Jeffrey: Borneo states may turn against Najib if ignored

January 30, 2016

And the shrinking income cake is asked to be recut:

Dateline 2015-12-29, FMT:

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Briefly, Jeffrey wants Umno to halt its politics of race and religion fueling its divide-and-rule tactics to cover up the plundering of the economy, defer the GST or at least reduce it to 2 per cent from the current 6 per cent, and exempt Sabah and Sarawak from the consumption tax. “Sabah is also entitled to 40 per cent net revenue entitlement under the Federal Constitution and other financial rights like 10 per cent export duty and 10 per cent import and excise duty on petroleum products.”

“The measly 5 per cent oil royalty should also be reconsidered in the wake of the emergency laws being done away with and the Petroleum Development Act and the oil agreement being considered redundant as a result.”

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Posted by Wata

Office space blues from oil and gas companies

January 29, 2016

Hey, I was part of the expat (pick your country) nightshift that helped move people into the building.

Dateline 2015-12-29, The Star:

The bleak long-term outlook of oil prices has gotten companies with operations in the Kuala Lumpur city centre readjusting their priorities in line with the situation.

ExxonMobil Exploration and Production Malaysia Inc is likely to join the list of companies that have embarked on cost cutting measures particularly in terms of office space.

Sources said the company may return several floors of a building it currently occupied in the city centre to KLCC Property Holdings Bhd (KLCCP) once its tenancy agreement expires in January 2017.

The 29-storey Menara ExxonMobil, which is next to the Petronas Twin Tower, has been leased to the company since 1997 and the oil and gas (O&G) giant is looking at occupying up to only half of the building.

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Posted by Wata

OPEC: Four more years of cheap oil

January 28, 2016

It takes that long to kill Western producers, eh? And PETRONAS, while you’re at it.

Dateline 2015-12-24, FMT:

The OPEC oil cartel sees only a gradual improvement in the global crude market, with prices recovering to above $70 per barrel after four years, according to a report released Wednesday.

With the global benchmark oil price touching an 11-year low of $36.04 on Monday, the cartel which produces a third of the world’s crude said that it foresees a “gradual improvement in market conditions as growing demand and slower than previously expected non-OPEC supply growth eliminate the existing oversupply and lead to a more balanced market”.

The Organization of the Petroleum Exporting Countries, in its annual World Oil Outlook report, bases its reference scenario on $70.70 for a barrel of crude in 2020 and $95 in 2040.

Those projections represent a sharp drop in market value compared to last year’s report, which predicted a nominal price of $110 for the rest of this decade.

The oil market has been rife with drama over the past year and a half as OPEC abandoned its policy of cutting production to support prices, with the price of a barrel of crude plunging more than 60 percent.

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Posted by Wata

Marketing Rounds – Where are the Floaters?

January 27, 2016

If you were wondering where the oil & gas industry stores floaters in the off season, wonder no more.

These were the entries to the UTP OGCE competition, and they were from secondary schools. Us jaded old timers could do well to learn from the young ‘uns. Give some love to your local school, whether monetary, time or engaging the minds of that generation.

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Posted by Wata

Dealers want weekly oil prices to be based on retail price

January 26, 2016

Sod that, let’s go back to laissez faire. Read The Will to Compete.

Dateline 2015-12-24, FMT:

The Petrol Dealers Association of Malaysia has suggested to the Finance Ministry to revise oil prices weekly according to the retail price.

Deputy Finance Minister Johari Abdul Ghani in a statement today said that the association had met with him recently and voiced their concerns on the current managed “float system.”

Under this system, oil companies send large quantities of petrol to operators if they predict that retail oil prices will drop in the following month, and vice versa.

“Oil companies are taking advantage of this system. If the proposed system is implemented, price hikes would not be too significant for both operators and customers,” he said.

He added that if current issues were not addressed, it could cause more than 3,200 fuel station operators – 70 per cent of whom are Bumiputera entrepreneurs, to suffer losses.

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Posted by Wata

Saturday Star 2016-01-23– Job Opportunities

January 25, 2016

Happy 30 dollars a barrel week (we really, really hope). Donate to your favourite charity (me), buy my recommendations, or through my Amazon store. Or get the Young Turks series (all 4 books). 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’m looking for jobs for 2Q2016. Send me your POs.
  • An associate of mine is looking for a technical safety part-time adviser. 2 Associates, actually. Needs to be needle sharp with respect to QRAs, and HSE safety cases. A calm demeanor to handle nonsensical questions from young engineers helps as well. Either that, or a drinking problem.
  • Nothing in the papers this week. See Happy note above.

