Tuesday, 6 February 2018

Sapura Energy bags RM905m worth of contracts

Sapura Energy Bhd, formerly known as SapuraKencana Petroleum Bhd, said it has secured several contracts with a combined value of about RM905 million via its direct and indirect wholly-owned subsidiaries.

Sapura Fabrication Sdn Bhd secured three provision of engineering, procurement, construction and commissioning (EPCC) contracts.

One of the three contracts is for the Kinarut ERB West Compressor upgrading project for Petronas Carigali Sdn Bhd, which spans three years till the fourth quarter of 2020. The works entail the replacement and refurbishment of compressors and associated equipment at ERB WEST and Kinarut platforms.

The second contract, also awarded by Petronas Carigali, is for a minor EPCC project at Bokor Betty Brownfield and Rejuvenation for four and a half years, expected to expire in the second quarter of 2022. The job scope comprises Bokor rejuvenation and host tie-in works at existing platforms, as well as redevelopment of platform facilities to support Bokor EOR (enhanced oil recovery) and redevelopment of the two fields.

Friday, 2 February 2018

Petronas sweeps six of 19 blocks awarded in Mexico oil auction

Royal Dutch Shell snapped up nine of 19 Gulf of Mexico oil and gas blocks awarded in a Mexican auction on Wednesday, as the global oil major ramped up its big bet on Latin America's deep waters.

The auction raised an estimated $93 billion in investment for Mexico and was the biggest since the country's energy sector opened to foreign firms in 2014.

The stakes were high for Mexican President Enrique Pena Nieto and his struggling party, which wants to showcase the results of its energy liberalization ahead of a presidential election in July.

With oil prices at a three-year high, conditions were better for this auction than any of the previous eight sales in Mexico since 2015, lending weight to Pena Nieto's argument that opening up the sector would bring the investment needed to turn around a dilapidated state-run oil and gas industry.

Shell bid aggressively despite fears that Pena Nieto, who will not run in July, might be replaced by a leftist leader who may revise the terms of energy contracts.

Thursday, 1 February 2018

Barakah starts the year on clean slate

Barakah Offshore Petroleum Bhd had expected to maintain its profitability in the financial year ended Dec 31, 2017 but delays in its Pengerang gas pipeline project in Johor had set the company back almost a year, resulting in losses.

However, vice-president and chief corporate officer Abdul Rahim Awang is keen to put all this behind the company and start 2018 on a clean slate. He anticipates Barakah will return to the black in the first quarter ending March 31.

“Our losses will be reflected over two quarters, mainly from our Pengerang pipeline project and firefighting water system. The work was delayed due to site issues. A portion of the site was not given to us in time to execute so we were not able to connect the system, which runs through the whole area.

“It is now almost completed, but the extension was for almost a year. As a result, the billing was impacted. By this quarter we will clear everything up, and start 2018 on a clean slate.

Wednesday, 10 January 2018

Gas leak at Petronas SSGP in Lawas

A gas leak occured at 1.45am today at Petronas Sabah-Sarawak Gas Pipeline (SSGP) located in Long Luping, Lawas district in Limbang Division.

Petronas Sabah and Labuan Regional Office Media Relation said the emergency response team had been mobilised  and put the situation under control, with all relevant authorities having been informed the matter.

“There is no impact to the surrounding communities and the environment. Investigation still being carried out,”it said in a brief statement today.

For the record, the 512-km SSGP transported gas from Kimanis, Sabah, to Bintulu,Sarawak, for processing into liquefied natural gas (LNG) at the Petronas LNG Complex for export. — Bernama

Thursday, 23 November 2017

Petronas Q1 profit after tax surges 124% to RM10.3b on higher prices

Petroliam Nasional Bhd (Petronas) chalked up a solid performance in the first quarter ended March 31, 2017 with profit after tax surging 124% to RM10.3bil from RM4.6bil a year ago due to higher oil prices and improved margins from upstream and downstream businesses.

The national oil corporation said on Friday its revenue increased by 25% to RM61.6bil from RM49.1 bil a year ago.

Earnings before interest, tax, depreciation and amortisation (Ebitda) rose by RM9bil or 58% to RM24.6bil from RM15.6bil a year ago.

During the first quarter, average dated Brent stood at US$53.78 per barrel compared with US$49.46 a barrel in the fourth quarter of 2016.

“The group’s cash flows from operations also grew by 86% cent compared to the corresponding quarter last year to RM18bil, as a result of higher average realised prices,” Petronas said in the statement.

