Malaysia seizes pipeline company’s RM1 bil funds, says report

August 30, 2019

Dateline 2019-07-13, FMT:

More than RM1 billion in a Malaysian bank account of a Chinese state-owned company is reported to have been transferred on government orders to a company owned by the finance ministry.

The Straits Times newspaper in Singapore described the seizure and transfer of funds by the Malaysian authorities as “an unprecedented move in Malaysian banking”.

It said global banking giant HSBC was told earlier this month to transfer the money, held in the Malaysian account of China Petroleum Pipeline Engineering Ltd, to Suria Strategic Resources Sdn Bhd, wholly owned by the finance ministry.

Malaysia’s Petronas testing polymer units at Pengerang

May 19, 2019

Dateline 2019-04-04, Argus:

Malaysian state-owned oil firm Petronas is continuing test runs of polymer units at its new petrochemical facility in Pengerang in the run-up to the Islamic fasting month of Ramadan.

Petronas has so far produced small quantities of on-specification product.

The facility, a joint venture between Petronas and Saudi Arabia’s state-owned Saudi Aramco, will be able to produce 900,000 t/yr of polypropylene (PP) and 750,000 t/yr of polyethylene (PE).

Petronas is expected to ramp up test runs and increase run rates in the run-up to Ramadan, which starts in early May.

Ramadan is typically a slow period in Malaysia, with working hours reduced in state-owned companies.

Oil and gas sector hires more local graduates, trims forex losses

March 21, 2019

Dateline 2019-02-19, NST:

Skilled local workforce has helped major oil and gas (O&G) cushion the global weak oil prices, ringgit fluctuations and foreign exchange (forex losses) over the past few years.

Analysts said companies such as Petroliam Nasional Bhd (Petronas), Sapura Energy Bhd, Alam Maritim Bhd, Barakah Offshore Bhd and others has hired local professionals and technical and vocational education and training (TVET) graduates to reduce costs, which is part of the companies’ cost cutting measures.

Sunway University Business School Professor of Economics Dr Yeah Kim Leng said the O&G sector is a very specialised high technology sector which requires a lot of specialised skills to work at oil rigs and fabrication yards.

“In the early days, these niche areas required foreign expertise and was dominated by expatriates but now firms such as Petronas and Sapura no longer hire foreign professionals but source local engineers from the O&G field.

“This in turn has enabled the country to save a lot in terms of foreign exchange as it is very expensive to pay the foreign engineers.

“Now Malaysia is able to produce its own local oil and gas engineers, technicians and supervisors,” Yeah told NST Business recently.

‘Diversification is key to Malaysia OGSE companies’ long-term survival

March 15, 2019

And congratulations Mohd Yazid Ja’afar .

Dateline 2019-02-08, Sarawak Tribune:

Malaysian oil and gas services and equipment (OGSE) companies must diversify their businesses to remain competitive amidst signs of greater market volatility in 2019, said Malaysia Petroleum Resources Corporation (MPRC).
Deputy chief executive officer Mohd Yazid Ja’afar said while oil prices had risen since the beginning of the year, concerns about a supply glut and weakness in the global economy would keep prices on a tight leash, as evident from the general cautiousness of global oil companies and their continuous push for cost efficiencies.

Oil and gas sector remains in Malaysia’s focus

March 14, 2019

Dateline 2019-02-11, Malay Mail:

The oil and gas (O&G) industry, Malaysia’s second highest export earner after electrical and electronics, will continue to be a focus area for the government this year amid the volatility in oil prices.
International Trade and Industry Deputy Minister Ong Kian Ming said while tackling weakening crude oil prices, Malaysia was also giving attention to downstream products.
“We are giving attention to downstream products and do expect (investment) activities due to the Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang.

MRO players to gain from rising O&G activities

March 13, 2019

Note that the article is focussing on downstream activities, not us muck in the mud folks.

Dateline 2019-02-07, The Sun:

More of Malaysia’s oil and gas services and equipment (OGSE) companies are expected to set their sights on the downstream sector mainly in the maintenance, repair and overhaul (MRO) segment with the completion of Petronas’ Pengerang Integrated Complex (PIC) in southern Johor said Malaysia Petroleum Resources Corp (MPRC).
According to its “Top 100 OGSE Companies in Malaysia FY2017” report, while volatility of the oil price is expected to persist in 2019 global oil and gas development activities are expected to increase in the coming years, with operators aiming to move forward to develop new offshore fields, particularly those located in deep waters.

The legal deadlock over Sarawak’s oil and gas

September 9, 2018

Dateline 2018-06-24, Malaysiakini:

On Friday, the Federal Court dismissed Petronas’ application for leave to challenge Sarawak’s aspirations to reassert regulatory control over its own oil and gas.

The Federal Court also struck out Petronas’ application for an order preserving the status quo which, at least for now, appears to enable Sarawak to proceed with its intention of implementing its own oil and gas regulatory regime by July 1.

As much as we welcome it, Sarawakians must be cautious in embracing the Federal Court decision.

Petronas’ leave application was dismissed solely on the grounds that the declaratory relief sought did not come within the exclusive original jurisdiction of the Federal Court.

Petronas seeks clarity amid Sarawak’s O&G ambition

August 25, 2018

For the historical books

Dateline 2018-06-19, The Edge:

PETROLIAM Nasional Bhd’s (Petronas) court challenge of Sarawak’s claim of regulatory authority over oil and gas activities in the state has sparked a barrage of political responses and an angry backlash.

There was an outcry over the perceived trampling of state rights over oil and gas wealth in Sarawak. Many also began to question Pakatan Harapan’s pre-election promise to increase oil royalty to 20%.

But court documents viewed by The Edge indicate that the national oil company is pursuing a more precise question: who is in charge of upstream oil and gas activities in Sarawak?
For Petronas, it is a question that needs an urgent answer because operational continuity and investor confidence, which are vital to attract future investments, are at stake.

Is it time to bet on O&G?

August 23, 2018

Please, bet on IGL.

Dateline 2018-06-18, The Edge:

With the stock market, particularly construction counters, roiled by major policy changes under the new Pakatan Harapan administration, the oil and gas (O&G) sector may be ripe for a relook as crude oil prices have been maintained at fairly decent levels.

Pong Teng Siew, the head of research of Inter-Pacific Securities Sdn Bhd, told The Edge Financial Daily there could be selective gems, especially in the O&G space, which could benefit from stronger oil prices as the worst appears to have passed.

Recent financial results pointed to an improvement, and for some even a turnaround in their performance.
Velesto Energy Bhd is one, posting a net profit of RM5 million for the first quarter ended March 31, 2018, compared to a net loss of RM104.1 million in the corresponding quarter a year ago. In the preceeding quarter ended December, its loss was a whopping RM980.5 million.

Time to reverse the flow of oil revenue, says SAS

August 18, 2018

Dateline 2018-06-13, Borneo Post:

Solidariti Anak Sarawak (SAS) founder Peter John Jaban said it is time for Sarawak to consider keeping 95 per cent of oil revenue for the state and give the balance to the federal government.

“It is time to reverse the flow – with Sarawak giving the federal government five per cent of the oil revenue and keeping the remaining 95 per cent for the people of Sarawak,” he said.

Speaking to reporters after a gathering at the Kuching Waterfront yesterday to show support for the Sarawak government, Peter John said that revenue from oil sits at the heart of the autonomy issue which has been the principal driver of policy and feeling in Sarawak over the past few years.

“The question is simple – whether the people of the Borneo states should receive the benefits of the resources that have been part of their territory since long before Malaysia was even conceived.