Quiet Diplomacy Or Inaction: Lessons From A Survey Ship Standoff In South China Sea – Analysis

June 19, 2020

Dateline 2020-05-30, Eurasia Review:

When a Chinese survey ship deployed close to a Malaysian-contracted oil exploration vessel in Malaysian waters in mid-April, tensions in the South China Sea went up a notch. United States and Australia sent warships to the area to send a message to China – that Southeast Asian nations should be free to exploit resources off their own coasts.

Yet Malaysia itself kept its counsel. The government scarcely issued a word of protest over China’s actions. And then, a month after the Chinese ship had arrived, the Malaysian-contracted drillship West Capella returned to port, and China’s Hai Yang Di Zhi 8 went on its way.


Petronas’ capex cut another shock to local O&G companies

June 17, 2020

Dateline 2020-05-27, The Edge:

Battered by plunging oil prices, local upstream oil and gas services companies were hit by another piece of negative news last Friday – that Petroliam Nasional Bhd (Petronas) plans to cut its annual capital expenditure by 21%, despite having said earlier that it would keep to what it had budgeted for previously.

The announcement places Petronas among oil majors like Exxon Mobil, Royal Dutch Shell, Saudi Aramco and Petrobras that have announced capex cuts ranging from 20% to 30% this year.


Oil tank at PD refinery catches fire

June 16, 2020

Dateline 2020-05-22, FMT:

Fire broke out at a storage tank of an oil refinery in Port Dickson this afternoon.

A spokesman of the Negeri Sembilan Fire and Rescue Department said no casualties were reported.

He said 38 firemen from three stations, from Port Dickson, Teluk Kemang and Seremban 2, together with members of the Hazardous Material Unit (Hazmat), were sent to the scene after receiving an emergency call at 4.15pm.

“The fire affected a 10,000-litre capacity oil tank. Fire-fighting operations are ongoing.”

Meanwhile, Hengyuan Refining Company Bhd said the fire occurred at one of the crude tanks at its premises.


Shout Out – HAZOP Webinar 2020-06

June 15, 2020

Change of pace. I’m presenting a free webinar at 10.30am on the 17th June, under the auspices of IESB. Brochure is more sparse than a typical IEM brochure, but hey? And they don’t have the presentation on their website. And they got my name wrong first try. Sigh, can you attend my courses, so that I can get all this under my iron fist?

Link here.

Webinar HAZOP 2020-06

 


Malaysia: Tanjong Baram Field Contract Terminated

June 14, 2020

Dateline 2020-05-22, OE Digital:

Malaysia’s Uzma Energy Ventures has said that the Tanjong Baram small field risk service contract between Petronas and Uzma & EnQuest joint venture has been terminated.

The contract’s objective was to develop and produce petroleum from the Tanjong Baram field, offshore Sarawak, Malaysia.

It was signed in March 2014, and was been terminated in March 2020, but Uzma informed of the termination on Friday, May 22, as it had to wait for Petronas’ approval.

Uzma said that it, together with Enquest, exercised its right for the mutual termination of the Tanjong Baram small field risk service contract
with PETRONAS, following the occurrence of “economic cut-off” in accordance with the terms of the contract.


Petronas cuts FY20 capex and opex as oil slump hits

June 13, 2020

Dateline 2020-05-22, The Edge:

Petroliam Nasional Bhd, which reported a 68% year-on-year fall in its first quarter profit after tax (PAT) today, is slashing its capital expenditure for the financial year ending Dec 31, 2020 by 21% from its initial estimate of around RM50 billion, as it faces challenges driven by the pandemic outbreak that has led to a supply-demand shock in the oil market this year.

The national oil giant said it will strive “as far as practically possible” to minimise the impact of the cuts to its Malaysian capex programme, previously planned at RM26 billion-RM28 billion this year.


Associations engage Petronas to safeguard industry’s future

June 12, 2020

And the didn’t invite MOGEC. Where art thou?

Dateline 2020-05-21, NST:

Three associations representing the interests of the Malaysian oil and gas industry recently revealed they had engaged with Petronas to mitigate and address the current dire situation and circumstances affecting the industry.

Brought about by an unprecedented downturn due to the geopolitics of big oil producing countries, which has been amplified by the threat and spread of the Covid-19 pandemic, the associations — The Malaysian Oil & Gas Services Council (MOGSC), Malaysia Offshore Support Vessels (OSV) Owners’ Association (MOSVA), and the Malaysian Offshore Contractors Association (MOCA) — had a video conference meeting with the top leadership of Petronas last month.

During the meeting, the three associations representing over 500 companies and a workforce of 60,000, shared with Petronas the state of the industry and the challenges the companies were facing.


Petrol dealers don’t expect sales to return to pre-Covid-19 levels

June 11, 2020

So, did any member of the Petrol Dealers Association of Malaysia close shop?

Dateline 2020-05-18, The Sun:

If there is one business that is likely to suffer permanent setback as a result of the Covid-19 pandemic, it has to be the oil and gas sector.

The need for long-term social distancing will serve to accelerate acceptance of the work-from-home concept.

With more people working from home, there will be a drop in the daily commute to the office and, by extension, fewer cars on the road.

This means the demand for petrol, diesel and gas will drop.

Petrol dealers are beginning to accept the new reality.


Shout Out – HAZOP Webinar 2020-06

June 10, 2020

Change of pace. I’m presenting a free webinar at 10.30am on the 17th June, under the auspices of IESB. Brochure is more sparse than a typical IEM brochure, but hey? And they don’t have the presentation on their website. And they got my name wrong first try. Sigh, can you attend my courses, so that I can get all this under my iron fist?

Link here.

Webinar HAZOP 2020-06

 


CM: Sabah will continue to pursue 20pc from Petronas

June 9, 2020

Dateline 2020-05-14, Malay Mail:

Petronas’ new agreement with Sarawak does not have any bearing on Sabah, who just imposed a 5 per cent sales tax on petroleum products beginning last month.

Sabah Chief Minister Datuk Seri Shafie Apdal said that the state was sticking to its 5 per cent sales tax while it continued to pursue a 20 per cent oil royalty deal with the federal government that it has been eyeing for decades.

“That’s their negotiations with Petronas. We’ve already imposed the sales tax. We have an understanding with them and other petroleum companies,” said Shafie when asked to comment on Sarawak’s new agreement with Petronas and the federal government.