The oil and gas (O&G) industry players should consider investing continuously into their workforce through training and retraining, in view of today’s challenging landscape.
In this regard, Minister of Transport Datuk Lee Kim Shin believes that the economic prospects in Miri as far as O&G is concerned are ‘looking brighter’, with tens of millions of ringgit worth of investments being injected into projects.
As such, he sees the need to revitalise the industry, where there is a high demand for workforce.
Oil prices fell on Monday, dragged down by concern over demand in China after the coronavirus breakout, though the possibility of deeper crude output cuts by Opec and its allies offered some price support.
Brent crude was down 48 cents at US$56.14 a barrel by noon, having earlier lost more than US$1 to its lowest since January last year at US$55.42.
Petronas has claimed that some parts of the state Sales Tax Ordinance 1998 which require the national oil company to pay the 5% sales tax on petroleum products to Sarawak are “unconstitutional”.
Therefore, the notice of assessment issued by the Sarawak government to Petronas, seeking payment of the state sales tax on petroleum products, was also considered to be invalid, said Petronas lawyer Malik Imtiaz Sarwar.
Bursa Malaysia-listed oil and gas (O&G) counters Sapura Energy Bhd and Bumi Armada Bhd declined about 4% each in mid-morning trades today as crude oil prices traded below US$60 a barrel as the coronavirus outbreak, which started in China, led to lower global oil demand concerns.
Reuters reported that oil prices extended declines on Monday, dragged down by worries about lower demand in the world’s largest oil importer China following the coronavirus outbreak. It was reported that Brent and US West Texas Intermediate (WTI) crude fell for a fourth week in a row last week after airlines cancelled flights to China.
Since national oil company Petronas began extracting oil and gas in Sarawak from 1976 to 2017, it had earned a total revenue of about RM660 billion, but only RM33 billion was returned to Sarawak, said Datuk Sharifah Hasidah Sayeed Aman Ghazali.
The state de facto law minister said if Sarawak were to have a hand in its own oil and gas resources since then, it would have been in a better economic position now to attain a high income economy and develop the state by the year 2030.
Oil jumped after the World Health Organization said there’s no need for travel and trade bans due to the coronavirus, but was still set for its worst month since May as the outbreak sapped the demand outlook.
The WHO declared a public health emergency of international concern, but said restrictions on commerce weren’t necessary and that it had confidence in China’s ability to control the virus.
However, that was undercut by the US government telling Americans not to travel to China.
The Department of Standards Malaysia (Standards Malaysia) has developed two new Malaysian standards, namely MS123-4 High PME diesel fuel — Specification — Euro 2M and MS 123-5 High PME diesel fuel — Specification – Euro 5, in support of the national B20 biodiesel programme.
B20 is a blend of 20% palm methyl ester and 80% petroleum diesel.