From the New Straits Times – Kelantan to get RM20M in March

January 28, 2010

Taken from the New Straits Times, dateline 2010-01-27:

KOTA BAHARU: Kelantan will receive RM20 million as compassionate fund due under an oil and gas production arrangement in March.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the decision was made after discussions with the national oil corporation, Petronas, recently.

“It involves revenue from oil and gas production in the South Earth Platform, Block PM301, close to Kelantan waters. The RM20 million is five per cent of the total revenue from the block since May 2008,” he told reporters after opening a forum on the compassionate fund, here last night.

More than 5,000 people attended the forum.

Mustapa, who is also chairman of the Kelantan Umno Liaison Committee, said the Kelantan government”s claim for RM11 billion in oil royalty was extreme as the oil production was not that high.

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

From the Star – Govt to Pay Royalty to Kelantan

November 15, 2009

From the Star, dateline 2009-11-10:

A Kelantan state executive councilor said the Federal Government was obliged to pay cash to petroleum producing states and not just in the form of a compassionate fund (wang ehsan).

Datuk Husam Musa said this was according to Clause 4 of the Petroleum Development Act (PDA) 1975.

Royalty Kelantan

Follow Kickdefella’s blog if you are interested in this mix of oil & politics.

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

From The Star – Transpeninsular Pipeline

August 16, 2009

Dateline 2009-08-13 taken from the Star:

The US$7bil Transpeninsular Pipeline (TPP) project that was to take off nearly two years ago may yet become a reality as a Chinese party is said to be keen to take a stake in the project with a shareholding agreement expected to be signed as early as tomorrow.

Malaysia - Transpeninsular Pipeline

Malaysia - Transpeninsular Pipeline

Maybe Synergy can propose doing the flow assurance for this pipeline… nah, it’s single phase, any university student who stayed awake during the compressible flow lectures should be able to do this.

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

Kickdefella – To Cakerawala and Beyond – by Boat

August 9, 2009

I thought I’d post a link to Kickdefella’s blog entry where he writes about a visit to Cakerawala platform via boat flotilla, with members of the Kelantanese administration.

Nice night photo of the asset. And I see quite a lot of life jackets not done up properly.

I suspect CHOC’s internal memo writing staff are working themselves up in a fenzy about the unusual visit.

From Bernama – Kelantan Oil Royalty Issue

August 6, 2009

Taken from Bernama, dateline August 1:

KOTA BAHARU, Aug 1 (Bernama) — The federal government is looking into the question of oil royalty for Kelantan, Prime Minister Datuk Seri Najib Tun Razak said Saturday.

He said the matter was still under study because of overlapping areas in the vicinity of the oil platform.

“When the study has been completed, I will send a representative to convey the result of the study to the state government,” he told reporters after opening the Kota Baharu Umno Division delegates meeting, here.

Kelantan is seeking RM1 billion in oil royalty from the federal government, claiming that the money constituted five per cent of the earnings from petroleum and liquefied natural gas extracted from offshore Kelantan since 2004 as per a report of the Statistics Department.

What ‘overlapping areas’ are being referred to? I know that the Joint Development Area is part of Kelantan costal waters, but you would think division of profits would have already been sorted out with neighbouring governments. If not, I pity CHOC.

And which oil platform we talking about? Isn’t it a gas platform that’s out there. Chakerawala, anyone? Or maybe they are talking about oil equivalent barrels (oeb)?

Other articles on this are here and here.

Article ‘Kenapa BN Mahu Sangat Rampas Kelantan’ – Take 3

April 1, 2008

Continuing my expansion of the above article, I thought I would comment on the map that is displayed in the article.

Peta rangkaian hidrokarbon Semenanjung Malaysia

First thing I would like to point out is that the author says the green and blue line represents an oil transportation system.

At the moment, peninsular Malaysia has no oil transportation system. And there are no plans to have a consumer level transportation system (i.e. from refinery to distribution centre, to being piped into petrol stations and the like).

