Petronas says RM200b ‘forgone revenue’ from selling natural gas cheaper in Malaysia

May 7, 2017

Dateline 2017-04-25, The Edge:

Petroliam Nasional Bhd (Petronas) has forgone more than RM200 billion in revenue from selling natural gas in Malaysia at rates lower than global prices since the country regulated prices of the fuel after the 1997/1998 Asian financial crisis.

The Edge Malaysia business and investment weekly (Edge Weekly) in its latest March 27 to April 2 issue, quoted Petronas president and group chief executive officer Datuk Wan Zulkiflee Wan Ariffin as saying despite Malaysia revising the price of natural gas upward every six months, the local rate was still below the international price.

“I think the forgone revenue since we started is more than RM200 billion because we have not been able to sell natural gas at market value. In the past, we made investments just to ensure security of supply. But moving forward, there is this perennial issue of non-market pricing.

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Longhouses near gas pipeline given fire safety talk

May 6, 2017

How exactly would these talks decrease the risks to the longhouses?

Dateline 2017-04-24, Borneo Post:

Zone 6 of the Fire and Rescue Department (Bomba) and Sabah Sarawak Gas Pipeline (SSGP) recently held a fire safety campaign for longhouses along the gas pipeline in Niah near here.

It was held at Clarence Unjun longhouse and involved fire safety working committees from nearby longhouses – Merudi Jalin longhouse, Robert Antas Gani longhouse, Sabang Empungan longhouse and Ngalantar Senggaling longhouse, including Clarence Unjun longhouse.

The campaign included auditing longhouses close to the SSGP gas pipeline to assess their level of fire safety.

The longhouse residents were taught on the security measures around the gas pipeline by SSGP and given fire safety talk and demonstration on how to use fire extinguishers by Bomba.

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Four UMS students awarded Repsol scholarships

May 5, 2017

Dateline 2017-04-25, Borneo Post:

Four engineering students from Universiti Malaysia Sabah (UMS) received their scholarship award from Repsol Oil & Gas Malaysia Limited (Repsol ) last Saturday. The scholarship would cover tuition fees, living allowances, purchase of a computer and opportunities for practical training and internships.

The deserving recipients were Nur Izzati bte Sukur (mechanical engineering), Verlon Vincent Lee, Nur Kamaliyah Dzil Razman and Arswitaa Baskaran (all chemical engineering). All except Arswitaa hail from Sabah.

They were among 16 recipients of the Repsol scholarship awards for 2017. The other 12 were drawn from Universiti Teknologi Malaysia (UTM) with 5 recipients, Universiti Malaya (UM) with 3 recipients and Universiti Sains Malaysia (USM) with 4 recipients, pursuing Bachelor’s and Master’s degree programmes.

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Challenges to persist for O&G companies

May 4, 2017

Dateline 2017-03-21, NST:

The worst is not over yet for oil and gas (O&G) companies as shale oil producers ramp up production and oil prices make a slow recovery.

Analysts and industry observers expect uncertainty to loom for the rest of the year as industry assumption remained at US$50 (RM221.50) a barrel.

Petroliam Nasional Bhd (Petronas) was more conservative, expecting an average of price of US$45 a barrel.

“We are maintaining our this year’s average Brent crude price at US$50 a barrel as we see more uncertainty with crude oil prices towards the downside bias,” said an analyst at MIDF Research.

Oil prices fell more than one per cent yesterday as investors made record cuts to bet on rising prices after strong drilling data from the United States fed concerns about the effectiveness of production cuts led by Organisation of the Petroleum Exporting Countries (Opec) to curb a supply glut, Reuters reported.

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IEM – Dinner 2017

May 3, 2017

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“People Will Adapt” – Says O&G Industry Expert On Weekly Ceiling Price For Fuel

May 2, 2017

Changing colours like a chameleon, much?

Dateline 2017-03-17, MalaysianDigest:

Malaysians are still in the dark about how the new fuel ceiling price will be implemented as the ministry has yet to announce the mechanism for the new system until April comes.

While reactions of several stakeholders towards the announcement has been covered in Malaysian Digest’s feature story, someone within the oil and gas industry shared with us a picture of how it will play out once the system is in place.

