From Bernama – Malaysia’s O&G Expects To Be Awarded RM10-15 Billion Worth Jobs

August 14, 2010

I’ll believe it when my company’s liquidy increases a hundred-fold. ‘Course, it’s hard not to be able to increase the RM1.32 we have in our bank balance… we find more money down the side of the couch.

Dateline 2010-08-06:

Malaysia’s oil and gas service providers are expected to secure at least RM10-RM15 billion worth of jobs in the next 18 months, said ECMLibra Investment Research.

It said the oil and gas service industry looked promising and vibrant given the line-up of jobs ahead which were expected to be completed between 2013 and 2015.

“The jobs are related to enhanced oil recovery projects, deepwater, onshore downstream and also marginal fields.

“Petronas has already clearly indicated that it was time to step up investments at home given the declining local production and we believe redevelopment projects like Tapis will be the first to go ahead,” ECMLibra said in its research note on Friday.

The research house added that the Tapis would likely take off soon followed by deepwater projects and then the front-end engineering and design jobs.


Discovery of oil at Canada Hill brings transformation & positive development

August 13, 2010

Ah, an article discussing my most favorite Grand Lady, dateline 2010-08-08:

The discovery of oil at Canada Hill in 1910 not only opened up various opportunities but transformed the place from a small fishing village to a booming city.

THIS IS OUR  HISTORY: Goligher (right) briefs Dr Chan on Shell’s achievement and  history.THIS IS OUR HISTORY: Goligher (right) briefs Dr Chan on Shell’s achievement and history.

It has also brought transformation in the mindset and perspective of the people on certain aspects especially their future, Deputy Chief Minister Datuk Patinggi Tan Sri Dr George Chan said at the launching of Grand Old Lady Centenary Celebrations at Canada Hill yesterday.


Malaysia – Reducing Subsidies

August 12, 2010

I have a few scans from The Star. I find the grammar of the government primer on subsidies impressive, our PM must be hiring better English linguists to spread his message.

You can subscribe to an online version of the paper at the Bluehyppo site, follow links to e-browse.


From Bernama – Penjanabebas Says IPPs Don’t Benefit From Gas Subsidy

August 10, 2010

Oh, I can see this news article causing a look of disbelief on people’s faces. Maybe I should get the IEM to give a talk on the topic, so I can capture peoples’ expressions on my trusty Canon A-1.

Dateline 2010-07-21, taken from Bernama:

The Association of Independent Power Producers in Malaysia (Penjanabebas) on Wednesday said it is unfair to portray its members as beneficiaries of gas subsidy.

It said the cost of gas as a fuel to generate electricity is a component that the IPP industry does not derive any financial benefit from but instead, the savings from gas subsidy is passed on to consumers through the tariffs.

“Under the Malaysian IPP model – in line with the international norm in power purchase agreements – gas costs operate under a “pass” through” mechanism, whereby all gas supplies are provided directly to gas-fired generators at cost determined by the government.


Saturday Star 2010-08-07 – Job Opportunities

August 9, 2010

Support me by purchasing my recommendations, or buying through my Amazon store.

First off, if you need my help to submit your CVs, donate to the blog, and I’ll review your CV to see if it is worthy of my (and my associates’) expectations. If you can’t figure out how to donate, no need to ask.

  • AMOGC (A major oil & gas company), Zakum Development Company (ZADCO) is looking for Contracts  Engineer – Operations, Maintenance & Marine + Logistic Services, Contracts & Procurement Engineer – Engineering / Project, Material Engineer. Send your CVs for the first two positions to be sent here, and for the last one to be sent here. Give me a donation, and I’ll tell you what the rates are (or you can hunt round for a copy of Sat’s paper).
  • Ranhill WorleyParsons has a whole page advert. From reading between the lines, I presume they have been awarded another big job, and will be maintaining their Miri office to support one of the PSCs via a long term contract. They want Snr/lead civil/structural eng, snr/lead process design eng (upstream), snr/lead electrical eng,  snr/lead piping engineers (piping and materials), snr/lead rotating eqt engineers,snr/lead mech eng (static equipment/ package), snr/lead instrument engineers,  snr project engineer, project eng, snr project controllers, cost estimators, proposal eng, buyer/expediter, snr piping designers (PDMS). And there are positions in Miri as well. Visit the website, or send your CVs here.
  • Shell is looking for people, though mostly in the subsurface department. Didn’t they just go through a rightsizing exercise? I guess they got rid of some deadwood, and need to fill those shoes. Visit www.shell.com/careers and select Students & Graduates → How Do I Apply for a Career with Shell → 3 Ways to Get a Career With Shell → Option A: Shell Recruitment Day → Apply Now. The ad asks you to quote reference TEA035G, but you know you should quote ‘razmahwata.wordpress.com’.

