IEM Report – Visit to Bintulu

August 6, 2010

The IEM Chemical Engineering Technical Division organized a study tour to Bintulu, Sarawak on June 14th, 2010. The study group comprised of 9 people. The tour was led by Ir. Razmahwata Mohd Razalli.

The tour started at the MLNG plant. The group was met by Mr. Rhymie Rashidie Ibrahim, Corporate Affair. The IEM guests were first brought to a presentation room where a safety briefing was first conducted. A corporate video was then shown, providing an overview of the history, specifications and achievements of the MLNG project.

After getting a bird’s eye view of the facility, a slide presentation was given. It started off with an introduction to the MLNG complex, and a recap of MLNG 1-3’s history. A simplified LNG process flow diagram was then used to describe the plant’s process to the group.  An introduction to the technology and use of MISC’s LNG ships was provided, along with the breakdown of LNG customers (60% of LNG is shipped to Japan, 27% Korea, 12% Taiwan, 0.9% China. 19% of Japan’s LNG is imported from Malaysia).

At the end of the presentation, a number of questions were asked, and answered by the speaker. A selection of questions asked were the usage of LNG in Malaysia, the makeup of engineers disciplines in MLNG, the mercury removal process from the gas, and MLNG’s involvement in downstream industries.

This part of the tour was concluded with a token exchange ceremony.

After refreshments, a plant tour was arranged, guided by a knowledgeable engineer. The group had the opportunity of observing the plant from the luxury of an air conditioned van. Among the sites the group visited  were the nine 380 tph boilers, the gas metering station, flare tower, the cryogenic unit, the mercury removal unit, the Sulphinol process, and the LNG berthing terminal, where Putri Delima Satu was in port.

After the MLNG visit, the group then visited the ABF plant. The group was met there by Mr. Roy Thian Shin Min, Process Technologist and Ms. Suryani Dohan, PR Executive. Mr. Roy presented an introduction of the plant. Among the commercial tidbits revealed was the ownership breakdown of the plant (63.5% Malaysia, 13% Indonesia, 13% Thailand, 9.5% Philippines, 1% Singapore) and the plant’s market breakdown (30% of ammonia is sold to Thailand, 20% to Malaysia, 24% to Vietnam) . He then talked the group through a process schematic of the plant. Among the process discussed were CO2 removal using a modified Benfield process, steam reforming using NiO catalyst in tubes, and the urea process. The uses of ammonia and urea was explained to the group. The presentation ended with an overview of the plant’s corporate social responsibility (CSR) activities. Among the questions asked by the group was what biuret was, and how much CO2 was released by the plant.

This part of the tour was concluded with a token exchange ceremony, and lunch that was hosted by the ABF.

As the plant was not open for a visit at the time, the group was taken to view the plant from a vantage point on top of the Bintulu Port Authority building, where we were treated to a breath-taking view of the plant and surrounding environs.


Vendor Development Program

August 5, 2010

About everyone who has a PETRONAS license (there’s another story) dream on getting onto the Vendor Development Program (VDP) or become a VDP vendor.

The VDP is meant to nurture Malaysian companies by allowing the selected company to be on a shortlist (of one, I think) of approved suppliers for different product categories. For example, Process-3 is the VDP for “upstream and downstream sectors ‘Online Toxic Decontamination’ Chemical & Services Provider”.

The selected company typically starts of being an agent or stockist for a product. By disallowing fair competition, the company is provided with the opportunity to invest in the product, either spinning off related product lines as a result of technology transfer, or by taking up the challenge of setting up a local product line.

You can read about articles praising the VDP program here, here and here (really old news this). Note that there is a CLUB for VDP vendors. Talk about protecting your interests.

There are a number of advantages to the VDP vendor:

  • You have the opportunity to recoup your capital investment in a potentially risky decision. As everybody will have to buy from you, you a guaranteed a healthy market.
  • PETRONAS will have a big interest in making you succeed, so you can be sure of guidance and oversight from Big Brother.
  • You have a clean sweep of your product category, making your competitors jump through hoops to get the Production Sharing Contractors or Operating and Production Units approval to use their products. Think of it as a sanctioned blue ocean strategy, by kicking out the rest of the fish.

