Saudi Aramco not going ahead with Petronas for Johor project: WSJ 25 January 2017 Read more at http://www.thestar.com.my/business/business-news/2017/01/25/saudi-aramco-not-going-ahead-with-petronas-for-johor-project-wsj/#LKtPTGvDSORu0kVq.99

Earlier news:

• Petronas decision on Rapid deal with Aramco in Dec? 28 OCTOBER 2016 -- Petroliam Nasional Bhd (Petronas) is said to be making a final investment decision in December to partner with Saudi Arabian Oil Co (Saudi Aramco) by offering a 50 per cent stake in its refinery and petrochemical integrated development project (Rapid) in Johor. According to the Wall Street Journal (WSJ) report yesterday, if Petronas proceeds with the plan, the two companies will set up a joint-venture company in the first quarter of next year to run the project, with the refinery due to start operating in early 2019. Read More : http://www.nst.com.my/news/2016/10/183983/petronas-decision-rapid-deal-aramco-dec 

• Petronas-Aramco seek $10b loan for Johor project SEP 30, 2016 - Talks with banks have begun; however, analysts say profit squeeze could force rethink of Canadian gas plans - Malaysia's national oil corporation Petronas and the Saudi Arabian Oil Company (Saudi Aramco) have begun negotiations with Malaysian-based banks to raise a record US$7.5 billion (S$10 billion) syndicated loan to finance a planned refinery and petrochemical complex in Johor. Bankers familiar with the loan syndication said that the 50-50 joint venture between the two international oil giants will be a straight-forward loan ahead of a much larger bond issue further down the road to finance the Refinery and Petrochemical Integrated Development Project, or Rapid, as it is called in the Pengerang industrial zone in Johor. http://www.straitstimes.com/asia/se-asia/petronas-aramco-seek-10b-loan-for-johor-project

• Petronas Could Soon Seal Partnership With Saudi Aramco on $21 Billion Refinery - Malaysia’s state oil firm in December is expected to offer the Saudi Arabian giant a 50% stake in the project By YANTOULTRA NGUI Oct. 27, 2016 http://www.wsj.com/articles/petronas-could-soon-seal-refinery-partnership-with-saudi-aramco-1477545192

Note: Customised news update is available for 29 Sep 2016 - 26 Jan 2017

Editor's note: Canada approves Petronas-led $27 bln LNG complex. Reports say Petronas is in no rush to start. The view from KL is that this is an important plus for Petronas. It's good news as a continued stall would have dragged Petronas - this is its single largest project. A significant stake had been sold to China interests. The view from a Canada businessman is that this is good for Canada. Low oil prices have hit Alberta. LNG is clean fuel, although there is some environmental impact from this project. Note: Canada and China recently signed various state level MOUs. Thus, both Malaysia and Canada have had state-level or G2G agreements with China.

State will be fair in immigration dealings with Petronas staff: Nancy  August 14, 2016, Sunday Churchill Edward... KUCHING: A Sarawakian minister in the Prime Minister’s Department assured citizens that the state government will be fair in the dealings with immigration involving national petroleum corporation Petronas staff. The minister Nancy Shukri was reacting to the recent action taken by the Sarawak government led by Chief Minister Datuk Patinggi Tan Sri Adenan Satem following grouses expressed by Sarawakians over Petronas selection of manpower. 

Nancy said: “I have been following the arguments on the drastic action taken by the Sarawak state government against Petronas. It was clearly stated by the Sarawak state government that any new applications for work permits from Petronas  have been frozen as a result of complaints from Sarawakian Petronas officers whose services were terminated and retrenched as revealed by Suarah Petroleum Group. (SPG). It is a normal action by the state.”... She added that the action was based on the complaints by the SPG and definitely there was a basis to the complaints. “The action against Petronas was the first after 1963 using the autonomy power of the state through immigration law.... Secondly, it was an isolated and independent action upon receiving complaints from SPG and Sarawakians as a whole. However. she opines sit also reflects that Sarawakians are becoming more aware of their rights under the constitution and the state government has to act accordingly for the interests of Sarawakians under the constitution. “I would say that it is nothing to do with the devolution issues since the negotiation is in progress and committment given by the federal government  is very positive....... http://www.theborneopost.com/2016/08/14/state-will-be-fair-in-immigration-dealings-with-petronas-staff-nancy/

http://www.theedgemarkets.com/my/article/og-meltdown-will-there-be-more-casualties

Sarawak seeks to regulate Petronas activities within state BY SULOK TAWIE June 15, 2016 --  Sarawak Chief Minister Tan Sri Adenan Satem announced today the state government’s plans to regulate the seabed and subsoil activities of national oil company Petronas and its contractors within its territory. He said Sarawak’s regulatory framework would be based on relevant state laws to which Petronas and its contractors would have to abide. “Petronas, a corporation having rights to prospect and mine petroleum both offshore and onshore under the Petroleum development Act, 1974, will have to be regulated and abide by the provisions of the Oil Mining Ordinance of Sarawak and the Land Code in regard to the use and occupation of State Land within the boundaries of Sarawak for the prospecting and mining of petroleum,” he said when winding up the debate in the state assembly here. He said the Land Code of Sarawak, which came into effect on January 1, 1959, defines “state land” to include the seabed and subsoil which forms part of the continental shelf by virtue of an Order made by the British Queen while Sarawak was still a Colony. “Article 73(b) of the Federal Constitution states that the state legislature may make laws for the whole or any part of the State. “Therefore, state laws like the Land Code, the Oil Mining Ordinance 1958 of Sarawak apply to the seabed and sub-soils in the continental shelf regardless of the character of the high seas above that area of the continental shelf....Adenan also said the state government does not agree to the extension of Continental Shelf Act and the Petroleum Mining Act to Sarawak, which purports to authorise the federal government to grant licences for the exploration and mining of petroleum in the Continental Shelf of Sarawak. “Therefore, Parliament has no constitutional authority to pass any legislation relating to the issuance of licences for the prospecting for oil or the oil mining leases within the boundaries of Sarawak which extend to the seabed and sub-soils in the Continental Shelf,” he added. - See more at: http://m.themalaymailonline.com/malaysia/article/sarawak-seeks-to-regulate-petronas-activities-within-state#sthash.DjzxLOl4.PfWk3WCC.dpuf