Kinda busy this week. My apologies if I’ve missed out on other adverts.


From Bernama – Tas Offshore’s Revenue Up 154.8 Per Cent To RM139 Million

August 8, 2010

Looks like I’m in the wrong business. Shipbuilding is it, which ties in with the worst-case Hollywood Waterworld scenario. Anyhow, if you are looking for process consultants for your FSO/ FPSOs, contact us.

Dateline 2010-07-29:

Shipbuilder Tas Offshore Bhd recorded a 154.8 per cent increase in turnover for its financial year ended May 31, 2010, at RM139.9 million from RM54.917 million the previous year.

Its pre-tax profit jumped 63.8 per cent to RM11.36 million from RM6.969 million previously.

“The current encouraging crude oil price range of US$75 to US$80 per barrel is deemed favourable for the oil major to expand their offshore deep sea projects and production activities.


From Reuters: Sept Tapis climbs on gas oil strength

August 7, 2010

Dateline 2010-07-29:

Prices of Malaysian Tapis crude climbed on Thursday reflecting market-wide support for distillate-rich grades in Asia-Pacific.

September Tapis cargoes were heard to have traded at premiums of about $4.10 to the Tapis APPI, a trader said, up from about $3.70 for lots exchanged earlier in the month.

The shutdown of Taiwan Formosa Petrochemical Corp’s 540,000 barrel per day (bpd) refinery also gave some support to distillate-rich grades in the region, some traders said.

Refiners with no upgrading capacity were looking for high-quality grades such as Tapis to increase fuel output and compensate for the shortfall resulting from the Formosa closure


IEM Report – Visit to Bintulu

August 6, 2010

The IEM Chemical Engineering Technical Division organized a study tour to Bintulu, Sarawak on June 14th, 2010. The study group comprised of 9 people. The tour was led by Ir. Razmahwata Mohd Razalli.

The tour started at the MLNG plant. The group was met by Mr. Rhymie Rashidie Ibrahim, Corporate Affair. The IEM guests were first brought to a presentation room where a safety briefing was first conducted. A corporate video was then shown, providing an overview of the history, specifications and achievements of the MLNG project.

After getting a bird’s eye view of the facility, a slide presentation was given. It started off with an introduction to the MLNG complex, and a recap of MLNG 1-3’s history. A simplified LNG process flow diagram was then used to describe the plant’s process to the group.  An introduction to the technology and use of MISC’s LNG ships was provided, along with the breakdown of LNG customers (60% of LNG is shipped to Japan, 27% Korea, 12% Taiwan, 0.9% China. 19% of Japan’s LNG is imported from Malaysia).

At the end of the presentation, a number of questions were asked, and answered by the speaker. A selection of questions asked were the usage of LNG in Malaysia, the makeup of engineers disciplines in MLNG, the mercury removal process from the gas, and MLNG’s involvement in downstream industries.

This part of the tour was concluded with a token exchange ceremony.

After refreshments, a plant tour was arranged, guided by a knowledgeable engineer. The group had the opportunity of observing the plant from the luxury of an air conditioned van. Among the sites the group visited  were the nine 380 tph boilers, the gas metering station, flare tower, the cryogenic unit, the mercury removal unit, the Sulphinol process, and the LNG berthing terminal, where Putri Delima Satu was in port.

