Petronas Q1 pre-tax profit surges to RM15.5 billion

July 14, 2017

They don’t mention that this was helped by all suppliers having a price race to the bottom. We need to fix prices, perhaps get them into the scale of fees in the Registration of Engineers Act.

Dateline 2017-06-02, FMT:

Petroliam Nasional Bhd’s (Petronas) pre-tax profit for the first quarter ending March 31, 2017, surged more than 100% to RM15.5 billion from RM6.8 billion in the same period last year.

The national oil company said higher earnings for the quarter were primarily driven by higher oil prices and improved margins from upstream and downstream businesses, in tandem with its ongoing transformation efforts that have resulted in heightened cost optimisation and efficiency improvements across its value chain.

Stronger pre-tax profit for the quarter was also mainly due to higher revenue, which benefitted from higher average realised prices and lower net impairment on assets, partially offset by higher taxation, amortisation of oil and gas properties and product costs, it said in a statement today.


Petronas to invite K5 bids

July 9, 2017

Dateline 2017-06-01, Upstream Online:

Asian offshore builders are standing by to receive an invitation to bid for a mobile offshore production unit bound for the shallow-water K5 sour gas field off Sarawak, Malaysia, writes Russell Searancke.

Initial production will be about 250 million cubic feet per day of gas, which will be sent by subsea pipeline to the ninth train at Petronas’ liquefied natural gas complex in nearby Bintulu.

The field operator Petronas earlier this year conducted a type of pre-qualification exercise which attracted the interest of many offshore builders in Asia.

Yards from Malaysia, Thailand, China and South Korea are understood to have expressed an interest to Petronas in pursuing the engineering, procurement, construction, installation and commissioning contract.


Cloudy view for energy giant Petronas

July 1, 2017

Dateline 2017-05-25, Asia Times:

Oil and gas wealth drove Malaysia’s go-go modernization during the 1980s and 1990s, with state oil firm Petronas emerging as one of Asia’s most profitable companies. That success was reflected its shiny iconic twin towers, once the world’s tallest, in downtown Kuala Lumpur.

But after more than two years of stubbornly low global oil prices, with prices falling from a per barrel high of US$145 in 2008 to a low of US$26 in 2016, Petronas is struggling to maintain its prominence as one of the world’s largest exporters of liquefied natural gas (LNG).

Petronas Gas to gain from market liberalisation

May 28, 2017

Dateline 2017-04-17, Sun Daily:

Petronas Gas Bhd (PetGas) is unfazed by competition arising from the liberalisation of the gas market, with an expectation that the implementation of the Gas Supply (Amendment) Act 2016 will benefit the company as its regasification and transmission facilities are open for third party access.

Speaking to reporters after the group’s AGM yesterday, managing director and CEO Yusa’ Hassan expressed his support towards the move to liberalise the gas market.

“Our infrastructure, both regasification and transmission, will open for third party access and that will be supporting the gas ventures downstream with more competitive and liberal supply of gas from different suppliers, which will promote the development of gas and gas-related industries,” he said.

He said it is still in discussions with the Energy Commission (ST) to iron out the details of the liberalisation, adding that PetGas has a one-year grace period to prepare for the various agreements and access codes.


Petronas Gas readying to offer under-utilized capacities to new gas players

May 25, 2017

Dateline 2017-04-17, Nikkei Asian Review:

 Malaysia’s national oil company Petroliam Nasional is in talks with government agencies to finalize financial details of a plan that allows new suppliers to use its unit Petronas Gas’ underutilized capacities at pipelines and gas processing facilities in the country.

Petronas Gas could potentially sell as much as half of current regasification capacity and up to 25% of pipeline load to third parties, Chairman Mohd Anuar Taib said at a news conference. Talks with the Energy Commission, an agency regulating the power sector, could be concluded as soon as this year.

 “We do see (opportunity) as we have underutilized capacity, and with shippers (coming in), we could benefit from higher utilization,” Chief Executive Yusa Hassan said. “We are actually in full support.”

Malaysia decided last year to give new suppliers access to existing infrastructure such as regasification terminal, and tap into transmission and distribution pipelines in the country. That will allow other companies to sell gas to consumers, easing a decades-old restriction in an industry dominated by Petronas Gas and Gas Malaysia.

Aramco JV was well thought out, says Petronas

May 9, 2017

Dateline 2017-04-27, Malay Mail:

The joint venture with Aramco for the Refinery and Petrochemical Integrated Development (RAPID) was not done overnight but had been looked at since 2014, said Petronas group executive vice-president Md Arif Mahmood.

Arif said the Malaysian unit was “never forced into the joint venture” and had always been eyeing a partner like Aramco.


Petronas says RM200b ‘forgone revenue’ from selling natural gas cheaper in Malaysia

May 7, 2017

Dateline 2017-04-25, The Edge:

Petroliam Nasional Bhd (Petronas) has forgone more than RM200 billion in revenue from selling natural gas in Malaysia at rates lower than global prices since the country regulated prices of the fuel after the 1997/1998 Asian financial crisis.

The Edge Malaysia business and investment weekly (Edge Weekly) in its latest March 27 to April 2 issue, quoted Petronas president and group chief executive officer Datuk Wan Zulkiflee Wan Ariffin as saying despite Malaysia revising the price of natural gas upward every six months, the local rate was still below the international price.

“I think the forgone revenue since we started is more than RM200 billion because we have not been able to sell natural gas at market value. In the past, we made investments just to ensure security of supply. But moving forward, there is this perennial issue of non-market pricing.