Kelantan claims RM800m per annum oil royalty

September 2, 2010

From the Malaysian Insider, dateline 2010-08-30:

The Kelantan state government claims PETRONAS owes the state RM800 million per annum from the Kelantan-Thailand offshore area since 2005.

The Kelantan government filed a suit today at the High Court here against the oil giant for breaching the Petroleum Development Act (PDA) 1974 by failing to pay the state oil royalties.

“The worth of condensate (gas liquid) comes to about US$8.5 billion per annum from the joint development offshore area with Thailand,” said state executive councillor Datuk Husam Musa.

“Five per cent of that belongs to Malaysia, which is RM1.7 billion. Half of that belongs to Kelantan which is RM800 million. Petronas owes Kelantan RM800 million per annum since 2005,” he added.

The Kelantan state government said today that Petronas owes the state oil royalties from at least four offshore areas from which oil has been extracted from. These are Kelantan, Kelantan-Thailand, Kelantan-Vietnam and Kelantan-Terengganu.


Aker Solutions Wins Kanowit Subsea Project Contract

September 1, 2010

Congratulations to Aker Solutions. Are they going to spread the Raya cheer?

Aker Solutions, through its subsidiary in Malaysia – Aker Process Systems Asia Pacific (APSAP), has been awarded two subsea contracts from PETRONAS Carigali Sdn Bhd (PETRONAS Carigali), the company reported in a news release. The first is a work order to supply subsea production system and services for the Kanowit field, while the second is a contract to deliver 5600 metres of subsea umbilicals that tie back the Kanowit subsea wells to the Kumang Cluster, Offshore Bintulu, Sarawak, Malaysia.

The engineering, procurement and construction work order is valued at approximately RM147 million ($45 million).

This work order is the result of the frame agreement signed between APSAP and PETRONAS Carigali back in 2009 for the supply of a complete subsea production system and services for a period of three years or until the completion of the Kanowit project.

Under the scope of work for this work order, APSAP will complete the engineering and delivery of a subsea production system consisting of two subsea trees, wellheads, subsea control system, manifold with high integrity pressure protection system, pipeline-end manifold and all tie-in equipment. APSAP will utilise Aker Solutions’ high-tech manufacturing centre in the Port Klang Free Zone to deliver the project and the equipment. Delivery of the subsea hardware is scheduled for 2011.

Meanwhile, the second contract with an estimated value of RM17 million ($5 million) will cover project management, engineering, procurement and manufacturing of subsea steel tube umbilical and auxiliary equipment.

The subsea umbilical, which contains steel tubes and electric cable, will connect the host platform to the Kanowit subsea field. APSAP will be delivering the contract out of Aker Solutions’ purposed-built subsea umbilical facility in Moss, Norway. Delivery is expected to be completed by the second quarter of 2011.

The Kumang Cluster field located about 250km offshore Bintulu is operated by PETRONAS’ exploration and production subsidiary, PETRONAS Carigali. Phase 1 consists of F9, Kumang and Kanowit fields. It comprises a central processing platform (CPP) at Kanowit field (KAKG-A) and drilling platform for F9 (F9JT-A) and Kumang (KUJT-A). Once installed, the Kumang Cluster facilities are able to supply gas to MLNG-2 terminal in Bintulu.

Dave Hutchinson, president – Subsea Asia Pacific, Aker Solutions, says the success of this project is of high importance: “Kanowit is PETRONAS Carigali’s first subsea venture in Malaysian waters. It will be an important reference for future subsea jobs in Malaysia and a major milestone towards realising Malaysia as the regional deepwater centre for the oil and gas industry. Aker Solutions is honoured to be given a role in this transformation process. We are confident that we have the knowledge and skills that are vital to achieving the deepwater hub ambition together”.