Petrofac Malaysia

Petrofac is an international provider of facilities solutions to the oil & gas production and processing industries. The company is present in Malaysia through its Energy division, operating fields under the status of PSC contractor to PETRONAS. 

In 2004, Petrofac Energy Developments acquired a 30% working interest in Block PM304, and assumed operatorship of the Cendor field development. Petrofac’s partners in the Production Sharing Contract include Petronas Carigali, Kufpec and PetroVietnam. The Cendor field, discovered in the 1970’s and classified as marginal due to its complex geological structure, is one of Petrofac’s most challenging and innovative projects to date.

Products & Services:

Petrofac Energy Developments co-invests in oil & gas production, processing and transportation assets, leveraging the extensive engineering and operations capability of the Petrofac group to better understand and help mitigate development risks, enhancing project returns in complete alignment with partners.

Address : Level 50, Tower 2, PETRONAS Twin Tower, KLCC, 50088 Kuala Lumpur,Malaysia

Phone : +603 2382 2700

Fax : +603 2300 2241

Website : http://www.petrofac.com/

 

INCREASE IN ELECTRIC AND GAS TARIFF

Tan Sri Mohd Hassan Marican's contract as chief executive expires this month and the industry is talking about three possible candidates who may well take over.

EXPECT at least two major announcements in the energy sector this month: the first being who will step into Tan Sri Mohd Hassan Marican's shoes at Petroliam Nasional Bhd (Petronas) and the second, a possible increase in how much we pay for gas and, consequently, electricity.

Hassan requires little introduction. In a nutshell, he is Petronas' face - from the national oil company's hundreds of petrol stations in the country right up to the hostile environment in drilling rigs in North Africa and, soon, war-torn Iraq.

Hassan also serves as an important testimonial of sorts of Petronas' financial background every time it goes to the international market for funding.

His contract as chief executive (CEO) expires this month and the industry is talking about three possible candidates who may well take over.

They are Datuk Shamsul Azhar Abbas, former MISC Bhd managing director; Datuk Anuar Ahmad, currently Petronas Dagangan Bhd chairman; and Datuk Wan Zulkifli Wan Ariffin, former managing director and CEO of Petronas Gas Bhd.

Both Anuar, vice-president of human resources management, and Wan Zulkifli, vice-president of gas business, are Petronas board members.

If the requirement is someone from within, as suggested by Petronas adviser and former prime pinister Tun Dr Mahathir Mohamad, the three candidates fit the bill.

And, although the industry is saying that it would be no mean feat to fill Hassan's shoes, whoever is chosen would have little choice but to rise to the occasion. Petronas is a vital organisation for Malaysia, period.

The candidates to replace Hassan aside, for Malaysians in general a crucial anouncement is also forthcoming as to whether we will have to fork out more to get by.

A gas tariff revision is expected to be deliberated in this month. The gas tariff has a direct bearing on how much we pay for electricity and, consequently, on everything else.

The government decided that, beginning July 2008, gas tariff would be revised annually. However, there has not been any revision since then. There is every likelihood that it would be revised, upwards possibly, anytime now.

The increase in gas tariff is unavoidable because of the sudden high demand for gas, which led to Petronas having to import the commodity at market price but selling locally at a discount of 50 per cent.

At present, gas is sold at RM10.70 per million British Thermal Unit (mmbtu) to the power sector; RM15.35/mmbtu, non-power; and RM15/mmbtu, Gas Malaysia. The market price is almost RM40/mmbtu.

The subsidy Petronas is providing gas users is becoming a burden to the company and has created a major distortion in the supply-and-demand balance.

In its financial year ended March 31 2009, Petronas' total gas subsidy to the power and non-power sectors was RM19.5 billion, money which could have been put to better use.

For consumers, their main worry would be the consequent increase in power tariff.

The government, meanwhile, is well aware that, anywhere in the world, the issue of electricity tariff is like a hornet's nest and asking consumers to reduce electricity usage has been proven as being, well, easier said than done. 

News by www.btimes.com.my

PETRONAS TO SHIP EMERGENCY LNG SUPPLY TO JAPAN

KUALA LUMPUR —Malaysia’s state-owned oil company Petronas said Saturday it will immediately ship additional supplies of liquefied natural gas to Japan to help meet urgent demands in the aftermath of last week’s devastating earthquake and tsunami.

Petronas expressed sympathy to the victims of the disaster and said it is ‘‘committed to assist in mitigating the difficult situation’’ through emergency LNG supplies to Japan.

