Not necessary to file case over O&G rights in High Court, says Abd Karim

September 10, 2018

And.. it’s a slow news cycle.

Dateline 2018-06-25, Borneo Post Online:

The Sarawak government does not have to file a case in the High Court to reclaim its rights over oil and gas in the state, said Tourism, Arts, Culture, Youth and Sports Minister Datuk Abdul Karim Rahman Hamzah.

He pointed out that this is because Sarawak has its own special law that’s applicable in the state, namely the Oil Mining Ordinance (OMO).

“We have always felt that the OMO can still be used. But on the other side, Petronas feels that the OMO has already been repealed when the Petroleum Development Act (PDA) 1974 was introduced.

“So, why should we be the one to bring the matter to court when the aggrieved party, those who feel that the OMO is not applicable is Petronas?” he questioned when asked to comment on whether the Sarawak government should file a case in the High Court if it is serious about reclaiming its rights over oil and gas in Sarawak.

 


The legal deadlock over Sarawak’s oil and gas

September 9, 2018

Dateline 2018-06-24, Malaysiakini:

On Friday, the Federal Court dismissed Petronas’ application for leave to challenge Sarawak’s aspirations to reassert regulatory control over its own oil and gas.

The Federal Court also struck out Petronas’ application for an order preserving the status quo which, at least for now, appears to enable Sarawak to proceed with its intention of implementing its own oil and gas regulatory regime by July 1.

As much as we welcome it, Sarawakians must be cautious in embracing the Federal Court decision.

Petronas’ leave application was dismissed solely on the grounds that the declaratory relief sought did not come within the exclusive original jurisdiction of the Federal Court.


Petronas, Sarawak govt case hits snag, uncertainty rises after July 1

September 8, 2018

Dateline 2018-06-23, NST:

The court case between national oil company Petroliam Nasional Bhd (Petronas) and the Sarawak government, which could not proceed further on technical grounds, raises questions about oil and gas operations in the state beginning next month.

Yesterday, the Federal Court rejected Petronas’ application for stay order on Sarawak government’s upstream regulation in the state under the Oil Mining Ordinance 1958 (OMO) beginning July 1.

Petronas said in a statement that its application was declined based solely on technical grounds and it was ruled that the matter falls outside of the Federal Court’s jurisdiction.

“The Federal Court did not in any way determine or endorse the merits of the legal position taken by the Government of Sarawak to regulate upstream petroleum activity under its Oil Mining Ordinance 1958,” Petronas added.

As such,the national oil  company intends to further pursue legal actions to seek clarity on its rights under the Petroleum Development Act 1974 (PDA 1974).

However, Sarawak is adamant to enforce its regulatory rights under the OMO. This would require Petronas to have the requisite licences or leases under the Ordinance by July 1, failing which the upstream activities carried out by Petronas would be illegal and appropriate action would be taken.


Massive management changes in Petronas unnecessary: Analysts

September 7, 2018

Dateline 2018-06-22, NST:

 Petroliam Nasional Bhd (Petronas) has performed respectably well during the recent volatile oil price environment and should not undergo massive management changes, analysts said.

Last year, Petronas recorded higher net profit of RM45.5 billion, after having gone through the steepest decline in oil price since June 2014, proving its resilience while remaining profitable, they said.

These comments come amidst recent changes in top management of government linked companies (GLCs) following the change in government after the 14th General Elections, and speculation of more to come.

Following the change of government since last month, government-linked and owned companies with their top leadership have become a hot topic of late among the public, following the stunning victory of Pakatan Harapan at the recently held polls.

While several GLCs have come under scrutiny and have seen management changes recently, other state-owned enterprises continue to focus on improving their businesses while at the same time distancing themselves from any controversies.


Malaysia’s top court dismisses Petronas’ bid to challenge Sarawak’s control over oil

September 5, 2018

Linkbait and the historical record.

Dateline 2018-06-22, Straits Times:

Malaysia’s top court on Friday (June 22) turned down Petroliam Nasional’s (Petronas) application for leave to proceed with its bid to control oil resources and activities in Sarawak state.

National oil company Petronas had last month filed legal papers in the Federal Court seeking a declaration that it is the exclusive owner of the petroleum resources in the country, including in Sarawak state.

This came after Sarawak was granted complete mining rights over its territory in March by the federal government and formed its own oil and gas company, Petros.


MOGSEC 2018-09

September 4, 2018

I”ve been asked to spread the word. Please register soonish, so as you don’t have to line up like the other muggles.

We are looking for exhibitors as well. Give your bosses the 2016 post show report, the brochures for the Sabah and Sarawak Pavilions, SME Pavillion, and most importantly, the forms to book space and sweet sponsorship deals. IGL clients, I am looking at you.

