Mixed outlook on local O&G industry

September 19, 2020

Dateline 2020-08-05, The Star:

 A fresh wave of coronavirus (Covid-19) cases could see prolonged low crude oil prices as demand for fuel is plunging due to longer movement restriction globally.

Brent crude oil slid 68 cents to US$43.47 a barrel yesterday, while the US crude oil West Texas Intermediate (WTI) fell 65 cents to US$40.36 after two weeks of rally.

Crude oil prices have been on a three-month rally on improved sentiment but oil prices have been stuck near US$40 per barrel as the recovery in prices have been stalled on concerns that Saudi Arabia may cut its selling prices and the resurgence of Covid-19 infections cast doubt about sustained recovery in oil consumption.

MP: Petronas not the PM’s property, should instead answer to Parliament

September 18, 2020

Dateline 2020-08-06, Malay Mail:

Subang MP Wong Chen demanded today that the government explain its latest refusal to give Parliament oversight of state oil firm Petronas.

Wong said this was not the first time he raised this matter but was revisiting it since Petronas and other oil companies were grappling with depressed oil prices globally.

“The reply I got from the prime minister is that Petronas is managed by excellent senior executives and its directors are equally excellent and all are committed to good corporate governance with the highest level of integrity.

Petrol dealers still in dire need of govt aid

September 17, 2020

Dateline 2020-08-03, Malaysian Reserve:

WHILE the demand for fuel at petrol stations is slowly recovering, operators are still running their businesses at a slight loss due to the fluctuation in oil prices.

However, Petrol Dealers Association of Malaysia (PDAM) president Datuk Khairul Annuar Abdul Aziz said the “damage” is not as severe as how it was during the earlier phases of the Movement Control Order (MCO).

“Quite a number of stations are up for sale as they could not sustain operations and cover the losses during the MCO.

Dive Tenggol 2020-06

September 16, 2020

Sarawak Shell’s Gorek field delivers its first gas production ahead of schedule

September 15, 2020

Dateline 2020-07-31, NST:

Sarawak Shell Bhd (SSB), through its Gorek field under the SK408 Production Sharing Contract (PSC) has achieved its first gas production on May 24, 2020.

SSB said the first gas was delivered ahead of the committed timeline, despite the significant impact to the mobilisation of resources and construction and commissioning crew during the Movement Control Order (MCO) due to the Covid-19 pandemic.

“This success is a result of the excellent collaboration between our key stakeholders, Petronas and SK408 PSC partners – SapuraOMV Upstream and Petronas Carigali Sdn Bhd, contractors, vendors and various support teams within Shell, led by the Gorek project team.

“This achievement commemorates the 110th anniversary of our Upstream business, here in Malaysia this year,” said Shell Malaysia Upstream vice president Ivan Tan.

Petronas slate change prompts off-specification bitumen

September 14, 2020

Dateline 2020-07-24, Argus Media:

Malaysia’s state-owned Petronas has started to run more lighter crude at its 270,000 b/d Malacca refinery since mid-July, resulting in an increase in off-specification bitumen supplies.

Malacca typically blends Saudi Arabian crude with fuel oil to produce pen 60/70 bitumen. It has raised the amount of light sweet crude it uses, together with its typical medium sour crude slate, to take advantage of more attractive prices for lighter grades. This has resulted in the refinery producing off-specification bitumen stocks of grade pen 80/100 instead of pen 60/70.

East Malaysia still key O&G node for Shell

September 12, 2020

Dateline 2020-07-18, Borneo Post:

Sabah and Sarawak remain key to Shell Malaysia’s operations since its inception in Miri in 1910. As the oil and gas group celebrates its 110 years in upstream this year, Shell vice president for Malaysia and Philippines Ivan Tan spoke to The Borneo Post on Shell’s enriching journey to date.

“Shell has come a long way since the successful discovery of the nation’s first oil on Canada Hill, Miri, on August 10 in 1910. The momentous oil discovery in Miri started the influx of a skilled workforce and turned Miri into a bustling town,” he said in an exclusive interview.

No lawsuit, but Petronas must pay what is owed to Sabah

September 11, 2020

Dateline 2020-007-16, The Malaysian Reserve:

SABAH state government is not planning to file a lawsuit against Petroliam Nasional Bhd (Petronas), but the company should pay what is owed to the state, says Chief Minister Datuk Seri Mohd Shafie Apdal.

Mohd Shafie told The Malaysian Reserve in a recent interview that Petronas should have afforded Sabah the same treatment as Sarawak, based on the court ruling.

The Kuching High Court ruled on March 13 this year that Sabah and Sarawak have the right under the Federal Constitution to impose sales tax on petroleum products.

Sarawak assistant minister says negotiations ongoing with Putrajaya to reclaim O&G regulatory role

September 10, 2020

Dateline 2020-07-15, Malay Mail:

Negotiations to reclaim a regulatory role in the mining of oil and gas resources within Sarawak’s territorial waters is ongoing with the federal government and national oil company Petronas, Datuk Sharifah Hasidah Sayeed Aman Ghazali said today amid questions over the lack of transparency in the process.

The Sarawak assistant minister of law, state-federal relations and project monitoring also said the state is also negotiating to increase its revenue share from oil and gas and greater investment opportunities in downstream activities by the state government and Petroleum Sarawak Berhad (Petros).

O&G firms expected to continue cutting capex

September 9, 2020

Dateline 2020-07-15, The Star:

Local oil and gas companies will still cut their capital expenditures (capex) this year as demand for the commodity remains gloomy amid the Covid-19 pandemic.

AmInvestment Bank pointed out that for the first half of 2020 (1H2020), the new contract awards to Malaysian operators dropped 62% year-on-year (y-o-y) to RM2.2bil, with the worst fallout yet to come in 2H2020 onwards.

It added that even though a measure of optimism has returned for crude oil prices, oil producers were expected to proceed with their planned production cuts this year given that demand globally remains depressed amid prolonged movement restrictions and social distancing measures across the new normal.