After the MLNG visit, the group then visited the ABF plant. The group was met there by Mr. Roy Thian Shin Min, Process Technologist and Ms. Suryani Dohan, PR Executive. Mr. Roy presented an introduction of the plant. Among the commercial tidbits revealed was the ownership breakdown of the plant (63.5% Malaysia, 13% Indonesia, 13% Thailand, 9.5% Philippines, 1% Singapore) and the plant’s market breakdown (30% of ammonia is sold to Thailand, 20% to Malaysia, 24% to Vietnam) . He then talked the group through a process schematic of the plant. Among the process discussed were CO2 removal using a modified Benfield process, steam reforming using NiO catalyst in tubes, and the urea process. The uses of ammonia and urea was explained to the group. The presentation ended with an overview of the plant’s corporate social responsibility (CSR) activities. Among the questions asked by the group was what biuret was, and how much CO2 was released by the plant.

This part of the tour was concluded with a token exchange ceremony, and lunch that was hosted by the ABF.

As the plant was not open for a visit at the time, the group was taken to view the plant from a vantage point on top of the Bintulu Port Authority building, where we were treated to a breath-taking view of the plant and surrounding environs.


Vendor Development Program

August 5, 2010

About everyone who has a PETRONAS license (there’s another story) dream on getting onto the Vendor Development Program (VDP) or become a VDP vendor.

The VDP is meant to nurture Malaysian companies by allowing the selected company to be on a shortlist (of one, I think) of approved suppliers for different product categories. For example, Process-3 is the VDP for “upstream and downstream sectors ‘Online Toxic Decontamination’ Chemical & Services Provider”.

The selected company typically starts of being an agent or stockist for a product. By disallowing fair competition, the company is provided with the opportunity to invest in the product, either spinning off related product lines as a result of technology transfer, or by taking up the challenge of setting up a local product line.

You can read about articles praising the VDP program here, here and here (really old news this). Note that there is a CLUB for VDP vendors. Talk about protecting your interests.

There are a number of advantages to the VDP vendor:

  • You have the opportunity to recoup your capital investment in a potentially risky decision. As everybody will have to buy from you, you a guaranteed a healthy market.
  • PETRONAS will have a big interest in making you succeed, so you can be sure of guidance and oversight from Big Brother.
  • You have a clean sweep of your product category, making your competitors jump through hoops to get the Production Sharing Contractors or Operating and Production Units approval to use their products. Think of it as a sanctioned blue ocean strategy, by kicking out the rest of the fish.

I can see disadvantages here:

  • Sometimes it seems like whoever is first to the post, wins. I have heard of a case where the VDP promised to construct a fabrication plant when awarded the VDP. It’s still a promise.
  • No garauntee of quality. A VDP product is not necessarily the best. Those in the industry complain about the quality of service from various VDPs, but what can we do about it?
  • If it was you, wouldn’t you try to get VDP status to make a quick buck, after doing a SWOT analysis?
  • I think it kinda defeats the spirit of enterpruenership. What happens to the small fry who has developed a local product, but it happens to be in a VDP category where a megalith company has taken root? I happen to know that there is a local mechanical seal manufacturer with patented products running a factory in Shah Alam, but he can’t even enter a VDP category because there is already someone there, and the powers that be in licensing won’t consider his application.
  • If the market segment is larger than what the VPD vendor can provide, you have effectively limited the ability of the oil & gas market to respond according to the demand of market forces. The VDP vendor is free to dictate prices according to artificial purchasing pressures. “You want that screw today? We’ll sell it to you for 10,000% markup, if not come back when Mars is at its closest approach to Earth.”

Of course, not everyone is as twisted as me and Jabba. I congratulate Corro Shield for graduating from the VDP program, which gives me hope that there are people out there with the interests of Malaysia and the rakyat at heart.


From the Star – Stop your Bullying, Petrol Dealers tell Oil Firms

August 4, 2010

You know that monger who always used to threaten you for your lunch money (y’know, the one who’s a meaner version of Buford). Well it seems like he grew up, put on a Spark Manshop suit, learned to read, and is still threatening the small kids on the block. And the kids still tattle to the teacher.

Dateline 2010-07-25:

KUALA LUMPUR: Petrol dealers claim they are being “bullied” by the oil companies and want the Govern­ment to intervene to safeguard their interests.

Petrol Dealers Association of Malaysia (PDAM) president Datuk Hashim Othman said among the problems faced by petrol stations were high rentals and conversion of sole proprietorships to private limited companies.

“We only have the Government to back us up. If the oil companies need us, they call us partners. When they want something, they shove it down our throats,” he claimed.

You can subscribe to an online version of the paper at the Bluehyppo site, follow links to e-browse.