Tie-ups key to survival in ‘lower for longer’ oil era

August 5, 2016

Dateline 2016-06-25, NST:

In the current environment of prolonged low oil prices, dubbed the “lower for longer” era, players in the oil and gas (O&G) industry are defying the odds through collaboration. Returns may be less than favourable, but industry players are staying focused on deep-water exploration and production activities, albeit higher costs involved in initial stages for such ventures. Shell Malaysia chairman Datuk Iain Lo said the deep-water business was under pressure, like other segments in the industry, and this called for collaboration among O&G industry players in order to remain sustainable. “Collaboration is important as it brings together the best capabilities and encourages assumptions to be challenged and boundaries to be pushed. “Such effective collaboration doesn’t happen overnight. It requires a long-term commitment from the parties involved but it allows us to jointly achieve something we wouldn’t be able to do alone.

Shell continues to study recent gas discoveries

July 17, 2016

Dateline 2016-06-14, Borneo Post:

There have been a total of 10 gas discoveries by Shell and partners in Sarawak in the past 24 months, all of which are still under study.

According to Shell Global Solutions Malaysia, Projects and Technology managing director Simon Ong, over the past few years, Shell and its partners have made quite a few discoveries, mainly in gas offshore Sarawak – some of which are quite significant in volumes.

“We have a very active exploration program, we have one of the biggest exploration expenditure in this country about US$100 million per year, in the last last few years.

“We have made significant discoveries, both us and our partners, made a lot of discoveries, predominantly in the Sarawak side. But, we also have plans to look into Sabah,” Ong said during a press conference on the Malikai Sail Away Milestone over the weekend.

Adjustments necessary: Shell

June 16, 2016

Dateline 2016-05-25, Daily Express:

The current tough oil price environment hit many oil and gas companies hard, including oil giant Shell Holdings Bhd, forcing them to find new balance in order to sustain its business in the State and elsewhere.

Sabah Shell Malaysia General Manager Ian Lim said due to the low price of Brent crude oil, the entire industry had had to make adjustments including deferring or stopping projects and restructuring to achieve lower costs.

“Indeed, like many, Shell is preparing for a lower for longer scenario. Here in Sabah, our challenges are, firstly, we are operating mature assets with increasing unit operating costs in an operating low oil price environment.

“Secondly, our deep water assets are prolific but they are also complex and have challenging operating environments due to the much deeper water depths,” he said during his keynote address at the 5th Sabah Oil and Gas Conference and Exhibition here.

Nevertheless, Lim said, Shell is committed to staying in business for the long term in the State and this will require a new balance that focuses on growing its deep water business, being more competitive and efficient and nurturing local talents.


Shell agrees to sell its shareholding in the Shell Refining Company in Malaysia to Malaysian Hengyuan International Limited (MHIL)

March 27, 2016

And China continues to buy their way into Malaysia.

Dateline 2016-02-01, Oil & Gas News:

Shell has reached a conditional agreement with Malaysian Hengyuan International  Limited (MHIL) for the sale of its 51% shareholding in the Shell Refining Company (SRC) in Malaysia for $66.3 million. It is MHIL’s intention for SRC to invest in the upgrades needed to meet the Euro 4M and Euro 5 requirements. The transaction is expected to complete in 2016, subject to obtaining regulatory approval.

Shell Malaysia Trading will ensure security of supply to its retail and commercial customers in Malaysia and honour other existing commitments through an existing comprehensive supply strategy that includes a long term offtake from Shell Refining Company.

The sale is consistent with Shell’s strategy to concentrate its global Downstream footprint and businesses where it can be most competitive. Malaysia continues to be an important country for Shell.  Shell is the leading retail fuels and lubricants provider and continues to invest in growing these businesses in the country.


Shell to cut 1,300 jobs in Malaysia over two years

November 3, 2015

On the tail of the previous article, Shell continues stride with deepwater projects

Dateline 2015-09-29, Fuelfix:

Royal Dutch Shell’s oil unit in Malaysia said it will cut 1,300 jobs, or about 20 percent of its Malaysian workforce, over the next two years as it restructures itself.

