Lundin Abandons Well Offshore Malaysia After Minor Oil Shows

February 18, 2016

Hey, not my fault Lundin posts bad news after good back-to-back.

Dateline 2016-01-08, EPMag:

Lundin Petroleum subsidiary Lundin Malaysia BV has plugged and abandoned the Imbok-1 exploration well offshore East Malaysia after encountering minor oil shows, according to a news release.

The well, which is located in Block SB307/308, targeted hydrocarbons in Miocene-aged sands. Imbok-1 was drilled with the West Prospero jackup rig.

Lundin Malaysia holds 85 percent working interest in SB307/308. Partner is Petronas Carigali Sdn Bhd with a 15 percent working interest. Lundin Malaysia operates six blocks in Malaysia, the release said.

 

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What determines retail oil prices

February 14, 2016

Article with byline of TAN SRI DR MOHD IRWAN SERIGAR ABDULLAH

Dateline 2016-01-07, NST:

THE price of crude oil in the global market had fallen from the peak of US$110 per barrel in June 2014 to US$37 per barrel in December last year, primarily due to excess supply. The price had fallen almost 66 per cent in less than 18 months, causing alarm among countries dependent on oil revenue.

The large-scale production of shale oil by the United States is said to have increased its oil production, which contributed to the downward trend of crude oil prices. In addition, the 12-member countries of the Organisation of Petroleum Exporting Countries (Opec) have also decided to maintain the current oil production quota. The decision by some major producing countries to maintain their market position, even at a low price and subsidy rationalisation on petroleum products by many countries in the world such as India, China and Indonesia, also contributed to the declining trend in crude oil prices.

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OCBC sees oil price ‘relief’ for Malaysia

February 13, 2016

Optimism here. Go hire the analyst team that made the forecast:

Dateline 2016-01-08, The Sun:

OCBC Bank said oil prices will be on the road to recovery this year which would help to stabilise Malaysia’s economy.
“As our house view has it, the oil price is on track to recover this year, with Brent back to US$55 (RM242) per barrel by year-end. If that pans out, it would be a huge relief for Malaysia,” the bank said in its OCBC Global Outlook 2016 report yesterday.

OCBC said one of the reasons for the poor market sentiment towards the country last year was the perception that it is Asia’s only net oil exporter, with its fiscal balance is most threatened by a drop in the oil price.

“Hence, if the oil price does recover forcefully, such concerns would dissipate,” it added, noting that Malaysia would likely be printing growth rate of 4.7% year-on-year in 2016, which is in line with the growth rate target of 4.8% last year.

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Treasury sec-gen explains why crude oil price slide doesn’t translate to cheaper pump price.dpuf

February 11, 2016

Yeah, blame refineries for making bucketloads of money while feedstock prices are low.

Dateline 2016-01-07, Malay Mail:

Suggestions to further reduce the price of RON95 in tandem with the drop in crude oil rates are not feasible, Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah said.

This is because the crude oil price is not directly related to the retail of petroleum products, but is calculated based on the Automatic Pricing Mechanism (APM) instead.

“The cost of refined products for RON95 only decreased by 22 per cent from US$73 (RM323) per barrel to US$57 (RM253) for the past one year,” he was quoted by The Star daily as saying in a statement.

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Platts to start assessing price of Malaysia’s Kimanis oil from Feb

February 5, 2016

Dateline 2015-12-31, The Star:

Oil pricing agency Platts will publish daily price assessments for Malaysia’s Kimanis crude starting from Feb. 9.

The grade has “emerged in recent months as one of the most widely traded light, sweet grades in the Asia Pacific spot market,” Platts said in a note on its website released late on Wednesday.

The price assessments for Kimanis cargoes for lifting on a free-on-board basis from Sabah will be published as an outright number at the close of Asia and London markets and as a differential to Dated Brent at Asia’s close, the agency said.

The crude, with an API gravity of 38.61 degrees and a sulphur content of 0.06 percent, is produced at the Gumusut-Kakap oil project off East Malaysia’s state of Sabah.

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Office space blues from oil and gas companies

January 29, 2016

Hey, I was part of the expat (pick your country) nightshift that helped move people into the building.

Dateline 2015-12-29, The Star:

The bleak long-term outlook of oil prices has gotten companies with operations in the Kuala Lumpur city centre readjusting their priorities in line with the situation.

ExxonMobil Exploration and Production Malaysia Inc is likely to join the list of companies that have embarked on cost cutting measures particularly in terms of office space.

