Govt loses around RM300m for every US$1 drop in oil prices, Dewan Negara told

May 28, 2016

So, if the government can maintain a balanced budget with oil at the current prices, will the rakyat be given RM150M for every US$1 rise? Probably the same time we see flying porcine products.

Dateline 2016-04-20, The Sun:

The government loses around RM300 million in oil revenue for every US$1 per-barrel drop in crude oil prices, said Deputy Finance Minister Datuk Johari Abdul Ghani.

Johari told the Dewan Negara that the global oil price has experienced a sudden drop, from US$115 per barrel (RM444.28) in June 2014 to US$30 per barrel in December last year.

“Just imagine how much the government lost due to the drop in global oil prices, from US$115 to US$30,” he said in response to a question from Senator Datuk Dr Johari Mat.

Dr Johari had asked about the impact of the drop in oil prices on Malaysia’s economy, particularly on its Gross Domestic Product.

The deputy minister replied that Malaysia was not badly impacted by the drop in oil prices as the economy was not dependent on the industry.

“In 2014, the oil industry only contributed about 30% to our revenue. This was reduced to 19% in 2015 and expected to drop to 14% this year.

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PETRONAS Carigali Bars THHE’s Unit from Participating in Tenders

May 20, 2016

I think this is the first time that complaints about the quality of service providers moved from the whining stage to black and white. In case you didn’t know THHE is a subsidary of Tabung Haji.

Dateline 2016-04-05, Rigzone:

TH Heavy Engineering Berhad (THHE) reported Monday that its 70-percent owned unit THHE Fabricators Sdn. Bhd. (TFSB) had received a letter from PETRONAS Carigali Sdn Bhd in connection to TFSB’s ongoing contract for the procurement, construction and commissioning (PCC) of KNPG-B Topside PH II for the Kinabalu Non-Associated Gas (NAG) Development Project (Kinabalu Project) offshore Malaysia that was awarded Jan. 28, 2014.

PETRONAS Carigali stated in the letter that “due to performance related issues pertaining to the execution of the Kinabalu Project, TFSB will be excluded from participating in future PETRONAS Carigali’s tender for a duration of 2 years,” TTHE said in a filing with local stock exchange Bursa Malaysia.

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Sabah govt denies oil and gas project in Kudat

May 19, 2016

For you speculators.

Dateline 2016-04-04, The Star:

The Sabah government has denied a claim that an oil and gas project has been earmarked for Kampung Limau Limauan, Kudat.

Dismissing reports, State Deputy Chief Minister Datuk Raymond Tan Shu Kiah (pic) said even though a 485-hectare site had been allocated for an industrial development in Kudat, the state government had not made any decision to develop any o and g projects in the area.

“The state government or any of its agencies has not given any approval to Borneo Petroleum  and  Petrochemical Sdn Bhd (BPP) to undertake any form of development on the land.

“A claim made by BPP that it is working in partnership with the Sabah Economic Development Corporation (Sedco) is false.

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Oil services groups ditch Singapore for Malaysia

May 14, 2016

Now, will they move back to Singapore once prices recover? Is the rakyat paying for incentives to entice companies with more loyalty to their wallets then long term benefits to the Golden Chersonese?

Dateline 2016-03-27, FT.com:

Multinational oil services companies are pulling staff out of Singapore and relocating to neighbouring Malaysia to cut costs, in a further sign of the damage being inflicted on the city-state by the crude price slump.

Businesses that have relocated to the Malaysian capital of Kuala Lumpur over recent months include McDermott, Technip, and Subsea 7.

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Petronas set to complete $235m water project

May 5, 2016

One of those headlines that causes you to do a double take.

Dateline 2016-03-15, The Straits Times:

Malaysia’s national oil company Petronas is completing a RM700 million (S$235 million) water-supply project in two months’ time to secure sufficient water for a massive petroleum complex being built in Pengerang in south-east Johor.

The dam and reservoir project near Kota Tinggi town will also alleviate a “water crisis” for some 100,000 residents in the Kota Tinggi and Pengerang districts, as some 20 per cent of the water collected at the new Sungai Seluyut reservoir will be for public use, officials said yesterday.

The project’s imminent completion comes amid concern in Johor about its high water consumption due to rapid industrialisation and climate change that has lowered reservoir levels.

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MIDA Remains Optimistic Of Outlook For Oil & Gas Sector

April 29, 2016

It better. Out of curiosity, how does MIDA ‘approve’ O&G manufacturing projects?