However, the blue line can be said to represent the Peninsular Gas Utilization (PGU) routing. To quote from the website:

“Through its listed subsidiary PETRONAS Gas Bhd, PETRONAS has since 1984 been implementing the three-phase Peninsular Gas Utilisation (PGU) project, an infrastructure development project to process and transmit natural gas fed from the fields offshore Terengganu to end-users in the power, industrial and commercial sectors. The entire PGU system now spans over 1,700km, comprising main gas transmission pipelines, supply pipelines and laterals.”

Peta PGU

That covers the blue pill. Let’s chat about the green pill some other time.

Article ‘Kenapa BN Mahu Sangat Rampas Kelantan’ – Take 2

March 21, 2008

Continuing my expansion of the above article, I thought I would list down the operators and comments of the acreage listed.

  • Blok A18 – as the original author says, the acreage is operated by the Carigali Hess Operating Company (CHOCas its known to friends). It’s located in the Malaysia Thailand Joint Development Area (JDA)
  • Blok B17 – the PSC for this area is PETRONAS Carigali (JDA) Sdn Bhd, also in the JDA.
  • Block C19 – the PSC for this area is Carigali-PTTEP International Operating Company (CPOC), also in the JDA.
  • PM3 – operated by Talisman (Malaysia) Ltd.
  • Sub-Blok Ular – operated by PETRONAS Carigali Sdn Bhd (PCSB).
  • PM301 & PM302 – CS Mutiara, though I’m not sure if they have had to relinquish the acerage yet. It’s interesting to note that this aceragetouches the Kelantanese shoreline.
  • PM303 – Shell, PSC awarded in 1999, though yet to produce.
  • PM311 & 312 – joint venture between Murphy Peninsular Malaysia Oil Co Ltdand PCSB, yet to produce.

So, of the fields listed by the author, 3 are in the JDA, one is in Kelantanese waters, and the rest are in Terengganu waters.

It’s interesting to note that we do not have a JDA for disputed resources between Malaysia, Indonesia and Brunei. Would that have reduced the amount of hydrocarbons that could be claimed by Sabah and Sarawak?

Article ‘Kenapa BN Mahu Sangat Rampas Kelantan’ – Take 1

March 20, 2008

I thought I’d comment on the blog entry at I’m more interested in the oil and gas perspective, and providing some background information.
First, I’d like to mention who owns Malaysia’s hydrocarbon (that is, oil and gas) reserves. Quoting from an article I co-authored for the Institution of Engineers, Malaysia,

"As an outcome of the petroleum crisis of 1973, which was a result of an OPEC oil export embargo by many of the major Arab oil-producing states in response to western support of Israel during the Yom Kippur War, Malaysia realised the importance and the impact that oil had on the local economy. The Petroleum Development Act (PDA) was enacted in 1974, leading to the incorporation of PETRONAS (Petroliam National Berhad) on 17 August of the same year under the Companies Act 1965. It is wholly-owned by the Malaysian government and is vested with the entire ownership and control of the petroleum resources in Malaysia. In essence, any company who wishes to take part in the exploitation of Malaysia's hydrocarbon resources act as a contractor to PETRONAS."

So, PETRONAS is the owner of all of Malaysia’s hydrocarbons, and this will not change until the PDA is amended or repelled in Parliment. Oil ownership is therefore not a drive to take over Kelantan.

Kelantan: New Budget?

March 2, 2008

Malaysia will undergo its 12th election this March 8, 2008. The state of Kelantan is the only state whose administration is led by a non-member party of Barisan National, the ruling coalition.

To quote an article from today’s Sunday Star, ‘Kelantan … (currently) gets an annual allocation of RM400mil (from the Federal government).’

Continuing the article, ‘state Barisan chairman … said the Prime Minister had already promised Kelantan a special allocation and an expanded budget of RM1bil annually.’ I’ll assume that this means that the state will get an expanded budget if Barisan National wins a majority in the state elections.

Would that mean that Kelantan has been under-budgeted all this time?