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.

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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.

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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.

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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.

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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.

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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.

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O&G players seek clarity on Malaysia’s future energy direction

May 13, 2021

Dateline 2021-04-06, NST:

Oil and gas companies operating in Malaysia are seeking more clarity on the country’s future direction in the energy transition in line with the global trend of accelerating to a low or zero-carbon future.

ExxonMobil Exploration and Production Malaysia Inc president Edward Graham said most O&G players were finding ways to be cost-competitive and reducing greenhouse gas (GHG) emission.

This was in tandem with the global energy industry’s transition to renewables and low carbon solutions.

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Huge capex cuts in global O&G upstream in 2020: Petronas

May 11, 2021

Dateline 2021-04-05, NST:

The global oil and gas’ upstream sector has seen significant cuts in capital expenditure (capex) with spending below about US$400 billion in 2020.

This was less than half than the peak in 2014, Petroliam Nasional Bhd (Petronas) executive vice president and chief executive officer (upstream) Adif Zulkifli said.

“Companies had to make important decisions to remain resilient by keeping costs low and margins intact. Projects were put on hold, asset equipment impairments saw an upswing and job cuts were widespread within the industry,” he said in a keynote address at the inaugural virtual Re-Imagining Malaysia Assets (Reset) 2021 Conference here today.

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O&G services players seek clarity on energy future

May 10, 2021

Dateline 2021-04-06, Malaysian Reserve:

PLAYERS in the oil and gas (O&G) services sector are still figuring out the direction of the country’s energy transition plan, which could guide the industry towards a more synergistic process in charting the course for a zero-carbon future in tandem with the global trend.

Malaysian Oil and Gas Services Council (MOGSC) president Sharifah Zaida Nurlisha Syed Ibrahim said more clarity on the issue could be furnished by major players in the field, along with other relevant stakeholders.

She said local O&G services companies are committed to finding and delivering the best solutions for the industry according to the country’s aspiration of future energy production and consumption.

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Petronas: Oil and gas to remain a significant portion of energy mix

May 7, 2021

Dateline 2021-04-05, Malay Mail:

Oil and gas will continue to make up a significant portion of the energy mix, although at a declining trend of 47 per cent by 2040 from about 54 per cent in 2018 due to the growth of renewable energy.

Petroliam Nasional Bhd (Petronas) executive vice-president and chief executive officer, upstream, Adif Zulkifli said as an industry tasked with catering to the growing energy demand, it was critical for the national oil company to continue to deliver energy that was affordable, secure and sustainable.

“This is where the challenge lies. We need to do it safely, at the lowest cost possible to ensure we are resilient and additionally, at low carbon which means that we need to ensure that we need to drive carbon emissions levels down from current levels,” he said in his keynote address at the inaugural Re-Imagining Malaysia Assets (RESET) 2021.

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