Malaysia delays latest licensing round

August 23, 2022

Waiting for IGL’s bid, I see.

Dateline 2022-06-18, Upstream:

Petronas’ Malaysia Petroleum Management (MPM) has delayed the deadline for bid submissions for ongoing licensing round Malaysia Bid Round 2022 (MBR 2022).

Without elaborating, MPM said the deadline has been pushed back from 30 June to 15 July 2022.

While no reason was given, such moves are typically due to prospective bidders requesting more time to review the available data and prepare their submissions, or potentially because of a lacklustre response to date as the original deadline looms.

Petronas to Double Capex to $14 Billion on Project ‘Catch-Up’

August 18, 2022

And when does this trickle down to us bottom feeders?

Dateline 2022-06-09, Bloomberg:

Malaysia’s national oil company Petroliam Nasional Bhd. plans to double its capital expenditure to 60 billion ringgit ($14 billion) this year from 2021, as business activities normalize following the lifting of Covid-era restrictions.

Many of its projects were delayed due to the pandemic and “there’s a lot of catch-up that’s happening this year,” Group Chief Financial Officer Liza Mustapha said in a conversation with MIDF Group’s Managing Director Charon Wardini Mokhzani on Thursday.

Petronas expects to post a “triple-digit” growth in revenue this year amid high oil prices, Liza said. Its first-quarter profit more than doubled to 23.4 billion ringgit from a year earlier on the back of a 50% jump in revenue.

Petronas eyes significant non-O&G revenue amid volatile oil prices — CFO

August 17, 2022

Don’t get me started on whether PETRONAS is taking advantage of its ‘too big to fail’ status and preferred status to overstep its bounds.

Dateline 2022-06-09, The Edge:

Petroliam Nasional Bhd (Petronas) chief financial officer (CFO) Liza Mustapha said on Thursday (June 9) that the Malaysian national oil company needs to have a target where a significant portion of the group’s revenue over the next five to six years comes from something that is not directly related to oil and gas (O&G) to safeguard Petronas from volatile crude oil prices which have risen past US$100 a barrel partly due to Russia-Ukraine war-driven supply concerns.

“Oil prices have gone up so much. About US$16 a barrel in the first quarter of last year, and now it was more than US$100 a barrel in the first quarter of this year. At Petronas, we have to stick to things we can control, because the price of oil is something we cannot control.

Petronas: Decarbonising fossil fuel the way to go

July 27, 2022

Dateline 2022-05-26, The Edge:

OVER the years, there has been much debate on whether low-carbon solutions such as carbon capture technology are relevant in the light of renewable energy adoption and the energy transition.

The recent energy crunch, which saw oil and gas prices skyrocket amid high demand, and pushed some countries to even revisit coal for power generation, has proved that fossil fuel use cannot be avoided in the near term.

This means it is even more pertinent to explore technologies that allow carbon reduction and offset during the energy transition, says Petroliam Nasional Bhd (Petronas) vice-president and chief sustainability officer Charlotte Wolff-Bye.

Taking over Sapura Energy will depend on financial situation, says Tok Pa

July 7, 2022

Wait, what? PETRONAS is proposing this? What about our fabrication yards?

Dateline 2022-05-14, FMT:

The government must look at the country’s financial performance before considering the proposal for Petroliam Nasional Bhd (Petronas) to take over Sapura Energy Bhd (Sapura Energy) to prevent the oil and gas company from going bankrupt.

Economic affairs minister Mustapa Mohamed said careful consideration must be taken as the oil and gas industry is a strategic industry and taking into account that Sapura Energy is the world’s second largest integrated oil and gas service provider.

Petronas-Aramco refinery in Malaysia restarts after 2-yr closure – source

June 17, 2022

Dateline 2022-05-12, Reuters:

A 300,000 barrel-per-day refinery-petrochemical complex in Malaysia run as a joint venture between Petronas and Saudi Aramco has restarted after a more than two-year closure, a source with knowledge of the matter said.

The complex in Pengerang, Johor, is resuming operations at a time when refining margins in Asia are at record levels, buoyed by a fuel demand recovery as more economies across Asia, except for China, ease COVID-19 restrictions.

Malaysia’s Petronas sees higher demand as focus turns to energy security

May 22, 2022

Dateline 2022-04-27, Zawya:

Malaysian state energy firm Petronas is seeing growing demand for gas as the world lifts COVID-19 restrictions and prioritises energy security due to Russia’s invasion of Ukraine, its chief of upstream operations told Reuters on Wednesday.

Petronas, the world’s fourth-biggest producer of liquefied natural gas (LNG), has seen high demand from Europe, Japan and South Korea since last year, said Adif Zulkifli.

“We are producing the maximum that we can now. There’s a lot of requests for more cargoes in Bintulu,” said Adif, referring to Petronas’ massive LNG complex in the eastern state of Sarawak.

“To increase production is not as easy,” because of under-investment in recent years, he said.

Petronas signs production sharing contract for Block SK247 off the coast of Sarawak

May 16, 2022

Dateline 2022-04-22, The Edge:

Petroliam Nasional Bhd (Petronas) has signed a production sharing contract (PSC) with its new investor SK earthon Co Ltd and Sarawak-owned oil and gas company Petroleum Sarawak Exploration & Production Sdn Bhd (PSEP) for Block SK247 off the coast of Sarawak.

Block SK427 is located within the prolific area of Balingian and Tatau hydrocarbon provinces covering an area of 3,349 sq km, according to Petronas in a statement on Friday (April 22).

“The block is situated in a proven hydrocarbon system and has promising hydrocarbon potential to be unlocked. Several significant hydrocarbon discoveries were made in 2021 in the Balingian province near the block, namely Sirung-1 and Hadrah-1 wells,” Petronas said.

Petronas signs PSC with SK Earthon

May 15, 2022

Who now?

Dateline 2022-04-23, Malaysian Reserve:

PETRONAS has signed a Production Sharing Contract (PSC) with SK earthon Co., Ltd. (SK earthon) and Petroleum Sarawak Exploration & Production Sdn. Bhd. (PSEP) for Block SK427 off the coast of Sarawak.

SK earthon, a wholly owned subsidiary of South Korea’s SK Innovation Co., Ltd is the operator of Block SK427 with 85 percent participating interest while PSEP, the Sarawak-owned oil and gas company, holds the remaining 15 percent.

Signing on behalf of PETRONAS was Senior Vice President of Malaysia Petroleum Management (MPM) Mohamed Firouz Asnan, while SK earthon was represented by its Director and Head of Exploration & New Venture Office, Suntaek Bang, and PSEP by its Director and Chief Operating Officer, Dr James Foo.

Double cover: Petronas seeks to clear the air over allegations it faces; SC’s baffling move to compound Serba Dinamik’s top execs

May 13, 2022

Dateline 2022-004-16, The Edge:

However, it has come to light that the Malaysia Oil & Gas Services Council (MOGSC) and the Malaysia OSV Association have written to Petronas to air their grouses, chiefly to suggest that Petronas was raking in billions at the expense of the O&G players’ margins. According to MOGSC, Petronas had in 2015 sought their assistance and renegotiated contracts, which is eating into their members’ profits.

There was also a claim that Petronas had been slow in disbursing Covid-19 claims that ran into the hundreds of millions to industry players, leaving them without adequate cash flow.