November 29, 2020
When we decarbonise, can we reuraniumise?
Dateline 2020-11-09, NST:
NET zero is a desperately needed global goal. It means minimising our atmospheric greenhouse gas emissions and fully absorbing emissions that cannot be avoided into forests, mangroves, and other carbon sinks, or through carbon capture and storage systems.
Petroliam Nasional Bhd president and group chief executive officer Tengku Muhammad Taufik made clear on Oct 28 its aspiration to achieve net zero carbon emissions by 2050. It follows similar welcome announcements earlier by Total (France), Repsol (Spain), BP (United Kingdom), and Shell (UK/Netherlands).
But, how can any oil and gas company make such a bold statement? The pledges are definitely good news even though, as is often the case, the devil is in the details. Definition of “net zero” depends on what types of emissions are counted.
November 27, 2020
Dateline 2020-11-06, Petroleum Intelligence Weekly:
Tengku Muhammad Taufik was appointed CEO of Petronas in July 2020 as the Covid-19 crisis was taking its toll on the global energy industry, forcing oil companies to rethink both short- and long-term planning due to concerns about future demand. He discussed the Malaysian state oil company’s strategy for dealing with the pandemic and the low-carbon energy transition at this year’s Energy Intelligence Forum. Select excerpts follow below.
Q: How is the company tackling the short-term demand uncertainty, the safety issues stemming from the coronavirus, and all these talks of the energy transition?
A: Within the corridors of Petronas we call this the “great reset,” and I do not think it is an understatement as many have described the confluence of events as unprecedented. We believe that the industry’s shape, structure, and behavior will be impacted long into the future by this pandemic. There needs to be both a short-term response as well as a medium to long-term strategy. In the short-term, we must address as an ultimate priority the safety and health of our employees.
November 24, 2020
Dateline 2020-11-02, FMT:
With the Deep Producer 1 languishing in Dubai pending a court auction for US$6.2 million in wharfage and related charges, questions are being asked as to the viability of its acquisition.
In March 2011, Ramunia Holdings Berhad (now TH Heavy Engineering Berhad or THHE), entered into a preliminary agreement to secure marketing rights to the vessel to allow it to bid for FPSO projects.
Ramunia went on to acquire the vessel for US$82.5 million, a 36.5% discount on its market value, substantially financed by bank borrowings.
The discount aside, Ramunia’s other justification for the acquisition was less clear. At the time, the company’s own disclosure sheet merely referred to “the prospects of time charter arrangement for any FPSO projects being secured”, but without specific details.
November 23, 2020
Dateline 2020-10-30, FMT:
The Sarawak government has issued mining leases to its oil and gas (O&G) company, Petroleum Sarawak Bhd (Petros), to carry out mining of O&G in two fields, in Miri and Marudi.
It marked the beginning of efforts to exercise the state’s constitutional rights to regulate onshore oil mining.
Chief Minister Abang Johari Openg who made the announcement tonight said the leases were for the Adong Kecil West field in Miri district and the Engkabang block in Marudi district.
November 22, 2020
Was it manslaughter? Accidental death? Act of God (insurance companies’ favourite get out clause)?
Go start a fund for the widow. Better yet, go get the big companies’ HSSE departments to adopt the children.
Dateline 2020-10-29, FMT:
A woman whose husband died on board a ship that collided with an oil rig last Tuesday is demanding an explanation for what she called an act of negligence by the ship’s management.
Nateshwari Dhusan, the widow of Aaron Michael Rajasgara, one of two persons who died in the accident, told The Borneo Post that she felt hopeless and wanted answers about what had happened.
“What were the captain, chief mate and second mate doing? What were the deck crew doing?“ she asked.
November 21, 2020
To sound like a broken record, how do I get into this gig?
Dateline 2020-10-30, Malaysian Reserve:
RENEWABLE energy (RE) projects in Malaysia led by oil and gas (O&G) players are expected to decelerate due to high gearing amid low oil price environment.
AmInvestment Bank Bhd (AmInvest) analyst Alex Goh said Yinson Holdings Bhd is the only party — among local service providers — that has taken the plunge by investing US$30 million (RM124.8 million) for a 95% equity stake in Rising Sun Energy Pte Ltd, which has a 160MW solar farm in Bhadla Solar Park Phase II in Rajasthan, India.
“Nevertheless, we envisage a slow adoption of renewable projects by local O&G providers given that a large segment is currently burdened by high gearing amid a low oil price environment,” Goh said in a report yesterday.
November 20, 2020
Dateline 2020-10-28, The Star:
The Sarawak and Sabah Shipowners Association is against the implementation of the Malaysia Shipping Notice (MSN) that was enforced in August this year.
Association president Ling Soon King said Wednesday (Oct 28) that the new regulation would impact economic activities that relied on diesel fuel.
The Marine Department of Malaysia had, on Aug 5,2020, issued the MSN, which prohibited existing single hulled, single bottom tankers under the Malaysia Flag from carrying oil irrespective of the age of the ship.
November 19, 2020
Dateline 2020-10-28, S&P Global:
Malaysia’s state-run Petronas will be pursuing most of its oil and gas projects, but by using more cost-effective and cleaner processes, as it strongly believes that those fuels will have a major role to play for the next three decades at least, CEO Tengku Muhammad Taufik told the India Energy Forum by CERAWeek Oct. 28.
“Even in the most green of scenarios, oil and gas will still constitute half of the energy basket. We still believe there is life in this business — and not only life, there is promise in it. The only harsh thing is that we need to produce it more cost effectively and cleaner,” he said.
Taufik said that Petronas was carefully looking at its upstream portfolios in about 20 countries to ensure that they delivered value and were cost effective at $40/b — the company’s medium-to-long-term average oil price outlook. In addition, the projects needed to work on containing emissions.
November 15, 2020
Yeah, and set one up for Sabah and other states as well. Or set it up to to counter corruption and inefficiency in the bureaucracy. Just saying.
Dateline 2020-10-25, The Malay Mail:
Parti Pesaka Bumiputra Bersatu (PBB) senior vice president Datuk Seri Fadillah Yusof today urged the state government to set up Sarawak Petroleum Heritage Fund (SPHF), using state sales tax (SST) payment from oil and gas companies.
“Perhaps a budget of RM1 billion could be considered for SPHF in the 2021 State Budget,” he said at the PBB special mini-convention for the southern zone at the Borneo Convention Centre Kuching (BCCK) here.
Fadillah said the funds will enable the state government to provide free higher education in the form of scholarships or grants to all Sarawakian students.
November 14, 2020
Dateline 2020-10-25, FMT:
An analyst believes Shell’s decision to downsize its operations in Sabah and move its personnel into Sarawak was partly driven by the political stability in the latter.
Sociopolitical analyst Awang Azman Pawi said the stability of the state government under the leadership of Chief Minister Abang Johari Openg has managed to instill foreign and local investors’ confidence in Sarawak.
“This has (particularly) attracted foreign investors to pump more investments into Sarawak and this can also be attributed to this latest move by Shell (in Sabah),” he told FMT.
“The repositioning of Shell’s focus (back) to Miri is because Sarawak is seen to be having a clearer state policy as well as better facilities. This exudes confidence that the state is prepared to further develop and move forward in the oil and gas industry.”
According to Awang Azman, Sarawak’s determination in defending its rights by being bold enough to stand up to Putrajaya on issues pertaining to oil and gas was also another consideration.