Dateline 2016-03-10, Malaysian Digest:

The Malaysian Investment Development Authority (MIDA) is optimistic of the outlook for the oil and gas (O&G) sector, especially for downstream activities.

“We have seen the downturn.. Based on the market indication and the stabilisation of oil prices now, we think there will be more prospects in the industry,” Deputy Chief Executive Officer (CEO) Datuk N. Rajendran told reporters after presenting the Malaysia Book of Records certificate to Upstream Downstream Process & Services Sdn Bhd (UDPS).

The company was recognised by Malaysia Book of Records as the first Malaysian oil and gas company to obtain the MS 1000:2014 Shariah-based quality management system.

Last year, MIDA approved 13 O&G manufacturing projects, worth RM203.7 million, and facilitated three services projects, valued at RM3.7 billion, as well as, three Domestic Investment Strategic Fund projects worth RM84.3 million.

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More challenging environment ahead for O&G sector

April 24, 2016

Heck, if it gets even more challenging, us bottom feeders will have to pay clients to execute their work.

Dateline 2016-03-04, Borneo Post:

Analysts envisage a more challenging operating environment ahead for the oil and gas (O&G) sector in Malaysia.

The research arm of Kenanga Investment Bank Bhd (Kenanga Research) affirmed that domestic outlook remains sluggish this year with Petroliam Nasional Bhd (Petronas) slashing up to a total of RM20 billion from its capital expenditure (capex) and operating expenditure (opex), indicating further slowdown in contract awards to the local services players.

“Earlier on Monday, Petronas announced its financial year 2015 (FY15) results with core net profit plunging 45 per cent year-on-year (y-o-y) and cash flow from operations contracted by 33 per cent compared to the previous year,” it said.

“On top of that, Petronas is set to lay off 1,000 staff under the group-wide transformation plan to be more cost efficient.

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M’sia Still Preferred For Oil & Gas Industries

April 19, 2016

What technical symposium?

Dateline 2016-03-01, Malaysia Digest:

Malaysia remains a preferred location for business operations, especially in the petrochemical and oil & gas (O&G) related industries.

This is despite facing global headwinds, said Malaysian Investment Development Authority (Mida) Chief Executive Officer Azman Mahmud.

He said Malaysia had the infrastructure for these industries and was still fundamentally strong with the economy expected to grow between 4.0% and 4.5% this year.

“With the implementation of the Pengerang Integrated Petroleum Complex and the Petronas Refinery and Petrochemical Integrated Development project, Malaysia has now been placed on the world map for building opportunities for growth in this ecosystem,” he told reporters after officiating the Schmidt + Clemens Group Technical Symposium here today.

Schmidt + Clemens is a producer of special steel components and a supplier of services for plant operators and mechanical equipment manufacturers.

The company has invested more than 14 million euros in a new production plant at the Sendayan Tech Valley in Seremban, while planning to add a few more machines this year.

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Malaysia’s Bumi Armada 2015 Revenue Down 9% to $516M, Posts $56M Net Loss

April 15, 2016

I guess with net loss being about 10% of revenue, last years obscene profits make up the shortfall?

Dateline 2016-02-29, Rigzone:

Malaysia’s offshore energy facilities and services provider Bumi Armada Berhad posted a net loss of $55.5 million (MYR 234.6 million) for financial year 2015 (FY 2015) ending Dec. 31, 2015, compared to a net profit of $51.7 million (MYR 218.7 million) in the previous year, the company said when releasing its financial results Friday.

Revenue during this period reached $515.5 million (MYR 2.179 billion), down 9.1 percent from $694.6 million (MYR 2.937 billion) in 2014, with the decline attributed to lower contributions by the company’s offshore support vessel (OSV) and transport and installation (T&I) business, which recorded a decline of 17.8 percent and 57.7 percent, respectively.

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Dividend plays pay?

April 12, 2016

Dateline 2016-02-27, The Star:

 

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The only company that has bugged the trend is Petra Energy Bhd (PEnergy).

The company has in total declared a dividend of 10 sen per share, including a special dividend of six sen per share, for the financial year (FY) ended Dec 31, 2015. This compared with a total dividend of only two sen per share in the preceding year.

The increase in PEnergy’s dividend payout is in line with the company’s earnings, which grew 47% year-on-year (y-o-y), and cash position, which swelled five times to RM165mil, in FY2015.

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