MAHATHIR’S CRUEL JOKE ON SABAH & SARAWAK – THE UNKINDEST CUT OF ALL? HOW DARE YOU ASK US TO BUY SHARES IN PETRONAS ‘IF WE HAVE THE MONEY’ WHEN ITS OIL & GAS COME FROM OUR STATES?

February 7, 2020

Dateline 2019-12-13, Malaysia Chronicle:

Anger is building up again in the East Malaysian states with Dr Mahathir Mohamad’s statement this week on the oil royalties.

Somehow we get the feeling that we have been led up the garden path by the Pakatan Harapan (PH) government.

Mahathir is now changing his stance and seems to have run out of ideas on how to deal with this sticky issue. His incoherent response to the oil royalties issue is sowing more confusion, creating a wider rift between the federal and state governments.

Mahathir in a Reuters interview said the government is considering selling stakes in Petronas to states where the company’s oil and gas fields are located. It seems odd that the oil-producing states like Sabah and Sarawak are now offered stakes in Petronas to help a debt ridden federal government.

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Malaysian state open to buying Petronas stake after Mahathir comment

February 6, 2020

Didn’t 1MDB start out in Terengganu? Just saying.

Dateline 2019-12-11, Reuters:

Malaysia’s Terengganu state said on Wednesday it was open to buying a stake in national energy giant Petronas, after Prime Minister Mahathir Mohamad said he was considering such a sale to raise funds for his heavily-indebted federal government.

Petronas, the world’s third-largest exporter of liquefied natural gas, is one of the biggest sources of revenue for the federal government that has a debt pile of more than 1 trillion ringgit ($239 billion).

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Sarawak minister says Petronas asset sale would complicate matters

February 5, 2020

Dateline 2019-12-12, Malay Mail:

A Sarawak minister today warned that existing disputes will become more complicated if Petroliam Nasional Berhad (Petronas) sold assets to oil-producing states such as Sarawak without resolving them.

State Tourism, Arts and Culture Minister Datuk Abdul Karim Rahman Hamzah said such sales should only be decided after ending negotiations on disputes involving the Petroleum Development Act 1974 (PDA) and the Territorial Sea Act 2012 (TSA).

“We are still having doubts on the legitimacy of the PDA which empowers Petronas the rights over oil and resources found within the territorial waters of Sarawak and Sabah,” he told reporters after receiving High Court, Court of Appeal and Federal Court gowns from former Federal Court judge Tan Sri Sulong Matjeraie on behalf of the Sarawak Museum.

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A taxing uncertainty: Petronas’ take on oil royalty, O&G industry and a low-carbon future

February 3, 2020

Dateline 2019-12-07, The Edge:

Sarawak’s legal pursuit for a higher share of proceeds from its hydrocarbon resources – the biggest among Malaysia’s oil and gas producing states – has once again put the national oil company Petroliam Nasional Bhd (Petronas) in the limelight.

The matter escalated just as Tan Sri Wan Zulkiflee Wan Ariffin approaches his five-year mark as Petronas president and group chief executive officer early next year.

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Petronas says third floating LNG vessel possible

January 29, 2020

Dateline 2019-12-02, FMT:

Petroliam Nasional Bhd (Petronas), which is the only company to own and operate two floating liquefied natural gas (LNG) vessels, said a third one is possible if there is a demand.

Petronas’ two floating LNG units are PFLNG Satu and PFLNG Dua.

“If there is a reservoir with a sizeable amount of reserves and the right gas – a composition that it is economically viable – it opens up a case for another floater,” said the company’s Gas and New Energy Business executive vice-president and chief executive officer, Adnan Zainal Abidin.

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Legality of Sarawak’s petroleum sales tax hinges on MA63

January 28, 2020

Dateline 2019-11-28, Malaysian Reserve:

THE court will decide the legitimacy of the imposition of the sales tax by Sarawak on petroleum products based on the Constitution and what is provided under the agreement when the East Malaysia state joined Malaysia 56 years ago.

The state, which is rich with petroleum resources, imposed a 5% sales tax on petroleum products – crude oil, natural gas, liquefied natural gas, chemical-based fertilisers and gas-to-liquid products — sourced from the state early this year.

Petroliam Nasional Bhd (Petronas) has not paid the additional sales taxes for its oil and gas (O&G) exploration activities in the state.

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Energy outlook challenging amid slowing economy, geopolitical tensions: Petronas

January 26, 2020

Dateline 2019-11-27, S&P:

The outlook for the energy sector remains challenging, with a slowing global economy and ongoing geopolitical tensions resulting in demand disruption and lower prices, Malaysia’s state-owned oil and gas company Petronas said in its third quarter results Tuesday.

Petronas posted a 3% year-on-year drop in revenue to Malaysian ringgit 176.2 billion ($42.2 billion) for January-September amid challenging market conditions and sustained pressure on commodity prices and margins.

Reduced sales of crude oil and condensates were partly offset by higher LNG and petroleum products sales, while lower prices were partly counterbalanced by the effect of the weakening Ringgit against the US dollar, the company said.

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Petronas confirms Sarawak’s lawsuit against it

January 24, 2020

Dateline 2019-11-25, Bernama:

Petroliam Nasional Bhd (Petronas) today confirmed that the Sarawak government and the comptroller of state sales tax have filed a lawsuit against it over the alleged failure to pay sales tax to the state.

“Petronas confirms that the comptroller of state sales tax of Sarawak and the Sarawak state government have filed an action against Petronas before the High Court of Kuching on Nov 21, 2019, for non-payment of the Sarawak sales tax on petroleum products,” the national oil company said in a statement.

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Malaysia’s Petronas flags weaker demand as quarterly profit halves

January 23, 2020

But, still laying golden eggs, yes?

Dateline 2019-11-26, Reuters:

Malaysia’s state energy firm Petroliam Nasional Bhd said on Tuesday its third-quarter profit nearly halved due to lower demand and impairment charges, and warned of further risks to demand.

Profit for the July-September period at Petronas, as the company is better known, dropped to 7.4 billion ringgit ($1.77 billion) from 14.3 billion ringgit a year before.

Net impairment charges totalled 2.6 billion ringgit, while revenue fell 14% to 55.1 billion ringgit, hurt by lower prices and reduced sales volume for crude oil and condensates.

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CORRECTED-UPDATE 1-Petronas sees commercial production this year at southern Malaysia refinery

January 20, 2020

Dateline 2019-11-21, Reuters:

State oil company Petronas said its massive refinery and petrochemicals complex in southern Malaysia, a $27-billion joint venture with Saudi Aramco, will start commercial operations as planned by the end of the year, dismissing a report of a delay.

The refinery’s atmospheric residue desulphurisation (ARDS) unit, hit by a fire in April, will begin operation by mid-2020, Petronas said in an email late on Wednesday.

“Petronas would like to clarify that its Pengerang Integrated Complex is in the middle of start-up activities and expected, as planned, to be in commercial operations by end of 2019,” it told Reuters.

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