Petronas agrees to give Sarawak bigger share of oil, gas revenue

December 23, 2020

Dateline 2020-12-08, The Straits Times:

Malaysian energy giant Petronas said yesterday that it has agreed to a commercial settlement that grants Sarawak state a higher share of revenue for oil and gas produced in the state.

Under the agreement, Sarawak state will also be given more active involvement in the state’s oil and gas industry through management of onshore oil and gas resources via its state-owned energy firm Petros, according to a joint statement by Petronas and the state government.

Both Petronas and the state government said they remained committed to providing a “stable, conducive business and investment environment for the sustainable growth of the oil and gas industry” in the state.

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Incentives needed for investors in Sarawak O&G

December 22, 2020

Dateline 2020-12-08, Malaysian Reserve:

THE newly sealed commercial agreement between Sarawak state government and Petroliam Nasional Bhd (Petronas) would need to provide investment incentives for it to remain attractive for investors.

An industry expert said an agreement like that would have to create investment incentives as any increase in royalty amounts would discourage new investment in exploration and production.

“To have a successful agreement, part of it needs to ensure the right incentives are in place for investments in the state. Such an agreement may lead to higher investment costs, particularly in a low oil price environment, and cause lower investment and production in the coming years,” the expert, who asked for anonymity, told The Malaysian Reserve.

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State govt mulling gas distribution system for Kuching, Kota Samarahan

December 21, 2020

Dateline 2020-12-02, The Borneo Post:

A plan is in the works to implement a gas distribution system for houses, commercial businesses and industries in Kuching and Samarahan.

Chief Minister Datuk Patinggi Abang Johari Tun Openg said the system will be similar to the piped gas grid the Gas Distribution Systems in Bintulu and Miri.

“This is something which cannot take place ‘kinek kinek’ (immediately). It takes time, it is in the planning stage. It is something I want to do but I cannot reveal (more details about it) yet.

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Reuters: Malaysia Probing Aker Solutions over Petronas Dealings

December 20, 2020

Hahaha, it’s about ownership of company, with respect to getting a PETRONAS license. What, MACC finally figured out the paperwork trail? How about hitting every company with a PETRONAS licence? Next, can they charge companies for providing engineering services without registering the proper licences with the Board of Engineers?

Dateline 2020-12-02, Offshore Engineer:

Malaysia’s anti-graft agency is investigating Norway’s largest oil services provider Aker Solutions on suspicions of making false statements in its dealings with state-owned energy firm Petronas, three sources familiar with the probe said.

The Malaysian Anti-Corruption Commission (MACC) is looking into allegations that Aker Solutions made false representations regarding the ownership of one of its Malaysian units in order to win licenses from Petronas, a source with the agency and two other people told Reuters.

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Petronas nears restart at Malaysia’s Pengerang refinery

December 19, 2020

You mean, it has not been operating since the March 2020 fire? How many heads have rolled? Wait, where’s my list of ‘get out of jail free’ C-level listing?

Dateline 2020-11-30, Argus Media:

Malaysia’s state-owned Petronas is on course to restart its 300,000 b/d Pengerang refinery joint venture with state-controlled Saudi Aramco in the first quarter of 2021, adding more capacity to a struggling Asia-Pacific refining market.

The Pengerang complex in southern Malaysia has been shut since a fire in March. Petronas said late last week that the project is transitioning to commercial operations and a restart of the refinery and petrochemical plants is planned for the first quarter of next year, in line with previous expectations.

The project’s atmospheric residue desulphurisation trains are also expected to be ready for start-up in the first quarter. Repairs are continuing on the diesel hydrotreater, which is targeted to come on line in October-December 2021. Aramco owns a 50pc stake in the project and will supply half of its crude, with the option to increase this to 70pc once the refinery is fully commissioned.

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A Tale of Two State-Owned Oil and Gas Companies

December 18, 2020

Dateline 2020-12-01, The Diplomat:

2020 has been a rough year for oil companies. In April, with the sudden stop in economic activity due to COVID-19 shutdowns, the price of U.S. crude fell to below zero for the first time in history. Oil companies were essentially forced to pay to store excess crude for a while, and with the global economy still reeling the rebound in demand has been sluggish. Still, the market price for crude bounced back pretty quickly, likely on hopes that this downturn will be short-lived. While it remains below its pre-pandemic price, it has recovered quite a bit since its April lows, with a barrel of West Texas Intermediate fetching $45.53 last week.

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Malaysia and China in stand-off near PTTEP’s appraisal drilling

December 17, 2020

Dateline 2020-11-30, Upstream:

The Chinese Coast Guard (CCG) and Royal Malaysian Navy have been involved in yet another standoff over oil and gas drilling in the South China Sea as tensions mount between regional powers over resources in the strategic sea area.

The CCG vessel 5402 in mid-November approached the Borr Drilling-owned jack-up Gunnlod, which is working for Thailand’s national upstream company PTTEP on Block SK 410B off Sarawak, East Malaysia, according to the Asia Maritime Transparency Initiative (AMTI) of the Center for Strategic & International Studies (CSIS).

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Human Writes: We are paying for electricity that we don’t use

December 16, 2020

Dateline 2020-11-22, The Star:

Psst, Malaysia, wanna save more than a billion ringgit a year? We surely need to save money what with the government’s debts and liabilities rising to record highs due in part to the Covid-19 pandemic.

Every year, folks, we lose at least RM1.2bil in energy industry deals, observers say. We have way too many power plants. Our capacity to generate power (which we pay for) is way more than the maximum power used (peak demand) – a difference known as the “reserve margin”. The 2021 margin is set to be 48%, says a report by an energy planning body in the Energy and Natural Resources Ministry (specifically, the Planning and Implementation Committee for Electricity Supply and Tariffs, known as JPPPET, its Malay acronym).

The RM1bil loss is calculated on the excess above retaining a 25% reserve margin. But many other countries keep much lower reserve margins, at 15%.

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Asean ministers set 35% target on renewable energy

December 15, 2020

Dateline 2020-11-20, The Malaysiain Reserve:

ENERGY Ministers in the Asean region have agreed to set a new target of 35% renewable energy (RE) in installed power capacity by 2025.

This aim was made following Malaysia’s proposal for the region to set a target for RE in installed power capacity by 2025 during its tenure as the chairman of the Renewable Energy Sub-Sector Network (RE-SSN) from 2018 until 2020.

“Malaysia’s effort has come to fruition when ASEAN Energy Ministers agreed to set a new target of 35% RE in installed power capacity by 2025, which Malaysia believes will contribute to achieving ASEAN’s target of 23% of RE in Total Primary Energy Supply in 2025.

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Malaysia’s Sarawak seeks investors to find new onshore plays

December 14, 2020

Dateline 2020-11-20, Energy Voice:

The eastern Malaysian state of Sarawak, home to the country’s LNG export complex, will soon open onshore acreage for bidding, as it hopes to revitalise its onshore oil and gas industry after taking regulatory control from the federal government.

Since the 1970s, significant oil and gas reserves have been discovered offshore Sarawak, which have helped supply one of the world’s largest LNG plants in Bintulu.

Although there has been significant exploration onshore since the 1980s, results have been modest. Still, Sarawak remains hopeful that new investment will help prove fresh commercial reserves by applying new technologies.

Moreover, Sarawak, after winning a recent battle against the federal government and Petronas for greater control of its natural resources, will now start offering onshore acreage through open auction, as well as direct negotiation. Two onshore blocks, covering the Miri and Limbang, as well as Lawas areas – SK 433 and SK 334 – will be open for bidding in the coming months, the state announced on 30 October 2020.

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