Petronas Denies Signing Pact for Brazil Oil Rights

KUALA LUMPUR - Malaysia's state-run oil and gas company Petroliam Nasional Bhd., or Petronas, hasn't signed any pact with Brazil's OGX Petroleo e Gas Participacoes SA or any other company to purchase rights in a Brazilian oil block, Petronas said in a statement Wednesday. 

The company was responding to media reports that Petronas is in talks to acquire OGX's 40% interest in the Tubarao Martelo oil block in Brazil's Campos Basin. 

Petronas last year bought Canada's Progress Energy Resources Corp. in a 5.18 billion Canadian dollar ($5.1 billion) deal.

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Petronas Staff Awarded One-Off Bonus

KUALA LUMPUR, Malaysia - About 40,000 state-run Petroliam Nasional Bhd. employees will receive a MYR1,000 (US $324), one-time bonus, Prime Minister Najib Razak told them on Tuesday.

The bonus is "a gesture toward our nation-building efforts," a Petronas worker told The Wall Street Journal on condition of anonymity.

The bonus was confirmed by a prime minister's office spokeswoman.

Mr. Najib last month pledged annual cash handouts for the poor.

Malaysia must hold a general election by the end of June. It is predicted by experts to be the most closely contested in Malaysia's history.

Earlier on Tuesday a local news media report said Mr. Najib may dissolve the parliament as early as Wednesday.

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Petronas Staff Awarded One-Off Bonus

KUALA LUMPUR, Malaysia - About 40,000 state-run Petroliam Nasional Bhd. employees will receive a MYR1,000 (US $324), one-time bonus, Prime Minister Najib Razak told them on Tuesday.

The bonus is "a gesture toward our nation-building efforts," a Petronas worker told The Wall Street Journal on condition of anonymity.

The bonus was confirmed by a prime minister's office spokeswoman.

Mr. Najib last month pledged annual cash handouts for the poor.

Malaysia must hold a general election by the end of June. It is predicted by experts to be the most closely contested in Malaysia's history.

Earlier on Tuesday a local news media report said Mr. Najib may dissolve the parliament as early as Wednesday.

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Petronas Projects Seen Not Affected by Sabah Incursion

With the Sabah crisis still up in the air, the state's massive potential in the oil and gas (O&G) industry may see some reassessment if it turns into a prolonged engagement.

Apart from national oil company Petroliam Nasional Bhd (Petronas), big oil players include ConocoPhilips Co and Royal Dutch Shell plc, their operations are some distance away from the eastern coast of Sabah where the incursion took place.

Petronas officials were not available for comment, but MIDF Research Sdn Bhd analyst Aaron Tan Wei Min said the national oil company is not expected to be affected. Tan also expects foreign oil companies to be unaffected but they will put more thought about future investment in Sabah if the troubles prolong but he added that "it's unlikely that investors would shy away in a significant way."

"After this incident, they will definitely place more emphasis on the location and area they are investing in the state," Tan told The Malaysian Reserve yesterday.

Apart from the ongoing offshore exploration and production activities, Petronas is also developing the Sabah Oil and Gas Terminal (SOGT) in Kimanis and the Sipitang Oil and Gas Industrial Park (SOGIP) where it is partnering Mitsui Co from Japan to build a urea processing plant.

Tan said examples in other hotspots in the world, like Nigeria, showed that global oil majors and services companies do still invest heavily in the region.

He said these companies are investing in the Niger River Delta in Nigeria where certain factions have caused much political and security unrest in the region.

"The reason being, certain calculated risks are worth taking," he said.

To a question on how the current event in Sabah is affecting Petronas with its current business presence and the ones that are in the pipeline for the company, Tan said the volatile Sabah situation should not have a big impact on Petronas because most of its presence is on the other side of the state.

The SOGT is located in Kimanis and SOGIP in Sipitang, both located around three-six hours south-west from Kota Kinabalu.

Also, almost all of its major oil fields are located on the west side and only one major field SB305 (concession holders are Nordic Maritime Pte Ltd and Tanjung Offshore Services Sdn Bhd) is located on the east side of Sabah, fronting Sandakan to the eastern-most tip of Sabah away from the "troubled" south-east areas, he said.

Sabah is being developed as a regional deep water and O&G services hub. Sabah's offshore O&G fields have attracted investment from international O&G companies and many fields have been developed.

The government is also actively wooing more foreign investors to the state with more deep water and other infrastructure projects being planned or underway.

