August 26, 2018
Dateline 2018-06-19, Offshore Technology:
The regulatory regime in Malaysia’s upstream sector, dominated by PETRONAS for 44 years as the combined National Oil Company (NOC) and regulator, may become more complex due to recent political developments.
Long-running calls for greater control of resources and revenues for oil-producing states have increased in the past few years. Even more impactful may be the outcome of a pending court case brought by PETRONAS against the Sarawak state government’s assertion of full regulatory control of the sector.
PETRONAS’ case against the Sarawak government is scheduled for a hearing on June 21, with a significant prize at stake. Sarawak holds most of Malaysia’s oil and gas reserves and is home to the country’s LNG liquefaction plants.
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Posted by Wata
August 25, 2018
For the historical books
Dateline 2018-06-19, The Edge:
PETROLIAM Nasional Bhd’s (Petronas) court challenge of Sarawak’s claim of regulatory authority over oil and gas activities in the state has sparked a barrage of political responses and an angry backlash.
There was an outcry over the perceived trampling of state rights over oil and gas wealth in Sarawak. Many also began to question Pakatan Harapan’s pre-election promise to increase oil royalty to 20%.
But court documents viewed by The Edge indicate that the national oil company is pursuing a more precise question: who is in charge of upstream oil and gas activities in Sarawak?
For Petronas, it is a question that needs an urgent answer because operational continuity and investor confidence, which are vital to attract future investments, are at stake.
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Leave a Comment » | investment, Malaysia, oil and gas | Tagged: Petronas, Sarawak | Permalink
Posted by Wata
August 24, 2018
Dateline 2018-06-18, The Sun Daily:
The Federation of Malaysian Manufacturers (FMM) is urging the government to maintain electricity tariffs until Dec 31, 2020 and accord the Social Security Organisation (Socso) with the responsibility of managing funds collected under the Employment Insurance System (EIS), which is now under review.
Last week, Gas Malaysia Bhd announced that the average effective natural gas tariff for the non-power sector in Peninsular Malaysia will be increased by 17 sen or 0.5% to RM32.69/MMBtu for the period of July 1 to Dec 31, 2018 from RM32.52/MMBtu for the period of Jan 1 to June 30, 2018. The move has kindled concerns that electricity tariff rates will be hiked.
“While FMM is steadfast in its commitment towards energy subsidy rationalisation and although the 0.5% increase is lower than the previous period’s 22.97%, it is nevertheless still an increase in energy costs,” it said in a statement today.
Following that, FMM hopes that the new government will uphold the past Cabinet’s decision, announced on December 26, 2017, to maintain current electricity tariff rates in Peninsular Malaysia for Jan 1, 2018 up to Dec 31, 2020, in a bid to help relieve the energy cost burden on the manufacturing sector as well as to benefit the rakyat as household consumers.
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Posted by Wata
August 23, 2018
Please, bet on IGL.
Dateline 2018-06-18, The Edge:
With the stock market, particularly construction counters, roiled by major policy changes under the new Pakatan Harapan administration, the oil and gas (O&G) sector may be ripe for a relook as crude oil prices have been maintained at fairly decent levels.
Pong Teng Siew, the head of research of Inter-Pacific Securities Sdn Bhd, told The Edge Financial Daily there could be selective gems, especially in the O&G space, which could benefit from stronger oil prices as the worst appears to have passed.
Recent financial results pointed to an improvement, and for some even a turnaround in their performance.
Velesto Energy Bhd is one, posting a net profit of RM5 million for the first quarter ended March 31, 2018, compared to a net loss of RM104.1 million in the corresponding quarter a year ago. In the preceeding quarter ended December, its loss was a whopping RM980.5 million.
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Posted by Wata
August 20, 2018
Dateline 2018-06-17, FMT:
Sarawak will use documents related to the 1963 Malaysia Agreement which were found in London last year as a reference in its fight for rights to oil and gas produced in its territory.
State Law, State-Federal Relations and Project Monitoring Assistant Minister Sharifah Hasidah Sayeed Aman Ghazali said the documents, discovered by a team of lawyers which she led, could serve as evidence on the state’s rights.
“We will definitely use the documents that we obtained in London; they are certified true copies not just photostated. These will be used to assist us as evidence later in court,” she said when asked about Sarawak’s preparations in facing Petronas’ attempt in the Federal Court to seek a declaration that the Petroleum Development Act 1974 was also valid for the petroleum industry in Malaysia.
