Local O&G Sector Must Look At Cost Structure To Be More Competitive: Shell

May 9, 2014

I ask you, the little guys are asked to cut cost, the middleman sell fish at the same or inflated price.

Bernama, dateline 2014-04-08:

Malaysia’s oil and gas (O&G) industry must look at the cost structure to be more competitive amid a challenging landscape that involves deepwater exploration and enhanced oil recovery (EOR), said Shell Malaysia Chairman Iain Lo.

“The current cost structure is too high. It’s related to how the industry does things faster, better and cheaper.

“We have to look at ways to get the cost structure down,” he said.

A competitive cost structure would attract more companies in accessing the remaining reserves such as those in marginal fields or EOR, he told reporters after his presentation at a panel session titled “Malaysia as an Upstream Investment Destination” here today.

The session was held in conjunction with the four-day Offshore Technology Conference Asia 2014, which ended today.

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Shell Discovers Oil at Limbayong Field in Offshore Sabah

April 19, 2014

Dateline 2014-03-17, Rigzone:

Malaysia’s national oil and gas company Petroliam Nasional Berhad (Petronas) and Royal Dutch Shell plc announced Monday an oil discovery offshore Sabah, Malaysia.

The discovery was made via the Limbayong-2 well during the appraisal of the Limbayong gas field by Shell. The appraisal well encountered 446 feet (136 meters) of oil bearing sands, and there are plans to conduct more appraisal work on the discovery to determine its recoverable volume.

Petronas’ Executive Vice President of Exploration and Production Wee Yiaw Hin said: “We are indeed pleased with the discovery which affirms the hydrocarbon prospects of Malaysia’s deep water areas.”

Iain Lo, chairman of Shell Malaysia and managing director of Sabah Shell Petroleum Company Ltd said: “This discovery attests to the significant potential in this area and is a positive development for exploration activities in East Malaysia.”

The drilling of the Limbayong-2 appraisal well was carried out by the consortium of Shell Malaysia (35 percent), ConocoPhillips (35 percent) and Petronas Carigali Sdn Bhd (30 percent).

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Shell and UAE’s Mubadala swap Malaysian offshore field stakes

March 1, 2014

Dateline 2013-01-19, Zawya:

Royal Dutch Shell and Mubadala Petroleum have swapped equity stakes in two exploration blocks off Malaysia, the Abu Dhabi-based energy company said on Sunday.

Mubadala has taken a 20 percent interest in the Shell-operated deepwater Block 2B and Shell took a 20 percent interest in the Mubadala-operated Block SK320 in return.

“The equity swap agreement is an important step for Mubadala Petroleum’s growth strategy in Malaysia and marks our first partnership in Southeast Asia with Shell, an important player in deepwater exploration,” Maurizio La Noce, chief executive of Mubadala Petroleum, said in a statement.

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Shell Malaysia makes effort to cultivate awareness on O&G

January 18, 2014

I like where the article states ‘Mat said’, and I can’t find any reference to this mysterious ‘Mat’ in the preceding text.

Dateline 2013-12-05, Borneo Post:

Shell Malaysia has come of age with cutting edge technologies in the oil and gas industry whilst cultivating Malaysians to take the company to the next stage.

This was presented to the media at a Wells to Wheels briefing in Miri organised by Shell’s Corporate Affairs Department.

“Over 90 per cent of the 6,500 staff employed by Shell Malaysia are Malaysians, and the 450 expatriates are carefully picked while another 398 Malaysians are working for Shell companies abroad,” he said.

About 40 per cent of the staff are working in upstream industries, he added, whereby some of the staff are fourth-generation employees of this Malaysian pioneering oil and gas company under Royal Dutch Shell umbrella.

Mat said Shell Malaysia has came a long way and pioneering technology such as Gas-To-Liquid ( GTL) technology in Shell Middle Distillate Synthesis (SMDS) project in Bintulu is now used in Qatar plant with ten-folds capacity.

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Shell invests RM3.2b in Malaysia

November 14, 2013

Dateline 2013-09-25, Malaysian Reserve:

Shell Malaysia has reiterated its confidence to invest US$1 billion (RM3.22 billion) in fixed investments in the Malaysian oil and gas (O&G) industry, providing employment to over 6,500 people, Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed said.

