Block sale of gas stake, PKR tells Sarawak

May 27, 2017

Dateline 2017-04-17, FMT:

PKR has told the Sarawak government to take Petronas to court if it’s true that the company is selling off a stake in an upstream gas project.

 Reacting to a fresh report that Petronas was seeking to sell the SK316 offshore gas block, Sarawak PKR vice-chairman See Chee How said oil and gas found within Sarawak’s boundaries belonged to the state.

Recently, Reuters, quoting sources, reported that Petronas had started pitching the sale of the block for an estimated US$1 billion (RM4.4 billion). The potential bidders, according to the report, include Royal Dutch Shell, ExxonMobil Corp, PTT Exploration and Production and Japanese firms.

“The rights of the state are very clear, be it in the Federal Constitution or Sarawak laws,” said See, who is a lawyer.


Petronas expected to lead in better upstream spending versus in 2016 — UOB Kay Hian

May 26, 2017

Dateline 2017-04-17,  The Borneo Post:

Petroliam Nasional Bhd (Petronas) is expected to lead in better upstream spending compared with that in 2016, analysts say.

According to UOB Kay Hian Securities (M) Sdn Bhd (UOB Kay Hian), Petronas’ domestic upstream capital expenditure (capex) was reduced substantially to the research firm’s estimate of RM10 billion to RM12 billion in 2016, versus the past annual average of approximately RM20 billion.

“In a stable oil price environment, domestic capex may likely return to the normal average,” UOB Kay Hian said.

“Channel checks suggest about five or more new production projects were sanctioned in Malaysia, but these projects could be deferred if oil prices remain too low for too long.”

The research firm noted that despite a potential doubling of rig count in Malaysia from eight in 2016 to about 10 to 15, some of the drilling activities are short term.  It further noted that new local upstream activities will likely be concentrated in gas projects (to meet supply requirements for MLNG 9) and certain enhanced oil recovery (EOR) projects.

Hence, UOB Kay Hian expected Petronas to lead in better upstream spending versus that in 2016.

Petronas Loads First-Ever LNG Cargo From Floating Facility

May 13, 2017

Dateline 2017-04-03, OilPrice:

Malaysia’s state oil and gas company Petronas announced the loading of the first liquefied natural gas cargo from a floating production facility over the weekend. The facility is located off the eastern coast of Malaysia and the cargo is bound for a client in South Asia, most probably South Korea, according to media.

Reuters reported late last week that the loading of the 144,000-cu-m Seri Camellia tanker had started at the Petronas Floating LNG Satu.

The Satu facility is estimated to have cost Petronas $10 billion, going into operation last year. Thanks to the floating facility, the Malaysian company beat other energy majors such as Shell and Japan’s Inpex, which are also working on floating LNG production projects.

Malaysia’s energy industry sees a stronger 2017

May 12, 2017

Dateline 2017-04-31, Oxford Business Group:

Petronas is pushing ahead with development of a large-scale refinery and petrochemicals plant in the southern state of Johor, with support from Saudi Arabia guaranteed as of last month.

In late January Petronas confirmed it would complete its Refinery and Petrochemical Integrated Development (RAPID) project on schedule, with production to commence in 2019. When fully on-line, the complex will have the capacity to process 300,000 bpd and up to 7.7m tonnes of petrochemicals annually.

Following the announcement, oil giant Saudi Aramco announced at the end of February that it would invest $7bn in the RAPID project out of a total investment of $16bn. This put to rest concerns that the programme would be scaled back or delayed, amid reports in January that the Saudi company had stepped away from forming a partnership with Petronas.

Aramco JV was well thought out, says Petronas

May 9, 2017

Dateline 2017-04-27, Malay Mail:

The joint venture with Aramco for the Refinery and Petrochemical Integrated Development (RAPID) was not done overnight but had been looked at since 2014, said Petronas group executive vice-president Md Arif Mahmood.

Arif said the Malaysian unit was “never forced into the joint venture” and had always been eyeing a partner like Aramco.


Right time for oil and gas players to consolidate: MPRC

May 9, 2017

Ws that the best picture they could get of Syed Azlan?

Dateline 2017-04-27, NST:

WITH crude oil prices at a relatively plateau level, the time is right for oil and gas players to collaborate or consolidate, said Malaysia Petroleum Resources Corp (MPRC) senior vice-president Syed Azlan Syed Ibrahim.

“Although we foresee 2017 will not be far off than 2016, I do not think it will be worse. This is the opportunity for players to make the hard decision to restructure or reform. That time is now.

“They need to do it now so that when the market goes back up they will be ready,” he said after the MPRC business seminar, here, on Friday.


Petronas says RM200b ‘forgone revenue’ from selling natural gas cheaper in Malaysia

May 7, 2017

Dateline 2017-04-25, The Edge:

Petroliam Nasional Bhd (Petronas) has forgone more than RM200 billion in revenue from selling natural gas in Malaysia at rates lower than global prices since the country regulated prices of the fuel after the 1997/1998 Asian financial crisis.

The Edge Malaysia business and investment weekly (Edge Weekly) in its latest March 27 to April 2 issue, quoted Petronas president and group chief executive officer Datuk Wan Zulkiflee Wan Ariffin as saying despite Malaysia revising the price of natural gas upward every six months, the local rate was still below the international price.

“I think the forgone revenue since we started is more than RM200 billion because we have not been able to sell natural gas at market value. In the past, we made investments just to ensure security of supply. But moving forward, there is this perennial issue of non-market pricing.