Malaysian oil and gas hub materializes as Malikai nears production

October 23, 2016

Dateline 2016-09-12, Offshore:

Shell recently celebrated several major milestones for Malikai as it moves closer to entering production, when it will become the company’s second operated deepwater project in Malaysia after Gumusut-Kakap.

In June, the Technip-Malaysia Marine and Heavy Engineering (MMHE) joint venture (TMJV), contracted by Shell in February 2013, concluded onshore fabrication and commissioning operations. The 27,500-metric ton TLP then began its 1,400-km (870-mi) excursion from the MMHE West fabrication yard at Pasir Gudang in Peninsular Malaysia to the Malikai field, which lies in the South China Sea some 100 km (62 mi) off Sabah.

The TLP was transported by the Dockwise heavy-lift vessel White Marlin, according to fellow contractor InterMoor, which was responsible for the marine aspects of its float-off and tow.

These milestones behind it, a spokesperson for Shell based in Kuala Lumpur recently told Offshorethat it anticipates first oil in 2017.


Shell Malaysia pledges RM125mil for social investment

September 23, 2016

Dateline 2016-08-11, The Star:

Shell Malaysia will invest RM125mil over the next 10 years to fund Malaysian talent innovation and competitiveness, says Chairman Datuk Iain Lo.

“We still have much to contribute towards developing Malaysia’s energy resources and exploration, demonstrate our commitment to the local oil and gas industry.

“That is not all. We can think of no better or fulfilling way to make the future together with Malaysia than through the exponential impact of individual Malaysians,” he said.

 


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.”