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Leave a Comment » | Malaysia, Malaysian election, oil and gas | Tagged: 1963 Malaysia Agreement, Sarawak, Sharifah Hasidah Sayeed Aman Ghazali | Permalink
Posted by Wata
August 19, 2018
Dateline 2018-06-13, The Star:
Businesses and high-end condominiums which receive natural gas through the pipe system will have to pay more under a scheduled increase with effect from July 1.
Gas Malaysia said on Wednesday these customers will have to pay higher tariffs after it imposes the surcharge of 77 sen, raising the tariff to RM23.80 per one million British Thermal Units (BTU).
The incentive based regulation (IBR) framework sets the base tariff for a regulatory period of three years from January 2017.
The company said it had received the go-ahead from the Energy Commission to raise the surcharge under the mechanism for the tariffs following the global increase in gas prices.
The IBR allows changes in the gas costs to be passed through via the Gas Cost Pass Through (GCPT) mechanism every six months.
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Posted by Wata
August 18, 2018
Dateline 2018-06-13, Borneo Post:
Solidariti Anak Sarawak (SAS) founder Peter John Jaban said it is time for Sarawak to consider keeping 95 per cent of oil revenue for the state and give the balance to the federal government.
“It is time to reverse the flow – with Sarawak giving the federal government five per cent of the oil revenue and keeping the remaining 95 per cent for the people of Sarawak,” he said.
Speaking to reporters after a gathering at the Kuching Waterfront yesterday to show support for the Sarawak government, Peter John said that revenue from oil sits at the heart of the autonomy issue which has been the principal driver of policy and feeling in Sarawak over the past few years.
“The question is simple – whether the people of the Borneo states should receive the benefits of the resources that have been part of their territory since long before Malaysia was even conceived.
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Posted by Wata
August 17, 2018
Dateline 2018-06-13, The Edge:
ONCE again, there is talk of a possible flotation of national oil company Petroliam Nasional Bhd (Petronas). Speculation about such a move makes the rounds every few years. Listing Petronas, it is said, could be one way to help cut down the country’s debt, which has breached the RM1 trillion mark, or a little more than 80% of gross domestic product.
But will it take place?
“It was first mooted some 10 years or so ago by merchant bankers when the government was looking to attract foreigners to invest in Malaysia … it was the same time Synergy Drive (which later morphed into Sime Darby Bhd around 2007) was created. It involved the merger of Kumpulan Guthrie, Golden Hope and Sime Darby. A plantation giant was created but did it achieve what it was supposed to do? Did foreign investors come flocking in?” asks a director of an oil and gas company.\
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Posted by Wata
August 16, 2018
Dateline 2018-06-13, FMT:
It was reported on June 5 that Petronas had gone to court to seek a declaration that under the Petroleum Development Act 1974 (PDA), the national oil company had exclusive rights over oil and gas resources in Malaysia.
Petronas’ move is in response to Sarawak’s announcement on March 7 that it had assumed full control of oil and gas resources within its territorial boundaries.
The legal test initiated by Petronas is shaping up to become a battle royale between a corporate body and a founding state of Malaysia.
After the Cabinet meeting on June 6, Prime Minister Dr Mahathir Mohamad said the federal government would leave it to the court to decide on the dispute between Sarawak and Petronas, clearly washing his hands over what could be a tenacious battle between federal and state rights.
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Leave a Comment » | Malaysia, Malaysian election, oil and gas | Tagged: Petronas, Sarawak | Permalink
Posted by Wata
August 14, 2018
Dateline 2018-06-11, NST:
Sapura Energy Bhd’s subsidiary Sapura Exploration and Production (Sarawak) Inc (Sapura E&P), together with its partners Sarawak Shell Bhd and Petronas Carigali Sdn Bhd, has discovered its ninth gas exploration well in offshore Bintulu, Sarawak.
The discovery followed the completion of its 2017 drilling campaign within the SK408 Production Sharing Contract (PSC).
In an exchange filing today, the Pepulut-1 exploration well was drilled and encountered high quality reservoir, which is located in Block SK408.
“This successful gas discovery is attributed to the strength and capabilities of our exploration, subsurface and drilling teams whose combined expertise has resulted in a number of significant discoveries.
“This series of successful results is founded on our work in understanding the geologic fundamentals of the region” said its president & group chief executive officer Tan Sri Shahril Shamsuddin.
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Leave a Comment » | Malaysia, oil and gas | Tagged: Pepulut, Sapura Energy, Sapura Exploration and Production, SK408 | Permalink
Posted by Wata
Wata - Malaysian Oil and Gas Engineer 