Petronas 2.0: tougher on costs and more downstream

September 22, 2017

Can I register Petronas20.com.my?

Dateline 2017-08-17, Reuters:

When Wan Zulkiflee Wan Ariffin took over as CEO of Malaysian state energy firm Petronas in April 2015, the price of a barrel of Brent crude oil had tumbled to around $55, half the level of the previous year.

Over the following months prices fell further, forcing Wan Zul, as he is better known, to lop $12 billion from costs and cut thousands of jobs for the first time at Petronas – a major contributor to Malaysia’s budget and one of the country’s biggest employers.

As he enters the final year of his three-year contract, he says Petronas is leaner and better placed to handle a volatile oil market, focusing on costs, high-margin businesses and possibly new growth streams such as renewables.

…

Leave a Comment » | Malaysia, oil and gas | Tagged: , | Permalink
Posted by Wata

Leaner, meaner Petronas targets key markets for growth

September 19, 2017

So, do we get leaner, meaner expats than the current crop?

Dateline 2017-08-15, NST:

Malaysian state energy firm Petronas will focus on a few select markets for expansion, its CEO told Reuters, as it positions itself as leaner and meaner for a medium-term period of relatively low oil prices.

Hurt by a slump in oil prices, Petroliam Nasional Berhad has cut its costs and its spending, deferring some projects in an effort to help profitability in a tough energy market.

Rather than having its operations “scattered all over the place,” CEO Datuk Wan Zulkiflee Wan Ariffin wants the company’s geographical profile to be concentrated, he said in an interview on Tuesday at the Petronas Towers, the world’s tallest twin towers.

“We must have geographical concentration to be more cost effective,” Wan Zulkiflee said.

For its upstream business, Petronas will focus on South East Asia and Canada, where it already has huge reserves, he said, adding that Mexico – where Petronas has recently picked up three blocks – will be another focus.

…

 

Leave a Comment » | investment, Malaysia, Malaysian election | Tagged: , | Permalink
Posted by Wata

Petronas expects balance in oversupplied LNG market in 2023

September 17, 2017

Dateline 2017-08-15, Reuters:

Malaysian state energy company Petroliam Nasional Berhad [PETR.UL] expects the global liquefied natural gas (LNG) market to remain oversupplied until as late as 2023, its chief executive said on Tuesday.

Rising LNG production over the last two years, mainly from Australia and the United States, has exceeded demand and depressed prices. Asian spot LNG prices LNG-AS are now down by around 70 percent from early 2014.

Petronas, as the company is better known, only last month scrapped a proposed $29 billion LNG terminal project in western Canada, saying market conditions made the project “economically unviable”.

…

 

Leave a Comment » | Malaysia, oil and gas | Tagged: , | Permalink
Posted by Wata

Petronas Sets Aside RM10b For Enhanced Oil Recovery Projects In Sarawak

August 29, 2017

Dateline 2017-08-03, MalaysianDigest:

Petroliam Nasional Bhd’s upstream subsidiary, Petronas Carigali Sdn Bhd (PCSB), has set aside RM10 billion for its enhanced oil recovery (EOR) projects located offshore Sarawak.

Expected to be completed by the year 2020, the EOR in the Bakor and Baronia fields, would be jointly carried out with Sarawak Shell Bhd.

PCSB Sarawak Oil-Malaysia Assets head, Anuar Ismail, said the company is upbeat that the investment will yield return despite uncertainties in the global oil prices.

“It is business as usual for Petronas although we are adopting prudent spending. We are trying to reduce our operating cost as much as possible to maximise our income,” he told reporters when met the PCSB headquarters here today.

Anuar also gave his assurance that retrenchment is not in the cards although Petronas is trying to control its operating cost from increasing.

He said there are a total of 1,200 employees stationed at oil rigs in the state.

…

 

Leave a Comment » | Malaysia, oil and gas | Tagged: , , , , , | Permalink
Posted by Wata

Petronas divests interest in Bintulu’s LNG 9

August 26, 2017

Dateline 2017-07-28, Borneo Post:

Petronas has signed an agreement with PTTGL Investment Ltd (PTTGLI) for PTTGLI’s equity participation of a 10 per cent equity interest in Petronas LNG 9 Sdn Bhd (PL9SB) in Bintulu.

PL9SB, a subsidiary of Petronas, owns the ninth LNG liquefaction train (Train 9) in the Petronas LNG Complex in Bintulu, Sarawak.

PTTGLI is a subsidiary of PTT Global LNG Company Ltd (PTTGL) which is a 50:50 joint venture company between PTT Public Company Ltd (PTT), Thailand’s state-owned oil and gas company, and PTT Exploration and Production Public Company Ltd (PTTEP).

With a production capacity of 3.6 million tonnes per annum (mpta), Train 9 started its commercial operations in quarter one of this year, boosting the total output capacity of the Petronas LNG Complex to 30 mtpa.