"However, it is important that the current situation is resolved quickly. Militant activities in other oil-rich countries have shown how quickly the O&G industry can be disrupted," said Frost & Sullivan Asia Pacific Energy and Power Systems director Subramanya Bettadapura.

He said if the situation is prolonged or is allowed to spread to other regions in the state, investor confidence will definitely be shaken. Malaysia has been a very peaceful country with no major security concerns for the national oil company.

However, in view of the recent developments, Petronas would have to factor in external threats to its important O&G installations both onshore and offshore, Subramanya said.

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Japex to Buy 10% of Petronas Canada LNG Project

TOKYO - Upstream energy company Japan Petroleum Exploration Co. said Monday it has agreed with Petroliam Nasional Berhad, or Petronas to buy 10% of a Canada liquefied natural gas venture and shale gas project controlled by the Malaysian state-owned energy company.

Its preliminary agreement to join the British Columbia Pacific Northwest LNG scheme and buy into the associated North Montney gas development is the latest in a string of moves by Japanese energy companies seeking to line up relatively cheap gas in North America to ship home to meet rising LNG demand caused by a shift away from nuclear power.

The Japanese upstream company, also known as Japex, will find ways to price the LNG at "reasonable levels," said Man Saito, Japex's Managing Director told reporters.

Mr. Saito said Japex is considering using more than one benchmark to price the gas it exports from Canada, but didn't give details.

Once finalized, Japex would receive 1.2 million metric tons of LNG annually from the project. He didn't disclose the price Japex will pay.

The Pacific Northwest LNG export terminal project in British Columbia was acquired by Petronas last year as part of its $5.2 billion purchase of Canada's Progress Energy Resources Corp.

The 12 million tons-a-year terminal, to be located on the Lelu island in the port city of Prince Rupert, will cost up to C$11 billion ($10.7 billion) to build, Petronas has said.

Petronas aims to make a final investment decision on it by the end of 2014 and start commercial operations by the end of 2018.

It is just one of several energy companies building LNG export terminals in Canada and the U.S. to create outlets for surplus gas caused by shale-drilling technology that has unlocked massive new reserves.

The oversupply has caused North American gas prices to fall to below $2 a million British thermal units earlier last year, compared with as much as $18/MMBtu in Asia, where LNG is priced against oil.

Royal Dutch Shell Plc is spearheading one LNG venture at Kitimat, some 200 kilometers from the Petronas one, working with several Asian partners including Japan's Mitsubishi Corp.

Another LNG project is a 50-50 joint venture by Chevron Corp. and Apache Corp, also at Kitimat.

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Japex to Buy 10% of Petronas Canada LNG Project

TOKYO - Upstream energy company Japan Petroleum Exploration Co. said Monday it has agreed with Petroliam Nasional Berhad, or Petronas to buy 10% of a Canada liquefied natural gas venture and shale gas project controlled by the Malaysian state-owned energy company.

Its preliminary agreement to join the British Columbia Pacific Northwest LNG scheme and buy into the associated North Montney gas development is the latest in a string of moves by Japanese energy companies seeking to line up relatively cheap gas in North America to ship home to meet rising LNG demand caused by a shift away from nuclear power.

The Japanese upstream company, also known as Japex, will find ways to price the LNG at "reasonable levels," said Man Saito, Japex's Managing Director told reporters.

Mr. Saito said Japex is considering using more than one benchmark to price the gas it exports from Canada, but didn't give details.

Once finalized, Japex would receive 1.2 million metric tons of LNG annually from the project. He didn't disclose the price Japex will pay.

The Pacific Northwest LNG export terminal project in British Columbia was acquired by Petronas last year as part of its $5.2 billion purchase of Canada's Progress Energy Resources Corp.

The 12 million tons-a-year terminal, to be located on the Lelu island in the port city of Prince Rupert, will cost up to C$11 billion ($10.7 billion) to build, Petronas has said.

Petronas aims to make a final investment decision on it by the end of 2014 and start commercial operations by the end of 2018.

It is just one of several energy companies building LNG export terminals in Canada and the U.S. to create outlets for surplus gas caused by shale-drilling technology that has unlocked massive new reserves.

The oversupply has caused North American gas prices to fall to below $2 a million British thermal units earlier last year, compared with as much as $18/MMBtu in Asia, where LNG is priced against oil.

Royal Dutch Shell Plc is spearheading one LNG venture at Kitimat, some 200 kilometers from the Petronas one, working with several Asian partners including Japan's Mitsubishi Corp.

Another LNG project is a 50-50 joint venture by Chevron Corp. and Apache Corp, also at Kitimat.

