MMC Corp To Sell Oil, Gas Services Unit For $11.2 Million

February 12, 2017

Old news. But, how does MMCOGE maintain its BEM status as a Engineering Consultancy Practice (ECP) with the new ownership? Someone might want to open that can of worms, or pay me to hide it.

Dateline 2017-01-20, Nikkei Asian Review:

Malaysia’s MMC Corp plans to sell its oil-and-gas services unit for 50 million ringgit ($11.2 million), reflecting a broader consolidation effort sweeping the local oil-and-gas sector.

MMC Corp, a logistics and utilities company, will dispose of its entire stake in wholly-owned MMC Oil & Gas Engineering to privately-held Melati Pertiwi, the company said in a stock exchange filing. Cash proceeds from the deal will be used to repay bank borrowings, it said.

“The proposed disposal will enable MMC to streamline its business operations and focus on the core businesses of MMC” of logistics, utilities, and construction, the company added.

The deal comes at a time when the industry swoons under pressure from protracted low oil prices that prompted major producers globally to cut capital spending and scale back expansion. Despite a recent rebound, crude oil price remains sharply below the triple-digit levels seen mid-2014.

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Indonesia overhauls system for future oil, gas contracts

February 11, 2017

Not Malaysia news, but I would bet that PETRONAS had a look at this

Dateline 2017-01-20, NST:

Indonesia has adopted a new scheme for future oil and gas production sharing deals so that contractors shoulder the cost of exploration and production, rather than being reimbursed by the government. Under the shake-up, flagged late last year, contractors will retain a bigger portion of the oil and gas they recover in return for paying more upfront costs. The shift, designed to ease the burden on Jakarta’s budget, will only apply to new contracts and will not disrupt existing agreements using the current cost-recovery system. Big global firms such as Chevron, Exxon Mobil and Total operate in Indonesia, but the country has struggled to attract fresh investment and to develop new fields.

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New Matrade chief from the industry?

February 10, 2017

Old news, but good news. Congratulations, Ir. Doc. Get all the engineers there to register with the BEM.

Dateline 2017-01-19, NST:

Malaysia’s export promotion agency, Malaysia External Trade Development Corporation (MATRADE), will likely be headed by a corporate figure, from February. Sources said Ir Dr Mohd Shahreen Zainooreen Madros will likely replace out-going chief executive officer (CEO) Datuk Dzulkifli Mahmud, who has helmed the agency since June 2015. So far there has been no official announcement, although MATRADE employees have been informed about the incoming new CEO.

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LUNDIN BOOKS $549MN IMPAIRMENT

February 9, 2017

Dateline 2017-01-19, Natural Gas World:

Sweden-based Lundin Petroleum announced January 19 a net 4Q2016 upstream impairment charge of $549mn ($632mn gross, offset by a $83mn tax credit) after having taken gas discoveries offshore Malaysia and oil found in the Russian Caspian off its balance sheet.

Lundin said it’s now unlikely any of the discoveries — offshore Sabah in east Malaysia, plus the Tembakau gas find offshore peninsular Malaysia, as well as the Morskaya find in the Caspian — can be commercialised in the near future. It did go into further detail on why they are unlikely to be developed. The affected Malaysia reserves are 60.6mn barrels of oil equivalent; those at Morskaya are 110.1mn boe.

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Subdued but improving oil and gas industry in 2016

January 22, 2017

Dateline 2016-12-18, Malay Mail:

The oil and gas industry endured another challenging year in 2016 as the global supply glut continued to haunt the market, pushing global crude oil prices to their lows.

In fact, benchmark Brent dived to as low as US$27.88 per barrel in January from a high of US$114.81 recorded in June 2014.

Save for the intervention by the Organisation of the Petroleum Exporting Countries (Opec) in December, which injected some positive vibes to prices, the industry was mostly quiet with little news making the headlines throughout the year.

The decline in oil prices has also forced the government to recalibrate the 2016 Budget in January as the initial budget tabled in Parliament in October 2016 forecast oil price to average US$48 per barrel this year.

Bank Islam Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid described the sector this year as weak in various fronts.

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Shamsul Azhar Resigns From Petronas Gas On Jan 1

January 8, 2017

In case you missed this.

