February 13, 2018
Dateline 2018-01-03, Borneo Post Online:
Natural gas prices are likely to be more competitive by 2019 in the local market with the participation of more industry players following the introduction, last year, of a Third Party Access (TPA) mechanism, says the Malaysian Gas Association (MGA).
Secretary-General Rosman Hamzah said the TPA, introduced in January 2017, was aimed at opening the gas supply market to third parties including foreign companies, to sell gas to any consumer in Malaysia on a willing buyer-willing seller basis.
“With more market players involved, they will be able to increase competitiveness in the industry and hence, pull natural gas prices lower,” he told Bernama.
However, Rosman explained that despite the anticipation of lower gas prices, its movement was very much tied to the movement of crude oil prices.
February 12, 2018
Happy worry about a new year 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, and they have moved adverts to another online presence (I bought a dead tree edition this week). 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 2Q2018. Send me your POs.
Food choice of the week? Please patronise King’s Confectionery at IOI Mall. A member of the family is working there while waiting for exam results. Go on, you know you want to a donut (British edition) every 3 hours.
This week, may I suggest you have a peek at Dakwah Corner? They have branches in Subang Parade, PJ Section 14, Ampang Park (okay, forget about the Ampang Park branch)
February 11, 2018
Dateline 2018-01-02, NST:
Petroliam Nasional Bhd (Petronas) and its Petroleum Arrangement Contractor (PAC) oeprators will continue to develop new oil and gas exploration projects in 2018 to 2020 despite the low price environment.
In the next five years, Petronas projected that the average daily oil output would be 1.7 million barrels.
It said the potential projects to be developed will be concentrated in new growth areas or new projects and maximize exploration of existing projects.
“The expected development portfolio between 2018-2020 for the new project is 20 projects, of which 30 percent are oil projects.
“The expected development portfolio of existing projects involves 30 projects with 75 percent of them involving oil projects,” Petronas said in its Activity Outlook 2018-2020 report disclosed recently.
The national oil and gas company explained that new projects to be developed in 2018 to 2020, all involve the development of new facilities.
February 10, 2018
Dateline 2018-01-02, FMT:
It was reported last month that Petronas had awarded the new field development plan (FDP) of the Beryl gas field off the Sarawak coast in October 2017 to JX Nippon Oil & Gas Exploration (Nippon Oil).
So, the Japanese firm and Petronas Carigali will form another joint venture on the development, production and monetisation of Sarawak’s gas reserves.
It is uncertain how Petros, the newly-formed state entity formed by the Sarawak state government in June last year to participate in oil and gas activities, will participate or enjoy, if at all, any of the returns generated by the production and sale of the gas from the Beryl field development.
Likewise, for the gas produced from the other Nippon Oil and Petronas Carigali fields of Layang and Helang, situated adjacent to Beryl.
The gas produced in these three fields are piped and sold to the Petronas liquefied natural gas (LNG) plant in Bintulu, Sarawak.
Contrary to what the Sarawak state government had been saying earlier, it appears Petros has not announced any interest in this new gas block for development.
February 9, 2018
Can we have a Bank Minyak dan Gas, similar to Agrobank?
Dateline 2017-12-30, Asean Today:
The Malaysian oil and gas industry has been suffering from prolonged low oil prices. During the past ten years, crude oil prices fell from above US$130 per barrel to an all-time low of US$26 per barrel. The unpredictable and changing global environment cause oil prices to fluctuate severely. Recently, members of the Organisation of Petroleum Exporting Countries (OPEC) have been complying with the agreed production levels. The gradual reduction in oil inventories will help alleviate the oversupply of oil. But, prices will unlikely return to its past average of at least US$80 per barrel soon.
Sources: Petronas Activity Outlook 2017- 2019, Petronas Activity Outlook 2018-2020
Meanwhile, The Edge’s December 2017 weekly report noted that banks have been more cautious in their lending to the O&G sector in recent years. It quoted O&G players like Deleum Bhd and Uzma Bhd. Given the current global dynamics, it may be reasonable for the banks to act in its own interest. However, their decision to not lend capital needed may drag Malaysian Oil and Gas Services and Equipment (OGSE) industry further away from its long-term vision of being able to compete with the best in the world across multiple categories in terms of cost and quality.