I can see disadvantages here:

  • Sometimes it seems like whoever is first to the post, wins. I have heard of a case where the VDP promised to construct a fabrication plant when awarded the VDP. It’s still a promise.
  • No garauntee of quality. A VDP product is not necessarily the best. Those in the industry complain about the quality of service from various VDPs, but what can we do about it?
  • If it was you, wouldn’t you try to get VDP status to make a quick buck, after doing a SWOT analysis?
  • I think it kinda defeats the spirit of enterpruenership. What happens to the small fry who has developed a local product, but it happens to be in a VDP category where a megalith company has taken root? I happen to know that there is a local mechanical seal manufacturer with patented products running a factory in Shah Alam, but he can’t even enter a VDP category because there is already someone there, and the powers that be in licensing won’t consider his application.
  • If the market segment is larger than what the VPD vendor can provide, you have effectively limited the ability of the oil & gas market to respond according to the demand of market forces. The VDP vendor is free to dictate prices according to artificial purchasing pressures. “You want that screw today? We’ll sell it to you for 10,000% markup, if not come back when Mars is at its closest approach to Earth.”

Of course, not everyone is as twisted as me and Jabba. I congratulate Corro Shield for graduating from the VDP program, which gives me hope that there are people out there with the interests of Malaysia and the rakyat at heart.


From the Star – Stop your Bullying, Petrol Dealers tell Oil Firms

August 4, 2010

You know that monger who always used to threaten you for your lunch money (y’know, the one who’s a meaner version of Buford). Well it seems like he grew up, put on a Spark Manshop suit, learned to read, and is still threatening the small kids on the block. And the kids still tattle to the teacher.

Dateline 2010-07-25:

KUALA LUMPUR: Petrol dealers claim they are being “bullied” by the oil companies and want the Govern­ment to intervene to safeguard their interests.

Petrol Dealers Association of Malaysia (PDAM) president Datuk Hashim Othman said among the problems faced by petrol stations were high rentals and conversion of sole proprietorships to private limited companies.

“We only have the Government to back us up. If the oil companies need us, they call us partners. When they want something, they shove it down our throats,” he claimed.

You can subscribe to an online version of the paper at the Bluehyppo site, follow links to e-browse.


Saturday Star 2010-07-31 – Job Opportunities

August 2, 2010

Support me by purchasing my recommendations, or buying through my Amazon store.

First off, if you need my help to submit your CVs, donate to the blog, and I’ll review your CV to see if it is worthy of my (and my associates’) expectations. If you can’t figure out how to donate, no need to ask.

  • AMOGC (A major oil & gas company), Zakum Development Company (ZADCO) is looking for Contracts & Procurement Engineer – Logistic Offshore / Marine, Contracts & Procurement Engineer Drilling – Rig Acting, Contracts Engineer, Material Engineer (Inventory & Cataloging). Send your CVs for the first three positions to be sent here, and for the last one to be sent here. Give me a donation, and I’ll tell you what the rates are (or you can hunt round for a copy of Sat’s paper).
  • I see AP Recruitment is spreading their wings. They are recruiting for Saudi Chevron Phillips Company (SCP), Jubail Chevron Phillips Company (JCP) Saudi Polymers Company (SPCo.). They are looking for Instrument Technicians, Process Operators, Electrician Technician. Visit their website, or email them here.
  • Optimal (tagline Optimise your Career Potential) is looking for a Draughtsman. Hmmm, do you Kertehians want to apply? Visit their website, or apply here.


I think I’ll recommend some computing books this week. You can get these books locally, though I don’t get a cut.


Kelantan claims RM800m per annum oil royalty

August 2, 2010

Taken from the Malaysian Insider, dateline 2010-08-30:

The Kelantan state government claims PETRONAS owes the state RM800 million per annum from the Kelantan-Thailand offshore area since 2005.