Dateline 2016-12-09, Malaysian Digest:

Petronas Gas Bhd Chairman Tan Sri Shamsul Azhar Abbas, 64, will resign from the company on Jan 1, 2017, after helming the company for about a year, the company announced in a filing to Bursa Malaysia.

Petroliam Nasional Bhd (Petronas) Executive Vice-President and Chief Executive Officer (Upstream) Datuk Anuar Taib, 48, would succeed Shamsul who has expressed intention to resign due to time constraint as he currently served on the board of various Malaysian and overseas companies.

Anuar, 48, joined Petronas in 2012 as Chief Executive Officer of Petronas Development and Production before subsequently promoted to Senior Vice-President of Petronas Upstream Malaysia.

Petronas Gas also announced the resignation of non-independent and non-executive director Datuk N. Sadasivan Pillay, 75, effective Jan 1, 2017.

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THHE shifting business focus

January 3, 2017

Dateline 2016-11-28, NST:

TH Heavy Engineering Bhd (THHE) is shifting its business focus from oil and gas to supplying offshore patrol vessels (OPV), said Tabung Haji group managing director and chief executive officer Datuk Johan Abdullah.

He said the company might not be big on oil and gas any more as it wanted to focus on OPV contracts.

“It already has a fabrication yard. In Malaysia, we have only two. In China, 80 per cent of its fabrication yards are empty, which shows how bad it is in terms of oil and gas businesses on fabrication.

“What was being updated to me is that it is going to shift in terms of business focus,” he told the New Straits Times.

He said this when asked about updates on THHE following the arrest of its former CEO and two other personnel by the Malaysian Anti-Corruption Commission (MACC) on Nov 14.

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Tabung Haji’s oil and gas woes

December 2, 2016

Don’t know about you, but I’m not taking my money out of Tabung Haji.

Dateline 2016-10-25, The Edge:

LEMBAGA Tabung Haji does not seem to have had much luck in investing in the oil and gas sector. The pilgrim fund is probably among the biggest victims of the beleaguered O&G outfit Perisai Petroleum Teknologi Bhd.

Bluntly put, Perisai is just one of Tabung Haji’s many failed investments in the sector, which is experiencing a severe downturn.

On Oct 4, Tabung Haji sold 1.75 million Perisai shares, trimming its equity interest to 76.43 million shares or 6.06%.

That day, Perisai’s share price traded between 8.5 sen and 10 sen, which means at the higher end, the pilgrim fund would have got a mere RM175,000 from the share sale.

Ironically, prior to the sale of the 1.75 million shares, Tabung Haji’s last transaction in Perisai shares was almost exactly a year ago — on Oct 7, 2015 — when it sold 600,000 shares. The pilgrim fund’s investment loss would not have been as bad if it had sold more shares then.

To recap, Tabung Haji surfaced as a substantial shareholder in Perisai on Dec 23, 2014, after it bought 1.2 million shares, bumping up its holding to 79.88 million shares or 6.7%.

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Dr M vows Kelantan will get oil royalties

November 29, 2016

Yeah, baby.

Dateline 2016-10-15, FMT:

In an effort to win the support of the Kelantanese, former premier Dr Mahathir Mohamad has vowed to pay oil royalties to the state government should the Barisan Nasional Federal Government be defeated.

Speaking to a 5,000-strong crowd at a ceramah here last night, Dr Mahathir gave his guarantee that Kelantan would enjoy the oil royalties which the state government had been demanding.

“If we win, then we can give the royalties,” he said to cheers from the crowd.

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Shell said to weigh sale of over $1b Malaysia LNG stake

November 27, 2016

Hibiscus or CLIQ in the bidding?

Dateline 2016-10-14, The Star:

Royal Dutch Shell Plc is considering a sale of its stake in a Malaysian liquefied natural gas export plant, which could fetch more than $1 billion, people familiar with the matter said.

The Anglo-Dutch energy giant is gauging interest in its 15 percent stake in MLNG Tiga Sdn., which owns an LNG terminal in Sarawak on the island of Borneo, according to the people.

Malaysia’s state-owned Petroliam Nasional Bhd., which holds 60 percent of MLNG Tiga, has pre-emptive rights on the stake, one of the people said, asking not to be identified as the process is private.

The sale may draw interest from private-equity firms, the people said. MLNG Tiga, set up in 1995, is the third plant to be built in the Petronas LNG complex in Bintulu, Sarawak, according to its website.

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