Exxon ropes in BAML to run sale of Malaysian oil and gas assets

December 9, 2019

Dateline 2019-10-10, Deal Street Asia:

Exxon Mobil Corp has appointed Bank of America Merrill Lynch to run the sale of its Malaysian oil and gas assets as the U.S. firm accelerates a vast disposal program, banking and industry sources said.

The Malaysian assets, which include stakes in two large fields, are expected to fetch up to $3 billion, the sources said.

Exxon is exploring a sale of its Malaysian oil-and-gas producing assets, among a number of other properties worldwide, confirmed spokeswoman Julie King.

Sarawak cannot impose sales tax on petroleum products, says expert

December 8, 2019

Dateline 2019-10-08, FMT:

 The Sarawak government’s move to impose sales tax on petroleum products may hit a snag as the state can only impose the tax on items under the state list of the Federal Constitution.

Constitutional law expert Shad Saleem Faruqi said petroleum products are stated in the federal list under the Ninth Schedule of the constitution.

This follows a dispute between Petronas and Sarawak on the state’s rights to impose sales tax on petroleum products under Article 95B(3) of the Federal Constitution and Sales Tax Ordinance 1998.

Exxon considering Malaysian offshore asset sale

December 7, 2019

Dateline 2019-10-09, World Oil:

Exxon Mobil is considering a sale of its offshore Malaysia upstream assets as part of U.S. energy giant’s divestiture program, according to people with knowledge of the matter.

The company is working with an adviser on the potential sale of the Malaysian assets, which could raise about $2 billion to $3 billion, the people said, asking not to be identified because the matter is private.

Government announces new fuel subsidy; here’s how it works & who would benefit

December 6, 2019

Dateline 2019-10-08, The Rakyat Post:

The new petrol subsidy mechanism outlined by the Domestic Trade and Consumer Affairs Ministry (KPDNHEP) will gradually float the price of RON95 petrol in Peninsular Malaysia.
This means that the retail price for RON95 will be set by the cabinet based on global market prices.
For those living in Borneo, the price of RON95 will still be capped at RM2.08 per litre.
So who exactly benefits?
Under the new petrol subsidy mechanism, ONLY vehicle owners on Bantuan Sara Hidup (BHS) will be able to access subsidised petrol
Recipient’s household income must not be more than RM4,000.

Move away from giving fuel subsidy: Jomo

December 5, 2019

Isn’t this a rerun of previous rhetoric?

Dateline 2019-10-08, NST:

The government has been urged to consider not giving fuel subsidy but rather encouraging more use of renewable energy.

Economist and former Council of Eminent Persons member Dr Jomo Kwame Sundaram said fuel subsidies were major distortion in markets.

“The government has been trying to reduce this subsidy. Fuel subsidies in all countries are basically benefit middle class rather than the low income group,” Jomo said on the sidelines of the Khazanah Megatrends Forum 2019 here today.

He said the government should rethink who benefit the most before subsidising the rakyat.

O&G set to see increase in upstream activities on oil price rise

December 4, 2019

Dateline 2019-10-08, Malaysian Reserve:

THE gradual increase in oil prices is expected to drive a recovery in investment in upstream activities said Kenanga Investment Bank Bhd.

The research house said national oil and gas (O&G) company, Petroliam Nasional Bhd (Petronas), has maintained its capital expenditure (capex) by focusing on the upstream segment despite its commitment to deliver a higher dividend payout to the government.

The investment bank noted there has been an increased flow of engineering/construction jobs in the Middle East, while floater demand has jumped rapidly from South America.

Kenanga added that the benchmark Brent contract price has been showing signs of stability, trading within the US$55 (RM230.62) to US$70 per barrel range throughout the year.

Malaysia to roll out targeted fuel subsidy from January

December 2, 2019

Dateline 2019-10-07, Nikkei:

Malaysia on Monday announced a long-delayed targeted fuel subsidy program in a move that economists said will shrink its hefty social assistance bill and demonstrate its commitment towards fiscal consolidation.