Petronas mulling appeal on right to sales tax

May 9, 2020

Lawyer are essential services.

Dateline 2020-03-18, FMT:

Petronas is still considering whether to appeal against last week’s High Court ruling that Sabah and Sarawak have the right under the Federal Constitution to impose sales tax on petroleum products.

“We have 30 days from March 13 to file a notice of appeal to the Court of Appeal,” said lawyer Malik Imtiaz Sarwar who represents the national oil and gas company.

Last week, judge Azahari Kamal Ramli, who is based in Kuching, dismissed Petronas’ judicial review application to declare the Sarawak state sales tax null and void.

Petronas had claimed that some parts of the state’s Sales Tax Ordinance 1998, which require the national oil company to pay the 5% sales tax on petroleum products to Sarawak, were unconstitutional.


B20 is the better fuel

May 8, 2020

Yeah, B20 is good.

Dateline 2020-03-18, NST:

MALAYSIA launched its B20 (20 per cent palm methyl ester and 80 per cent petroleum diesel) programme for the transport sector recently.

For someone who has been in the palm oil industry for more than 30 years, I see this as a strategic move that could strengthen the industry. At the same time, it will contribute to the country’s effort to achieve its sustainable development goals, which call for the protection of the planet and people.

This is because scientific studies have proved that the use of biodiesel can reduce greenhouse gas emissions. For Malaysia, it will bring down the emissions by 3.8 tonnes a year.


Five Petroleum debuts in Malaysia

May 7, 2020

One for the history books.

Dateline 2020-03-17, Petrol Plaza:

Five Petroleum Malaysia has launched its brand in Malaysia with the opening of its first fuel station in Kalumpang, Selangor. The official opening also marks the debut of its Ultimaxx range of fuels and integrated Woo! Mart convenience store, according to a press release.

Operated by Pahang-based Seng Group, a company with nearly five decades operating in the fuel business, the new brand marks Seng Group’s first independent foray into the fuel retail segment. Seng Group already represents the petrol stations brand BHPetrol.

Five Petroleum will be managed by the same team from Seng Group, while its Ultimaxx fuels will be sourced from Petronas.


IEM Shout Out – 2020-05 Talk on “HAZOP”

May 6, 2020

My technical division will be hosting a talk on the 9th May 2020. No official CPD points, as it is a webinar. The talk will be presented by yours truly, so come and fill seats, especially since I am giving it during the fasting month.

A Hazard and Operability (HAZOP) study is a formal, systematic and detailed examination of new or existing facilities. It focusses on the process, rather than risks from ‘outside the pipe’, which are better analyzed using other studies such as HIREC/ HAZID/ HER. A HAZOP assesses the hazard potential, causes and consequences on a facility when there are deviations to the operating conditions, or the manner of operations. Existing safeguards need are reviewed to determine whether they can eliminate the cause or minimize the consequence.

Ir. Razmahwata has 26 years of experience in the oil and gas industry, in both design and operations. He joined ExxonMobil Exploration and Production Malaysia Inc shortly after graduation in 1995. In 1998, he was reassigned to EMEPMI’s operations department. His responsibility was to provide technical support to an offshore production facility. His tasks were varied, included troubleshooting day to day challenges, managing retrofit projects, and leading safety cases. He was made the Company’s custody metering engineer in 2001, charged with leading the exercise to ensure the Company compliance with industry and company specifications was enhanced. Whilst in Poyry, Ir. Razmahwata has been a Senior Process Engineer for SembCorp’s Betara project. He has HAZOP, HAZID and SIL workshop leadership experience on offshore facilities. He has recently worked on a secondment providing detailed design services to a tanker to FPSO conversion project in Singapore. He supported ExxonMobil in developing measurement manuals, and leading an exercise to validate 59,000 line items. He is currently the Lead Engineer of IGL Services Sdn Bhd.

Register here, or download the form here.


Five dead in fire at Petronas-Aramco petrochemicals complex in Johor

May 5, 2020

You know, I think setup up public 24/7 internet HD cams facing the site would be a thing by now.

