February 19, 2021
Dateline 2021-02-05, Energy Voice:
Petronas MPM has officially introduced Malaysia’s Small Fields Asset (SFA) production-sharing contract framework as part of an effort to revive its domestic upstream sector and lure new money.
“I think all the smaller players here – Hibiscus – and many of the service linked companies such as T7, Dialog, Uzma, etc will be bidding. This does not seem like anything foreign firms will want neither does Petronas want them. They are trying hard to keep a domestic oil sector alive and it is on life support so this will be a lifeline to them,” a Malaysia-based industry source told Energy Voice.
SFA aims to attract investors to monetise small or marginal discovered fields with resource size less than 15 million barrels of oil or less than 300 billion cubic feet of gas. It is a straightforward and simplified PSC model which gives the contractor full control over the costs, procurement and operations.
January 11, 2021
Dateline 2021-01-04, Market Screener:
Malaysia’s state energy firm Petronas said on Monday it expects to resume full production at its Baram facilities, off the state of Sarawak on Borneo island, in the third quarter after halting output in October following an accident.
Petronas declared force majeure at its Miri crude oil terminal on Oct. 29 as a result of the ship collision on Oct. 27 at the Baram field, a company spokesman told Reuters.
December 30, 2020
I didn’t know you could do force majare on a grade. 2020 Uni grads, go find a lawyer!
Dateline 2020-12-24, The Edge:
Malaysia’s Petroliam Nasional Bhd (Petronas) has declared force majeure on two crude oil grades following production issues, four trade sources said yesterday.
The disruption to Miri and Cendor crude supplies has reduced Malaysia’s oil exports this month and supported spot prices in the region.
Miri crude production was reduced after a ship hit an oil production platform off Sarawak in late October, the sources said.
It was not immediately clear when Miri’s output could return to normal.
December 24, 2020
Dateline 2020-12-08, Straits Times:
Sabah will follow Sarawak in pursuing its rights, particularly where oil and gas are concerned.
Deputy Chief Minister Datuk Seri Jeffrey Kitingan congratulated Sarawak for reclaiming its rights, adding that the Sabah government would ensure the same for the state.
He was referring to the Sarawak government signing a commercial agreement with Petroliam Nasional Bhd (Petronas) on Monday which allows the state, through its subsidiary Petroleum Sarawak Bhd (Petros), to play a bigger role in the oil and gas industry through cooperation with Petronas.
“Kudos to the Sarawak government for reclaiming their rights. It is no secret that the Sarawak government had been doing all the heavy lifting in this fight and we are grateful for their efforts.
December 23, 2020
Dateline 2020-12-08, The Straits Times:
Malaysian energy giant Petronas said yesterday that it has agreed to a commercial settlement that grants Sarawak state a higher share of revenue for oil and gas produced in the state.
Under the agreement, Sarawak state will also be given more active involvement in the state’s oil and gas industry through management of onshore oil and gas resources via its state-owned energy firm Petros, according to a joint statement by Petronas and the state government.
Both Petronas and the state government said they remained committed to providing a “stable, conducive business and investment environment for the sustainable growth of the oil and gas industry” in the state.
December 22, 2020
Dateline 2020-12-08, Malaysian Reserve:
THE newly sealed commercial agreement between Sarawak state government and Petroliam Nasional Bhd (Petronas) would need to provide investment incentives for it to remain attractive for investors.
An industry expert said an agreement like that would have to create investment incentives as any increase in royalty amounts would discourage new investment in exploration and production.
“To have a successful agreement, part of it needs to ensure the right incentives are in place for investments in the state. Such an agreement may lead to higher investment costs, particularly in a low oil price environment, and cause lower investment and production in the coming years,” the expert, who asked for anonymity, told The Malaysian Reserve.
December 20, 2020
Hahaha, it’s about ownership of company, with respect to getting a PETRONAS license. What, MACC finally figured out the paperwork trail? How about hitting every company with a PETRONAS licence? Next, can they charge companies for providing engineering services without registering the proper licences with the Board of Engineers?
Dateline 2020-12-02, Offshore Engineer:
Malaysia’s anti-graft agency is investigating Norway’s largest oil services provider Aker Solutions on suspicions of making false statements in its dealings with state-owned energy firm Petronas, three sources familiar with the probe said.
The Malaysian Anti-Corruption Commission (MACC) is looking into allegations that Aker Solutions made false representations regarding the ownership of one of its Malaysian units in order to win licenses from Petronas, a source with the agency and two other people told Reuters.
December 19, 2020
You mean, it has not been operating since the March 2020 fire? How many heads have rolled? Wait, where’s my list of ‘get out of jail free’ C-level listing?
Dateline 2020-11-30, Argus Media:
Malaysia’s state-owned Petronas is on course to restart its 300,000 b/d Pengerang refinery joint venture with state-controlled Saudi Aramco in the first quarter of 2021, adding more capacity to a struggling Asia-Pacific refining market.
The Pengerang complex in southern Malaysia has been shut since a fire in March. Petronas said late last week that the project is transitioning to commercial operations and a restart of the refinery and petrochemical plants is planned for the first quarter of next year, in line with previous expectations.
The project’s atmospheric residue desulphurisation trains are also expected to be ready for start-up in the first quarter. Repairs are continuing on the diesel hydrotreater, which is targeted to come on line in October-December 2021. Aramco owns a 50pc stake in the project and will supply half of its crude, with the option to increase this to 70pc once the refinery is fully commissioned.
December 18, 2020
Dateline 2020-12-01, The Diplomat:
2020 has been a rough year for oil companies. In April, with the sudden stop in economic activity due to COVID-19 shutdowns, the price of U.S. crude fell to below zero for the first time in history. Oil companies were essentially forced to pay to store excess crude for a while, and with the global economy still reeling the rebound in demand has been sluggish. Still, the market price for crude bounced back pretty quickly, likely on hopes that this downturn will be short-lived. While it remains below its pre-pandemic price, it has recovered quite a bit since its April lows, with a barrel of West Texas Intermediate fetching $45.53 last week.
December 11, 2020
So, can I hold dual citizenship? Malaysia and Sarawak?
Dateline 2020-11-13, Malay Mail:
A committee has been formed to facilitate negotiations between the state government, the federal government and Petroliam Nasional Berhad (Petronas) to ensure greater participation of the state in the oil and gas sector, Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan said in the state assembly today.
He said negotiations on commercial solutions for the matter are still ongoing among the three parties.
“The state government is fully committed to taking control of the exploration and mining of oil and gas within the territorial boundaries of the state,” he said in his winding-up speech for the debate on the State Budget 2021.