From the FT – PETRONAS Chemicals’ IPO: so many unanswered questions

September 14, 2010

A commentary on PETRONAS Chemical’s listing by a Financial Times blog post, dateline 2010-10-09:

The publication of the draft prospectus for an initial public offering is rightly regarded as an important moment in the process. It tells investors that the sale really is going ahead. But sometimes it doesn’t tell them much more than that.

The draft prospectus for the IPO of Malaysia’s newly formed PETRONAS Chemicals Group is a case in point: large parts of the document filed with the Securities Commission of Malaysia consist of rows of black dots and notes on contingent uncertainties.

Add to that the lack of clarity about how much of the company PETRONAS is putting up for sale, and it’s not surprising that no analyst has yet felt able to produce a comprehensive analysis of the company’s financial prospects and potential market valuation. (If there’s one out there, please let us know; you can contact us as explained here.)

Uncertainties abound. The 22 companies that make up the group have no joint operational or financial history, except as subsidiaries of the main PETRONAS group, and the new Chemicals group management has not yet had a chance to run the unit as a single entity.

…

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Saturday Star 2010-09-11 – Job Opportunities

September 13, 2010

Eid Mubarak, all. And no, it isn’t today, but it was on Friday, 10/9/2010.

If you’re looking for the Saturday Star, it wasn’t published last Saturday, presumably as everyone went on leave, leaving the printing press open for thievery.

Here’s a set I found on sale at bookxcess. MAD’s Greatest Artists: The Completely MAD Don Martin (MAD’s Greatest Artists Series) will bring back the old memories of when MAD was MADder. And if you want a more complete collection, get Absolutely MAD Magazine – 50+ Years.

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From the Star – PETRONAS Chemicals to list at PE of 15 times

September 12, 2010

From the Star, dateline 2010-10-09:

PETALING JAYA: PETRONAS Chemicals Group Bhd is likely to list at a price earnings multiple of around 15 times earnings, similar to what analysts are expecting in the coming listing of Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE), industry experts familiar with the exercise said.

The sources added that PETRONAS Chemicals would have a number of anchor investors, made up of both local and foreign institutions.

“As expected, the Employees Provident Fund will be wooed but so too will other funds, considering the size of the offering,” one banker said. Although no details have been revealed on the size of the offering, it has been reported that banking sources familiar with the company reckon it could be valued as much as US$2bil (RM6.2bil).

In a draft prospectus filed on Tuesday with the Securities Commission, PETRONAS said it had merged 22 chemicals companies to form the new group.

You can subscribe to an online version of the paper at the Bluehyppo site, follow links to e-browse.

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Ethiopia denies rebels chased oil, gas firms away

September 11, 2010

Ah, so PETRONAS didn’t run away from Ethiopia because they were chased out by rebels?

From the Somaliland Press, dateline 2010-10-03,

Rebel claims that Malaysia’s PETRONAS has stopped oil and gas exploration in Ethiopia are lies and three more firms are in negotiations to start exploration in the country, said its mines minister.

Ogaden National Liberation Front (ONLF) separatists and local media said state-owned PETRONAS had pulled out of the Horn of Africa nation after a gas field it was exploring was overrun by the militants in May.

…

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From Business Times – PETRONAS sets Tapis oil at record high

September 10, 2010

And our contribution to the general rise of crude oil prices… not sure what a crack spread is, though.

From the BT, dateline 2010-09-08:

Petroliam Nasional Bhd, Malaysia’s state oil and gas company, increased a price-adjustment factor for its Tapis crude for this month’s shipments to a record.

The factor was raised by 40 cents, or 11 per cent, from August to US$4.10 a barrel for September, said an official at Petronas, as the Kuala Lumpur-based company is known, asking not to be identified because of corporate policy. Last year, the price factor averaged US$2.48.

The increase follows a recovery in margins for processing light crude such as Tapis into gasoil, or diesel. The product’s premium to Dubai crude, the Asian benchmark, was at US$11.38 a barrel today, up 42 per cent so far this year, according to brokers PVM Oil Associates. This crack spread is a measure of refining profit.

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Saturday Star 2010-09-04 – Job Opportunities

September 9, 2010

Support me by purchasing my recommendations, or buying through my Amazon store.

First off, if you need my help to submit your CVs, donate to the blog, and I’ll review your CV to see if it is worthy of my (and my associates’) expectations. If you can’t figure out how to donate, no need to ask.

  • Sabic has an advert. They are looking for a inspection & corrosion eng, rotating equipment eng, mech engineer (design), process eng, environment eng, project eng, SHE eng / industrial hygienist. You can apply via email here or here. Or key in your resumes online here. Login under candidate login and password at the website.
  • Wasco is looking for GM – Operations, PPSC Industries Sdn Bhd. You can apply via email here, or snail mail to Wasco Energy Group of Companies, Suite 19.01, Level 19, The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, 59200 KL, Malaysia.

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BP to Sell Malaysian Assets to PETRONAS

September 4, 2010

And the Deepwater Horizon event spills over into Malaysia (pun intended).

Taken from the New York Times, dateline 2010-09-01:

BP said Wednesday that it would sell some of its Malaysian assets to Petronas, the country’s oil consortium, in a deal worth up to $411 million, as it begins to divest itself of businesses to recoup the costs of the Gulf oil spill.

The British oil giant said it was selling its stakes in Ethylene Malaysia and Polyethylene Malaysia, both already operated and part-owned by PETRONAS, which BP called their “natural owner.”

