Labuan ‘has potential’ to become O&G hub in the region

December 1, 2012

Dateline 2012-11-14:

Labuan has the potential to become a major oil and gas (O&G) hub with its strategic location, being adjacent to international shipping lanes and its close proximity to deepwater O&G fields offshore Sabah.

Industry players note that Labuan’s proximity to Sipitang and Kimanis in Sabah, where close to RM8 billion in value of downstream facilities are being constructed, is seen as another one of its advantages.

Industry officials also note that Labuan has two major facilities crucial to the O&G activities – the Labuan Shipyard & Engineering Sdn Bhd (LSE) and Asian Supply Base Sdn Bhd (ASB).

Travelling from Site to Site

November 26, 2012

I had to get from Labuan to Kimanis. Unfortunately, the flight schedules didn’t allow me to make it to Kimanis on time. Alternate travel arrangements were made…


Insight: Iran parks oil off Malaysia to dodge Western sanctions

September 25, 2012

Dateline 2012-09-13:

Iran is using a little-known port off the East Malaysia coast to hide millions of barrels of oil from Western sanctions, according to shipping data, industry sources and officials.

A Reuters examination of shipping movements and interviews shows how Iranian crude is shipped to the area and loaded on to empty vessels at night to await potential Asian buyers. Storing the oil on hired tankers operating under the Panamanian flag in the calm waters off the tax-haven port of Labuan – an offshore financial centre about the size of Manhattan – means Iran can keep its own fleet active and ensure the flow of oil money into its struggling economy.


Labuan-based ASB Eyes O&G Sector In Sabah

September 12, 2012

Dateline 2012-09-04:

Asian Supply Base Sdn Bhd, a Sabah Government subsidiary, is eyeing opportunities in Sabah’s oil and gas industry particularly in Sipitang.

Chief Executive Officer Datuk Harris Tan said the business expansion to the Sabah mainland is in line with ASB’s diversification plan to become a major player in a highly competitive industry.

He said ASB is moving in the right direction to cater to the region’s increasingly active oil and gas industry.

“The company also has the capability and competency to support vessels such as fast crew boats, anchor handling tugs and multi-purpose vessels.

“Not only that, ASB has all the requirements to contribute to Malaysia’s aspiration to be a deepwater hub in this region.


Getting Labuan folk ready for oil, gas boom

August 17, 2012

Dateline 2012-08-03:

Plants, pipes and complexes are not the only things that need to be prepared as the island gears itself to be a leading oil and gas hub in Asia.

The 80,000 people on the island too need to be ready for the ambitious plan to harness the lucrative industry that had seen investments pouring in over the years.

Opportunities are bound to come with the recent announcements of new oil field discoveries off Sabah, as well as major Petronas projects on the cards, amounting to RM45 billion (S$18.2 billion) in the years to come.

Federal Territories and Urban Wellbeing Minister Datuk Raja Nong Chik Raja Zainal Abidin recently visited the island and met with the business community to assert the government’s plan to turn it into a leading oil and gas hub.

Malaysia tanker toll rises as last body found

August 10, 2012

Old news, but a late reminder is better than no reminder.

Dateline 2012-07-30:

 Firefighters on Monday recovered the body of the last crewman missing after a Malaysian tanker exploded off Borneo island, bringing the death toll from the accident to five, police said.

The charred body of the Malaysian crewmen was found inside the chemical tanker, which exploded early Thursday while being loaded with methanol on the South China Sea island of Labuan, district police chief Saiman Casran said.

The bodies of four other crewmen, including a Philippine national, were recovered earlier near the MV Bunga Alpinia, which was engulfed and severely damaged by a huge inferno following a series of explosions.

Labuan oil & gas industry operations must upgrade safety

August 9, 2012

Dateline 2012-07-28:

Operators of oil and gas industry in Labuan have been urged to upgrade safety as the sector requires high operating standards.

Federal Territories and Urban Wellbeing Minister, Datuk Raja Nong Chik Raja Zainal Abidin said high safety is important to realise the government plan to make Labuan a leading oil and gas hub in Asia.

“Safety is key as it can be the selling point in enhancing oil and gas industry in Malaysia. Corporations involved in this industry and agencies must ensure that safety standards are at international level,” he said after launching the ‘Bubur Lambuk 1Malaysia Amal Media 2012’ programme here Saturday.


Labuan Gives Tax Incentives For Oil And Gas Trading

November 13, 2011

Dateline 2011-11-02:

At the launch of the Global Incentives for Trading (GIFT) programme and the newly-formed Labuan International Trading Commodity Company (LITC), the Director-General of Labuan Financial Services Authority (FSA) Encik Ahmad Hizzad Baharuddin announced that a range of incentives have been initiated to attract oil and gas traders to Malaysia.

The new scheme will be operated by the LITC out of Labuan International Business and Financial Centre (IBFC), and is intended to diversify further the products and services of Malaysian’s financial services sector.

New Crude Grades – Kikeh and Labuan

March 5, 2009

Welcome t0 the new crude grades. They join Tapis as a made in Malaysia product.

Argus Launches Malaysian Crude Assessments

LONDON, March 2 /PRNewswire/ — Argus has launched daily price assessments for Malaysian crude grades Kikeh and Labuan.

Kikeh is a light sweet crude with 36.74 degrees API gravity and 0.06pc sulphur content, which loads at the Kikeh marine terminal. US integrated oil company Murphy has an 80pc working interest in the field and takes about 70pc of output under the production-sharing contract as the operator, with the remaining share held by Malaysian state-owned oil firm Petronas. Production of the grade has climbed from around 40,000 b/d at start-up in August 2007 to around 120,000 b/d in early 2009.

Argus is also adding an assessment for Labuan, a light sweet Malaysian crude with 29.92 degrees API gravity and 0.028pc sulphur content, which loads at the Labuan crude oil terminal. Petronas has an 80pc interest, with Shell holding the remainder. Production of Labuan is around 75,000 b/d.

Both grades will be assessed at a differential to Tapis APPI on a fob Malaysia basis for 600,000 bl cargoes loading 15-45 days ahead.