Sarawak left out of new gas deal by Petronas

February 10, 2018

Ah, linkbait.

Dateline 2018-01-02, FMT:

It was reported last month that Petronas had awarded the new field development plan (FDP) of the Beryl gas field off the Sarawak coast in October 2017 to JX Nippon Oil & Gas Exploration (Nippon Oil).

So, the Japanese firm and Petronas Carigali will form another joint venture on the development, production and monetisation of Sarawak’s gas reserves.

It is uncertain how Petros, the newly-formed state entity formed by the Sarawak state government in June last year to participate in oil and gas activities, will participate or enjoy, if at all, any of the returns generated by the production and sale of the gas from the Beryl field development.

Likewise, for the gas produced from the other Nippon Oil and Petronas Carigali fields of Layang and Helang, situated adjacent to Beryl.

The gas produced in these three fields are piped and sold to the Petronas liquefied natural gas (LNG) plant in Bintulu, Sarawak.

Contrary to what the Sarawak state government had been saying earlier, it appears Petros has not announced any interest in this new gas block for development.


Reject Territorial Sea Act restricting right over sea, Sarawak told

January 12, 2018

Yeah, tell Sarawak off.

Dateline 2017-11-18, FMT:

Sarawak PKR has called on the state government to reject the implementation of a law passed by Parliament in 2012 which limits the state’s sovereign right and jurisdiction over its surrounding seas, from within 12km from the coastline to just 3km.

Its vice-chairman See Chee How said the Territorial Sea Act 2012 (TSA) was unconstitutional as far as it affected the territorial boundaries of Sarawak and Sabah.

He said Sarawak should claim its full rights as specified under Article 1(3) of the Federal Constitution which stipulates that the territories of Sarawak, Sabah and 11 other states comprise areas they had jurisdiction over prior to Malaysia Day on Sept 16, 1963.

“The Federation cannot enact any law altering or affecting our territorial boundary unless Sarawak first passes a law in our legislative assembly to alter it,” he said.


Get mining licences and leases, Sarawak tells Petronas

January 11, 2018

Dateline 2017-11-17, The Malaysian Insight:

IN the latest move by Sarawak to reclaim its constitutional rights, the state government has told Petronas to get the necessary mining permits in a move seen as exerting its mining rights.

Chief Minister Abang Johari Openg said even though the Petroleum Development Act 1974 (PDA) gave the national petroleum company the right to explore and mine for petroleum in Sarawak, the state still retains the right to issuing mining leases.

He said the rights are listed in the federal constitution.

“The power of the state to issue mining leases remains in the state list of the federal constitution.


Sarawak sets sail for O&G push

October 31, 2017

Dateline 2017-09-16, Borneo Post:

AS Sarawak ushers in Malaysia Day, it is a crucial to remember its first milestone in the oil and gas (O&G) industry, which started in Miri 107 years ago.

The first Sarawak Oil Mining Lease was signed by Rajah Charles Brooke in London in 1909, followed by the send-off by Shell of its senior geologist Dr Josef Theodor Erb and former Baram Division Resident Dr Charles Hose to Miri in 1910.

The first exploratory well was drilled on Aug 10, 1910 using an oil rig engineered by a Canadian named McAlpine – the factor contributing to the place being named ‘Canada Hill’.

Oil flowed out two months later.

Sarawak Oilfield Ltd – a subsidiary of the Shell/Royal Dutch Group – was established to run the operations from Lutong. It was renamed Sarawak Shell Oilfield Ltd and later, Sarawak Shell Bhd – marking the company’s long association with Sarawak.


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.

 


Be firm with Petronas on Sarawak’s share, Abang Johari urged

May 18, 2017

Dateline 2017-04-13, FMT:

Chief Minister Abang Johari Openg should be firm with Petronas that it must consult Sarawak when deciding on its onshore and offshore blocks of oil and gas, Batu Lintang assemblyman See Chee How said.

See, the state PKR vice chairman, also urged the state government to consider investing in and taking ownership of the development of the petroleum resources within Sarawak’s territorial boundary.

The Borneo Post quoted See as saying it was unacceptable for Petronas to continue ignoring Sarawak’s assertion of rights to resources within the state’s territorial boundary.

“I am seriously contemplating to move a private member’s motion on this matter at the coming Sarawak State Assembly sitting scheduled from May 11 to 22, and I am hopeful that my fellow ADUNs (state assemblypersons) will be supportive of it, to take another important step towards fulfilling Tan Sri Adenan Satem’s, and all Sarawakians’, aspiration that Sarawak’s inherent sovereign and autonomous powers be respected by the Federation.”


Exclusive: Petronas considers $1 billion stake sale in offshore gas project – sources

March 2, 2017

Dateline 2017-02-20, Reuters:

Malaysian state-owned oil and gas firm Petronas is aiming to sell a large minority stake in a prized upstream local gas project for up to $1 billion as it seeks to raise cash and cut development costs, two sources familiar with the matter said.

Petroliam Nasional Bhd (Petronas) is looking to sell a stake of as much as 49 percent in the SK316 offshore gas block in Malaysia’s Sarawak state, the sources told Reuters, a move that would be among its first major recent sales as it grapples with oil prices that have slumped by half over two-and-a-half years.

That slide has squeezed the cash flows of Petronas [PETR.UL], hurt its earnings and forced it a year ago to announce a 50 billion ringgit ($11.2 billion) cut in capital expenditure over four years.

Petronas, which accounts for a third of Malaysia’s oil and gas revenue, has also cut its dividend. Sources had told Reuters in September it is considering selling its majority stake in a $27 billion Canadian liquefied natural gas (LNG) plant, although the company denied it.