Hibiscus – the story of a successful SPAC

April 5, 2018

Dateline 2018-02-24, The Star:

THE story of Hibiscus Petroleum Bhd’s growth is an interesting one, considering its funding needs have virtually all come from private investors. The debt-free independent exploration and production company has achieved a few notable milestones.

Not only has it survived making expensive acquisitions before the oil price crash (when it lived as a special-purpose acquisition company or SPAC), it also went through the oil crash and has come out smiling, by being cashflow positive.

No doubt, there have been investors who lost money along the Hibiscus journey, but there have been a number of investors who have rode its recovery well and are sitting pretty.

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Strive to remain competitive: MPRC

March 15, 2018

Dateline 2018-01-29, NST:

With the current temporary rise in the crude oil prices – strengthening since the start of 2018, it will be unlikely for the prices to revert to the heady days of USD$100 per barrel, evident from the cautious response of global oil companies.

As such, Malaysian Petroleum Resources Corporation (MPRC) chief executive officer Datuk Shahrol Halmi said Malaysia oil and gas services and equipment (OGSE) companies should not slow their momentum or lose focus on raising their competitiveness.

“To be more competitive, local OGSE companies should focus on providing economies of scale and integrated solutions,own technologies, employ quality talent, and possess export capabilities,” he said in media briefing recently.

The media briefing was held to share the latest MPRC100 rankings and industry analysis for the financial year ended 2016.

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Southeast Asia set for gas boom

March 10, 2018

Did I miss the boom? Crash is what I am still hearing.

Dateline 2018-01-25, ENB:

SOUTHEAST Asia is set for a gas boom from now through to 2020, according to Rystad Energy, with a collective four billion barrels of oil equivalent resources from 50 fields likely to be developed, requiring a US$28 billion capital expenditure from final investment decision to first production.

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MPRC’s Shahrol Halmi: Don’t be ‘overexcited’ about oil topping US$70

March 9, 2018

Yeah, pay us little fish at higher rates, then we can get excited together. And don’t swallow.

Dateline 2017-01-23,  The Edge:

Malaysia Petroleum Resources Corp Bhd (MPRC) said oil and gas (O&G) support service providers should not be “overexcited” about the recent rise in crude oil prices above US$70 a barrel. This is because prices of the commodity are still expected to be volatile.

MPRC, an agency reporting to the Prime Minister’s Department, was established to develop the O&G services and equipment (OGSE) industry in Malaysia. MPRC president Datuk Shahrol Halmi said OGSE companies should continue keeping an eye on efficiency in order to address cost while protecting profit margin through implementation of new technologies or integrated solutions.

“The interest in O&G companies is [returning] quite a bit, especially after the Petronas Activity Outlook (2018-2020 report) came out, and after Petronas contract awards recently. [But] the key point to note here is that one swallow does not make a spring.

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Petronas dishes out MCM contracts to Malaysian contractors

March 8, 2018

Dateline 2018-01-17, Seatrade Maritimes News:

Petronas E&P unit Petronas Carigali has awarded a slew of contracts to provide maintenance, construction and modification (MCM) services at its offshore facilities in Peninsular Malaysia, Sabah and Sarawak to five local Malaysian contractors.

Carimin Engineering Services, Dayang Enterprise, Deleum Primera, Petra Resources, Sapura Fabrication and its joint venture partner Borneo Seaoffshore Engineering were selected for a five-year contract each with an option to extend another year, effective last September, local media reported.

“Under the terms of the contract, the engineering and maintenance services will include topside major maintenance and facilities improvement projects,” Petronas Carigali said.

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Third Party Access system no threat to Petronas Gas, says Kenanga Research

March 6, 2018

Dateline 2018-01-16, The Sun:

Kenanga Research is of the view that the Third Party Access (TPA) system, which took effect yesterday, will not be a drag on Petronas Gas Bhd’s (PetGas) earnings, given that the company is purely a transporter and processor and is not involved in gas supply.

In any case, the research house said, TPA will only affect PetGas’ parent company, Petroliam Nasional Bhd (Petronas) and Gas Malaysia Bhd.

