Petronas slate change prompts off-specification bitumen

September 14, 2020

Dateline 2020-07-24, Argus Media:

Malaysia’s state-owned Petronas has started to run more lighter crude at its 270,000 b/d Malacca refinery since mid-July, resulting in an increase in off-specification bitumen supplies.

Malacca typically blends Saudi Arabian crude with fuel oil to produce pen 60/70 bitumen. It has raised the amount of light sweet crude it uses, together with its typical medium sour crude slate, to take advantage of more attractive prices for lighter grades. This has resulted in the refinery producing off-specification bitumen stocks of grade pen 80/100 instead of pen 60/70.

Petronas eyes growth in local RE business

September 13, 2020

I’m pretty sure there is a sales tax on that.

Dateline 2020-07-21, The Malaysian Reserve:

PETROLIAM Nasional Bhd’s (Petronas) new energy business unit foresees growth in the local renewable energy (RE) market through NE Suria Satu Sdn Bhd (NESS), a joint-venture company between Petronas and NEFIN Group.

With Tesco Stores (Malaysia) Sdn Bhd as its first commercial customer, NESS will be providing a solar rooftop solution covering design, installation, operation and maintenance of solar photovoltaic (PV) panels for selected Tesco stores nationwide.

The provision of the solar rooftop solution is now ongoing until 2040, after the signing of a 20-year power purchase agreement (PPA) between NESS and Tesco, the largest commercial solar PPA of its kind in Malaysia.

No lawsuit, but Petronas must pay what is owed to Sabah

September 11, 2020

Dateline 2020-007-16, The Malaysian Reserve:

SABAH state government is not planning to file a lawsuit against Petroliam Nasional Bhd (Petronas), but the company should pay what is owed to the state, says Chief Minister Datuk Seri Mohd Shafie Apdal.

Mohd Shafie told The Malaysian Reserve in a recent interview that Petronas should have afforded Sabah the same treatment as Sarawak, based on the court ruling.

The Kuching High Court ruled on March 13 this year that Sabah and Sarawak have the right under the Federal Constitution to impose sales tax on petroleum products.

When politics weighs on Malaysia’s only Fortune 500 company

September 7, 2020

Dateline 2020-06-29, The Edge:

IT must have been a difficult decision for Petroliam Nasional Bhd (Petronas) to back-track and stop contesting in court the petroleum product sales tax imposed by Sarawak last year.

The national oil firm is slated to pay more to the state when it has just halted exploration and slashed 2020 capex and opex in the face of volatile oil and gas prices.

Benefitting from the decision are the Gabungan Parti Sarawak (GPS) political coalition, which can ride on the success of getting a higher share of oil money, and indirectly, Petronas’ sole shareholder — the new Perikatan Nasional (PN) government, which may have to face a no-confidence vote in the Dewan Rakyat next month.

Exclusive: Malaysian energy giant’s board at odds with PM over payment to Sarawak state

September 2, 2020

Dateline 2020-06-26, KFGO:

The board and management of Malaysian national energy giant Petronas have urged the prime minister to drop a planned tax settlement with a state that is run by his political allies, three sources close to the company said.

Petronas’ chief executive, Wan Zulkiflee Wan Ariffin, resigned in opposition to the deal, sources told Reuters last week, and he is set to leave the company this month after 37 years.

But, sources told Reuters the rest of the management were still trying to convince Prime Minister Muhyiddin Yassin to block the pay-out to Sarawak, a resource rich state on Borneo island.

Muhyiddin’s decision will have big implications for Petronas and the national budget, and will be closely watched by foreign investors, on guard over corporate governance and financial transparency in Malaysia following the mega-scandal at sovereign fund, 1Malaysia Development Bhd (1MDB).

Oil, gas woes hamper Muhyiddin’s economic recovery plans for Malaysia

September 1, 2020

Dateline 2020-06-23, Phnom Penh Post:

Petronas’ woes mean it may not be able to help bail Malaysia out of its financial tight spots this time. AFP

Plunging oil and gas prices are set to further hammer Malaysia’s economy, as state oil firm Petroliam Nasional Bhd (Petronas) faces depressed demand due to global coronavirus lockdowns.

Petronas’ woes mean it may not be able to help bail the country out of its financial tight spots this time.

Falling oil and gas prices are a double whammy for Malaysia’s economy as the Muhyiddin Yassin administration wrestles with the fallout from the Covid-19 pandemic.

Unemployment hit a three-decade high of five per cent in April. Malaysia posted a trade deficit in the same month for the first time since the 1997 Asian financial crisis, with mining exports (largely made up of crude oil and natural gas) suffering their steepest plunge at 31.5 per cent, far more than the 23.8 per cent overall.

The Manila-based Asian Development Bank last Thursday said it expected the Malaysian economy to shrink by four per cent, while British multinational financial services company Barclays Plc had, a day earlier, forecast a whopping 8.5 per cent drop.

Sarawak CM claims Petronas told to withdraw court appeal against paying sales tax

July 8, 2020

Dateline 2020-06-12, Malay Mail:

Putrajaya has directed national oil company Petronas not to proceed with its appeal after losing a court case and being ordered to pay Sarawak the sales tax amounting to RM2.8 billion, Chief Minister Datuk Abang Johari Openg said today.

He said Petronas had filed an appeal of the High Court’s decision on the application for a judicial review against the imposition of the Sarawak Sales Tax on the import of petroleum products before the change of the federal government from Pakatan Harapan (PH) to Perikatan Nasional (PN).

Petronas CEO to Leave for Role at Malaysia Airlines

July 1, 2020

Dateline 2020-06-08, OE:

Malaysia’s prime minister on Saturday appointed the finance chief at Petroliam Nasional Bhd (Petronas) to take over as chief executive at the state energy company, at a time when lower oil prices and the coronavirus pandemic have hit the firm’s profits.

The government of premier Muhyiddin Yassin has made a series of management changes at state-owned companies and government agencies since coming to power in March following the unexpected resignation of his predecessor, Mahathir Mohamad.

Tengku Muhammad Taufik Tengku Aziz, currently chief financial officer will take over from Wan Zulkiflee Wan Ariffin as Petronas CEO from July 1, the prime minister’s office said.

Petronas’ capex cut another shock to local O&G companies

June 17, 2020

Dateline 2020-05-27, The Edge:

Battered by plunging oil prices, local upstream oil and gas services companies were hit by another piece of negative news last Friday – that Petroliam Nasional Bhd (Petronas) plans to cut its annual capital expenditure by 21%, despite having said earlier that it would keep to what it had budgeted for previously.

The announcement places Petronas among oil majors like Exxon Mobil, Royal Dutch Shell, Saudi Aramco and Petrobras that have announced capex cuts ranging from 20% to 30% this year.

Petronas cuts FY20 capex and opex as oil slump hits

June 13, 2020

Dateline 2020-05-22, The Edge:

Petroliam Nasional Bhd, which reported a 68% year-on-year fall in its first quarter profit after tax (PAT) today, is slashing its capital expenditure for the financial year ending Dec 31, 2020 by 21% from its initial estimate of around RM50 billion, as it faces challenges driven by the pandemic outbreak that has led to a supply-demand shock in the oil market this year.

The national oil giant said it will strive “as far as practically possible” to minimise the impact of the cuts to its Malaysian capex programme, previously planned at RM26 billion-RM28 billion this year.