Murphy Oil sells Malaysia assets to PTTEP for $2.1 billion, turns toward home

May 1, 2019

Dateline 2019-03-21, Reuters:

Murphy Oil Corp is exiting Malaysia with a $2.13 billion sale of its oil and gas assets there to Thailand’s PTTEP and said it will use the proceeds to pay down debt, buy back shares and fund potential deals in the United States.

Besides the enterprise value of the sale, PTT Exploration and Production Public Co Ltd (PTTEP), a unit of state-owned PTT PCL, will also pay Murphy Oil up to $100 million as a bonus if certain exploration projects show results before October 2020, the companies said on Thursday.

The deal between Murphy and PTTEP comes as M&A activity is heating up in Malaysia’s oil and gas sector, where global companies pursuing expansion plans are spotting opportunities.

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Exclusive – Murphy Oil closing in on sale of Malaysian oil, gas assets to PTTEP: sources

April 30, 2019

Dateline 2019-03-21, Reuters:

Murphy Oil Corp is nearing a deal to sell its Malaysian oil and gas assets to Thailand’s PTTEP PCL, people familiar with the matter said, in the latest energy M&A transaction in the Southeast Asian nation.

The independent U.S. oil and gas exploration and production company could announce a deal, valued at just over $2 billion (1.52 billion pounds), with the Thai energy company as early as Thursday, said one source, who declined to be identified as the news is not public.

Reuters reported in November, citing sources, that Murphy Oil was in talks to sell the assets after an unsolicited bid that could fetch between $2 billion to $3 billion.

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KPOC files RM125m claim against MMHE

April 29, 2019

Dateline 2019-03-18, The Star:

Kebabangan Petroleum Operating Company (KPOC) has filed a RM125mil claim against Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) over a contract dispute at an oil field north of Sabah.

MMHE said on Monday its major subdiary Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE Sdn Bhd) had received a notice of arbitration dated March 13 from KPOC.

The first contract was for the fabrication of the topsides for the Kebabangan field, about 135km northwest of Kimanis, Sabah betweem KPOC and Sime Darby Enginering Sdn Bhd. The contract was dated Sept 20, 2011.

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O&G a ‘sunset industry’, time to explore other resources, senator says

April 28, 2019

Blaze of Glory (Youtube).

Dateline 2019-03-18, FMT:

Senator Adrian Lasimbang has urged the Sabah and Sarawak governments to explore the use of other natural resources instead of focusing on the “sunset industry” of oil and gas.

“Everyone keeps talking about the oil royalty under the Malaysia Agreement 1963, as if it is the only thing we can develop.

“But if the climate change movement becomes serious, the oil and gas industry will definitely be hit. Countries will be forced to cut emissions, and Sabah and Sarawak will be affected,” he said.

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MGA advocates natural gas as a perfect partner to renewables

April 27, 2019

Dateline 2019-03-15, Bornoe Post:

With the Ministry of Energy, Science, Technology, Environment and Climate Change’s (MESTECC) recent focus on expanding the contribution of renewables sources to the power sector, the Malaysian Gas Association (MGA) strongly advocates the increasingly important role that natural gas plays globally in transitioning to a sustainable energy mix and how Malaysia can emulate this to ensure the nation’s energy sustainability.

With MESTECC’s 2019 Initiatives striving to achieve 20 per cent renewable energy capacity mix and eight per cent savings through energy efficiency by 2025, the inherent properties of natural gas as the cleanest burning fossil fuel, makes it the perfect partner to achieve these targets.

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Petronas to start offering oil products from new refinery in April

April 26, 2019

Dateline 2019-03-13, Reuters:

Malaysia’s state energy firm Petronas expects to start offering oil products from its new refining-petrochemical complex in April as the project moves toward full commercial production in October, a senior company official said.

The initial products would not meet commercial specification yet as trial runs are still under way, Arif Mahmood, Petronas’ executive vice president and CEO of downstream, said on the sidelines of the CERAWeek energy conference in Houston.

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Ten years before known oil, gas reserves run dry

April 25, 2019

Dateline 2019-03-13, Malaysiakini:

Malaysia’s oil and gas reserves are expected to be depleted by 2029 based on its current output, according to the Economic Affairs Ministry.

The ministry told the Dewan Rakyat today that Petronas will have to continue exploration efforts domestically and abroad in order to ensure Malaysia’s fuel supply was sustainable.

“However, (hydrocarbon) exploration involves a very high cost, around 70 to 80 percent of the cost of production, due to the complexity and risks faced by Petronas,” said the ministry.

This was said in reply to Hasan Arifin (BN-Rompin) who also asked about the volume of Malaysia’s oil and gas reserves.

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Malaysia’s floating LNG vessel stops LNG production ahead of relocation

April 24, 2019

Dateline 2019-03-11, S&P Global:

Malaysia’s floating LNG export vessel PFLNG Satu has stopped producing LNG in preparation for a relocation exercise, national oil company Petronas confirmed in a statement late Friday.”However, as of today, it still remains at the Kanowit gas field, offshore Bintulu, Sarawak. An announcement on this will be made in due course,” Petronas added.
The production halt will have negligible impact on the spot market as the plant’s LNG output has been well below its full capacity, with few cargoes being offered on the market since it started operations, according to a Singapore-based LNG trader.
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Malaysia’s Petronas grows freely, Indonesia’s Pertamina hobbled by Govt intervention

April 23, 2019

Dateline 2019-03-08, The Star:

On the southernmost edge of the Asian landmass and on the shores of the busy shipping lanes of the Singapore Strait, Malaysia’s Petronas is starting up a state-of-the art petroleum processing hub, called RAPID.

The huge complex in Malaysia’s Johor province is currently testing its systems, running crude oil through its fuel processing units and labyrinth of pipes and producing large exhaust gas fires from its flare tower. The flames are clearly visible for miles around, including on Indonesian islands just across the narrow strait.

The 300,000 barrels-per-day (bpd) RAPID or Refinery and Petrochemical Integrated Development will come onstream around May. Among other customers, it will sell fuel to Indonesia, shining a spotlight on the contrast between Petronas and its Indonesian peer Pertamina.
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Malaysia set to become LPG and LNG hub by 2022, says deputy minister

April 22, 2019

Dateline 2019-03-07, Malay Mail:

Malaysia is set to become the storage and distribution hub of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) in the region within the next three years, Deputy Transport Minister Datuk Kamarudin Jaffar said.

He said the hub was being developed in collaboration with Singapore’s Global Petro Storage Group (GPS) and Norway’s Equinor, both of whom were global players in the industry.

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