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Petronas Makes $2.8B Buyout Offer to LNG Shipper MISC

State-backed Petronas has made a $2.8 billion (MYR8.8 billion) offer to buy out other shareholders in liquefied natural gas (LNG) shipping unit MISC and delist it, both companies confirmed in disclosures released late Thursday.

Petronas, which owns 62.7 percent of MISC, made an offer for the remaining shares at $1.71 (MYR5.30), according to a statement posted by MISC. This works out to a 19 percent premium to MISC's closing price of $1.43 (MYR1.13)

Commenting on its decision to acquire MISC, Petronas said in a statement: "The prevailing industry backdrop and uncertain global economy have made efforts to sustain and transform the business of MISC challenging. The offer represents a significant step by Petronas to take MISC private and obtain full control of the company which will provide Petronas with greater flexibility in deciding MISC’s strategic direction."

Petronas reaffirmed MISC that it has no plans to dismiss or make redundant the employees of MISC as a direct result of the offer.
MISC in the shipping arm of Petronas; the former is involved in LNG transportation and operations and has in its fleet two LNG vessels which are converted into floating storage units (FSUs).

With MISC's capabilities in LNG transportation, the business appears to be a good fit for Petronas, given the oil giant’s long-term focus on developing its LNG operations.

Malaysia's Prime Minister Najib Razak said in a public address in September last year that he aims to establish the country as Asia's LNG trading hub by 2020 with the establishment of a $1.3 billion LNG terminal in the Pengerang Integrated Petroleum Complex. In late November last year, Petronas confirmed a massive discovery of two major gas reserves, totaling over 4 trillion cubic feet, offshore Sarawak.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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Petronas Makes $2.8B Buyout Offer to LNG Shipper MISC

State-backed Petronas has made a $2.8 billion (MYR8.8 billion) offer to buy out other shareholders in liquefied natural gas (LNG) shipping unit MISC and delist it, both companies confirmed in disclosures released late Thursday.

Petronas, which owns 62.7 percent of MISC, made an offer for the remaining shares at $1.71 (MYR5.30), according to a statement posted by MISC. This works out to a 19 percent premium to MISC's closing price of $1.43 (MYR1.13)

Commenting on its decision to acquire MISC, Petronas said in a statement: "The prevailing industry backdrop and uncertain global economy have made efforts to sustain and transform the business of MISC challenging. The offer represents a significant step by Petronas to take MISC private and obtain full control of the company which will provide Petronas with greater flexibility in deciding MISC’s strategic direction."

Petronas reaffirmed MISC that it has no plans to dismiss or make redundant the employees of MISC as a direct result of the offer.
MISC in the shipping arm of Petronas; the former is involved in LNG transportation and operations and has in its fleet two LNG vessels which are converted into floating storage units (FSUs).

With MISC's capabilities in LNG transportation, the business appears to be a good fit for Petronas, given the oil giant’s long-term focus on developing its LNG operations.

Malaysia's Prime Minister Najib Razak said in a public address in September last year that he aims to establish the country as Asia's LNG trading hub by 2020 with the establishment of a $1.3 billion LNG terminal in the Pengerang Integrated Petroleum Complex. In late November last year, Petronas confirmed a massive discovery of two major gas reserves, totaling over 4 trillion cubic feet, offshore Sarawak.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Petronas Makes $2.8B Buyout Offer to LNG Shipper MISC

State-backed Petronas has made a $2.8 billion (MYR8.8 billion) offer to buy out other shareholders in liquefied natural gas (LNG) shipping unit MISC and delist it, both companies confirmed in disclosures released late Thursday.

Petronas, which owns 62.7 percent of MISC, made an offer for the remaining shares at $1.71 (MYR5.30), according to a statement posted by MISC. This works out to a 19 percent premium to MISC's closing price of $1.43 (MYR1.13)

Commenting on its decision to acquire MISC, Petronas said in a statement: "The prevailing industry backdrop and uncertain global economy have made efforts to sustain and transform the business of MISC challenging. The offer represents a significant step by Petronas to take MISC private and obtain full control of the company which will provide Petronas with greater flexibility in deciding MISC’s strategic direction."

Petronas reaffirmed MISC that it has no plans to dismiss or make redundant the employees of MISC as a direct result of the offer.
MISC in the shipping arm of Petronas; the former is involved in LNG transportation and operations and has in its fleet two LNG vessels which are converted into floating storage units (FSUs).

With MISC's capabilities in LNG transportation, the business appears to be a good fit for Petronas, given the oil giant’s long-term focus on developing its LNG operations.

