Hibiscus to buy Shell’s operatorship of four oil fields offshore Sabah

November 25, 2016

And that settles my thoughts as to when Hibiscus was going to spend its money, and who would want to buy the Shell Sabah blocks.

Dateline 2016-10-12, The Star:

Shell has reached an agreement to sell its 50% equity interest in the 2011 North Sabah enhanced oil recovery (EOR) production sharing contract (PSC) to Hibiscus Petroleum Bhd’s indirect unit SEA Hibiscus Sdn Bhd for US$25mil (RM104.8mil).

The amount excludes post completion adjustments and reimbursements to Shell.

Currently, Sabah Shell Petroleum Co (25%) is the operator, partnering with Shell Sabah Selatan (25%) and Petronas Carigali Sdn Bhd (50%) in the PSC, which includes the Labuan Crude Oil Terminal, and the fields of St Joseph, South Furious, SF30 and Barton, all located offshore Sabah.

Total oil production (on a 100% PSC basis) averaged 18 kilobarrels (kbbls) per day last year, according to statements from Shell and Hibiscus.

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Malaysia’s InvestKL Woos Top Oil, Gas MNCs to Base in Kuala Lumpur

November 20, 2016

Why isn’t InvestMalaysia wooing me to be an overachiever?

Dateline 2016-10-06, Rigzone:

Malaysia’s InvestKL is more than half way to completing its mission: attracting 100 multinational corporations (MNC), including top oil and gas firms, to base their regional headquarters in Greater Kuala Lumpur (KL) by 2020.

Luring oil and gas MNCs ranked among the Fortune 500 or Forbes 2000 group of firms looms large for InvestKL given Malaysia’s well established petroleum industry, anchored by national oil company (NOC) Petroliam Nasional Berhad (PETRONAS).

“It’s is not the main focus, but it’s certainly a key sector because oil and gas is one of the 12 national key economic areas. KL is also an oil and gas hub for Southeast Asia,” Daniel Teng, senior director of Marketing & Communications, Strategy, Advisory and Services at InvestKL told Rigzone.

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Bondholders in quandary as oil prices drop

November 18, 2016

Were there O&G unit trusts issued during the good times?

Dateline 2016-10-04, FMT:

As the drop in oil prices leaves more companies in the industry starving for cash, bondholders and lenders are beginning to feel the pain.

And bondholders are seeking action to ensure they do not lose out.

According to a Bloomberg report, a group of bondholders last week issued a notice of acceleration on SD125 million of bonds sold by Malaysian oil services company Perisai Petroleum Teknologi Bhd.

Also last week, dozens of bondholders gathered outside a trustee’s office in Singapore to deliver a demand for immediate payment on S$100 million of notes issued by shipping trust Rickmers Maritime.

Bloomberg said Perisai didn’t reply to two e-mails seeking comment on its plan to defer its bond repayment by four months, which was rejected by bondholders on Monday.

Perisai’s 6.875 per cent notes were at 55 cents.

“Yes, it’s our responsibility that we bought the bonds but the company can’t just brush us aside,” bondholder Cheng Fong Kiew was quoted as saying after rejecting the plan.

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Syed Azman: T’ganu should emulate S’wak

November 17, 2016

Must be time to prep for the General Election.

Dateline 2016-09-29, FMT:

A Terengganu lawmaker, inspired by Sarawak’s push for a larger share of oil and gas royalties, is embarking on a signature drive to get his state a better deal for its resources.

Speaking to FMT, Batu Burok Assemblyman Syed Azman Ahmad said Terengganu needed to emulate Sarawak and beckon the Federal Government and Petronas to the discussion table.

Sarawak’s push for greater state rights, especially those pertaining to oil and gas, has been a cornerstone of Adenan Satem’s tenure as Chief Minister of the state.

Syed Azman said Terengganu had been shortchanged since 2000, when the five per cent oil royalty it used to get was withdrawn and replaced with the so-called “wang ehsan” provided by Putrajaya.

