Petronas exercises prudence

April 27, 2018

Dateline 2018-03-05, NST:

Even as oil prices have improved in recent months, national oil company Petroliam Nasional Bhd (Petronas) is maintaining a cautious outlook this year and warns against slipping into complacency.

Its president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said Petronas has formulated its budget based on the assumption of oil price of below US$60 (RM236) per barrel.

“Some consultants have forecast higher than that, but then they change their forecasts every three months. Petronas cannot do that. We have to be more prudent,” he told editors at a briefing ahead of the group’s full-year results announcement, here, recently.

Wan Zul shows his mettle

April 26, 2018

Dateline 2018-03-04, NST:

THERE are certainly many things on his plate but Petronas president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin certainly looks more confident in guiding the oil giant at least in the next three years.

When he took over in April 2015, the company was beset with an oil price slide. His immediate task was to tide over the trying times and to stay profitable.

The crude oil prices have since recovered and improved further last year on the back of demand driven by India and China.

But that does not mean Petronas is losing its focus to manage cost and remain prudent while continuing to invest for the future.

There should not be the overexuberance that seems to be creeping back in some other oil and gas players.

“We must continue to stay the course,” the chemical engineer by training told a group of editors last week.

UPDATE 1-Malaysia’s Petronas posts 61 pct growth in quarterly profit

April 22, 2018

Dateline 2018-03-02, Kitko:

Malaysian state energy firm Petroliam Nasional Berhad , or Petronas, posted a 61 percent jump in quarterly profit on Friday and pledged to boost its dividend payout and capital spending this year. Petronas, like other oil majors, had taken a hit from lower oil prices, but sharp cost cuts – along with some recent stability in oil prices – helped the company post higher profits and margins. Net profit for the fourth quarter ended December rose to 18.2 billion ringgit ($4.65 billion) from 11.3 billion ringgit in the same quarter last year, while revenue rose 13.8 percent to 61.8 billion ringgit.

The quarterly result helped push full-year profit up 91 percent to 45.5 billion ringgit – marking a second year of profit growth for the sole manager of Malaysia’s oil and gas reserves following a two-year profit slump. “Petronas is now in stronger position to execute its long term growth agenda,” Chief Executive Wan Zulkiflee Wan Ariffin said. “Petronas will explore new business areas, including speciality chemicals and new energy.” Petronas will focus on the ASEAN region, the Indian subcontinent, the Middle East and the Americas for growth, he said, adding that the company will assess opportunities in solar energy. Wan Zulkiflee said the company will continue its focus on costs. Petronas, a major contributor to Malaysia’s budget and one of the country’s biggest employers, said in 2016 that it would reduce expenses by $12 billion over a four-year period and cut thousands of jobs.

Malaysia renews Petronas CEO’s contract for another three years

March 25, 2018

Dateline 2018-02-13, Nasdaq:

The Malaysian prime minister’s office on Tuesday re-appointed Wan Zulkiflee Wan Ariffin as the chief executive officer of state energy firm Petroliam Nasional Bhd, or Petronas, for a second three-year term.

Wan Zulkiflee’s reappointment is seen as a vote of confidence in the company’s and his performance after presiding over a period of low energy prices. He was first appointed CEO in April 2015.

CM: Sarawak will exert mining rights

March 17, 2018

Dateline 2018-01-30, Malay Mail Online:

The Sarawak state government said it will exert its mining rights, including oil mining, despite Petronas having the legal right to explore and mine for petroleum in state territorial waters.

Sarawak Chief Minister Datuk Patinggi Abang Johari Openg said mining was part of the rights of Sarawak enshrined in the Federal Constitution.

He said the state government has also directed Petronas to consult the state on the utilisation of gas from any new fields.

“This is to ensure that Sarawak has the first right of refusal in using the new sources of gas for the development of our oil and gas industries as well as the development of other industries in Sarawak,” he said in his speech at the special sitting to mark the 150th anniversary of the state legislative assembly.

Why Sarawak is questioning the law that created Petronas

March 11, 2018

See connection between May 13 and PDA.

Dateline 2018-01-27, The Edge Markets:

Sarawak is questioning whether the Petroleum Development Act (PDA) — the law that created Petroliam Nasional Bhd, Malaysia’s only Fortune 500 company and vested with the nation’s oil and gas wealth — is still relevant today.

The question hinges on the state of emergency under which the bill was passed in 1974, according to The Edge Malaysia‘s cover story ‘Why Sarawak questions the Petroleum Development Act’ for the week of Jan 29-Feb 4 by assistant editor Khairie Hisyam Aliman, citing the Sarawak Chief Minister (CM).

The CM Datuk Patinggi Abang Abdul Rahman Zohari, popularly known as Abang Johari, told the weekly that the issue is a critical matter Sarawak is actively pursuing.

Petronas dishes out MCM contracts to Malaysian contractors

March 8, 2018

Dateline 2018-01-17, Seatrade Maritimes News:

Petronas E&P unit Petronas Carigali has awarded a slew of contracts to provide maintenance, construction and modification (MCM) services at its offshore facilities in Peninsular Malaysia, Sabah and Sarawak to five local Malaysian contractors.

Carimin Engineering Services, Dayang Enterprise, Deleum Primera, Petra Resources, Sapura Fabrication and its joint venture partner Borneo Seaoffshore Engineering were selected for a five-year contract each with an option to extend another year, effective last September, local media reported.

“Under the terms of the contract, the engineering and maintenance services will include topside major maintenance and facilities improvement projects,” Petronas Carigali said.