November 16, 2018
Dateline 2018-09-03, The Malaysian Reserve:
Petroliam Nasional Bhd (Petronas) has given its commitment to provide the necessary input to all oil and gas (O&G) stakeholders, particularly on the expected higher oil royalty arrangement, to ensure that Malaysia remains an attractive destination for O&G investments.
Its president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin (picture) said while Petronas is not privy to the discussions taking place between the federal and state governments on related issues, it will continue to provide its views on all possible scenarios.
“What’s important is to remember that we need to keep the O&G industry in Malaysia resilient and Malaysia as an attractive investment destination for foreign O&G companies,” Wan Zulkiflee told members of the press at Petronas’ Kuala Lumpur headquarters last Thursday. “We do not want the production sharing contractors (PSCs) to be impacted because we want Malaysia to still be an attractive investment destination.”
Petronas, as the national energy company, is responsible for the exploration, extraction, refining and marketing of Malaysia’s petroleum resources, which it undertakes via production sharing schemes. This involves the participation of other oil firms in the country’s O&G space, such as Royal Dutch Shell plc, Exxon Mobil Corp and Murphy Oil Corp.
November 15, 2018
Dateline 2018-08-31, The Asean Post:
Every time Malaysia’s national oil and gas company PETRONAS declares a profit, the nation’s four oil-producing states will clamour for a bigger slice of the pie than the current five percent royalty they are receiving.
The subject rose again following the unexpected victory of the Alliance of Hope (Pakatan Harapan) in the country’s May 2018 general election, ending the 61-year continuous rule of the National Front (Barisan Nasional). As part of its election manifesto, the Alliance of Hope coalition promised to increase the oil royalty to 20 percent and to review Malaysia’s Petroleum Development Act of 1974 (PDA) if it came into power.
Prime Minister Dr Mahathir Mohamad announced that the new government of Malaysia will pay the oil-producing states 20 percent but it will be calculated based on profits derived from those states, and not revenue.
November 4, 2018
Will that be in physical barrels?
Dateline 2018-08-14, FMT:
The Sabah government expects no less than RM5 billion annually if petroleum royalty is increased from 5% to 20%.
However, Chief Minister Mohd Shafie Apdal said Petronas had informed the state government that cash payments from oil and gas revenues would depend on various factors.
“Among the factors which determine the amount of royalty include the mechanism and basis for the increments in cash payments which need to be discussed and decided by the relevant parties, estimates of oil and gas output, advanced plans for the development of oil and gas fields and global crude oil prices,” he said.
Shafie, who is also the state finance minister, said this in reply to a question from Dr Joachim Gunsalam (PBS-Kundasang) at the Sabah state assembly here today.
November 1, 2018
Dateline 2018-08-19, FMT:
Petronas’ Group Strategic Communications wrote a letter to the editor of The Edge to clarify the outdated Production Sharing Contracts (PSC) terms used in their article “The black gold conundrum” dated July 30.
It highlighted the improper use of the PSC Cost/Profit oil split of 70/20 that is no longer in use, and any calculation on the distribution of wealth using the outdated split was therefore wrong.
Petronas also provided an illustration of the Revenue/Cost (R/C) PSCs split which are in use today.
Apart from The Edge, many others have tried to calculate the “profits” from the PSCs, using the now contentious PSC splits, with regard to Sarawak’s claim for 20% royalty from revenue for its oil and gas resources and recent Pakatan Harapan’s (PH) offer for a 20% royalty from profits.
Animah Kosai (founder at Speak Up, on Linkedin July 26) had 50% Cost Oil to the Operator. Azman Ujang (“The real deal behind Oil Royalty” the Sundaily, July 27) had it at 70% for the recovery of the cost of production.
October 25, 2018
Dateline 2018-07-31, The Star:
Petroliam Nasional Bhd has launched a new vendor development scheme to nurture local entrepreneurs to overcome high-entry barriers to the oil and gas industry and create a pool of vendors who can generate value.
The national oil company said on Tuesday the scheme, called VDPx, would be under the company’s existing vendor development programme (VDP). It will carried out together with major industry players in the country.
Petronas said this was was part of its initiative to boost the capabilities of local companies in Malaysia’s oil and gas (O&G) industry.
Under the VDPx, the six petroleum arrangement contractors (PACs) and 12 O&G service and equipment (OGSE) companies, will replicate Petronas’ VDP programme, to reach out to more local vendors and further amplify its benefits to the industry as well as the nation.
October 15, 2018
Dateline 2018-07-25, Borneo Post:
Chief Minister Datuk Patinggi Abang Johari Tun Openg has revealed that Petronas met him after it failed to get the application for leave from the Federal Court.
He, however, declined to reveal what was discussed during the meeting.
“Yes, they did come to see me recently, after the Federal Court’s decision, but I cannot reveal what was discussed during the meeting.
“Of course, we discussed some of the win-win-proposals together. We are not that greedy.
“Okay that is our right. Petronas wants to take and sell the oil, which is our right, so they have to negotiate with us,” he told a press conference after launching the Land and Survey Department’s Innovation and Integrity Day here yesterday.
October 1, 2018
Dateline 2018-07-18, Borneo Post Online:
Minister of International Trade and E-Commerce Dato Sri Wong Soon Koh waxed philosophical when asking Petroliam Nasional Berhad (Petronas) to consider withdrawing their suit on exclusive ownership of oil and gas resources in Sarawak.
Asking the court to interpret the Petroleum Development Act 1974 (PDA74) without first recognising the supremacy of the Malaysia Agreement 1963 (MA63) is like looking at a leaf on a tree without recognising that, without the roots, there would be no tree and no leaf, Wong said.
“The leaf (like the PDA) is insignificant. The roots give life to the tree just like the Malaysia Agreement gave life to Malaysia.”