As I travel up and down the region, I chanced upon the Garuda Indonesia Executive Lounge. It’s pretty exclusive, as only Garuda Executive Class guests and above can use it. As you can see, there weren’t that many travellers the day I passed through.
Travelling – Garuda Indonesia Lounge
August 31, 2010
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Kuala Belait
August 27, 2010I had some business in Kuala Belait, Brunei (I trust the clients were satisfied). It was the fasting month, and I was inside an office the whole of daylight hours, so I didn’t have many photo opportunities. The following photos were taken at the the sungkai prepared by Riviera Cafe.
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From Bernama – Technip May Acquire Up To 9.9% Stake In MISC Unit
August 22, 2010From Bernama, dateline 2010-08-20:
French oil services company, Technip SA, may take up to 9.9 per cent stake in MISC Bhd’s unit, Malaysia Marine and Heavy Engineering Holdings Bhd (MHB), which is en route for a listing on the Main Market of Bursa Malaysia.
In a filing with Bursa Malaysia, MISC said it has signed binding term sheet with Technip in relation to the strategic investment.
“Technip may take up 128 million units, or a maximum of 158.4 million ordinary shares of 50-sen each, in MHB. The quantum of shares will represent between eight and 9.9 per cent stake,” it said.
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Gems found while Marketing – Gran Mahakam
August 20, 2010I love the lobby of the Gran Mahakam even after they politely told me, no photos please. Such polite people, Indonesians. I’ll bring round my camera again next time, and try take a HDR photo of the facade.
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Pertamina starts overseas production
August 18, 2010Taken from the Jakarta Post, dateline 2010-08-04:
State oil and gas firm PT Pertamina expects to double production at a Malaysian oil block, the company’s first overseas operation, to 12,000 barrels per day next year.
Dwi Martono, president director of PT Pertamina Hulu Energi, Pertamina’s subsidiary managing overseas operations, said the SK-305 block, which lies off the shores of Sarawak in Malaysia, began production on June 26, 2010.
“The current oil production rate is 6,000 bpd, but we expect to increase that to 12,000 bpd in 2011,” Dwi told reporters Tuesday.
He said the block also produced gas at a rate of 9 million standard cubic feet per day.
The gas production has the potential to increase to 40 MMSCFD, but Dwi said the current focus was to boost oil production.
Dwi said the SK-305 block was a major accomplishment in Pertamina’s history as it was the first up-and-running overseas block that the company had been involved in from the get go. “This is a milestone for us,” he said. The block, which covers 16,400 square kilometers, is located in waters up to 150 meters deep in Balingian Province off the coast of Sarawak.
…
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From The Star – Oil price up and it is good for Malaysia
August 17, 2010Taken from the Star, dateline 2010-08-04:
Analysts say this is generally good for nation but it can stoke inflation worries
PETALING JAYA: Crude oil hovered at a three-month high as the weaker US dollar made it cheaper to purchase the same quantity of fuel in other currencies.
Analysts believed a higher crude oil price was generally “good” for Petroliam Nasional Bhd (Petronas) and the country. As a net oil exporter, albeit a small one, the rise in prices will translate into higher earnings from sales overseas, which are under pressure from the ringgit’s 8.4% rise year-to-date.
But the Government also subsidised the bulk of the fuel sold in the domestic market.
…
You can subscribe to an online version of the paper at the Bluehyppo site, follow links to e-browse.
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From Bernama – PetroVietnam Finds Its First Malaysian Offshore Oil
August 15, 2010Um, when did PetroViet open an office here? Never mind, I found the news article. Also, please notice the agreement came to light in 2003, and this is … 2010?
Dateline 2010-08-05:
PetroVietnam Exploration Production Corporation (PVEP) has reported the first oil extracted at the D30, Block SK305 field offshore Malaysia, according to Vietnam News Agency (VNA).
The field churns out an average 4,730 barrels of crude oil and 7.83 million cubic metres of gas a day. The accumulated production until July 31 reached 170,340 barrels with 282 million cubic metres of gas, PVEP said.
The SK305 project has been implemented under a common co-operation agreement on oil and gas exploitation and exploration between Vietnam ,Malaysia and Indonesia. Its contract came into effect on June 16, 2003.
PCPP Operating Co is a joint venture between the three state-run companies to operate the project. PVEP, an affiliate of Vietnam’s leading PetroVietnam group, holds 30 percent; Petronas Carigali Sdn Bhd, a member of …
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From Bernama – Malaysia’s O&G Expects To Be Awarded RM10-15 Billion Worth Jobs
August 14, 2010I’ll believe it when my company’s liquidy increases a hundred-fold. ‘Course, it’s hard not to be able to increase the RM1.32 we have in our bank balance… we find more money down the side of the couch.
