How a bumi equity issue between two oil firms escalated into a ‘judicial fixing’ saga

July 23, 2021

I wait for the BEM to weigh in on Bumi onwership and PEPC directors

Dateline 2021-06-21, MalaysiaKini:

What began as an issue over the bumiputera equity requirement for a Petronas licence involving a Malaysian unit of Aker Solutions ASA, Norway’s largest oil services firm, has escalated into claims of judicial fixing that have rocked the legal fraternity.

The last two weeks saw a flurry of developments – the charging of an Aker Solutions manager, the Malaysian Bar expressing concern over alleged misconduct by one of its members – and most intriguing was a police report by the Office of the Chief Justice against a senior lawyer for allegedly bringing the judiciary into disrepute.

Petronas and Pertamina face removal from US banking giant’s ESG index

July 22, 2021

Dateline 2021-06-18, Upstream Online:

Asian national oil companies Petronas of Malaysia and Indonesia counterpart Pertamina are on a watchlist for removal from JP Morgan’s Environmental, Social & Governance (ESG) Emerging Market Bond Index at the end of June.

The US bank said both state-owned players “are expected to exit the ESG suite at the June month-end rebalance” as their scores fell below the required threshold for inclusion.

The bank uses third party companies to assess the ESG score required for inclusion in the index. Sustainalytics, one of these companies, said some of Petronas’ or its affiliates’ activities in “high-risk regions” could be viewed as a violation of a United Nations arms embargo, reported Reuters, citing the bank’s statement.

Hess’ latest pact with Petronas lays foundation for potential Malaysia exit

July 18, 2021

Dateline 2021-06-10, Peril of Africa (my sources are everywhere)

Petronas and Hess have agreed amendments to an existing upstream gas sales agreement for fields offshore Malaysia that cements the value of the US-based company’s North Malay Basin assets. This makes any potential divestment process easier as Hess focuses on its prolific acreage offshore Guyana.

“This gas sales agreement now cements the value of the NMB (North Malay Basin) and lays the groundwork for a sale as Hess needs billions of dollars for Guyana,” a Kuala Lumpur-based industry source told Energy Voice.

Floating LNG sector showing its strengths

July 15, 2021

Operating FLNG units is no more challenging that operating onshore liquefaction facilities” Really?

Dateline 2021-06-04, Upstream Online:

Floating liquefied natural gas contractors are ready to pounce on fresh opportunities in the growing sector after a clutch of eye-catching developments in Asia, Africa and beyond have proven the technology.

Originally envisaged and developed to exploit remote or stranded gas resources, FLNG is currently being deployed in both deep and shallow waters and has even been used to produce from onshore fields.

The technology is also gaining increasing traction as a development option where onshore liquefaction may prove challenging due to security issues, a lack of infrastructure or other factors.

Operating FLNG units is no more challenging that operating onshore liquefaction facilities, Amir Hamzah Ghazali, head of floating LNG at Malaysia’s national oil company Petronas, told Upstream’s “The Future of Floating Liquefied Natural Gas” digital event last week.

Petronas, Hess said agreed to amend gas sale agreement

July 14, 2021

Dateline 2021-06-07, The Edge:

Petroliam Nasional Bhd (Petronas) and US-based Hess Corp’s subsidiary Hess Malaysia are said to have agreed to amendments made to their existing upstream gas sales agreement (UGSA) to include the sale and purchase of gas produced from the North Malay Basin (NMB) oil and gas field located offshore Peninsular Malaysia.

In a statement today, Hess Corp said the UGSA governs the sale and delivery of gas from the NMB project to Petronas and helps Hess Corp meet its supply and sale commitments in Peninsular Malaysia.

Zhiyong Zhao, vice president of Hess Asia, said in the statement: “The amended UGSA delivers access to new gas supplies that are critical to Malaysia’s economic prosperity and energy security.”

Petronas confirms Labuan staff received Covid-19 vaccines as ‘industrial frontliners’

June 18, 2021

Can I be an ‘industrial backroom proirity liner’?

Dateline 2021-05-09, Malay Mail:

State-owned oil and gas giant Petroliam Nasional Bhd (Petronas) has confirmed that some of its staff members have received Covid-19 vaccines under phase one of the National Immunisation Programme (NIP).

In a statement, Petronas said these staff members were considered “industrial frontliners” from Labuan who needed to be vaccinated as there was a cluster in Labuan.

“Petronas confirms that a number of its personnel in Labuan have been vaccinated as part of Health Ministry’s prescribed measures to contain the spread of Covid-19 transmission on the island.

Vestigo awarded small fields PSC offshore Malaysia

May 25, 2021

Dateline 2021-04-26, Offshore:

 Petronas has awarded Vestigo Petroleum a production sharing contract (PSC) for the shallow-water South East Collins Cluster, under Malaysia’s new Small Field Asset terms.

The cluster, in water depths of 42-45 m (138-147 ft), 70 km (43 mi) northeast of Labuan Island, comprises the South East Collins and Lokan fields discovered in the 1980s, with combined recoverable reserves estimated at 10 MMstb.

Sarawak CM: Oil discovery will bring development impact to Mukah

May 17, 2021

Dateline 2021-04-11, Malay Mail:

The new oil and gas discovery in the shallow waters of Balingian by Petroleum Nasional Bhd (Petronas) will positively impact not only the sub district but also Mukah Division, said Sarawak Chief Minister Datuk Patinggi Abang Johari Openg.

With the oil and gas belt stretching from Balingian to Miri, he said a new base for operations may need to be set up in Mukah and when it happens, it will spur development in the division.

Huge capex cuts in global O&G upstream in 2020: Petronas

May 11, 2021

Dateline 2021-04-05, NST:

The global oil and gas’ upstream sector has seen significant cuts in capital expenditure (capex) with spending below about US$400 billion in 2020.

This was less than half than the peak in 2014, Petroliam Nasional Bhd (Petronas) executive vice president and chief executive officer (upstream) Adif Zulkifli said.

“Companies had to make important decisions to remain resilient by keeping costs low and margins intact. Projects were put on hold, asset equipment impairments saw an upswing and job cuts were widespread within the industry,” he said in a keynote address at the inaugural virtual Re-Imagining Malaysia Assets (Reset) 2021 Conference here today.

Petronas: Oil and gas to remain a significant portion of energy mix

May 7, 2021

Dateline 2021-04-05, Malay Mail:

Oil and gas will continue to make up a significant portion of the energy mix, although at a declining trend of 47 per cent by 2040 from about 54 per cent in 2018 due to the growth of renewable energy.

Petroliam Nasional Bhd (Petronas) executive vice-president and chief executive officer, upstream, Adif Zulkifli said as an industry tasked with catering to the growing energy demand, it was critical for the national oil company to continue to deliver energy that was affordable, secure and sustainable.

“This is where the challenge lies. We need to do it safely, at the lowest cost possible to ensure we are resilient and additionally, at low carbon which means that we need to ensure that we need to drive carbon emissions levels down from current levels,” he said in his keynote address at the inaugural Re-Imagining Malaysia Assets (RESET) 2021.