Oil dives under $50/bbl again

Oil slid more than 4 percent on Thursday, to its lowest since late November as investor worries about a growing global glut of crude erased most of the gains that followed last year's OPEC's output cut.

The slide worsened after OPEC delegates said their group and other producing countries were downplayed the chance of a bigger output when the producers meet on May 25, even though they said the output cuts were likely to be extended.

U.S. crude fell $2.05 or 4.3 percent to $45.77, by 12:08 p.m. Brent was down $2.07, or 4.1 percent to $48.71.

“The market continues to hunt for a bottom," said Gene McGillian, manager of market research at Tradition Energy in Stamford, Connecticut. "We’ve dropped to a five month low.”

Late last year, the Organization of the Petroleum Exporting Countries (OPEC), together with other key producers such as Russia and Oman, announced that they would cut oil output for the first six months of this year to reduce a vast global overhang of unused crude.

Shell profits soar as oil sector makes a comeback

Royal Dutch Shell reported a sharp rise in net profit on Thursday, beating analyst forecasts and joining its peers as stronger oil prices and improved refining margins boosted revenue after nearly three years of downturn.

A billion dollars in cost savings and budget cuts made over the past three years, as well as around US$20 billion of asset sales following the US$54 billion acquisition of BG Group last February, also helped increase cash flow and boost profits.

After completing the integration of BG Group in the third quarter of last year, the company and investors are turning their focus to increasing revenue and reducing debt as oil prices appear to recover.

A near 55% rise in oil prices in the first quarter compared with a year earlier to around US$54 a barrel was the main driver of earnings growth.

Six killed in crane collapse at Samsung shipyard in Geoje, South Korea

Six people died and more than 20 were injured when a crane collapsed at a Samsung Heavy Industries shipyard in South Korea on Monday,

The incident took place during the construction of an oil platform for French energy company Total's Martin Linge field off Norway. The extent of any damage to the platform was not immediately clear, a Total spokesman in Norway said.

Total and Samsung Heavy said it was also not clear how the incident might affect delivery of the platform, which was expected to start producing oil and gas in the North Sea in 2018.

"It's too early to say what would be the consequences for delivering the platform, but for the time being all work at the yard has been stopped and the investigation is ongoing," said Leif Harald Halvorsen, a spokesman for Total's Norwegian subsidiary.

16 Malaysian Companies Participate In O&G Trade Exhibition In Houston

Sixteen Malaysian companies from the oil and gas (O&G) sector and comprising mostly small and medium enterprises (SMEs), participate alongside large corporations, including Petronas, at the Offshore Technology Conference (OTC) 2017 from May 1- 4 in Houston, United States.

The event is the largest O&G trade exhibition of its kind globally .

In a statement, the Malaysia External Trade Development Corporation (Matrade) said it would coordinate participation of the Malaysian companies at the event.

In collaboration with Malaysia Petroleum Resources Corporation (MPRC), Matrade will also explore export opportunities in the O&G sector.

The exhibition is expected to attract over 80,000 O&G leaders and experts from around the world.

Muhibbah group bags Bintulu Port job worth RM584.8mil

Muhibbah Engineering (M) Bhd’s 51%-owned subsidiary Muhibbah Viccana JV has secured a RM584.84mil contract to build a wharf, jetty and other associated facilities at Bintulu Port in Sarawak.

In a filing with Bursa Malaysia, the Klang-based engineering contractor said construction works for the project, awarded by the Bintulu Port Authority, would start immediately and be completed by end-2019.

Muhibbah had in 2014 bagged a RM157mil contract to construct the conveyor system facilities at the RM1.8bil Samalaju deepsea port also located in Bintulu.

The latest win is the second major contract netted this year by the Muhibbah group. In January, 49%-owned Muhibbah Engineering Middle East LLC clinched a 356.7 million Qatari riyal (RM425.4mil) deal from the Qatari government to build roads and infrastructure works at the Um Alhoul Economic Zone.

TH Heavy Engineering woes pile up

Global auditing company Deloitte has highlighted "multiple uncertainties that may cast significant doubt" on the future of the Malaysian oil and gas fabricator TH Heavy Engineering.

At the same time, the Malaysian Securities Commission and Malaysian Stock Exchange have made a series of demands on TH Heavy as part of its Practice Note 17 requirements.

In its disclaimer opinion attached to TH Heavy's latest annual results, Deloitte said it has "not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion".

As at 31 December 2016, the current liabilities of TH Heavy have exceeded its current assets by 733.1 million ringgit ($170 million) as a result of losses incurred during the current and prior financial years, said Deloitte.

The company has no fabrication project which is in progress as at year end.

Libya's Biggest Oil Field Sharara to reopen

Libya’s biggest oil field, Sharara, reopened as crude began to move through a pipeline connected to the Zawiya refinery, according to a person with direct knowledge of the matter.

Oil began to be distributed through the pipeline on Wednesday, and is expected to reach Zawiya Thursday night, the person said, asking not to be identified because the information hasn’t been announced.

Libya’s overall production is 491,000 bopd, National Oil Corp. Chairman Mustafa Sanalla said Thursday at a conference in Paris. Daily output averaged 420,000 to 460,000 bbl over the past few days, another person with direct knowledge of production said.

Petronas Lubricants expands China plant

Petronas invested RMB600 million (RM384 million) to expand its lubricant-blending plant in Shandong, China to meet the market’s growing demand for the product.

In a statement, Petronas president and group CEO Datuk Wan Zulkiflee Wan Ariffin said the annual output of the plant within the Weifang Economic Development Zone was expected to increase from 45,000 to 150,000 tonnes, which included automotive and industrial lubricant.

“The second phase expansion at our Shandong plant adds much-needed production capacity that will help us meet the soaring demand for our products.

"This strategic expansion of our footprint in China reflects the great importance we attach to our local customers here as well as our confidence in Petronas' prospects for future growth in the Chinese market," Wan Zulkiflee said.

Sabah SHELL Malikai project named best for design and engineering

The Institution of Engineers Malaysia (IEM) has awarded Shell Malaysia with the highest honour in design and engineering.

The IEM Outstanding Engineering Achievement Award 2017, presented to an oil and gas company for the first time in three decades, was awarded to Shell for its Malikai tension leg platform (TLP) deepwater project in Sabah.

“The safe and successful start-up of Malikai in December 2016 is a high point for us.

“This highest engineering recognition honours the many engineers and workers within the Malikai project team from Shell, partners, contractors and subcontractors who have shown remarkable creativity, resilience and the greatest level of professionalism in delivering this historic project,” said Malikai project manager Momas Modon as he received the award during the recent 58th IEM annual dinner and awards night.

Happy Labour Day / Selamat Hari Pekerja

Happy Labour's Day

The solution to overcome the problem of rising cost of living, reduce unemployment among young people, defending the rights of contract-based workers, and help Malaysians working abroad should be a priority.

Maybe it requires a political reform.

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Selamat Hari Pekerja

Penyelesaian untuk mengatasi masalah peningkatan kos sara hidup, mengurangkan pengangguran di kalangan anak muda, mempertahan hak pekerja sambilan/kontrak, dan membantu rakyat Malaysia yang bekerja di luar negeri harus menjadi keutamaan.

Mungkin ianya memerlukan perubahan melalui kuasa politik.