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.


Paltry federal contribution

January 1, 2017

Dateline 2016-11-26, Borneo Post:

“Foremost in our mind, critical in our pursuit to conserve depletable natural resources, is the petroleum justice that we owe it to ourselves, to Sarawak, and to our future generations to strategically conserve and utitlise it in the best interests of Sarawak.”

See said Sarawak, on shore and offshore, had been demarcated into 48 blocks or fields of oil and gas potentials.

Through the years, he said production sharing contracts (PSC) had been awarded over 27 of these fields, and 13 others were presently been promoted this year and the last.

“It is imperative for us to revivify Sarawak’s sovereign rights to this valuable natural resource, to assert our autonomy and authority over the remaining blocks and fields of oil and gas potentials yet to be awarded with PSC.”

He opined that Sarawak had sacrificed too much of its petroleum resources to the federation.

State, PETRONAS working on Petrochemical Master Plan

December 31, 2016

Dateline 2016-11-25, Borneo Post:

THE Sarawak government and Petronas are currently undertaking the Sarawak Petrochemical Master Plan study covering the coastal areas of the state.

Assistant Minister of Industrial Development (Investment and Promotion) Datuk Julaihi Narawi said the study will look into the technical, commercial and economic feasibility of the petrochemical development in Sarawak.

“Among others, the study is expected to identify and recommend the suitable oil and gas downstream industries that the state can explore,” he said yesterday in his reply to Aidel Lariwoo (BN – Sadong Jaya) and Ripin Lamat (BN – Lambir) during the question and answer session at the State Legislative Assembly yesterday.

He said currently 100 per cent of oil resources and 93 per cent of gas resources are exported in raw form such as crude oil and liquefied natural gas (LPG).

“It is the intention of the state government to establish a robust downstream industry to increase participation in the higher value chain and thus creating a more sustainable industry for the state amidst the declining resources.


State to develop specialised ventures in O&G industry

December 27, 2016

Dateline 2016-11-19, Borneo Post:

The state is set to embark on specialised global venture to enhance the development of downstream and upstream activities of the Oil and Gas (O&G) Industry in Sarawak

Minister for Industrial and Entrepreneur Development, Trade and Investment Datuk Amar Awang Tengah Ali Hassan stressed that the state is open to work closely with companies like BCS Contract and Supply Services Sdn Bhd (BCS) and SFS Aviation Co Ltd (SFS) in ensuring that these strategic ventures are on the right path to become a long-term win-win synergy with the state.

The intention is also in line with Sarawak Oil and Gas Committee (SOGC) and Sarawak Oil and Gas Development Unit (SOGDU) initiatives, he pointed out.


Territorial Sea Act null and void?

December 11, 2016

Dateline 2016-10-30, Borneo Post:

ON June 22, 2012, Sarawak and Sabah lost their sovereign rights and jurisdiction over the area of the Continental Shelf, consisting of the seabed and its subsoil beneath the high seas contiguous to the territorial waters of the Borneo states, when Territorial Sea Act 2012 (TSA) came into effect, limiting both their jurisdictions to three nautical miles (5.5 km) from the coastline.

The implication is that with the reduced breadth limits of its territorial waters, the state’s rights to fisheries, marine and mineral resources, tourism sites in marine areas and so forth are now confined to only 3 nautical miles (5.56 km) from its coastline.

Borneo oil royalty push sign of Putrajaya’s strength, not weakness

September 24, 2016

We look forward to an election right after this is all resolved.

Dateline 2016-08-12, Malay Mail:

The renewed demands by Sabah and Sarawak for oil royalties and greater devolution of powers is prompted by the federal government’s growing influence rather than any perceived vulnerability, said state leaders and analysts.

Despite controversies linked to Putrajaya, they said the federal government’s powers have not been reduced, which required both east Malaysian states to be more vocal in demanding a return of the rights they said were due to them according to the Malaysia Agreement 1963.

“It has nothing to do with Putrajaya being weak or strong,” Sarawak Deputy Chief Minister Tan Sri Dr James Masing told Malay Mail Online.

“Sarawak is led by the leader (Tan Sri Adenan Satem) who finally realises that we have been short-changed all this while,” Parti Rakyat Sarawak (PRS) president said while declining to state who has short-changed Sarawak.


Sarawak seeks to regulate Petronas activities within state

July 24, 2016

Dateline 2016-06-15, Malay Mail:

Sarawak Chief Minister Tan Sri Adenan Satem announced today the state government’s plans to regulate the seabed and subsoil activities of national oil company Petronas and its contractors within its territory.

He said Sarawak’s regulatory framework would be based on relevant state laws to which Petronas and its contractors would have to abide.

“Petronas, a corporation having rights to prospect and mine petroleum both offshore and onshore under the Petroleum development Act, 1974, will have to be regulated and abide by the provisions of the Oil Mining Ordinance of Sarawak and the Land Code in regard to the use and occupation of State Land within the boundaries of Sarawak for the prospecting and mining of petroleum,” he said when winding up the debate in the state assembly here.

He said the Land Code of Sarawak, which came into effect on January 1, 1959, defines “state land” to include the seabed and subsoil which forms part of the continental shelf by virtue of an Order made by the British Queen while Sarawak was still a Colony.