Sabah to follow Sarawak in pursuing oil and gas rights

December 24, 2020

Dateline 2020-12-08, Straits Times:

Sabah will follow Sarawak in pursuing its rights, particularly where oil and gas are concerned.

Deputy Chief Minister Datuk Seri Jeffrey Kitingan congratulated Sarawak for reclaiming its rights, adding that the Sabah government would ensure the same for the state.

He was referring to the Sarawak government signing a commercial agreement with Petroliam Nasional Bhd (Petronas) on Monday which allows the state, through its subsidiary Petroleum Sarawak Bhd (Petros), to play a bigger role in the oil and gas industry through cooperation with Petronas.

“Kudos to the Sarawak government for reclaiming their rights. It is no secret that the Sarawak government had been doing all the heavy lifting in this fight and we are grateful for their efforts.


Petronas agrees to give Sarawak bigger share of oil, gas revenue

December 23, 2020

Dateline 2020-12-08, The Straits Times:

Malaysian energy giant Petronas said yesterday that it has agreed to a commercial settlement that grants Sarawak state a higher share of revenue for oil and gas produced in the state.

Under the agreement, Sarawak state will also be given more active involvement in the state’s oil and gas industry through management of onshore oil and gas resources via its state-owned energy firm Petros, according to a joint statement by Petronas and the state government.

Both Petronas and the state government said they remained committed to providing a “stable, conducive business and investment environment for the sustainable growth of the oil and gas industry” in the state.


Incentives needed for investors in Sarawak O&G

December 22, 2020

Dateline 2020-12-08, Malaysian Reserve:

THE newly sealed commercial agreement between Sarawak state government and Petroliam Nasional Bhd (Petronas) would need to provide investment incentives for it to remain attractive for investors.

An industry expert said an agreement like that would have to create investment incentives as any increase in royalty amounts would discourage new investment in exploration and production.

“To have a successful agreement, part of it needs to ensure the right incentives are in place for investments in the state. Such an agreement may lead to higher investment costs, particularly in a low oil price environment, and cause lower investment and production in the coming years,” the expert, who asked for anonymity, told The Malaysian Reserve.


State govt mulling gas distribution system for Kuching, Kota Samarahan

December 21, 2020

Dateline 2020-12-02, The Borneo Post:

A plan is in the works to implement a gas distribution system for houses, commercial businesses and industries in Kuching and Samarahan.

Chief Minister Datuk Patinggi Abang Johari Tun Openg said the system will be similar to the piped gas grid the Gas Distribution Systems in Bintulu and Miri.

“This is something which cannot take place ‘kinek kinek’ (immediately). It takes time, it is in the planning stage. It is something I want to do but I cannot reveal (more details about it) yet.


Reuters: Malaysia Probing Aker Solutions over Petronas Dealings

December 20, 2020

Hahaha, it’s about ownership of company, with respect to getting a PETRONAS license. What, MACC finally figured out the paperwork trail? How about hitting every company with a PETRONAS licence? Next, can they charge companies for providing engineering services without registering the proper licences with the Board of Engineers?

Dateline 2020-12-02, Offshore Engineer:

Malaysia’s anti-graft agency is investigating Norway’s largest oil services provider Aker Solutions on suspicions of making false statements in its dealings with state-owned energy firm Petronas, three sources familiar with the probe said.

The Malaysian Anti-Corruption Commission (MACC) is looking into allegations that Aker Solutions made false representations regarding the ownership of one of its Malaysian units in order to win licenses from Petronas, a source with the agency and two other people told Reuters.


Petronas nears restart at Malaysia’s Pengerang refinery

December 19, 2020

You mean, it has not been operating since the March 2020 fire? How many heads have rolled? Wait, where’s my list of ‘get out of jail free’ C-level listing?

Dateline 2020-11-30, Argus Media:

Malaysia’s state-owned Petronas is on course to restart its 300,000 b/d Pengerang refinery joint venture with state-controlled Saudi Aramco in the first quarter of 2021, adding more capacity to a struggling Asia-Pacific refining market.

The Pengerang complex in southern Malaysia has been shut since a fire in March. Petronas said late last week that the project is transitioning to commercial operations and a restart of the refinery and petrochemical plants is planned for the first quarter of next year, in line with previous expectations.

The project’s atmospheric residue desulphurisation trains are also expected to be ready for start-up in the first quarter. Repairs are continuing on the diesel hydrotreater, which is targeted to come on line in October-December 2021. Aramco owns a 50pc stake in the project and will supply half of its crude, with the option to increase this to 70pc once the refinery is fully commissioned.


A Tale of Two State-Owned Oil and Gas Companies

December 18, 2020

Dateline 2020-12-01, The Diplomat:

2020 has been a rough year for oil companies. In April, with the sudden stop in economic activity due to COVID-19 shutdowns, the price of U.S. crude fell to below zero for the first time in history. Oil companies were essentially forced to pay to store excess crude for a while, and with the global economy still reeling the rebound in demand has been sluggish. Still, the market price for crude bounced back pretty quickly, likely on hopes that this downturn will be short-lived. While it remains below its pre-pandemic price, it has recovered quite a bit since its April lows, with a barrel of West Texas Intermediate fetching $45.53 last week.


O&G players may form consortiums to bid for Exxon Mobil’s Malaysian assets

December 12, 2020

Can I join in, for old time’s sake? Us ex-Esso folks have some payback comin’.

Dateline 2020-11-17, The Edge:

SEVERAL local oil and gas (O&G) companies are understood to be interested in acquiring Exxon Mobil Corp’s assets in Malaysia, which are up for sale, but are said to be more comfortable forming consortiums to bid for these assets because of the hefty price tag of US$2 billion to US$3 billion (RM8.26 billion to RM12.39 billion).

A controlling shareholder of one of the larger companies says, “We are always on the lookout for assets, [but] no one company can go it alone [acquisition of Exxon Mobil’s assets], and no sensible management will make such a [risky] decision.”


How S’wak is benefiting from Sabah’s oil and gas

December 1, 2020

Dateline 2020-11-01, Daily Express:

THE idiom “a slap in the face” means a sharp rebuke or rebuff. Shell’s planned pull out is an extensive pull-down for Sabah fragile economy. 

Besides its promises, it has been and will continue to make millions from the pumping of our petroleum out of its two deep water wells. Shell is not pulling out of Malaysia. It is moving its upstream office out of KK and will build a new office to house them in Miri. The question is what are the underlying factors that have led to the Shell pull out.

Impotent words from Sabah politicians. Sabah political leaders have united for once to beat their war drums, showing their rage on this Shell pull out. 


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.