Malaysia’s PM Mahathir considering selling stakes in Petronas to Sabah and Sarawak

February 4, 2020

Dateline 2019-12-11, Straits Times:

Malaysia is considering selling stakes in energy giant Petronas to two of its 13 states where the company’s oil and gas fields are, Prime Minister Mahathir Mohamad told Reuters, in a bid to raise funds for the debt-laden government.

Such a move may also give states such as Sarawak and Sabah a say in the running of Petronas, the world’s third-largest exporter of liquefied natural gas.

Tun Dr Mahathir said on Tuesday in an interview that the government could not meet a demand made by the states for a quadrupling of the royalties paid by the government-owned company to 20 per cent of its profit.

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A taxing uncertainty: Petronas’ take on oil royalty, O&G industry and a low-carbon future

February 3, 2020

Dateline 2019-12-07, The Edge:

Sarawak’s legal pursuit for a higher share of proceeds from its hydrocarbon resources – the biggest among Malaysia’s oil and gas producing states – has once again put the national oil company Petroliam Nasional Bhd (Petronas) in the limelight.

The matter escalated just as Tan Sri Wan Zulkiflee Wan Ariffin approaches his five-year mark as Petronas president and group chief executive officer early next year.

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Petrofac considers offshore oil asset sale in Malaysia

February 2, 2020

I suggest that these assets are run by Local Community Companies (LCC) as practiced by Oman.

Dateline 2019-06-12, World Oil:

Petrofac is weighing a sale of its Malaysian assets for about $300 million, according to people with knowledge of the matter.

The company has started gauging interest from potential investors on the planned divestment, said the people, asking not to be named as the discussions are private. The assets that could be on sale include a stake in an offshore oil field development known as PM304, one of the people said.

Petrofac is the latest oil company looking to monetize its investments in Malaysia. Exxon Mobil Corp. is considering a sale of its offshore assets in the Southeast Asian nation which could raise as much a $3 billion, Bloomberg News reported in October, while Murphy Oil Corp. in March agreed to sell its portfolio in Malaysia for $2.13 billion.

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Sabah signs RM100 mil deal with Japanese renewable energy firm

February 1, 2020

Dateline 2019-12-04, FMT:

Tokyo-based Blue Capital Management Ltd will invest RM100 million to start a biomass energy plant in Sabah’s Lahad Datu Palm Oil Industrial Cluster (POIC).

An agreement signed among POIC Lahad Datu, Sabah firm Blossom Bio Energy and Blue Capital includes a 20-year lease agreement in POIC Lahad Datu Estate.

Under the deal signed in Tokyo, Japan, today, Blossom Bio Energy and Blue Capital will jointly undertake the construction of the renewable energy factory.

The plant is expected to source Sabah palm oil kernel and empty shells as raw materials to produce renewable energy, with Blue Capital using its energy storage system to export the product to Japan.

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FMM calls for faster conclusion to access arrangement to liberalise Malaysia’s gas supply market

January 31, 2020

Dateline 2019-12-04, The Edge Markets:

The Federation of Malaysian Manufacturers is calling for the distribution access arrangement for the gas market, which covers last mile connectivity and has yet to be finalised, to be concluded soon in order for the gas market to be fully liberalised next year.

“With the gas market expected to be fully liberalised in 2020, industrial gas users have been looking forward to explore competitive gas prices with the entry of more gas suppliers via the third-party access mechanism.

“However, distribution access arrangement which covers the last mile connectivity has yet to be finalised as the year end approaches,” the federation’s president Tan Sri Soh Thian Lai said in a statement today.

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Petronas awards offshore block to EnQuest, Petronas Carigali

January 30, 2020

Dateline 2019-12-04, The Edge Markets:

Petroliam Nasional Bhd (Petronas) has awarded the production sharing contract (PSC) for Block PM409 offshore Peninsular Malaysia to EnQuest PLC’s wholly-owned subsidiary EnQuest Petroleum Production Malaysia Ltd and Petronas Carigali Sdn Bhd (PCSB) as part of the 2019 Malaysia Bidding Round, according to separate statements from EnQuest and Petronas.

EnQuest said today in a statement on its website that under the terms of the PSC, EnQuest will operate the block with a participating interest of 85%, with PCSB owning the remaining 15%.

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Petronas says third floating LNG vessel possible

January 29, 2020

Dateline 2019-12-02, FMT:

Petroliam Nasional Bhd (Petronas), which is the only company to own and operate two floating liquefied natural gas (LNG) vessels, said a third one is possible if there is a demand.

Petronas’ two floating LNG units are PFLNG Satu and PFLNG Dua.

“If there is a reservoir with a sizeable amount of reserves and the right gas – a composition that it is economically viable – it opens up a case for another floater,” said the company’s Gas and New Energy Business executive vice-president and chief executive officer, Adnan Zainal Abidin.

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Legality of Sarawak’s petroleum sales tax hinges on MA63

January 28, 2020

Dateline 2019-11-28, Malaysian Reserve:

THE court will decide the legitimacy of the imposition of the sales tax by Sarawak on petroleum products based on the Constitution and what is provided under the agreement when the East Malaysia state joined Malaysia 56 years ago.

The state, which is rich with petroleum resources, imposed a 5% sales tax on petroleum products – crude oil, natural gas, liquefied natural gas, chemical-based fertilisers and gas-to-liquid products — sourced from the state early this year.

Petroliam Nasional Bhd (Petronas) has not paid the additional sales taxes for its oil and gas (O&G) exploration activities in the state.

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Deputy minister: RON95 petrol price to creep up weekly next year

January 27, 2020

Historical / hysterical note.

Dateline 2019-11-28, Malay Mail:

The government will raise the price ceiling on RON95 petrol by one or two sen a week until it reaches the market rate, Domestic Trade and Consumer Affairs Minister Chong Chien Jen said in Parliament yesterday.

He said this was in conjunction with the move towards the petrol subsidy programme (PSP) but would not affect Sarawak as the scheme will not be introduced there.

RON95 is currently capped at RM2.08/L.

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Energy outlook challenging amid slowing economy, geopolitical tensions: Petronas

January 26, 2020

Dateline 2019-11-27, S&P:

The outlook for the energy sector remains challenging, with a slowing global economy and ongoing geopolitical tensions resulting in demand disruption and lower prices, Malaysia’s state-owned oil and gas company Petronas said in its third quarter results Tuesday.

Petronas posted a 3% year-on-year drop in revenue to Malaysian ringgit 176.2 billion ($42.2 billion) for January-September amid challenging market conditions and sustained pressure on commodity prices and margins.

Reduced sales of crude oil and condensates were partly offset by higher LNG and petroleum products sales, while lower prices were partly counterbalanced by the effect of the weakening Ringgit against the US dollar, the company said.

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