Do come and spend some money. Please.

MOGSEC 2018 Sabah Sarawak Pavilions Application for Space
MOGSEC 2018 SME Pavillion Application for Space
MOGSEC 2018 Application for Space
MOGSEC 2018 Sponsorship Flyer
MOGSEC 2016 Post Show Report
MOGSEC 2018 Brochure


IEM Shout Out – 2018-10 Two Day Course on Understanding Process Control For Oil & Gas Production Operators, Technicians And Engineers

September 3, 2018

My technical division will be hosting a 2 day course on the 16th and 17th October 2018. It is worth 13 CPD points, and held at Wisma IEM. The course will be presented by Associate Professor Dr. Syamsul Rizal Abd. Shukor, Associate Professor Ir. Dr. Zainal Ahmad and Ir. Dr. John Eow.

The oil & gas production processes (such as sand separation, produced water treatment, seawater filtration, crude oil and gas treatment) require reliable monitoring and control strategy to maintain optimum operational performance. Moreover, process operations are always being affected by disturbances, which negatively affect product quality and cause unplanned process shutdown. Therefore, a good understanding and competency on the major oil & gas production process operations and control are vital for the production personnel. This 2-day course is designed to educate the participants on the engineering design and process control practices in the oil & gas production processes, such as sand separation, produced water treatment, and crude oil desalting.

The course will cover the following major topics:
• Introduction to Oil & Gas Production Processes (such as sand separation, produced water treatment, crude oil treatment, etc.)
• Basics of Process Control
• Process Characteristics: Static and Dynamic
• Final Control Elements
• Controller Algorithm and Controller Tuning
• Single & Multiple Control Loops

Upon completion, the participants will be able to understand the process control fundamentals related to oil & gas production processes.   Moreover, they will have the basic knowledge to apply the process control concepts in monitoring their production process performance, and for better controller tuning to optimize their production outputs.

Register here, or download the form here.


Malaysian states’ quest for control of petroleum could complicate the regulatory landscape

August 26, 2018

Dateline 2018-06-19, Offshore Technology:

The regulatory regime in Malaysia’s upstream sector, dominated by PETRONAS for 44 years as the combined National Oil Company (NOC) and regulator, may become more complex due to recent political developments.

Long-running calls for greater control of resources and revenues for oil-producing states have increased in the past few years. Even more impactful may be the outcome of a pending court case brought by PETRONAS against the Sarawak state government’s assertion of full regulatory control of the sector.

PETRONAS’ case against the Sarawak government is scheduled for a hearing on June 21, with a significant prize at stake. Sarawak holds most of Malaysia’s oil and gas reserves and is home to the country’s LNG liquefaction plants.


Petronas seeks clarity amid Sarawak’s O&G ambition

August 25, 2018

For the historical books

Dateline 2018-06-19, The Edge:

PETROLIAM Nasional Bhd’s (Petronas) court challenge of Sarawak’s claim of regulatory authority over oil and gas activities in the state has sparked a barrage of political responses and an angry backlash.

There was an outcry over the perceived trampling of state rights over oil and gas wealth in Sarawak. Many also began to question Pakatan Harapan’s pre-election promise to increase oil royalty to 20%.

But court documents viewed by The Edge indicate that the national oil company is pursuing a more precise question: who is in charge of upstream oil and gas activities in Sarawak?
For Petronas, it is a question that needs an urgent answer because operational continuity and investor confidence, which are vital to attract future investments, are at stake.


FMM: Maintain electricity tariff, let Socso handle EIS funds

August 24, 2018

Dateline 2018-06-18, The Sun Daily:

The Federation of Malaysian Manufacturers (FMM) is urging the government to maintain electricity tariffs until Dec 31, 2020 and accord the Social Security Organisation (Socso) with the responsibility of managing funds collected under the Employment Insurance System (EIS), which is now under review.

Last week, Gas Malaysia Bhd announced that the average effective natural gas tariff for the non-power sector in Peninsular Malaysia will be increased by 17 sen or 0.5% to RM32.69/MMBtu for the period of July 1 to Dec 31, 2018 from RM32.52/MMBtu for the period of Jan 1 to June 30, 2018. The move has kindled concerns that electricity tariff rates will be hiked.

“While FMM is steadfast in its commitment towards energy subsidy rationalisation and although the 0.5% increase is lower than the previous period’s 22.97%, it is nevertheless still an increase in energy costs,” it said in a statement today.

Following that, FMM hopes that the new government will uphold the past Cabinet’s decision, announced on December 26, 2017, to maintain current electricity tariff rates in Peninsular Malaysia for Jan 1, 2018 up to Dec 31, 2020, in a bid to help relieve the energy cost burden on the manufacturing sector as well as to benefit the rakyat as household consumers.