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McDermott, TH Heavy Engineering dissolve partnership

November 15, 2016

Dateline 2016-09-27, OE Digital:

Houston-based McDermott International and Malaysian fabrication firm TH Heavy Engineering (THHE) will end their Malaysian joint ventures Berlian McDermott (BMD) and THHE Fabricators (THF), the pair announced on Friday (23 September), citing local market conditions.

The proposal will see both THHE and McDermott trade interests in the joint ventures to the other. For example, THHE will transfer its 30% interest in BMD to McDermott, while McDermott will transfer its 30% stake in THF to THHE. Each transfer was valued at US$17.33 million (MYR 71.73 million).

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Malaysian banks brace for hit from oil and gas sector, but not as exposed as Singapore lenders

November 8, 2016

Dateline 2016-09-26, Straits Times:

Malaysian lenders are bracing for a hit to profits this year as they bump up provisions for sour loans to the local oil and gas services sector that has been battered by the slump in energy prices and cutbacks in projects.

The problem mirrors pain playing out in neighbouring Singapore, where the collapse of oilfield services firm Swiber Holdings Ltd has stoked concerns about the size of the city state’s biggest lender DBS Group Holdings’ exposure to the industry.

Last month, Malaysia’s Perisai Petroleum Teknologi , an offshore oil and gas services provider, said it was aiming to renegotiate terms with bondholders on a S$125 million bond.

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Oil bet gone wrong: rusting tankers and rigs clog up Asian waters

November 6, 2016

Dateline 2016-09-22, Reuters:

Some 15 km (9 miles) from the bustling port of Singapore, a rusting tanker as big as the world’s largest aircraft carriers lies idle in a muddy estuary flanked by mangrove trees on the coast of southern Malaysia.

The 340-metre (1,115 ft) “FPSO Opportunity”, a hulking so-called Floating Production, Storage and Offloading (FPSO) vessel capable of drilling for oil in deep waters, is currently surplus to requirements along with scores of other rigs, tankers and support vessels in an era of cheap oil.

The fleet of mothballed giant vessels anchored around Southeast Asian waters is the physical fallout of an oil downturn heading into its third year, and a stark reminder of how badly the industry miscalculated market conditions.

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After Sarawak’s success, SAPP wants Sabah deal with Petronas

October 14, 2016

Dateline 2016-08-28, FMT:

The Sabah state government has been urged to urgently negotiate with the Federal Government and Petronas for the same type of concessions obtained by Sarawak.

Melanie Chia, deputy president of Sabah Progressive Party (SAPP), said Sabah should also demand that a Sabahan  be appointed to the Petronas board of directors, ensure more Sabahans are employed at all levels and the state allowed to take part in production sharing contracts.

Her statement came in response to Sarawak Chief Minister Adenan Satem’s announcement yesterday of an agreement with the Federal Government and Petronas on seven major issues.

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Oil Debt Woes Reach Malaysia as Offshore Rig Bonds in Distress

October 8, 2016

Dateline 2016-08-19, Bloomberg:

Bonds of a Malaysian offshore oil rig contractor have dropped to distressed levels, the latest sign that crude’s rebound this year hasn’t been enough to stave off pain in an industry beset by prices still about half their decade average.

Perisai Petroleum Teknologi Bhd, which contracts out drilling rigs and charters vessels for towing equipment, said on Thursday it will start discussions with holders of its Singapore dollar notes, without providing further details. Its S$125 million securities due Oct. 3 have dropped 17 cents this month to a record low 60 cents, according to prices from DBS Group Holdings Ltd.

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PPIM: Stop subsidising cooking gas for the rich

September 9, 2016

Dateline 2016-08-05, FMT:

Putrajaya should change its approach in providing subsidies for cooking gas to ensure only those who need subsidies enjoy them, says Persatuan Pengguna Islam Malaysia (PPIM) lead activist Nadzim Johan.

In an interview with FMT, Nadzim said that for years, the government has been providing various subsidies, including for petrol and flour, to people who did not need them or should not be getting them.

Zooming in on the subsidy for Liquefied Petroleum Gas (LPG) used in cooking gas, Nadzim said it was ridiculous that even billionaires enjoyed the subsidy.

“How can the government continue to subsidise cooking gas for those who do not need it, such as the billionaires in the country?

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