Malaysia's Prime Minister Najib Razak said in a public address in September last year that he aims to establish the country as Asia's LNG trading hub by 2020 with the establishment of a $1.3 billion LNG terminal in the Pengerang Integrated Petroleum Complex. In late November last year, Petronas confirmed a massive discovery of two major gas reserves, totaling over 4 trillion cubic feet, offshore Sarawak.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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Petronas Drops Offshore Tembikai, Chenang RSC Award

Petronas clarified through a statement Friday that it has decided not to proceed with the award of the Small Field Risk Service Contract (RSC) for the Tembikai and Chenang Cluster. The state-backed company's disclosure comes amid recent heavy speculation about companies said to have been dropped off the bidding process.

"We decided that in this case, it will be best to issue a clarification statement directly from Petronas," a spokesperson told Rigzone on Friday.

Malaysia's Scomi Group issued a statement on Jan.11, stating that it will continue to support a bid submission to Petronas for the Tembikai and Cenang Cluster Offshore Terengganu RSC project, after local media reported earlier that week that the bid placed by Scomi-Cue Resources was not progressing smoothly.

Cue Energy was among the marginal oil field contractors invited to bid for the contract, with Scomi brought onboard as the local partnering company.

Petronas is understood to have held technical reviews for Tembikai and Cenang with the shortlisted bidders that include the likes of international oil field services providers such as Baker Hughes, Halliburton and Petrofac, as well as independents such as AWE and Hydra Energy. Potential Malaysian companies in the bidding mix with the foreign players include SapuraKencana, Dialog, Alam Maritim, Daya Materials and Scomi.

The spokesperson confirmed that Petronas held a competitive bid exercise last year. The company eventually decided not to proceed with the RSC award as it is still in internal discussions about terms and conditions governing the RSC.

"But this does not mean that the RSC will not be re-opened at a later stage," the spokesperson added.

The development at Tembikai and Cenang will primarily target gas production. Discovered in the 1980s, Tembikai is expected to be developed over a period of up to nine years, with the project costing $500 million to $1 billion.

RSC contracts from Petronas have drawn much interest among international oil exploration companies, given Malaysia’s renewed focus on developing its domestic oil and gas assets. Back in 2011, Petronas noted that it aimed to award four marginal fields per year. However, thus far, only the Berantai and Balai fields have been dished out. This implies that Petronas could ramp up on its efforts on the RSC front, and look to award more contracts this year.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Petronas Drops Offshore Tembikai, Chenang RSC Award

Petronas clarified through a statement Friday that it has decided not to proceed with the award of the Small Field Risk Service Contract (RSC) for the Tembikai and Chenang Cluster. The state-backed company's disclosure comes amid recent heavy speculation about companies said to have been dropped off the bidding process.

"We decided that in this case, it will be best to issue a clarification statement directly from Petronas," a spokesperson told Rigzone on Friday.

Malaysia's Scomi Group issued a statement on Jan.11, stating that it will continue to support a bid submission to Petronas for the Tembikai and Cenang Cluster Offshore Terengganu RSC project, after local media reported earlier that week that the bid placed by Scomi-Cue Resources was not progressing smoothly.

Cue Energy was among the marginal oil field contractors invited to bid for the contract, with Scomi brought onboard as the local partnering company.

Petronas is understood to have held technical reviews for Tembikai and Cenang with the shortlisted bidders that include the likes of international oil field services providers such as Baker Hughes, Halliburton and Petrofac, as well as independents such as AWE and Hydra Energy. Potential Malaysian companies in the bidding mix with the foreign players include SapuraKencana, Dialog, Alam Maritim, Daya Materials and Scomi.

The spokesperson confirmed that Petronas held a competitive bid exercise last year. The company eventually decided not to proceed with the RSC award as it is still in internal discussions about terms and conditions governing the RSC.

"But this does not mean that the RSC will not be re-opened at a later stage," the spokesperson added.

The development at Tembikai and Cenang will primarily target gas production. Discovered in the 1980s, Tembikai is expected to be developed over a period of up to nine years, with the project costing $500 million to $1 billion.

RSC contracts from Petronas have drawn much interest among international oil exploration companies, given Malaysia’s renewed focus on developing its domestic oil and gas assets. Back in 2011, Petronas noted that it aimed to award four marginal fields per year. However, thus far, only the Berantai and Balai fields have been dished out. This implies that Petronas could ramp up on its efforts on the RSC front, and look to award more contracts this year.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here