IPC takes outright ownership of Bertam offshore Malaysia

June 15, 2021

Dateline 2021-05-05, Offshore:

International Petroleum Corp. (IPC) has assumed full control of the Bertam field offshore Peninsular Malaysia.

Last month the company acquired Petronas’ 25% participating interest at no cost, although IPC has agreed to take on associated future well decommissioning obligations.

Drilling rig sinks offshore eastern Malaysia

May 28, 2021

Dateline 2021-05-04, Argus Media:

A drilling rig has sunk offshore eastern Malaysia while it was being prepared for work at a ConocoPhillips-operated exploration block.

The NAGA 7 tilted “due to soil rapid penetration” at the WL4-00 site according to its owner, local firm Velesto Energy. All 101 personnel on board were evacuated, and the rig subsequently sank.

Jadestone acquiring two Malaysian PSCs

May 26, 2021

Dateline 2021-04-30, Offshore:

Jadestone Energy has agreed to acquire various field interests offshore Peninsular Malaysia from SapuraOMV Upstream for $9 million.

The transaction would give Jadestone a 70% operated interest in the PM329 PSC, containing the East Piatu field, and a 60% operated stake in the PM323 PSC, containing the East Belumut, West Belumut, and Chermingat fields.

Combined net production is 6,000 boe/d, and the associated reserves (net to Jadestone) are 12.5 MMboe, including estimates based on further development activities.

Vestigo awarded small fields PSC offshore Malaysia

May 25, 2021

Dateline 2021-04-26, Offshore:

 Petronas has awarded Vestigo Petroleum a production sharing contract (PSC) for the shallow-water South East Collins Cluster, under Malaysia’s new Small Field Asset terms.

The cluster, in water depths of 42-45 m (138-147 ft), 70 km (43 mi) northeast of Labuan Island, comprises the South East Collins and Lokan fields discovered in the 1980s, with combined recoverable reserves estimated at 10 MMstb.

Malaysia launches 10-year blueprint to revive oil and gas sector

May 24, 2021

Dateline 2021-04-27, Straits Times:

Malaysia is seeking to rescue its ailing oil and gas ecosystem with an ambitious 10-year plan after fuel prices were battered last year by the Covid-19 pandemic.

The National Oil & Gas Services and Equipment (OGSE) Industry Blueprint 2021-2030 comes after nearly two-thirds of over 4,000 vendors fell off the radar, victims of a “double whammy”.

Demand for energy and transportation tanked during the pandemic and this came on top of the rout in oil markets between 2014 and 2016.

Malaysia taps oil-backed trust fund to pay for vaccines

May 21, 2021

Dateline 2021-04-23, Reuters:

Malaysia’s government on Wednesday enacted a new emergency law allowing it to use funds derived from oil and gas contributions to pay for vaccine procurement, as it looks to ramp up its COVID-19 vaccination programme.

The ordinance will allow the government access to use the 17.4 billion ringgit ($4.23 billion) parked under the national trust fund to secure vaccines “for an epidemic of any infection disease”, according to the law published in the federal gazette.

The trust fund, which takes contributions from state energy company Petronas (PETR.UL) and others involved to petroleum exploitation, was set up to support infrastructure and other development and provide federal loans to Malaysia’s states.

Vestigo Petroleum Wins Rights to Develop Two Small Oil Fields Off Malaysia

May 20, 2021

Dateline 2021-04-21, OE:

Malaysia’s Petronas has awarded the Production Sharing Contract (PSC) for the South East Collins Cluster under the newly introduced Small Field Asset (SFA) PSC terms, to Vestigo Petroleum.

The South East Collins Cluster, located in water depths of 42 to 45 meters 70km northeast of Labuan Island, comprises two fields, South East Collins and Lokan which were discovered in the 1980s. With a combined estimated recoverable of 10MMstb, the South East Collins Cluster is now primed for development under the new SFA PSC terms, Petronas said.

Solar in Malaysia — challenges, and too much of a good thing?

May 18, 2021

Dateline 2021-04-11, The Edge:

Solar enthusiasts are jumping on the bandwagon to promote the renewable energy (RE) source, harping that it is freely available and more cost-effective.

But is this true? And is too much solar a good thing? Let’s explore this further.

Solar is available only during the day, thus you still need to cater for energy during the night. This will normally be provided by other conventional plants (i.e. coal, gas, and hydro). This means that conventional plants are still needed even though solar is introduced into the system.

Sarawak CM: Oil discovery will bring development impact to Mukah

May 17, 2021

Dateline 2021-04-11, Malay Mail:

The new oil and gas discovery in the shallow waters of Balingian by Petroleum Nasional Bhd (Petronas) will positively impact not only the sub district but also Mukah Division, said Sarawak Chief Minister Datuk Patinggi Abang Johari Openg.

With the oil and gas belt stretching from Balingian to Miri, he said a new base for operations may need to be set up in Mukah and when it happens, it will spur development in the division.

O&G services companies never really recovered from 2016 downturn and prospects remain weak, says Moody’s

May 14, 2021

Dateline 2020-04-07, The Edge:

Upstream oil and gas services companies have never really recovered from the 2016 downturn, and the trend in energy transition will pose another challenge in their path towards recovery, said Moody’s Investors Service.

On top of that, prospects for the sector remain weak on the back of recent capex cuts, said Moody’s Investors Service corporate finance group associate managing director Vikas Halan.

“The pain that started back in 2016 for oilfield services companies, when oil prices started declining, has somewhat continued,” Vikas said during Moody’s Inside ASEAN Series’ Media Roundtable today.

“And the oilfield services companies never really recovered from 2016. This round of [capex] cuts is adding further [to that pain],” Vikas said.