On Monday, PetGas announced that the Energy Commission had confirmed the current tariff for the Peninsular Gas Utilisation System, Regasification Terminal Sungai Udang and Regasification Terminal Pengerang will be maintained until the end of this year.

At the same time, the company said it is in full compliance with the technical and operational provisions of the TPA system, which allows any party to have access to gas facilities available.

Kenanga Research said the news was not a surprise, given the management indication earlier that the new tariff structure is likely to be delayed as the authority needs more time to come out with a feasible framework to ensure the stability of the fee structure.

The share price of PetGas has suffered since early last year, going from above RM21 to a 52-week low of RM15.82 before recovering to the current level of RM19. Kenanga Research said this was because the market was anticipating a severe cut in tariff, which will dampen PetGas’ earnings.

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Malaysia’s Sarawak state to take 10 pct stake in Petronas LNG facility

March 4, 2018

Dateline 2018-01-16, Nasdaq:

Malaysian energy firm Petroliam Nasional Berhad, or Petronas, said the Sarawak state government will take an equity stake in one of its liquefied natural gas (LNG) production facilities.

The state government has signed a term sheet with Petronas for an equity participation in LNG Train 9 at the company’s LNG complex in Bintulu, Sarawak, Petronas said in a statement on Monday.

Sarawak will take a 10 percent equity stake, according to state news agency Bernama.

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Reality check for Malaysian oil and gas players

February 22, 2018

My counter doesn’t retract.

Dateline 2018-01-15, The Star:

Oil and gas (O&G) counters have gained much attention of late following the rise in oil prices.

Since the new year began, O&G stocks that operate in the upstream services segment such as UMW Oil & Gas Corp Bhd (UMW-OG), Sapura Energy Bhd and Bumi Armada Bhd have seen impressive gains of as much as 55% in just two weeks.

But some counters had retraced at least half of their gains by the end of last week.

Notably, they reminded that upstream O&G service players would be the biggest beneficiaries should capital spending return. However, there is no hint of the former happening just yet.

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O&G players continue positive momentum as crude oil price hits 3-year high

February 16, 2018

Can you carry us small fry with the momentum?

Dateline 2018-01-10, Edge:

Oil & gas (O&G) players continued their positive momentum this morning, buoyed by optimism and positive sentiment after crude oil price hit a 3-year high of US$69.23.

As at time of writing, UMW Oil & Gas Corporation Bhd led the most active counters with more than 132.5 million shares traded, as its share price gained by 4.7% or 2 sen to 44.5 sen. Sapura Energy Bhd was also among the active counters as its share price rose by 1.6% or 1.5 sen to 95 sen, with 66.0 million shares exchanging hands.

Hibiscus Petroleum Bhd gained 2.83% or 3 sen to RM1.09 with about 59.9 million shares traded, while Dagang NexChange Bhd made its upward movement by 2.8% or 1.5 sen to 55.5 sen with 17.0 million shares exchanging hands.

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No financing leeway even for Malaysia’s oil and gas players

February 9, 2018

Can we have a Bank Minyak dan Gas, similar to Agrobank?

Dateline 2017-12-30, Asean Today:

The Malaysian oil and gas industry has been suffering from prolonged low oil prices. During the past ten years, crude oil prices fell from above US$130 per barrel to an all-time low of US$26 per barrel. The unpredictable and changing global environment cause oil prices to fluctuate severely. Recently, members of the Organisation of Petroleum Exporting Countries (OPEC) have been complying with the agreed production levels. The gradual reduction in oil inventories will help alleviate the oversupply of oil. But, prices will unlikely return to its past average of at least US$80 per barrel soon.

Sources: Petronas Activity Outlook 2017- 2019, Petronas Activity Outlook 2018-2020

Meanwhile, The Edge’s December 2017 weekly report noted that banks have been more cautious in their lending to the O&G sector in recent years. It quoted O&G players like Deleum Bhd and Uzma Bhd. Given the current global dynamics, it may be reasonable for the banks to act in its own interest. However, their decision to not lend capital needed may drag Malaysian Oil and Gas Services and Equipment (OGSE) industry further away from its long-term vision of being able to compete with the best in the world across multiple categories in terms of cost and quality.

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