RM6b Petronas deals unlikely to be catalysts for oil & gas sector: AmBank Research

November 9, 2017

Pop quiz: what catalysts do you know?

Dateline 2017-09-18, The Sun:

AmBank Research is of view that a reported RM6 billion maintenance, construction and modification (MCM) contracts rollout by Petroliam Nasional Bhd (Petronas) is unlikely to work as a catalyst for the oil and gas sector, maintaining the sector’s neutral call.

It was previously reported that, Petronas has conducted a pre-award meeting for the delayed contracts which were expected out in the second quarter of the year.

“Petronas’ recent focus on reshuffling its upstream portfolio amid a review of its capital and operating expenditure against the backdrop of a lower crude oil price environment has negatively impacted the local services sector. It is uncertain whether Petronas would split the MCM jobs into six packages for a 5-year duration as earlier envisaged,” AmBank said.

Essentially, these new contracts, which are a relief for the sector, are to replace the existing service jobs currently held by the incumbents. These could offer a respite for vessel utilisation rates. However, in terms of value accretion, we do not expect any significant increase in day rates, given the currently depressed offshore market,” it added.

Malaysia on target to become regional oil and gas hub: MPRC

October 22, 2017

Dateline 2017-09-11, NST:

Malaysia is set to become the oil and gas hub by year 2020 and is well on target towards becoming a regional hub within three years.

Malaysian Petroleum Resources Corporation (MPRC) said the country, deemed as one of the fastest growing economies in the Asia Pacific region and home to market-oriented economy and pro-business government policies, is also aims to ensure its local players to become regional players in the sector.

MPRC chief executive officer Datuk Shahrol Halmi said it is important to have Malaysia’s reputation at play to become a hub, and not just beating the drum claiming to be one.

“We also have strategies to ensure that we get there, and working hard to make sure it happens.

“It is crucial to attract the multinational companies (MNCs) to come to Malaysia and ensure that they make Malaysia as a regional base for the region.

“A hub is not just a hub. It brings other benefits to the Malaysian economy such as technology transfers, job opportunities and high-paying jobs as well,” Shahrol said in an exclusive interview with NST Business recently.


Malaysia’s Largest Company to Push Ahead with Acquisition of Daewoo E&C

October 14, 2017

Not Malaysia focused, but hey.

Dateline 2017-09-01, Business Korea:

Petronas, a world-class energy company, will press ahead with the acquisition of Daewoo E&C, following global players including Saudi Arabia’s Aramco who revealed its will to take part in a bid for Daewoo E&C to be held within this year. Such moves are raising a possibility that Daewoo E&C will be sold off for a higher price. Its estimated selling price is about 2 trillion won (US$1.8 billion).

According to the investment banking (IB) industry on August 31, Malaysia’s Petronas is considering the acquisition of the Korea Development Bank’s 50.75% stake in Daewoo E&C including the management right. Petronas will participate in taking over Daewoo E&C in October after reviewing Daewoo E&C’s business structure, financial conditions and business performances by September. Petronas is said to be planning to forge a local consortium with Maybank and CIMB.

Promoting downstream oil and gas industry

October 12, 2017

Any may I complement Izhar Hifnei Ismail on his eloquence, and when will he do a photo op with me? Muar boleh!

Dateline 2017-08-31, Japan Times:

The PIPC sits on a 20,000-acre piece of land in Pengerang, in Malaysia’s Johor state. The PIPC is designed to accommodate downstream oil and gas industrial facilities such as refineries and petrochemical plants, deep-water terminal and storage tanks, naphtha crackers, regasification plants and supporting facilities, as well as manufacturing plants and industrial parks.

To be developed in phases, the PIPC covers both core and non-core downstream activities. Included in the PIPC master plan are designated areas for related support services such as a plastic and fine chemicals park, a light and medium industrial park, a waste management center, an emergency response center, a logistics hub, a commercial hub and others.

 The striking attraction of the PIPC lies in the robust design of the PIPC master plan that strives to enable and promote future growth and sustainability, by offering a wide spectrum of investment opportunities targeted at downstream oil and gas players.

Leaner, meaner Petronas targets key markets for growth

September 19, 2017

So, do we get leaner, meaner expats than the current crop?

Dateline 2017-08-15, NST:

Malaysian state energy firm Petronas will focus on a few select markets for expansion, its CEO told Reuters, as it positions itself as leaner and meaner for a medium-term period of relatively low oil prices.

Hurt by a slump in oil prices, Petroliam Nasional Berhad has cut its costs and its spending, deferring some projects in an effort to help profitability in a tough energy market.

Rather than having its operations “scattered all over the place,” CEO Datuk Wan Zulkiflee Wan Ariffin wants the company’s geographical profile to be concentrated, he said in an interview on Tuesday at the Petronas Towers, the world’s tallest twin towers.

“We must have geographical concentration to be more cost effective,” Wan Zulkiflee said.

For its upstream business, Petronas will focus on South East Asia and Canada, where it already has huge reserves, he said, adding that Mexico – where Petronas has recently picked up three blocks – will be another focus.


Setting up Petros a good move — See

September 14, 2017

Sovereign wealth fund? Yeah, if that happens, can I ghostwrite “State + Business? Socialism Wins!”

Dateline 2017-08-10, Borneo Post:

The unprecedented step taken by the state administration to incorporate Petros, a Sarawak wholly-owned oil and gas company, as a vehicle to actively participate in the extraction and development of the state’s oil and gas is most welcomed by all Sarawakians, said Batu Lintang assemblyman See Chee How.

See, who is state PKR vice chairman, said Petros should be a sovereign wealth fund, which is a Sarawak-owned investment fund, answerable to the Sarawak Legislative Assembly to invest in, accumulate and manage the funds in the course of its exploration, management and development of all upstream and downstream petroleum-related projects in Sarawak.

UPDATE: Malaysia’s MISC 2Q Net Profit Falls Nearly 59% On Impairment Loss

September 12, 2017

MISC is still profitable? Wow. Keep an eye out for a spin off.

Dateline 2017-08-09, Nikkei Asian Review:

MISC, the shipping arm of Malaysia’s national oil company Petronas, said Wednesday its second-quarter net profit fell 58.7% on year, mainly due to write-down on assets, while revenue also declined.

Net profit for the three months ended Jun. 30 totalled 556.50 million ringgit ($129.78 million) compared with 1.35 billion ringgit a year ago, the company said in an exchange filing. Quarterly revenue was down 3.8% to 2.30 billion ringgit from 2.39 billion ringgit a year earlier.

Analysts said MISC’s latest set of results came in largely within expectation after stripping out the one-off impairment and other non-operating losses, although prospects of a sharp uptick in earnings remain bleak.