Landmark Opec deal fuels local O&G stocks

January 7, 2017

Did you catch the price rise wave, or mistimed and was caught in the trough?

Dateline 2016-12-02, NST:

Oil and gas (O&G) stocks rallied yesterday after Organisation of the Petroleum Exporting Countries (Opec) agreed on Wednesday to cut output for the first time in eight years.

Among the gainers were Deleum Bhd, Dayang Enterprise Holdings Bhd, UMW Oil & Gas Corp Bhd, SapuraKencana Petroleum Bhd and Uzma Bhd.

Leading the pack was Deleum, with the counter jumping 10.5 sen, or 12.8 per cent, to 92.5 sen, with 4.97 million shares traded.

Crude oil prices steadied around US$53 (RM236.90) a barrel yesterday, holding on to big gains made after Opec and Russia agreed to restrict production.

In the meeting, Opec members agreed to cut oil output by almost 1.2 million barrels per day from January to June next year.


Units, UK partner to end risk sharing contract for offshore oilfield

August 21, 2016

Dateline 2016-07-11, Asia Review:

Risk sharing contracts were introduced by Petronas in an attempt to develop smaller and marginal oilfields and increase oil recovery amid depleting fossil fuel resources in Southeast Asia’s third largest economy. Unlike traditional production sharing contracts, parties bound under risk sharing pacts enjoy a prior-agreed rate of return, while risks are shared even if an exploration fails to yield results.


Malaysia gas find for Sapura

June 25, 2016

There’s a big difference between ‘gas find’ and ‘finds gas’, which I read upon first glance, and triggered an aggressive response.

Dateline 2016-05-31, OE:

SapuraKencana Energy discovered gas in two of the three wells drilled in 2015 within the SK408 block contract area, offshore Malaysia in Sarawak.

The first well Jerun-1 is approximately 5km north of the 2014 Bakong gas discovery. Based on analysis of electric log, pressure and sample data, Jerun-1 has an interpreted gross gas column of about 800m in the primary target reservoir and is a multi-Tcf gas discovery.

Jeremin-1, about 15km west of the F9 gas field encountered a 104m gross gas column, but Putat-1, 20km north of the Cili Padi gas field was confirmed as a dry hole. All wells have been safely plugged and abandoned.

SapuraKencana said Jerun-1 and Jeremin-1 together with the earlier five discoveries within Block SK408 are close to existing infrastructure supplying gas to one of the world’s largest liquefied natural gas (LNG) facilities in Bintulu, Sarawak.

SapuraKencana as operator holds 40% working interest in the project, and partners PETRONAS and Sarawak Shell hold the remaining interest of 30% each.


SapuraKencana forced to restructure amid weak oil price

May 26, 2016

Bit early to restructure, ain’t it, after being profitable since going public?

Dateline 2016-04-16, Nikkei:

Malaysia’s largest oil and gas company by market capitalization will undertake a restructuring exercise effective June 1, that may involve “redundancies.”

The region’s oil and gas industry, including rig builders is suffering from a serious supply glut as oil producers cut spending on exploration and production in the face of weak oil prices. The so-called “rightsizing” of the industry’s operations is likely to continue.

SapuraKencana Petroleum‘s revelation comes less than a month after the oilfield services company announced a net loss of 791 million ringgit ($202.4 million) for the fiscal year through January. The loss, its first since going public in May 2012, was largely attributed to having to set aside higher provisions for the asset impairment setbacks it is suffering due to the commodities swoon that began in the second half of 2014.


SapuraKencana predicts oil price will take two years to recover

February 9, 2016

On hindsight, maybe SK needs to consider that ‘Winter has Come‘, and will be longer that forecast.

Dateline 2015-01-04, Financial Times:

One of Asia’s leading oilfield services groups has warned it expects crude prices to stay at sharply lower levels for up to two years.

Shahril Shamsuddin, chief executive of Kuala Lumpur-based SapuraKencana, also said the energy industry slump was hitting the order books of Malaysia’s fabrication yards, as new projects worth billions of dollars were shelved.

SapuraKencana supplies some of the world’s largest oil exploration and production groups, and Mr Shamsuddin said the supermajors had embarked on a relentless round of cost-cutting to protect dividend payouts, in a downturn that could prove to be worse than that of the 1980s.

 


Three parties prequalified for Kasawari CPP contract

March 20, 2015

Dateline 2015-01-13, Borneo Post:

Three parties have likely been pre-qualified by Petronas for the US$1.5 billion Kasawari central processing platform (CPP) contract.

AmResearch Sdn Bhd (AmResearch) noted that the three parties are South Korea’s Hyundai Heavy Industries Co Ltd, a joint venture between Italy’s Saipem SpA and SapuraKencana Petroleum Bhd, and a partnership between France’s Technip SA and Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE).

“We understand the bidding is in progress and is currently being evaluated.

“The contract could be awarded sometime in April. Berlian McDermott, a joint venture between TH Heavy Engineering Bhd and Houston-based McDermott International Inc, did not progress beyond the prequalifying stage of this contest,” said AmResearch.


Malaysia’s SapuraKencana buys Petronas’ blocks offshore Vietnam for $400 mln

January 31, 2015

So, I guess SKE is the new crony to PETRONAS. Are they pushing Vestigo down a level?

Dateline 2014-11-30, Reuters:

SapuraKencana Petroleum Bhd , Malaysia’s largest listed oil and gas services firm by market capitalisation, is buying state oil firm Petroliam Nasional Bhd’s entire interest in 3 blocks offshore southern Vietnam for $400 million.

The economic effective date of the transaction is Jan. 1, 2014 and SapuraKencana is entitled to net revenue from these blocks from then, the Kuala Lumpur-based company said in a press release on late Thursday.

“The transaction gives SapuraKencana an immediate foothold in the promising oil provinces offshore Vietnam with cash generating assets that will be earnings accretive to the group,” Chief Executive Officer Shahril Shamsuddin said in a statement.