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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KENCANA, SAPURACREST AND PETROFAC FORM JOINT VENTURE

PETROFAC

KUALA LUMPUR Jan 31 - Malaysia's state oil firm Petronas has awarded a risk service contract to a joint venture company comprising Malaysian oil and gas companies Kencana and Sapuracrest , and United Kingdom's Petrofac to develop one of its oil and gas fields. 

The contract, which runs for nine years, grants the consortium the responsibility of providing and executing a field development plan on the Berantai field, located about 150 kilometres off the Malaysian state of Terengganu on the east coast. 

Kencana and Sapuracrest will each hold a 25 percent stake in the JV company, while Petrofac will hold the remaining 50 percent stake. 

The development cost of the field was estimated to be about $800 million, which will be divided among the JV partners in accordance with their equity stake. 

The consortium is targeting first gas by the end of 2012 with the first phase of 18 wells expected to be completed before then. 

Petrofac had also recently been awarded a $280 million offshore contract by Petronas Carigali, a subsidiary of Petronas. -Reuters

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