Following PTTGLI’s 10 per cent participation, Petronas now owns 80 per cent share in PL9SB, while the remaining 10 per cent is owned by JXTG Nippon Oil & Energy Corporation through its subsidiary, Nippon Oil Finance (Netherlands) BV.

…

 

Leave a Comment » | Malaysia, oil and gas | Tagged: , , , , | Permalink
Posted by Wata

Thailand’s PTT considers taking stake in Malaysia gas facility

August 24, 2017

Dateline 2017-07-20, The Star:

Thailand’s state-owned oil and gas giant PTT Plc is considering taking a stake in a natural gas liquefaction plant to be built in Malaysia, a company spokesman said on Thursday.

The PTT board will on Friday consider the project, to be built with Malaysia’s Petronas, making a decision on the size of any potential stake, the spokesman added.

That came after the Bangkok Post on Wednesday cited Wirat Uanarumit, chief operating officer of PTT’s upstream petroleum and gas business, as saying that the company was looking to hold a 10% stake in the new facility.

Petronas did not immediately respond to a request for comment from Reuters.

…

Leave a Comment » | Malaysia, oil and gas | Tagged: , | Permalink
Posted by Wata

Sarawak state government to set up oil company

July 29, 2017

Dateline 2017-06-11, The Malay Mail:

The Sarawak government is planning to establish a state-owned offshore oil and gas exploration company in order to participate in the industry, said Chief Minister Datuk Amar Abang Johari Tun Openg.

He said the plan was discussed with national oil corporation, Petronas, which was very receptive to the idea of the state-owned company partaking in upstream and downstream oil and gas exploration activities.

“I had discussions with Petronas, we are adopting a new approach.

“Sarawak will participate in both upstream and downstream oil and gas activities.

“In the upstream sector, this will be Sarawak’s maiden venture, as such, we need to set up a state-owned company in order to join Petronas in oil and gas exploration in the South China Sea.

…

Leave a Comment » | Malaysia, oil and gas | Tagged: , | Permalink
Posted by Wata

Petronas’ stake sale of offshore gas asset advances to second round: sources

July 28, 2017

I don’t know why this item has been so hyped up. Isn’t this the usual way acreage is bid out?

Dateline 2017-06-05, Reuters:

The sale by Malaysian energy firm Petronas of an estimated $1 billion stake in a local upstream gas project has moved to the second round and is set to attract interest from about half a dozen bidders including Royal Dutch Shell and ExxonMobil Corp, four sources familiar with the matter said.

State-owned Petroliam Nasional Bhd (Petronas) had kicked off a process to sell a stake of up to 49 percent in the SK316 offshore gas block in Malaysia’s Sarawak state, Reuters reported in February.

Prospective buyers are expected to submit second round financial bids this month, and a final decision on the successful bidder is expected later this year, said two sources.

…

 

Leave a Comment » | Malaysia | Tagged: , | Permalink
Posted by Wata

Petronas Q1 pre-tax profit surges to RM15.5 billion

July 14, 2017

They don’t mention that this was helped by all suppliers having a price race to the bottom. We need to fix prices, perhaps get them into the scale of fees in the Registration of Engineers Act.

Dateline 2017-06-02, FMT:

Petroliam Nasional Bhd’s (Petronas) pre-tax profit for the first quarter ending March 31, 2017, surged more than 100% to RM15.5 billion from RM6.8 billion in the same period last year.

The national oil company said higher earnings for the quarter were primarily driven by higher oil prices and improved margins from upstream and downstream businesses, in tandem with its ongoing transformation efforts that have resulted in heightened cost optimisation and efficiency improvements across its value chain.

Stronger pre-tax profit for the quarter was also mainly due to higher revenue, which benefitted from higher average realised prices and lower net impairment on assets, partially offset by higher taxation, amortisation of oil and gas properties and product costs, it said in a statement today.

…

 

Leave a Comment » | investment, Malaysia | Tagged: | Permalink
Posted by Wata

Petronas to invite K5 bids

July 9, 2017

Dateline 2017-06-01, Upstream Online:

Asian offshore builders are standing by to receive an invitation to bid for a mobile offshore production unit bound for the shallow-water K5 sour gas field off Sarawak, Malaysia, writes Russell Searancke.

Initial production will be about 250 million cubic feet per day of gas, which will be sent by subsea pipeline to the ninth train at Petronas’ liquefied natural gas complex in nearby Bintulu.

The field operator Petronas earlier this year conducted a type of pre-qualification exercise which attracted the interest of many offshore builders in Asia.

Yards from Malaysia, Thailand, China and South Korea are understood to have expressed an interest to Petronas in pursuing the engineering, procurement, construction, installation and commissioning contract.

…

 

Leave a Comment » | engineering | Tagged: , , | Permalink
Posted by Wata

« Previous Entries
Next Entries »