Sources said the company may return several floors of a building it currently occupied in the city centre to KLCC Property Holdings Bhd (KLCCP) once its tenancy agreement expires in January 2017.

The 29-storey Menara ExxonMobil, which is next to the Petronas Twin Tower, has been leased to the company since 1997 and the oil and gas (O&G) giant is looking at occupying up to only half of the building.

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‘Investors should focus on downstream O&G’

January 24, 2016

I’ve been saying this since mid-Nov 2015. Maybe not in Malaysia, though.

Dateline 2015-12-22, Borneo Post:

Although the upstream sub-segment of the oil and gas (O&G) value chain remains depressed as exploration and production (E&P) capex are being reduced by many major oil producers, Malaysia’s downstream sub-segment industry is expected to remain robust.

MIDF Amanah Investment Bank Bhd (MIDF Research) said moving into 2016 and into 2017, works and activity levels at the RM90 billion Refinery and Petrochemical Integrated Development (RAPID) Project within the Pengerang Integrated Petroleum Complex (PIPC) are expected to be at its peak.

“As such, key beneficiaries are oil and gas companies which have downstream specialties such as KNM Group Berhad and Muhibbah Engineering Berhad,” it detailled in a report yesterday.

“Channel checks indicate that there could be a possibility of reallocation of staff by Petronas towards its downstream segments to prepare for the commencement of RAPID in Pengerang by 2019.

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EMAS Offshore Limited: Extended Disclosure Regarding Proposed Sale of Shares in Persai Teknologi Bhd to Ezra Holdings Limited

January 21, 2016

Hess, do you know about this? Isn’t Ezra the same group as Perisai?

Dateline 2015-12-16, Business Wire:

EMAS Offshore Limited (“EMAS”) (OSE:EMAS) has entered into a letter of undertaking with Ezra Holdings Limited (“Ezra” or the “Buyer”) on 15 December 2015 (the “Undertaking”). Pursuant to the Undertaking, Ezra undertakes to buy from EMAS its entire 12.13 % stake in Perisai Petroleum Teknologi Bhd (“Perisai“). Perisai is a Malaysian-based upstream oil & gas provider and is listed on the Main Market of the Bursa Malaysia Securities Berhad. EMAS acquired the 12.13% stake in Perisai on 21 August 2013 as part of the consideration when EMAS sold its 51% stake in EMAS Victoria (L) Bhd to Perisai.

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Polo Resources takes strategic stake in oil firm

January 9, 2016

Hibiscus seems like a horse to bet on.

Dateline 2015-12-02, Proactive investors:

Polo Resources (LON: POL) has taken an 8.4% stake in a Malaysia listed oil firm, whose assets, it says, are set for a step-jump on completion of two recent acquisitions.

Polo has subscribed for US$5mln of shares in Hibiscus Petroleum Berhad settled atUS$4.238 a share – a 4.08% discount to the Hibiscus closing price yesterday.

Hibiscus’s current development assets are in Australia with an estimated 8 million barrels of 2P/2C reserves/resources.

But that’s set to jump to around 47million barrels with the completion of the Hydra and Anasuria acquisitions.

In August, Hibiscus announced  a joint venture agreement with Ping Petroleum to each acquire 50% of the entire interests of Shell UK Ltd, Shell EP Offshore Ventures Limited and Esso Exploration and Production UK Limited in the producing Anasuria oil and gas fields in the North Sea.

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AZRB takes majority stake in Tok Bali Supply Base

December 29, 2015

Dateline 2015-11-25, The Star:

Ahmad Zaki Resources Bhd (AZRB) has bought a 51% stake in the operator of Malaysia’s third oil and gas supply base, the Tok Bali Supply Base (TBSB) in Kelantan, for RM55mil.

In a filing with Bursa Malaysia, the construction firm and marine fuel product supplier said it had acquired the equity interest in Matrix Reservoir Sdn Bhd (MRSB), the owner of TB Supply Base Sdn Bhd which is the base’s operator.
AZRB said TBSB, the third supply base licensed in the country after the Kemaman and Labuan supply bases, was well positioned to offer integrated logistics services to production sharing contractors and oil and gas service companies operating in the North Malay Basin, Malaysia-Thailand Joint Development Area (MTJDA) and Commercial Arrangement Area (CAA) between Malaysia and Vietnam.
AZRB group managing director Datuk Wan Zakariah Wan Muda said the company had been in the business of providing bunkering services at an onshore supply base for over 20 years.
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