M’sia O&G sector poised for massive growth

April 15, 2014

Dateline 2014-03-12, The Star:

Deloitte’s O&G (oil and gas) experts say Malaysia’s O&G sector will see between RM26bil and RM30bil in mergers and acquisitions, as well as RM22bil in capital spending on projects, this year.

Deloitte Malaysia corporate finance executive director, Nizar Najib, pointed out that Petronas’s planned capital expenditure of RM300bil between 2011 and 2016, as well as investments in Enhanced Oil Recovery (EOR), marginal fields and deepwater exploration, would likely give a massive boost to the O&G sector in the next few years.

“In the near-term, we expect to see an increase in oil production. Meanwhile, long-term upsides can be expected from gas, and therefore Malaysia is positioning itself to be a regional hub for LNG and petrochemicals through projects such as RAPID, FLNG (floating liquefied natural gas) and overseas acquisition in Canada.”

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Talisman Provides RM2.3 Million Scholarship For Oil And Gas Engineering Students

April 13, 2014

Kudos, Talisman.

Dateline 2014-03-12, Bernama:

 Talisman Malaysia Ltd has given its commitment to provide about RM2.3 million of scholarship for students taking oil and gas related engineering programmes or courses in the local institutes of higher learnings.

Talisman Ltd Senior Vice-President and Country Manager, Ron Aston said UMS had become the fourth prestigious local university to enter a partnership programme with Talisman in addition to University Teknologi Malaysia, University of Malaya and Universiti Sains Malaysia.

“Through this programme partnership, 30 undergraduates and post-graduates from engineering disciplines will get the benefit within a five-year period commencing from the 2014 academic year,” he said at a press conference after signing a Memorandum of Understanding (MoU) with Universiti Malaysia Sabah on the partnership, here today.

At the signing ceremony, UMS was represented Deputy Vice-Chancellor (Research of Innovation) Prof Dr Shahrul Yusuf.

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Oil and gas sector to emerge as ‘rising star’ to drive Malaysia’s economy forward Read more: Oil and gas sector to emerge as ‘rising star’ to drive Malaysia’s economy forward

April 12, 2014

Dateline 2014-03-07, NST:

The oil and gas sector is to emerge as the “rising star” and significantly drive the Malaysian economy forward this year, Prime Minister Datuk Seri Najib Razak said today.

He said the expectation was based on the number of oil and gas projects that would be awarded when the massive RM61 billion Refinery and Petrochemicals Integrated Development (RAPID) project in Pengerang, Johor, gets off the ground by year-end.

“This will have a major impact on the economy. I’m also hoping for some recovery in other commodity prices as well this year.

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Mariculture farm on offshore oil and gas platforms

April 5, 2014

No, not marital culture, though come to think of it… Divers, anyone want to buy a platform?

Dateline 2014-02-25, Borneo Post Online:

MOST of the offshore oil and gas platforms in Malaysia are built to last for approximately 25 to 30 years. The decommissioning of platforms is expected to be scaled up between 2013 and 2015, as 600 of the 900 offshore platforms are over 20 years old.

With the cost of decommissioning a conventional medium-sized structure at approximately US$3 million, oil companies are keen to find alternative options such as using the decommissioned platforms for other purposes such as marine culture, hotel and diving resorts, artificial reefs and rigs, marine research centres and control centres. Some of these ideas have been applied successfully, an example being the Seaventures Rig Dive Resort at Sipadan Island, Sabah, which was a platform turned into a hotel resort and diving centre.

The concept of using decommissioned oil rigs for mariculture (deep-sea fish farming) is realistic. The platform serves as an operational hub where all facilities related to farm fishing and crew are provided. It can easily support quarters for crew, storage for food and other supplies, docking facilities and a monitoring spot.

Besides reusing part of the structure as an operational hub, the structure of the platform can be used and manipulated as an anchor for mooring cages and nets near the platform. The structure can also be used as a hatchery, which will reduce transportation and operational costs. Indeed, the options are quite extensive.

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PTT cancels Malaysia venture Projects in China and Indonesia to go ahead

April 1, 2014

Investment interruptus? Not a good sign for Pengerang.

Dateline 2014-02-22, Bangkok Post:

The SET-listed PTT Global Chemical Plc (PTTGC), Thailand’s largest petrochemical producer, has decided to cancel its US$200-million petrochemical project in Malaysia due to lower-than-expected returns.

Through a joint venture with the Malaysian national oil and gas company Petronas and Japan’s Itochu Corporation, the downstream petrochemical project in Pengerang, Johor state, is set to produce polyol and poly carbonate for the automotive parts industry.