The Kelantan government filed a suit today at the High Court here against the oil giant for breaching the Petroleum Development Act (PDA) 1974 by failing to pay the state oil royalties.

“The worth of condensate (gas liquid) comes to about US$8.5 billion per annum from the joint development offshore area with Thailand,” said state executive councillor Datuk Husam Musa.

“Five per cent of that belongs to Malaysia, which is RM1.7 billion. Half of that belongs to Kelantan which is RM800 million. Petronas owes Kelantan RM800 million per annum since 2005,” he added.

The Kelantan state government said today that Petronas owes the state oil royalties from at least four offshore areas from which oil has been extracted from. These are Kelantan, Kelantan-Thailand, Kelantan-Vietnam and Kelantan-Terengganu.


From the Business Times – Malaysia, 4th Deepwater Oil & Gas hub?

August 1, 2010

I first found this article on the “Indonesian Stock Market” site, and the first thing that hit me was an attrotiuos font selection. How do you define a deepwater hub? How much engineering, procurement and fabrication has to be local talent before it stops being a “convenient place (for foreigners) to make a profit” and becomes “barangan buatan Malaysia”?

I’ve linked to the original article in the BT, dateline 2010-07-23:

MALAYSIA can become a key deep-water oil and gas (O&G) hub in the world, but this window of opportunity is not perpetual, says Deputy Prime Minister Tan Sri Muhyiddin Yassin.

The answer lies in its capacity and capability, he said, stressing that it is paramount for the country to leverage and build on existing O&G assets.

“If done right, Malaysia can become one of the world’s key deep-water O&G hubs after Houston, Rio de Janeiro and Aberdeen,” he said.


From Upstream Online – Malaysia works on first LNG terminal

July 31, 2010

A new skill to pick up fast. LNG importing and regasification will be important to the Semenanjung soon. I guess we’ll see a new influx of foreign engineers (Japanese?) to run the show. Or since MMC claims that PGB is its subsidiary, will we see them calling the shots? BTW, why is the Petronas Gas site a .com site, not a .com.my one?

Dateline 2010-07-23:

Petronas Gas expects to complete a study on the proposed construction of Malaysia’s first liquefied natural gas import terminal before the end of the 2010.

Chairman Wan Zulkiflee Wan Ariffin said the installed capacity of the plant is about 3.5 million tonnes (139 million cubic feet) per annum.

Petronas Gas is open to the possiblity of any third party, other than Petronas, which wanted to bring in gas into the country to meet shortage in supply, Wan Zulkiflee told reporters.

Other news stories can be found here and here.


Frontium -Bringing API-U to Malaysia

July 30, 2010

thought I would publish some photos of the event held on July 12th, 2010 under the auspices of Frontium and E2G, The Equity Engineering Group Inc.

Though, I think My-API might be a more catchy title…


IEM Shout Out – Visit to Corro Shield

July 29, 2010

This is a shout out for the IEM. My technical division will be hosting a trip to Corro Shield, Bangi Selangor on the 5th August, 2010. You will be anointed with 3 CPD / PDP hours.

Corro-Shield (M) Sdn Bhd was founded in 1996 and since its inception the company has served the oil & gas industry in providing its products and services.

..

Tentative schedule:

  • 0945 Arrival at site
  • 1000 Safety Briefing
  • 1010 Round Table Introduction
  • 1020 Company Profile
  • 1030 Products and Services
  • 1200 Warehouse tour – Corrocap manufacturing and installation demo
  • 1230 lunch

Get the form here.  Flyers for the above and other events may be obtained here.


IEM Shout Out – Visit to Golden Plus Quarry

July 28, 2010

My technical division will be hosting a trip to Golden Plus Quarry, Ampang Selangor on the 10th August, 2010. You will be anointed with 3 CPD / PDP hours. You didn’t know there was a quarry in Ampang, didn’t you?

 

Get the form here.  Flyers for the above and other events may be obtained here.