Monday, 20 November 2017

Petronas asked to exit Myanmar in protest of Rohingya crisis

Malaysian members of parliament on Wednesday asked state energy firm Petroliam Nasional Bhd , or Petronas, to exit its Myanmar operations and investments to protest the violence against the Rohingya Muslim minority.

Petronas is one of the biggest employers in Malaysia, where Islam is the official religion, and the  country’s only Fortune 500 company. It owns several natural gas blocks in Myanmar along with a cross border pipeline that transports gas to Thailand.

Hundreds of thousands of Rohingya Muslims have fled Rakhine state in Buddhist-majority Myanmar since security forces responded to Rohingya militants’ attacks in August with a crackdown that has reportedly caused widespread killings and the burning of Rohingya villages. The United Nations has denounced the crackdown as a classic example of ethnic cleansing.

Thursday, 26 October 2017

Petronas, Aramco seeking US$8 bil for Malaysian project

Petronas and Saudi Aramco are seeking to raise US$8 billion for a refinery and petrochemical complex via a bridge loan, Project Finance International (PFI) reported on Wednesday.

Refinery and Petrochemical Integrated Development (RAPID), in the southern Malaysian state of Johor, is a US$27 billion project located between the Malacca Strait and the South China Sea, conduits for Middle East oil and gas bound for China, Japan and South Korea.

The Saudi energy giant Aramco agreed in February to buy a US$7 billion stake in RAPID's refinery and cracker project. Aramco agreed this month to take a US$900 million stake in petrochemical projects in the RAPID complex.

PFI, which is owned by Thomson Reuters, reported that more than 10 banks have been invited to submit pricing for the loan facility, which will have a tenor of 1.5 years.

Wednesday, 25 October 2017

Pengerang Integrated Complex 77 Pct Complete, To Be Fully Operational In Q1 2019

The construction of the Pengerang Integrated Complex (PIC), which forms part of the Pengerang Integrated Petroleum Complex (PIPC), has achieved 77 per cent completion and is expected to be fully operational in the first quarter (Q1) of 2019.

Prime Minister Datuk Seri Najib Tun Razak said the construction of the critical infrastructure had been completed to support the refinery and cracker operations later.

He said the supporting facilities encompassing the Regasification Terminal 2 (RGT2) and Pengerang Co-Generation Plant (PCP) had started to undergo the accreditation process and would meet the industry requirements of the PIC, besides giving the benefits to the community not only in Pengerang but Malaysia generally.

"By 2020, the total investments in PIPC is expected to generate some RM8.3 billion in gross national income, with PIC as the biggest contributor. As of end-September, I have been informed by Petronas that the progress of the PIC project has achieved 77 per cent.

Monday, 23 October 2017

Global oil demand will pass 100 million barrels per day by 2020, says OPEC

OPEC General Secretary Mohammad Barkindo said Thursday that oil markets are rebalancing at "an accelerating rate" and that he foresaw "no peak" for oil demand for "the considerable future."

Speaking at the Oil & Money conference in London, Barkindo said confident prices would rise and global oil demand would grow as the global economy continued to strengthen.

"We expect global oil demand to surpass 100 million barrels per day by 2020," Barkindo told the audience of oil industry leaders. This figure is far above the oil producing group's forecast for 2017 in which global oil demand is expected to be around 96.8 million barrels per day.

This strengthening in global oil demand meant that there was "no peak demand for the considerable future," Barkindo said.

As such, continued investment within the oil industry was crucial, he said, as was a continued working partnership with non-OPEC producers.

Thursday, 19 October 2017

Subsea 7 and Sapura Energy Terminate Joint Venture

Subsea 7 has agreed with Sapura Energy Berhad to discontinue the SapuraAcergy joint venture.

SapuraAcergy’s heavy-lift and pipelay vessel, Sapura 3000, has been sold to a subsidiary of Sapura Energy Berhad.

The decision by Subsea 7 and Sapura Energy Berhad to discontinue the joint venture reflects the evolution of both companies’ long-term strategic priorities. Subsea 7 remains committed to the Asia Pacific region, with offices located in Malaysia, Australia, Indonesia and Singapore, the Oslo-listed company said on Tuesday.

As a result of the discontinuation of the joint venture and the sale of Sapura 3000, Subsea 7 said it expects to receive approximately USD 100 million in cash dividends, and recognise a loss of approximately USD 10 million in the third quarter.