Dateline 2020-03-16, CNA:

A fire and explosion on Sunday night (Mar 15) killed five people at a refining and petrochemicals complex in Malaysia’s southern state of Johor.

Another person sustained 70 per cent burns, Pauzan Ahmad, an official with the Johor state fire and rescue department, said on Monday.

The incident occurred at the diesel hydro treater unit in the Pengerang complex owned by Petronas and Saudi Aramco, Pauzan said, adding that the cause of the fire was under investigation.

Pauzan said the Johor state operations centre received an emergency call about the fire at about 11.20pm.


Petronas takes workplace action amid Covid-19 pandemic

May 4, 2020

Out of date, but hey.

Dateline 2020-03-16, Upstream Online:

Malaysia’s national oil company Petronas has put in place special working arrangements for its thousands of employees as a precautionary measure to minimise the risk of the deadly Covid-19 virus.

With immediate effect, Petronas is “strongly encouraging” employees who can work from home, to do so where possible. No timeframe was given for this measure.

“For employees who are required to be physically present in the office or at our operations, Petronas is taking the necessary steps to ensure their health and safety while at the workplace,” the company said on Sunday without giving details.


Fire, explosion at Petronas’ oil refining complex at Pengerang

May 3, 2020

Dateline 2020-03-16, The Edge:

A fire and explosion occurred at the Pengerang refining and petrochemicals complex in southern Malaysia, state news agency Bernama reported on Monday, citing the Petronas-Saudi Aramco joint venture that runs the operation.

The incident occurred on Sunday night and an emergency response team has been activated, Bernama reported.

“The situation is under control,” Bernama said, citing a statement. The news agency did not report any injuries or damage.

Petronas directed queries to the joint venture company Pengerang Refining and Petrochemical (PRefChem), which has not responded to a Reuters request for comment.


Diversify revenue base, O&G players urged

May 2, 2020

Dateline 2020-03-16, NST:

Malaysia’s oil and gas services providers will need to diversify revenue base to mitigate their operations against oil price shocks, analysts said.

They must also increase operational efficiency to lift margins or venture into alternative energy business to reduce dependency on oil prices.

MIDF Research analyst Noor Athila Mohd Razali said tumbling oil prices could delay the award of new contracts and renewals. This would result in margin compression for O&G service providers.

“The low oil price environment will have an impact on the entire O&G value-chain be it directly or indirectly.

“The upstream producers will be more directly impacted by the low oil price environment as lower revenue as a result of higher cost of production and low selling price will weigh on earnings,” she told the New Straits Times.

For downstream players, Athila said feedstock prices would be more favourable following the drop in oil price.


Sarawak party says state should claim ownership of its oil

May 1, 2020

Dateline 2020-03-14, Malay Mail:

After the High Court ruled that the state has the right to impose sales tax on petroleum products, the next step is for the state government to declare the ownership and economic rights over oil and gas resources, Sarawak People’s Aspiration Party (Aspirasi) stressed today.

Its president Lina Soo suggested this could be done by passing legislation in the State Legislative Assembly to repudiate the Petroleum Development Act (PDA) and Territorial Sea Act (TSA).

“Both the PDA and TSA have impinged upon Sarawak’s territorial integrity over our petroleum resources and territorial waters, and by not seeking a constitutional redress, our sovereignty will be compromised in acquiescence as silence will be taken to mean consent,” she asserted.


High Court rules Sabah, Sarawak can impose sales tax on petroleum products

April 30, 2020

Dateline 2020-03-13, FMT:

The High Court today ruled that Sabah and Sarawak have the right under the Federal Constitution to impose sales tax on petroleum products.

High Court Judge Azahari Kamal Ramli dismissed the leave application for judicial review by Petronas to declare the Sarawak state sales tax null and void.

Petronas had claimed that some parts of the state’s Sales Tax Ordinance 1998, which require the national oil company to pay the 5% sales tax on petroleum products to Sarawak, were unconstitutional.

The company’s lawyer Malik Imtiaz Sarwar argued that the notice of assessment issued by the Sarawak government to Petronas seeking payment of the tax on petroleum products was therefore invalid.