Petronas’ first floating LNG facility to start operating next month

Petronas is ramping up its liquefied natural gas (LNG) capacity with its first floating liquefied natural gas (LNG) facility, PFLNG Satu, expected to go into commercial operation next month.

LNG assets (upstream) vice-president Adnan Zainol Abidin said as for now, the group did not have any specific clients, but if demand were to arise, priority would be given to its portfolio buyers.

“Our first cargo went to India, and next, the vessel will sit on the Kanowit gas field off Sarawak for five years, after which our development people will be looking at the next field,” he told a media briefing in Kuala Lumpur on Sunday.

The facility, which marked the world first innovation in the LNG industry, is expected to boost Malaysia’s total LNG production capacity to 32 million tonnes per annum (mtpa).

The development of PFLNG Satu began in 2010 and is scheduled for start-up in 2016 at the Kanowit gas field off Sarawak.

Indonesia sues PTT, PTTEP for US$2 bln over oil spill

The Indonesian government is suing Thailand's state-owned PTT and PTT Exploration and Production for around $2 billion for alleged damage to the environment from an oil spill in the Timor Sea eight years ago.

The Montara wellhead operated by subsidiary PTTEP Australasia caught fire in 2009, leaking hundreds of thousands of litres of oil off the northern coast of Western Australia, according to media reports at the time.

The incident was considered one of Australia's worst oil disasters, and PTTEP was fined A$510,000 ($394,000) by a Darwin court after pleading guilty in 2011 to charges related to workplace health and safety and failure to maintain good oilfield practice.

Indonesia alleges, however, that the oil spill also fouled seawater and coastal areas in the nation's East Nusa Tenggara province, and filed a lawsuit on Wednesday in a Jakarta court against PTT, PTTEP and PTTEP Australasia, seeking 27.5 trillion rupiah ($2.1 billion) for damages and restoration costs.

Harga minyak menjunam teruk

Harga minyak mentah menjunam semalam dan menghapuskan sepenuhnya keuntungan yang diperolehi akhir November lalu.

Reuters melaporkan minyak mentah Amerika Syarikat jatuh 5.06 peratus kepada AS$45.40 setong dan Brent berada pada paras AS$48.35, turun 4.8 peratus.

Kejatuhan ini adalah pada paras paling rendah sejak akhir November selepas OPEC dan negara pengeluar lain dijangka tidak akan melaksanakan beberapa langkah lebih drastik untuk mengurangkan lebihan bekalan minyak dunia.

"Walaupun OPEC dijangka meneruskan pengurangan pengeluaran sendiri bagi tempoh enam bulan akan datang, ia akan menjadi cabaran untuk ahli bukan OPEC menjejaki langkah sama.

Multinational O&G Companies Keen To Set Up Regional Base In Malaysia

Malaysia’s InvestKL is more than half way to completing its mission: attracting 100 multinational corporations (MNC), including top oil and gas firms, to base their regional headquarters in Greater Kuala Lumpur (KL) by 2020.

Luring oil and gas MNCs ranked among the Fortune 500 or Forbes 2000 group of firms looms large for InvestKL given Malaysia’s well established petroleum industry, anchored by national oil company (NOC) Petroliam Nasional Berhad (PETRONAS).

“It’s is not the main focus, but it’s certainly a key sector because oil and gas is one of the 12 national key economic areas. KL is also an oil and gas hub for Southeast Asia,” Daniel Teng, senior director of Marketing & Communications, Strategy, Advisory and Services at InvestKL.

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.