Support your local bookshop!  Bookalicious at The Summit Subang is a good choice. I think they focus on trilogies, quadrilogies, and other ologies. Tell them I sent you, and enjoy the look of perplexity on their faces. Those of you who have dropped my name, thanks!

Food choice of the week? Any weight loss diet.

During these trying times, perhaps you should focus on self improvement. The following are a good set of books to start automating your uncertainty budget tables.

The Cartoon Guide to Statistics, Hands-On Start to Wolfram Mathematica, Doubt-Free Uncertainty In Measurement: An Introduction for Engineers and Students

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Posted by Wata

‘Investors should focus on downstream O&G’

January 24, 2016

I’ve been saying this since mid-Nov 2015. Maybe not in Malaysia, though.

Dateline 2015-12-22, Borneo Post:

Although the upstream sub-segment of the oil and gas (O&G) value chain remains depressed as exploration and production (E&P) capex are being reduced by many major oil producers, Malaysia’s downstream sub-segment industry is expected to remain robust.

MIDF Amanah Investment Bank Bhd (MIDF Research) said moving into 2016 and into 2017, works and activity levels at the RM90 billion Refinery and Petrochemical Integrated Development (RAPID) Project within the Pengerang Integrated Petroleum Complex (PIPC) are expected to be at its peak.

“As such, key beneficiaries are oil and gas companies which have downstream specialties such as KNM Group Berhad and Muhibbah Engineering Berhad,” it detailled in a report yesterday.

“Channel checks indicate that there could be a possibility of reallocation of staff by Petronas towards its downstream segments to prepare for the commencement of RAPID in Pengerang by 2019.

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Posted by Wata

O&G sector still rife with challenges

January 23, 2016

Dateline 2015-12-21, Borneo Post:

The oil and gas (O&G) industry will still likely face headwinds ahead as uncertainties of oil prices continue, driven by various global events.

The research arm of CIMB Investment Bank Bhd (CIMB Research) in a recent report, pointed out that recently, the industry has been hit by three events that will likely affect oil prices.

“Brent and WTI have both declined to US$37.19 (down 3.3 per cent) and US$35.74 (down 4.3 per cent) respectively overnight on news of surprising weekly build-up in US crude inventories coupled with the Federal Reserve’s 0.25 per cent rate hike announcement earlier this morning.

“This was further exacerbated by the proposal that US may lift the 40-year ban on crude oil exports. Investors have been bracing themselves for these decisions where the hike would support the dollar, and make oil (priced in dollars) more expensive to other currency holders,” the research team explained.

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Posted by Wata

O&G industry faces bleak 2016

January 22, 2016

Nuclear, Nuclear.

Dateline 2015-12-18, Borneo Post:

The oil and gas industry has been sluggish in 2015 and prevailing low oil prices will continue to cast a bleak outlook in the medium-term.

From the peak of US$112 per barrel reached in June last year, Brent, the global benchmark, almost halved its price, plunging to US$61.31 in June this year.

It has been steadily falling to below US$50 per barrel since August before dropping to US$36.33 on Dec 14, slightly above the low of US$36.20 seen during the 2008 financial crisis.

The weak oil price trend is caused by the oil supply glut following the booming shale industry in the United States while the Organisation of the Petroleum Exporting Countries (OPEC) refused to cap its production, estimated at about 31 million barrels per day (bpd).

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Posted by Wata

EMAS Offshore Limited: Extended Disclosure Regarding Proposed Sale of Shares in Persai Teknologi Bhd to Ezra Holdings Limited

January 21, 2016

Hess, do you know about this? Isn’t Ezra the same group as Perisai?

Dateline 2015-12-16, Business Wire:

EMAS Offshore Limited (“EMAS”) (OSE:EMAS) has entered into a letter of undertaking with Ezra Holdings Limited (“Ezra” or the “Buyer”) on 15 December 2015 (the “Undertaking”). Pursuant to the Undertaking, Ezra undertakes to buy from EMAS its entire 12.13 % stake in Perisai Petroleum Teknologi Bhd (“Perisai“). Perisai is a Malaysian-based upstream oil & gas provider and is listed on the Main Market of the Bursa Malaysia Securities Berhad. EMAS acquired the 12.13% stake in Perisai on 21 August 2013 as part of the consideration when EMAS sold its 51% stake in EMAS Victoria (L) Bhd to Perisai.

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