Petronas prepares life as subdued oil price remains

November 23, 2017

Dateline 2017-09-27, NST:

Fiscal discipline, prudent spending and delivering value over volume are the three values instilled by Petronas to prepare life as oil prices are forecast to average at below US$50 per barrel for the foreseeable future.

Executive Vice-President and Chief Executive Officer (CEO) for Upstream, Datuk Mohd Anuar Taib said based on these principles, the national oil company would continue to undertake portfolio high grading to ensure its assets have the strategic fit of value for the company to grow.

“Although we still put a lot of effort on production and exploration, it is all driven by how much we can afford and what kind of return we will get,” he told Bernama in an interview recently.

For assets seemingly having no strategic fit of value, Petronas, he added, would work on either relinquishing or divestment as was seen in its decision to relinquish Block 1 and 2 in Cuu Long Basin in Vietnam this month.

Petronas reforms bearing fruit

November 21, 2017

Good for them, bad for us little fish?

Dateline 2017-09-25, NST:

THE transformation measures put in place two years ago when the oil and gas industry took a downturn are beginning to show results for Petroliam Nasional Bhd (Petronas).

The national oil company has posted stronger cash position, low gearing and good credit ratings while reducing expenditure by five per cent.

More importantly, Petronas’ net profit more than doubled to RM17.3 billion in the first half of this year from RM6.4 billion a year ago.

This was on the back of RM108 billion revenue compared with RM94 billion in the same period last year.

In a recent interview with NST Business, president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin spoke about the challenges in doing what was right for the company after he took over the helm in April 2015. That was the period when oil prices slumped from US$114 (RM476) a barrel to US$28 a barrel.

He also delved into Petronas’ plans which include building the group’s digital and technological capabilities further, preparing a team of new leaders to ensure its future growth and investment into renewable energy.

‘Petronas exploring new energy avenues’

November 13, 2017

Does this affect the spirit of amanah PETRONAS is given in the Petroleum Development Act 1974?

Dateline 2017-09-26, NST:

PETROLIAM Nasional Bhd (Petronas) is considering venturing into renewable energy (RE) to stay relevant in the global energy industry, said president and chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin.

Petronas could venture into solar, wind or other new energy sources, Wan Zulkiflee said, adding that the matter was in the evaluation stage.

“We are evaluating on what type of new energies are suitable for us and where we can make money. It is not a matter of just being involved in RE, or for the sake of following others who are already involved.


RM6b Petronas deals unlikely to be catalysts for oil & gas sector: AmBank Research

November 9, 2017

Pop quiz: what catalysts do you know?

Dateline 2017-09-18, The Sun:

AmBank Research is of view that a reported RM6 billion maintenance, construction and modification (MCM) contracts rollout by Petroliam Nasional Bhd (Petronas) is unlikely to work as a catalyst for the oil and gas sector, maintaining the sector’s neutral call.

It was previously reported that, Petronas has conducted a pre-award meeting for the delayed contracts which were expected out in the second quarter of the year.

“Petronas’ recent focus on reshuffling its upstream portfolio amid a review of its capital and operating expenditure against the backdrop of a lower crude oil price environment has negatively impacted the local services sector. It is uncertain whether Petronas would split the MCM jobs into six packages for a 5-year duration as earlier envisaged,” AmBank said.

Essentially, these new contracts, which are a relief for the sector, are to replace the existing service jobs currently held by the incumbents. These could offer a respite for vessel utilisation rates. However, in terms of value accretion, we do not expect any significant increase in day rates, given the currently depressed offshore market,” it added.

Petronas denies plans to lay off 5,000 employees in 2018

November 6, 2017

Sooo. how many again?

Dateline 2017-09-17, Borneo Post:

Petronas today denied an allegation made by a blogger saying that it planned to terminate 5,000 employees next year in what was claimed as another round of a “staff reduction” exercise, group-wide.

In a statement, the national oil giant company said it “categorically denied” the allegation made by blogger Syed Akbar Ali on his “OutSyed the Box” site.

It added that the group’s business review exercise, conducted last year, had affected 2,300 jobs as previously announced and there was currently no plan to undertake another exercise of that scale.

Petronas confirms employee arrested for suspected graft

October 19, 2017

Is there a project manager app for that? And PCSB TAs have a lot of power, apparently.

Dateline 2017-09-06, Malay Mail:

State oil-and-gas firm Petronas confirmed this afternoon the arrest of one of its staff by the Malaysian Anti-Corruption Commission (MACC).

The Star had earlier today reported the arrest of a Petronas Carigali Sdn Bhd project delivery manager at his office in the iconic Petronas Twin Towers yesterday. The 45-year-old was said to be suspected of involved in a RM23.7 million graft case.

“The arrest follows an internal investigation on the employee conducted by Petronas, which later reported the case to MACC.

“Petronas also assisted MACC investigators on the case prior to the arrest,” the company said in a media statement.

The company said it does not condone nor tolerate any form of misconduct among its employees and contractors will fully cooperate with the anti-graft body’s investigations “if necessary”.

The Star also cited MACC director of investigations Datuk Simi Abd Ghani as confirming the arrests of the PCSB employee, along with two others: a 57-year-old contractor that had previously worked with the O&G exploration and production services company and a 28-year-old former PCSB technical assistant yesterday.

Petronas: Internal probe led to MACC arrest of 3 men

October 17, 2017

Really? Rumor had it, that MACC officials had difficulties in accessing the office.

Dateline 2017-09-06, FMT:

The arrest of three individuals, including a senior Petronas Carigali Sdn Bhd (PCSB) officer, by the Malaysian Anti-Corruption Commission (MACC) yesterday followed an internal investigation by the oil and gas company.

PCSB’s parent company Petronas released a statement today confirming the arrests, saying it had filed a complaint with the anti-graft agency after its own investigations into the staff concerned.

“Petronas does not condone nor tolerate any form of misconduct among its employees and contractors, and is extending its fullest cooperation to MACC to further assist in its investigation if necessary,” Petronas said in its statement.

Yesterday, the MACC said it arrested three individuals over suspected graft involving RM23.7 million.