Nora, a financial analyst in the oil and gas industry, said that nothing would be particularly different for consumers as they will adapt regardless of what system is implemented.

“I don’t think anyone has that much energy to really monitor the ups and downs every week and how it would translate to cash flow or money availability.

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Saturday Star 2017-04-29 – Job Opportunities

May 1, 2017

Happy ‘Already Seeing Dates for Ramadhan in Shops’ week. IGL has pivoted into training, so book your seats now.

We’re thinking of republishing Young Turks of PETRONAS, but it’s a minimum 500 book printing run. Do I have enough interested persons to purchase?

Donate to your favorite charity (me), buy my recommendations, or through my Amazon store. Or get the Young Turks series (3 books until I can get YTP republished). Where are those corporate sponsors? Or throw donations at me, my camera dive case flooded, and I need a new replacement. Heck, if you want to send me a Canon 5D Mk III plus dive case, I will not say no.

  • I have a feeling that The Star isn’t the preferred O&G job recruitment portal now. I see more adverts via social media. What do you think, is it a step change that the papers need to embrace?
  • I’m looking for jobs for 3Q2017. Send me your POs.

Food choice of the week? The nostalgic food stall, near your parents home. McD Bangsar Baru does not count.

Seeing that Joe Dever has passed away, you may want to revisit his books:

Flight from the Dark (Lone Wolf, Book 1), Legends of Lone Wolf Omnibus 1, War of the Wizards (The World of Lone Wolf, Book 4)

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Prudent spending helps Petronas control earnings decline

April 30, 2017

Dateline 2017-03-17, FMT:

Petronas has managed to control its decline in earnings in the wake of low crude oil prices due to cost optimisation initiatives, ratings agency Moody’s said yesterday.

It described Petronas’ 6.7% decline in its earnings before interest, tax, depreciation and amortisation (ebitda) to RM70.4 billion for 2016 over 2015 as a “modest” decline.

“This is a modest earnings decline, considering that the crude oil prices have decreased by around 17% year-on-year, with Brent averaging US$43.69 per barrel (bbl) in 2016, as compared with US$52.46 per bbl in 2015,” Moody’s said in a report.

However, Petronas’ upstream earnings for 2016, measured by profit after tax, improved by 88%, The Sun Daily reported.

This, Moody’s said, was mainly due to operating costs reduction and lower impairment losses, compared with 2015.

Petronas’ crude oil and natural gas entitlement volumes increased by 10.5% to 1,794 barrels of oil equivalent per day (boed), the report said.

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SEC expands gas distribution network

April 29, 2017

Dateline 2017-03-17, Daily Express:

Sabah Energy Corporation Sdn Bhd (SEC) is expanding its gas distribution network to reach out to new segments of energy users through the building of a plant that converts natural gas from its gaseous form to liquid, the first of its kind in Malaysia.

The State Government-linked company is embarking on the project in partnership with China’s Zhangjiagang Furui Special Equipment Co. Ltd (FURUISE) through the setting up a company known as SEC Gas Sdn Bhd.

The company is to build, own and operate the plant which will be located at the Kota Kinabalu Industrial Park (KKIP).

When launching the SEC’s third phase gas distribution initiative Thursday, Chief Minister Datuk Seri Musa Aman praised the company for taking the initiative to breathe fresh air to the State not only in the form of bringing new technology but also expanding the benefits of natural gas to a wider spectrum of energy consumers.

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Petronas not affected by weaker oil price

April 28, 2017

Dateline 2017-03-17, Malaysia Outlook:

The recent oil prices pull-back will not affect Petroliam Nasional Bhd’s (Petronas) spending given that the local oil major has pegged its capital expenditure (capex) budget at an average US$45 per barrel.

According to Kenanga Research, the Petronas capex was a conservative figure compared with the US government’s Energy Information Administration forecast of US$54 per barrel.

“However, capex and operating expenditure allocations will remain rather selective as Petronas will continue to prioritise on managing its cash flow amid tight capex spending,” Kenanga said in its report this week.

Oil prices have weakened by 9% to US$51.4 per barrel within a week after a few months of stabilisation, largely due to reignited concerns on building oil stocks and revival of rigs count in the United States coupled with the moderation of oil demand growth.

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