Shell Malaysia said Tuesday it is trying to become a more efficient company but gave few details beyond disclosing the coming staff reductions. It said it has made “adjustments” to its upstream portfolio but didn’t elaborate.

“Shell Malaysia is preparing itself to be more competitive in a low oil price environment,” Shell Malaysia Chairman Iain Lo said in a written statement. “Continuing business as usual is not sustainable. We are taking difficult, but necessary action.”


Shell continues stride with deepwater projects

October 31, 2015

This is on badly edited article. Libreoffice spellchecker offline?

Dateline 2015-09-26, Borneo Online:

The oil and gas (O&G) sector, as covered in last week’s feature ‘Volatilty in the O&G Market’, has experienced much instability of late with oil prices impacted by various ongoing factors.

This has not slowed oil and gas giant Shell plc (Shell) from continueing its stride in the local markets as it had

Any Sarawakian will know the Shell brand – it has been in Malaysia for 120 years, first making its mark in Miri. It was also in this country where Shell’s upstream industry actually first began, with the country’s first oil well discovered by Shell on Canada Hillm Miri back in 1910.

Since then, Shell’s upstream business has grown from strength to strength: from Sarawak to Sabah and back down to Bintulu, where a natural gas liquefaction venture was formed,

The abundance of gas also prompted the establishment of the world’s first commercial middle distillate synthesis – the Shell Middle Distillate Synthesis plant – in Bintulu in 1993. As the first commercial Gas to Liquids (GTL) plant of its type, this allows Shell to sell ultra clean GTL products to the world.

From there, Shell eventually ventured into the deepwater industry offshore Sarawak.


Deepwater project passes on skills to Malaysian O&G

October 23, 2015

Dateline 2015-09-22, Borneo Post Online:

The Petroliam Nasional Bhd (Petronas), Shell and Technip-MMHE Joint Venture (TMJV) for the safe integration of the topsides of its Malikai deepwater platform onto the hull at Pasir Gudang, Johor provided much-needed education and skill to enhance Malaysia’s oil and gas talent.

According to Simon Ong, managing director of Shell Global Solutions Malaysia, Projects and Technology, the project was necessary as Malaysia needs the oil to sustain the revenue and energy needs of the country.

With them now having almost a full suite of deepwater technology, Ong said this will position Malaysia to be the hub of deepwater in the region as aspired by Petronas.

“This is a very important milestone for us in Malaysia,” he said in a recent site visit.


Shell transfers stake in Malaysia MLNG plant to Petronas

September 24, 2015

Dateline 2015-08-21, Reuters:

Royal Dutch Shell unit Sarawak Shell Bhd has transferred its 50 percent stake as operator of the MLNG Dua liquefied natural gas (LNG) plant to Malaysian state oil firm Petroliam Nasional Bhd (Petronas) , Petronas said on Friday.

The Petronas statement did not give further details or any value attached to the move.

Petronas’ subsidiaries now wholly own the operator of the LNG producer in the Borneo state of Sarawak in Malaysia, according to a statement by Petronas. Shell operated MLNG Dua via a production sharing contract signed with Petronas since 1993.


Marketing Rounds – Clear Instructions

July 29, 2015

I await the day when someone confuses this with AirAsia’s requirements,and complains.


Construction begins on Shell Malaysia’s oil and gas lab

May 14, 2015

Yea, Chee Tsong. But why not work with universities, or can they run research projects at your pad?

Dateline 2015-04-07, TMI:

Shell Malaysia has started construction of the largest upstream oil and gas (O&G) laboratory in Sarawak for deepwater exploration and production activities.

It will be operational by the end of 2016.

Sarawak Shell Bhd general manager Chok Chee Tsong said the new building showcased the company’s commitment in continuing to invest in the O&G industry in Sarawak and in Malaysia.
He was speaking at the ground-breaking ceremony for the building by state Assistant Minister in the Chief Minister’s office (Promotion of Technical Education), Datuk Len Talif in Miri today.