‘‘Currently, Petronas is liaising with its Japanese counterparts to supply immediate additional LNG cargoes,’’ the company said in a statement.

Petronas, one of the world’s biggest producers of LNG, exports some 56% of its output to Japan from its plant in eastern Malaysia. 

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BINTULU LNG GENERATE POWER SUPPLY FOR SABAH EAST COAST

KOTA KINABALU, Feb 19 — Petronas and Tenaga Nasional Berhad (TNB) will soon be working on bringing liquefied natural gas (LNG) from Bintulu to generate alternative power supply to Sabah’s east coast.

Chief Minister Datuk Seri Musa Aman said this was to address the critical shortage of power supply in the east coast, especially since the proposed coal-fired power plant project was recently scrapped.

“I know that we have a critical problem in terms of providing stable electricity to the people in the east coast, and not many know that TNB was subsidising RM2 million a day for diesel used in the various independent power plants there,” he said at Gerakan’s Chinese New Year and Chap Goh Mei celebrations here today.

Musa said the venture between Petronas and TNB was a directive by Prime Minister Datuk Seri Najib Razak during the recent National Economic Action Council (NEAC) meeting, which came prior to his meeting with the premier, together with Deputy Chief Minister Tan Sri Joseph Pairin Kitingan and state Industrial Development Minister Datuk Raymond Tan on the proposed coal-fired power plant.

During that meeting, Musa told Najib of the Sabah people’s unhappiness over the project.

Meanwhile, Gerakan president Tan Sri Dr Koh Tsu Koon said the party fully supported the decision by the government to scrap the proposed coal-fired power plant project, that was in line with the sustainability concept under the New Economic Model.

“This (decision) reflects the commitment of the chief minister and the BN (Barisan Nasional) to continue to make environment as its main agenda. So, this is most welcome,” he said.

Koh, who is also minister in the Prime Minister’s Department, said the scrapping of the project was one of three reasons for BN to smile in the Chinese New Year of the Rabbit.

The other two, he said, were the victory in the Batu Sapi parliamentary by-election and Gerakan receiving many new members. — Bernama

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PETRONAS MADE MAJOR OIL AND GAS DISCOVERIES

Petroliam Nasional Bhd., Malaysia’s state energy company, said it made “major” oil and gas discoveries that may help replenish the Southeast Asian nation’s diminishing reserves.

Early estimates show a total 2.8 trillion cubic feet of natural gas and 100 million barrels of crude at two wells off the coast of Malaysia’s Sarawak state on Borneo Island, the Kuala Lumpur-based company said in a statement today.

“These discoveries are expected to further enhance exploration potential offshore Sarawak,” said Petroliam Nasional, known as Petronas. “In the next three years, over 50 exploration wells are expected to be drilled offshore Malaysia by Petronas and its production-sharing contractors.”

The nation’s crude and natural gas production has fallen for two straight years, declining to the equivalent of 1.63 million barrels of oil a day in the year ended March 31 from 1.66 million a day a year earlier, according to Petronas’s 2010 annual report. The country has responded by offering companies incentives to explore deeper and less-profitable fields in a bid to increase reserves as energy demand rises.

Petronas said it drilled to a depth of almost 4,000 meters (13,000 feet) below sea level at its NC3 well in Block SK316 off Sarawak, with early estimates showing 2.6 trillion cubic feet of gas in place. Production flow test results demonstrate that the field is “technically producible,” the company said, without commenting on its viability.

Tax Incentives 

The nearby Spaoh-1 well in Block SK306 shows “similar promise,” with preliminary estimates of 100 million barrels of oil and 2 billion cubic feet of gas, Petronas said. This was drilled to 3,000 meters and is being prepared for production testing, it said.

Prime Minister Najib Razak announced Nov. 30 several tax incentives to encourage the exploration of less-profitable oil fields, including a reduced income tax of 25 percent, from an earlier 38 percent. Southeast Asia’s second-largest oil and gas producer will also accelerate capital allowances and waive export duties on oil produced and exported from marginal fields to improve their viability, Najib said.

Malaysia has domestic crude oil reserves to last 24 years and natural gas for 38 years, the finance ministry said on Oct 15. Indonesia is the biggest oil and gas producer in Southeast Asia.

Malaysia had 84.1 trillion cubic feet of gas reserves at the end of 2009, the fourth-biggest in Asia, according to the BP Statistical Review. Its oil reserves stood at 5.5 billion barrels, the review said.

“These activities, especially if they result in discoveries, are expected to spur business opportunities in the oil and gas industry and will promote investment in the country,” Petronas said.

Source: 

Bloomberg

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