Trim Sapura’s losses, no need for bailout, says Dr M

July 11, 2022

Ah, the funny pages.

Dateline 2022-05-16, FMT:

Steps should be taken to trim losses incurred by Sapura Energy Bhd (SEB), Dr Mahathir Mohamad said today, disagreeing with calls for Putrajaya to bail out the oil and gas services company.

The former prime minister said bailing out “failed people” was “not business”, the New Straits Times reported.


Petronas Dagangan and PETROS complete business transfer, operationalise Sarawak LPG business

June 14, 2022

Dateline 2022-05-05, The Edge:

Petronas Dagangan Bhd (PDB) and Petroleum Sarawak Bhd (PETROS) on Thursday (May 5) announced the completion of the business transfer and share subscription agreement for PETROSNiaga Sdn Bhd.

This conclusion marks the operationalisation of the partnership for the liquefied petroleum gas (LPG) business in Sarawak.

In a joint statement, the companies said that starting Thursday, all (green) Gas Petronas gas-filled cylinders are PETROS’ (red) as marketed by PETROSNiaga and all existing Petronas LPG dealers are now PETROS LPG dealers.


Govt to kick off 15 initiatives this year to grow OGSE industry

May 20, 2022

Hahahahahaha.

Dateline 2022-04-26, The Edge:

The Economic Planning Unit (EPU) and Malaysia Petroleum Resources Corporation (MPRC) plan to kick off 15 initiatives this year under the National Oil & Gas, Services and Equipment (OGSE) Industry Blueprint 2021-2030.

Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said the 15 initiatives, aimed at strengthening and growing the OGSE industry, will continue to address systemic issues confronting the sector, specifically in the areas of technology, talent, and funding.

“EPU, alongside MPRC, will continue to work closely with ministries, agencies, Petronas, industry players and relevant stakeholders to realise the vision and goals set out in the OGSE blueprint,” he said at the second steering committee meeting for the blueprint.


How Sapura Energy got into the mess it is in

May 17, 2022

Dateline 2022-04-23, The Edge:

Sapura Energy Bhd is on the verge of bankruptcy, only three weeks shy of the 10-year anniversary of the mega-merger between SapuraCrest Petroleum Bhd and Kencana Petroleum Bhd, which created SapuraKencana Petroleum Bhd back in mid-May 2012.

Its name was changed to the current one at end-March 2017.

From a merger valuation of RM11.85 billion, Sapura Energy’s market capitalisation swelled to RM28 billion in early 2014, following the acquisition of Seadrill’s rig business and Newfield’s Malaysian assets. At its peak, Sapura Energy was the world’s second largest integrated oil and gas service provider.


How Sapura slipped on falling oil prices and Covid-19

May 14, 2022

Dateline 2022-04-20, FMT:

Sapura Energy Bhd (SEB) is likely to remain the biggest corporate story in Malaysia for some time to come.

Tumbling oil prices and a global pandemic led to its fall, but the failure of a major stakeholder to act decisively to save the company may just bury it.

For the financial year ended Jan 31, 2022, the company reported an RM8.9 billion loss, one of the largest in Malaysian corporate history.


South Korean, Malaysian players tie-up on green hydrogen venture in Sarawak

March 18, 2022

Dateline 2022-01-26, Upstream Online:

South Korea’s Samsung Engineering, Posco and Lotte Chemical plus SEDC Energy – a Sarawak Economic Development Corporation (SEDC) subsidiary– have signed a memorandum of understanding to develop a green hydrogen and ammonia project.

The Sarawak H2biscus green hydrogen/ammonia project (H2biscus Project) will be located in Bintulu, East Malaysia which is already home to the Petronas LNG Complex and Shell’s gas-to-liquids facility.

The H2biscus Project is looking to convert hydropower and natural gas to green hydrogen/methanol and blue hydrogen, and for the conversion of hydrogen to ammonia, aiming to supply hydrogen and ammonia to Korea and Sarawak.


Strong petrochemicals demand drives project starts in Malaysia

March 8, 2022

Did they take this wholesale from PETRONAS’ outlook?

Dateline 2021-12-28, Hydrocarbon Engineering:

Malaysia is likely to witness start of operations of 31 petrochemicals projects from 2021 to 2025 driven by robust demand for petrochemicals, according to GlobalData.

GlobalData’s ‘Global Petrochemicals New-Build and Expansion Projects Outlook, 2021-2025’ report reveals that out of 31 projects expected to commence operations in Malaysia, polyethylene projects would be at three, followed by polypropylene and benzene with two each.

Bhargavi Gandham, Oil & Gas Analyst at GlobalData, comments: “Petrochemicals consumption is on the rise in Malaysia leading to supply-demand mismatch. This is leading to growth in investments and establishments of joint ventures to boost petrochemicals capacity in the country.”


Gas Malaysia continues to fuel the nation with Petronas

February 11, 2022

A bit of history.

Dateline 2021-07-02, Malaysian Reserve:

GAS Malaysia Energy and Services Sdn Bhd (GMES), a wholly owned subsidiary of Gas Malaysia Bhd has signed the gas sales agreements (GSAs) with Petroliam Nasional Bhd (Petronas) through Petronas Energy & Gas Trading Sdn Bhd (PEGT).

The deal is a continuation of a long-term supply of natural gas from PEGT to GMES in to support the supply security of energy in Malaysia, provide social and economic growth, as well as contribute to the success of gas market liberalisation.

The GSAs were formalised on Dec 2, 2021, where PEGT was represented by its CEO Khairuddin Khalik, while GMES was represented by CEO Shahrir Shariff.


Past clean-up not enough to turn around Sapura Energy — what’s next?

November 11, 2021

Dateline 2021-10-30, The Edge:

Sapura Energy Bhd’s latest quarterly loss of RM1.52 billion was a big surprise to the market.

The company, which is 40%-owned by Permodalan Nasional Bhd, was expected to be better prepared having completed its RM10 billion debt refinancing in March. Oil prices doubled from last year to over US$80 (about RM331.28) per barrel. And the group even had a healthy order book of over RM7 billion.

Sapura Energy — arguably the largest Malaysia-listed oil and gas contractor — said that “the decrease was mainly contributed by provisions for foreseeable losses and higher project costs incurred for certain projects during the current quarter”.


Commentary: Ambitious oil facility in Pengerang, Johor a gamble given global climate change agenda

August 11, 2021

Dateline 2021-08-XX, Channel News Asia:

One of the most ambitious projects of Petronas, Malaysia’s national oil company, will soon be fully operational.

The Pengerang Integrated Complex (PIC), in the southern state of Johor, is poised to transform the country’s footprint in oil refining and petrochemical production. Spread across 2,550 ha and the result of a US$27 billion investment in partnership with Saudi Aramco, PIC will house a new site of downstream oil operations. However, at a time when the world is increasingly stressing the importance of green development and phasing out fossil fuels, are Malaysia and Petronas making the right bet?