Dateline 2010-08-06:
Malaysia’s oil and gas service providers are expected to secure at least RM10-RM15 billion worth of jobs in the next 18 months, said ECMLibra Investment Research.
It said the oil and gas service industry looked promising and vibrant given the line-up of jobs ahead which were expected to be completed between 2013 and 2015.
“The jobs are related to enhanced oil recovery projects, deepwater, onshore downstream and also marginal fields.
“Petronas has already clearly indicated that it was time to step up investments at home given the declining local production and we believe redevelopment projects like Tapis will be the first to go ahead,” ECMLibra said in its research note on Friday.
The research house added that the Tapis would likely take off soon followed by deepwater projects and then the front-end engineering and design jobs.
…
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From Bernama – Tas Offshore’s Revenue Up 154.8 Per Cent To RM139 Million
August 8, 2010Looks like I’m in the wrong business. Shipbuilding is it, which ties in with the worst-case Hollywood Waterworld scenario. Anyhow, if you are looking for process consultants for your FSO/ FPSOs, contact us.
Dateline 2010-07-29:
Shipbuilder Tas Offshore Bhd recorded a 154.8 per cent increase in turnover for its financial year ended May 31, 2010, at RM139.9 million from RM54.917 million the previous year.
Its pre-tax profit jumped 63.8 per cent to RM11.36 million from RM6.969 million previously.
“The current encouraging crude oil price range of US$75 to US$80 per barrel is deemed favourable for the oil major to expand their offshore deep sea projects and production activities.
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Vendor Development Program
August 5, 2010About everyone who has a PETRONAS license (there’s another story) dream on getting onto the Vendor Development Program (VDP) or become a VDP vendor.
The VDP is meant to nurture Malaysian companies by allowing the selected company to be on a shortlist (of one, I think) of approved suppliers for different product categories. For example, Process-3 is the VDP for “upstream and downstream sectors ‘Online Toxic Decontamination’ Chemical & Services Provider”.
The selected company typically starts of being an agent or stockist for a product. By disallowing fair competition, the company is provided with the opportunity to invest in the product, either spinning off related product lines as a result of technology transfer, or by taking up the challenge of setting up a local product line.
You can read about articles praising the VDP program here, here and here (really old news this). Note that there is a CLUB for VDP vendors. Talk about protecting your interests.
There are a number of advantages to the VDP vendor:
- You have the opportunity to recoup your capital investment in a potentially risky decision. As everybody will have to buy from you, you a guaranteed a healthy market.
- PETRONAS will have a big interest in making you succeed, so you can be sure of guidance and oversight from Big Brother.
- You have a clean sweep of your product category, making your competitors jump through hoops to get the Production Sharing Contractors or Operating and Production Units approval to use their products. Think of it as a sanctioned blue ocean strategy, by kicking out the rest of the fish.
I can see disadvantages here:
- Sometimes it seems like whoever is first to the post, wins. I have heard of a case where the VDP promised to construct a fabrication plant when awarded the VDP. It’s still a promise.
- No garauntee of quality. A VDP product is not necessarily the best. Those in the industry complain about the quality of service from various VDPs, but what can we do about it?
- If it was you, wouldn’t you try to get VDP status to make a quick buck, after doing a SWOT analysis?
- I think it kinda defeats the spirit of enterpruenership. What happens to the small fry who has developed a local product, but it happens to be in a VDP category where a megalith company has taken root? I happen to know that there is a local mechanical seal manufacturer with patented products running a factory in Shah Alam, but he can’t even enter a VDP category because there is already someone there, and the powers that be in licensing won’t consider his application.
- If the market segment is larger than what the VPD vendor can provide, you have effectively limited the ability of the oil & gas market to respond according to the demand of market forces. The VDP vendor is free to dictate prices according to artificial purchasing pressures. “You want that screw today? We’ll sell it to you for 10,000% markup, if not come back when Mars is at its closest approach to Earth.”
Of course, not everyone is as twisted as me and Jabba. I congratulate Corro Shield for graduating from the VDP program, which gives me hope that there are people out there with the interests of Malaysia and the rakyat at heart.
28 Comments | business opportunity, engineering, Malaysia, oil and gas | Tagged: Petronas, VDP | Permalink
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Wata - Malaysian Oil and Gas Engineer 