The three investment partners signed a “head of agreement” in Malaysia in May 2012.

Bowon Vongsinudom, PTTGC’s chief executive and president, yesterday said the feasibility study showed that the project has Internal Rate of Return (IRR) of less than 15%.

”That IRR is not justified under our benchmarked investment return,” he said.

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Mokhzani Reduces SapuraKencana Stake After Malaysian Merger

March 28, 2014

Hey, hey.

Dateline 2014-02-18, Bloomberg:

Mokhzani Mahathir, a son of former Malaysian Prime Minister Mahathir Mohamad, sold part of his stake in SapuraKencana Petroleum Bhd. (SAKP), the country’s biggest oil and gas services company, keeping his share above 10 percent.

Some 190.3 million shares in SapuraKencana were traded off market yesterday at 4.30 ringgit each, amounting to 818.3 million ringgit ($247.8 million), according to data from the Kuala Lumpur stock exchange. Mokhzani and family of the late Chong Hin Loon were sellers of the block, the Star newspaper reported today, citing people it didn’t identify.

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Malaysia’s Petronas awards EPCIC deal for second FLNG project

March 22, 2014

Dateline 2014-02-13, Platts:

Malaysia’s state-owned Petronas said Thursday it has awarded the engineering, procurement, construction, installation and commissioning contract for its second floating LNG project, located offshore Sabah, to a partnership of Japan’s JGC and South Korea’s Samsung Heavy Industries.

Petronas said the EPCIC contract for PFLNG 2 follows the January 23 board approval of the final investment decision taken on the project.

The FLNG facility will be located at the Rotan field in Block H.

Murphy Oil, operator of the upstream block, had announced FID of the project early this month.

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High activity levels for O&G players

March 21, 2014

Dateline 2014-02-13, Borneo Post:

It is with much optimism that oil and gas players enter 2014 in Malaysia with projects progressing to the next stage and massive job awards on the line.

According to analyst Aaron Tan from MIDF Amanah Investment Bank Bhd (MIDF), Petroliam Nasional Bhd (Petronas) will have the final investment decision (FID) on the RM60 billion Refinery and Petrochemicals Integrated Development (Rapid) complex in Pengerang, Johor whithin the first quarter of 2014.

“We view this as a positive sign as it will spur the downstream petrochemical sector. So far, Petronas has signed agreements with Versalis SpA (Italy), Itochu (Japan) and PTT Global Chemicals (Thailand) as joint-venture partners to build specialty chemical plants,” he said in the MIDF Equity Beat report yesterday.

“We do not, however, think that the Rapid initiative will directly benefit most Bursa-listed oil and gas service providers these companies are mainly upstream offshore support service providers.

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MISC named in global oil and gas bribery scandal

March 20, 2014

How come I wasn’t sent a subpoena? And score one for the ‘disgruntled employee’.

Dateline 2014-02-11, MalaysiaKini:

 Petronas subsidiary MISC has surfaced in a global bribery and corruption scandal involving US$10 million (RM33.4 million) of more than US$250 million (RM834 million) in bribes and other malpractices spanning six years, which centres around Dutch oil and gas (O&G) services company SBM Offshore.

According to a document listing possible fraud by SBM Offshore in various countries spanning Africa, Equatorial Guinea, Brazil, Iraq, Kazakhstan and Italy in addition to Malaysia, MISC was allegedly involved in payments to Barnado Limited and Delcom Limited totalling US$10 million (RM33.4 million) related to the Kikeh field floating production, storage and offloading (FPSO) platform.

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SapuraKencana Completes Purchase of Newfield’s Upstream Assets in Malaysia

March 18, 2014

Yea?

Dateline 2014-02-11, Rigzone:

SapuraKencana Petroleum Berhad, Malaysia’s oil and gas services and solutions provider, announced Tuesday that the company has successfully completed the Share Purchase Agreement (SPA) for the acquisition of Newfield International Holdings Inc.’s entire equity interest in Newfield Malaysia Holding Inc. for $895.9 million.

The acquisition cost is below the $898 million purchase price previously reported as the price was subjected to adjustments as set out in the SPA, SapuraKencana said in a press release.

Following completion of the acquisition, SapuraKencana Energy Inc. (SKEI), a newly incorporated wholly owned upstream subsidiary of SapuraKencana, now holds equity interest in 8 Production Sharing Contracts (PSCs) and one alliance contract in Peninsular Malaysia, Sabah and Sarawak.

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