The deal with Petronas includes a $363 million cash payment, a $15 million balance sheet adjustment, the repayment of a $53 million shareholder loan, and potentially a special dividend of $48 million from Ethylene Malaysia.

The sale does not, however, signal that the company is departing from Asia.

I look forward to the day BP wins deep water acreage in Malaysia, then we know that all has been forgiven, lessons learnt loss, and that money speaks louder than pelagics (I’m a diver, so sue me).

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Samsung Eng wins US$770m Petronas deal

September 3, 2010

Is this the SOGT whose design & construction contracts has been open to all sorts of accusations, least of which is incompetence?

From the Business Times, dateline 2010-08-31:

Samsung Engineering will build an oil and gas terminal in Sabah to produce 300,000 barrels of oil and 1.25 billion cubic feet of gas per day

PETRONAS Carigali Sdn Bhd (6033) has awarded a US$770 million (RM2.4 billion) contract to Samsung Engineering to build an oil and gas terminal in Sabah.

The plant, which will produce 300,000 barrels of oil and 1.25 billion cubic feet of gas per day, will account for 40 per cent of Malaysia’s crude oil production.

Samsung Engineering president and chief executive officer Park Ki-Seok said the contract reflects the company’s excellent project performance and the clients’ trust in the hydrocarbon plant sector.

“With expanding market share in the GOSP (gas oil separation plant) field and about US$50 billion (RM157 billion) invested annually, we plan to continue our drive to diversify our market and products in all upstream hydrocarbon fields such as offshore projects,” Park said in a statement.

For the Sabah project, Samsung Engineering will lead the engineering, procurement, construction and commissioning work with local partner NCSB Engineering.

The plant is expected to be mechanically completed in December 2013.

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Kelantan claims RM800m per annum oil royalty

September 2, 2010

From the Malaysian Insider, dateline 2010-08-30:

The Kelantan state government claims PETRONAS owes the state RM800 million per annum from the Kelantan-Thailand offshore area since 2005.

The Kelantan government filed a suit today at the High Court here against the oil giant for breaching the Petroleum Development Act (PDA) 1974 by failing to pay the state oil royalties.

“The worth of condensate (gas liquid) comes to about US$8.5 billion per annum from the joint development offshore area with Thailand,” said state executive councillor Datuk Husam Musa.

“Five per cent of that belongs to Malaysia, which is RM1.7 billion. Half of that belongs to Kelantan which is RM800 million. Petronas owes Kelantan RM800 million per annum since 2005,” he added.

The Kelantan state government said today that Petronas owes the state oil royalties from at least four offshore areas from which oil has been extracted from. These are Kelantan, Kelantan-Thailand, Kelantan-Vietnam and Kelantan-Terengganu.

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Aker Solutions Wins Kanowit Subsea Project Contract

September 1, 2010

Congratulations to Aker Solutions. Are they going to spread the Raya cheer?

Aker Solutions, through its subsidiary in Malaysia – Aker Process Systems Asia Pacific (APSAP), has been awarded two subsea contracts from PETRONAS Carigali Sdn Bhd (PETRONAS Carigali), the company reported in a news release. The first is a work order to supply subsea production system and services for the Kanowit field, while the second is a contract to deliver 5600 metres of subsea umbilicals that tie back the Kanowit subsea wells to the Kumang Cluster, Offshore Bintulu, Sarawak, Malaysia.

The engineering, procurement and construction work order is valued at approximately RM147 million ($45 million).

This work order is the result of the frame agreement signed between APSAP and PETRONAS Carigali back in 2009 for the supply of a complete subsea production system and services for a period of three years or until the completion of the Kanowit project.

Under the scope of work for this work order, APSAP will complete the engineering and delivery of a subsea production system consisting of two subsea trees, wellheads, subsea control system, manifold with high integrity pressure protection system, pipeline-end manifold and all tie-in equipment. APSAP will utilise Aker Solutions’ high-tech manufacturing centre in the Port Klang Free Zone to deliver the project and the equipment. Delivery of the subsea hardware is scheduled for 2011.

Meanwhile, the second contract with an estimated value of RM17 million ($5 million) will cover project management, engineering, procurement and manufacturing of subsea steel tube umbilical and auxiliary equipment.

The subsea umbilical, which contains steel tubes and electric cable, will connect the host platform to the Kanowit subsea field. APSAP will be delivering the contract out of Aker Solutions’ purposed-built subsea umbilical facility in Moss, Norway. Delivery is expected to be completed by the second quarter of 2011.

The Kumang Cluster field located about 250km offshore Bintulu is operated by PETRONAS’ exploration and production subsidiary, PETRONAS Carigali. Phase 1 consists of F9, Kumang and Kanowit fields. It comprises a central processing platform (CPP) at Kanowit field (KAKG-A) and drilling platform for F9 (F9JT-A) and Kumang (KUJT-A). Once installed, the Kumang Cluster facilities are able to supply gas to MLNG-2 terminal in Bintulu.

Dave Hutchinson, president – Subsea Asia Pacific, Aker Solutions, says the success of this project is of high importance: “Kanowit is PETRONAS Carigali’s first subsea venture in Malaysian waters. It will be an important reference for future subsea jobs in Malaysia and a major milestone towards realising Malaysia as the regional deepwater centre for the oil and gas industry. Aker Solutions is honoured to be given a role in this transformation process. We are confident that we have the knowledge and skills that are vital to achieving the deepwater hub ambition together”.

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