How Sapura Energy got into the mess it is in

May 17, 2022

Dateline 2022-04-23, The Edge:

Sapura Energy Bhd is on the verge of bankruptcy, only three weeks shy of the 10-year anniversary of the mega-merger between SapuraCrest Petroleum Bhd and Kencana Petroleum Bhd, which created SapuraKencana Petroleum Bhd back in mid-May 2012.

Its name was changed to the current one at end-March 2017.

From a merger valuation of RM11.85 billion, Sapura Energy’s market capitalisation swelled to RM28 billion in early 2014, following the acquisition of Seadrill’s rig business and Newfield’s Malaysian assets. At its peak, Sapura Energy was the world’s second largest integrated oil and gas service provider.


I disagreed with Dr M’s Sapura bailout during PH rule, Rafizi tells Najib

May 10, 2022

Yes, Mr Incoming PM.

Dateline 2022-04-06, FMT:

KR vice-president Rafizi Ramli says he had disagreed with the Pakatan Harapan government’s decision to bail out Sapura Energy Bhd through the injection of funds from Permodalan Nasional Bhd (PNB) in 2019.

The former Pandan MP said he had no influence or position in the PH government but had spoken out against several decisions made by then prime minister Dr Mahathir Mohamad.

“I had disagreed with the decision by the Dr Mahathir Mohamad-led PH government to inject PNB funds to save Sapura,” he said in a statement today.


Keep Sapura’s huge oil reserves out of foreign hands, says Najib

May 9, 2022

Yeah, gomen, listen to your Glorious Leader. Maybe MOGEC or MOGSC should take over ownership. Or MTEM.

Dateline 2021-04-02, FMT:

Former prime minister Najib Razak insists that the government offer a loan guarantee to Sapura Energy Bhd in order to save its oil reserves from falling into foreign hands before its full potential can be realised.

He said the company’s subsidiary, Sapura OMV, owned oil and gas reserves of 264 million barrels with a gross value of RM110.8 billion.

If the subsidiary is put up for sale, as is being speculated, Sapura’s joint venture partner OMV of Austria, would likely be the first choice buyer as it already holds a 50% stake in Sapura OMV with the remaining 50% held by Sapura Energy.


Better to spend billions on rakyat than bail out Sapura, says Rafizi

April 28, 2022

And here’s what’s going to distract the masses for the next GE. And Sapura is a GLC? CLC, maybe.

Dateline 2022-03-22, FMT:

PKR vice-president Rafizi Ramli says that money used to bail out ailing oil and gas company Sapura Energy Bhd could be put to better use to serve the rakyat.

Rafizi was responding to a call by former prime minister Najib Razak to save Sapura from going bankrupt.

The government-linked company (GLC) announced a loss of RM8.9 billion last year, which Najib said was the largest for any Malaysian GLC in history.


Sabah won’t back down in talks over oil rights, says minister

April 27, 2022

He will bang tables? Okay….. if that floats your boat.

Dateline 2022-03-21, FMT:

Sabah local government and housing minister Masidi Manjun has said he would not back down on the issue of the state’s rights, including on oil and gas, in its negotiations with the federal government and Petronas.

Masidi, who is the head of the state’s negotiation team, said the terms in the talks were in line with the aspirations of the people.

“I’ll walk out of the negotiation room and bang tables if I am not satisfied,” he said in reply to a supplementary question from Shafie Apdal (Warisan-Senallang) at the state assembly today.


Rising oil prices – fuel subsidy costs Malaysia more than it profits, each US$1 increase is a RM410m deficit

April 16, 2022

Dateline 2022-03-09, Paul Tan:

That the Russian invasion of Ukraine is having a profound impact is undeniable, and it’s not just from aspects of the immediate strife. Oil prices have also spiked as a result of the crisis, having gone past the US$120 per barrel mark, and it is this increase that raises the question – is there a possibility of a readjustment of the fuel subsidy in Malaysia, given the rising pressure the increase is putting on government finances?

As The Star reports, rising oil prices are generally positive for a net oil and gas exporting country like Malaysia. According to a CGS-CIMB Research report, it is estimated that for every US$1 (RM4.18) per barrel average increase in oil prices, the government stands to add some RM370 million in revenue.

However, given that the country has a fuel subsidy mechanism in place, that same US$1 per barrel increase will set the government back by around RM780 million in fuel subsidies, based on the price of RON 95 and diesel remaining unchanged at their ceiling price of RM2.05 per litre and RM2.15 per litre respectively. To give an idea of how much subsidy is in place, RON 97 is currently priced at RM3.45 per litre this week.


Minister: Soaring oil prices gives Malaysian govt room to continue fuel subsidies

April 13, 2022

Dateline 2022-03-06, The Malay Mail:

The soaring world crude oil prices currently gives some room to the government to continue providing fuel subsidies, says Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.

However, he acknowledged that the price hikes due to the conflict between Russia and Ukraine would also see a rise in prices of other goods, especially imported items such as wheat and corn.

He said the government would continue to monitor the situation, adding that it would definitely pose a challenge to the country’s financial management.

“(The increase in oil prices) will increase revenue but some of the revenue will have to be channelled elsewhere. Estimates have not been made, but at the moment it only depends on assumptions.


Aker Solutions manager charged again in Malaysia

April 10, 2022

Dateline 2022-02-21, Energy Voice:

Malaysia has filed a fresh charge against a local manager of Norwegian oil services provider Aker Solutions, accusing him of providing false information to the country’s corporate regulator, according to the company and a court document, reported Reuters.

Ahmad Hatta Kamaruzzaman allegedly submitted false information about Aker Engineering Malaysia, a local unit of the group, to Malaysia’s Companies Commission in 2017, according to a charge sheet seen by Reuters and confirmed by a prosecutor.

He has pleaded not guilty, the company said in a statement.


Speak up on Kelantan oil royalties, Zaid tells MB, ministers

March 29, 2022

Dateline 2022-02-08, FMT:

Former law minister Zaid Ibrahim has called upon Kelantan menteri besar Ahmad Yakob and ministers to speak up on the issue of the oil royalty claim.

He said these oil royalties were needed to develop the state.

“I have raised this issue many times. The menteri besar and Cabinet ministers from Kelantan, from both PAS and Umno, should speak up on the oil royalty issue, but everyone remains silent about it.

“We also need to question why the respective party leaders in Putrajaya do not say anything about this,” Zaid said in a video posted on Facebook.


Oil royalties bait won’t bite, PAS tells Zaid

March 22, 2022

Why not?

Dateline 2022-02-07, FMT:

The Kelantan PAS Youth wing says payment of oil royalties to the state by the federal government is the right of the people and should not be used as a political bait.

Commenting on former law minister Zaid Ibrahim’s statement asking the voters to kick PAS out if they want the royalty payments, state PAS Youth chief Kamal Mohamad said such a decision must not be tied to the party which is ruling the state.

He said the people of Kelantan had previously been betrayed by the Umno-led Barisan Nasional (BN) government when it was in power by restricting the granting of oil royalties.