“I just had a discussion with the Shell leadership including Shell’s group CEO and they have expressed confidence in the country and will continue to invest in the country, he told newsmen after delivering a keynote address at the Shell Malaysia Innovation Summit in Kuala Lumpur yesterday.

A key project that Shell is working on is the Gumusut Kakap, a deepwater field which Shell is developing with Petronas Carigali Sdn Bhd, ConocoPhillips and Murphy. When it goes into full production, it is expected to contribute 20% to 25% of Malaysia’s oil production, with design capacity of 150,000 barrels per day.

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Rising cost a challenge for O&G industry, says Shell

October 27, 2013

I would like to be an acceptable part of the rising cost.

Dateline 2013-09-06:

Shell Malaysia, the Malaysian arm of Royal Dutch Shell plc, said costs are escalating to an extent that the profitability of some of its projects could be threatened.

“The projects will be threatened by very high cost. We need help from the Malaysian services industry to be more competitive in terms of their cost,” said Shell Malaysia chairman Ian Loh in Miri yesterday.

Loh was speaking to reporters at the official opening of the company’s Asia Pacific Wells Learning Hub in Miri, Sarawak.

He said the oil and gas (O&G) industry in Malaysia is facing a challenge on costs which requires them to find innovative ways to reduce these costs.

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Jabu lauds Shell for setting up learning hub in the state

October 26, 2013

Now give training to local engineering firms at a nominal cost (say, one Big Mac meal), and then I really start jumping for joy.

From the Borneo Post onlne, dateline 2013-09-06:

Mri: Shell Malaysia opened its Asia Pacific Wells Learning Hub, the first in the Asia Pacific region and third globally after its Houston Centre in the United States and Rijswijk Centre in the Netherlands, here yesterday Officiating at the official

opening, Deputy Chief Minister, Datuk Patinggi Tan Sri Alfred Jabu Numpang said the state strongly supported Shell and other oil and gas companies in continue developing their operations in the state.

Praising Shell for setting up the learning hub in the state, he added that the state government had always been appreciative of positive initiatives in technological advancement.

“The applications of technological knowledge are important tools to provide cutting edge amidst global competition for productivity, efficiency, scientific interest, environmental compliance and profitability.

“I am very happy today to witness Shell Malaysia bringing advance training facilities for petrol chemical, oil and gas onshore, located here,” said Jabu.

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UPDATE 1-Exxon, Shell advance in Newfield’s Asia auction-sources

October 2, 2013

Dateline 2013-08-15, Reuters:

Energy majors Exxon Mobil Corp and Royal Dutch Shell are among the suitors advancing to the next round of bidding for Newfield Exploration Co’s Malaysian and Chinese oil and gas fields valued at about $1.2 billion, people familiar with the matter said.

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Exxon, Shell advance in Newfield’s Asia auction: sources

September 28, 2013

Dateline Chicago Tribune 2013-08-15:

Energy majors Exxon Mobil Corp and Royal Dutch Shell are among the suitors advancing to the next round of bidding for Newfield Exploration Co’s Malaysian and Chinese oil and gas fields valued at about $1.2 billion, people familiar with the matter said.

Newfield and Hess Corp are among a number of U.S. energy companies unloading ageing and less productive oil and gas fields to invest in more strategic and profitable projects, particularly in and close to their home markets. The moves are driven in part by activist shareholders.

 

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Gumusut-Kakap FPS to Operate at Full Capacity By Year-end

July 19, 2013

I believe when I see…

Dateline 2013-06-29, Rigzone:

Shell expected its floating production system (FPS) for the Gumusut-Kakap oil field project offshore Sabah, Malaysia to operate at full capacity by year-end.

“We drew our first oil in November last year and we expect to reach full production capacity by year-end,” said Chairman Iain Lo of Shell Refining Company (Federation of Malaya) Bhd – a subsidiary of Shell in Malaysia as reported by Malaysian national news agency Bernama June 21.

The FPS will produce 150,000 barrels of crude oil per day from 19 subsea wells, which are located in water depths of 3,937 feet.

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