declined to name the companies, said the preliminary works would take a year.

"We expect the companies to make the 'final investment decision' by next year and construction work to start after that.

"The facilities planned by the companie s are expected to be operational by 2016 to capitalise on the market upswing in 2017-2018.

He said the two companies were expected to bring in their business partners, especially in petrochemical and other downstream sector, to PIPC.

"The Taiwanese firm is expected to bring in between 20 and 24 business partners," he said.

JPDC is a federal government agency which is jointly chaired by Minister in Prime Minister's Department Datuk Seri Idris Jala and Johor Menteri Besar Datuk Abdul Ghani Othman.

It aims to coordinate the development of the oil and gas sector in Johor, especially downstream industries such as processing and storage of oil and petrochemicals.

The PIPC project involves the development of 8,000ha in Pengerang, of which about 2,549.51ha was acquired by Petronas to develop RAPID, which involved an investment of RM60 billion.

-- BERNAMA

Total buys 40pc of Mozambique PSC from Petronas Gas

Total, a French oil and gas company, has agreed to buy a 40 per cent stake in a production sharing contract (PSC) in a field offshore Mozambique from Petronas Gas Bhd, a subsidiary of Petroliam Nasional Bhd (Petronas) for an undisclosed sum.

The two companies signed a farm-in agreement yesterday for the acquisition of the 40 per cent interest in the PSC covering the offshore blocks area 3 and 6, located in the prolific Rovuma Basin in Mozambique.

In a statement, Total said Petronas will retain the operatorship for the two blocks, covering an area of 15,250 sq km with water depths ranging up to 2,250m.

"An exploration well is planned by year-end," the company said.

Total senior vice president exploration and production Africa Jacques Marraud des Grottes said after Kenya and Uganda, the company is entering into the southern part of the prolific Rovuma Basin, whose oil potential might equal the gas potential of the northern part.

"The farm-in significantly strengthens our long-term presence in exploration and production in East Africa. Exploration wells are expected to be drilled shortly," he said, adding the transaction is subject to the approval of the Mozambique government.

Total has been present in Mozambique since 1991 through its petroleum product storage and marketing affiliate. 

Total Mozambique markets fuels and lubricants to consumers and industry via two import terminals and a network of 35 service stations.

In October 2008, Petronas, together with Empresa Nacional de Hidrocarbonetos de Mozambique (ENH) was awarded the exploration and production concession contract (EPCC) for two exploration blocks, namely Area 3 and Area 6 by the Mozambique government.

Under the terms of the EPCC, PC Mozambique (Rovuma Basin) Ltd,a wholly-owned subsidiary of Petronas holds a 90 per cent interest in both blocks, which are located in the Rovuma Basin, while ENH owns the remaining 10 per cent interest.

Petronas first entered Mozambique's upstream oil and gas industry when it was awarded a contract for offshore Zambezi Delta Block in June 2002.

Matrade's Oil & Gas Exhibition Generates RM730.63 Million In Sales

The Malaysia Oil & Gas Services Exhibition and Conference (MOGSEC) 2012 has generated total sales of RM730.63 million.

The sales encompassed the export of products and services of construction and  installation; engineering, procurement and construction; logistics; manufacturing, exploration and production supply; pipe cutting; and engineering, exploration and production.

The inaugural exhibition, held by Malaysia External Trade Development Corp (Matrade) on Sept 18-19, 2012, saw 110 effective business meetings involving foreign companies from the United States, Oman, United Kingdom, South Africa, Yemen and Zambia as buyers with local O&G products and services exporters.

Other products and services including line pipe, tubing valves, chemicals and consultation were also on the agenda of the meetings and are currently in the process of further negotiations.

-- BERNAMA