Petronas Bintulu LNG Complex, located approximately 20km from Bintulu Town, covers 276ha and currently accounts for 40.5% of Sarawak's gross export, 6% of Malaysia's total export and 4.2% of the country's GDP. It includes three LNG plants with eight LNG trains in total. The three plants are respectively owned and operated by Malaysia LNG, MLNG Dua and MLNG Tiga, in joint venture with Petronas. http://www.hydrocarbons-technology.com/projects/petronas-bintulu-lng-complex-sarawak/

Malaysia Oil and Gas Profile - » A Barrel Full Oil & Gas Wiki http://abarrelfull.wikidot.com/malaysia-oil-and-gas-profile

Panama Canal Fever Sweeps Globe Again as New Era in Trade Nears by Alex Nussbaum Naureen Malik May 25, 2016... As U.S. gas exports ramp up, new route will slash time to Asia. $5 billion project also shifts oil, crops, container trade.... 

 http://www.bloomberg.com/news/articles/2016-05-25/panama-canal-fever-sweeps-globe-again-as-new-era-in-trade-nears?cmpid=BBD052516_BIZ&utm_medium=email&utm_source=newsletter&utm_campaign=

Petronas to slash capex for Canadian LNG project - report By Meena Lakshana / theedgemarkets.com | April 14, 2016 KUALA LUMPUR (April 14): National oil firm Petroliam National Bhd's (Petronas) unit Progress Energy Ltd is significantly slashing its capital expenditure (capex) in the US$36 billion Pacific Northwest liquefied natural gas (LNG) project in northern British Columbia while awaiting a final approval from the Canadian government's environmental agency. According to a report by Canada-based Financial Post, Progress president and chief executive officer Michael Culbert said the company is reducing its investment to US$500 million over the next two years from the initial US$5 billion planned over the next three years.

Petronas keeping a close eye on Canada’s environmental impact assessment process By Dispatch Staff -  March 12, 2016, Just when Petronas, through its subsidiary Pacific NorthWest LNG, and its partners were in the final stages of an investment decision, the new federal Liberal government in Canada is toughening up environmental reviews of major energy projects. This is a step in the direction of regaining “public trust” and to meet with the emission reduction pledge that the government made at the Paris conference last year. The government said in January that major energy projects would be subject to additional assessment on “direct and upstream greenhouse gas emissions” and this is something that spells uncertainty over the $36 billion LNG project says Petronas. Malaysia’s state-owned company has already spent an estimated $12 billion to get its LNG project to this stage and with new assessment, the project which has already suffered from multiple delays, will get delayed again and because of this Petronas has conveyed to federal cabinet ministers it won’t accept additional hurdles.... http://www.dispatchtribunal.com/petronas-keeping-a-close-eye-on-canadas-environmental-impact-assessment-process/17617/

The Edge reports: 1,000 job cuts affects less than 2% of the Petronas work force. It has over 50,000 staff at end 2014, up from 39,000 in 2009. Staff costs were almost RM10 billion at end 2014,average cost per employee was RM188,000. Key positions also shift as CEO Wan Zulkiflee appoints new upstream and technology & engineering heads.

S&P downgrades Asia Pacific energy firms, Petronas not affected 26 January 2016; We don't believe China's national oil companies will be able to stabilise their cash flow adequacy amid the current price environment, despite their efforts to cut capital expenditure and costs," the agency said. The company said it had therefore lowered its credit profile for companies, including China Petroleum & Chemical Corp and China National Offshore Oil Corp (CNOOC) in China and for Woodside Petroleum and Santos in Australia. However, S&P said the revised oil price outlook had no impact on the ratings and outlooks on national oil companies in South and Southeast Asia, such as Indonesia's PT Pertamina, Malaysia's Petroliam Nasional (Petronas), Thailand's PTT Public or India's Oil and Natural Gas Corp (ONGC). "The companies all have an important policy role as major energy suppliers and providers in their respective countries... Therefore, the ratings and outlook on these four companies remain the same as those on their respective sovereigns." The Standard & Poor's reviews come days after competing rating agency Moody's put 175 commodity firms, including in Asia, on review over a bleak outlook - See more at: http://www.themalaysianinsider.com/malaysia/article/sp-downgrades-asia-pacific-energy-firms-petronas-not-affected#sthash.NHfnbGms.dpuf

Source: What it costs to produce oil By Alanna Petroff and Tal Yellin / CNNMoney - The collapse in the price of oil has squeezed energy companies and countries that were betting on higher returns. Here’s what it costs on average to pump a barrel of oil in the 20 biggest oil producing nations. http://money.cnn.com/interactive/economy/the-cost-to-produce-a-barrel-of-oil/index.html?iid=EL. 

On BC project

On South Sudan

• South Sudan: Sides trade accusations after deal falters 3 hours ago; Rebels have accused South Sudan's government of resuming military attacks, a day after President Salva Kiir failed to sign a peace deal aimed at ending the civil war.  Rebel leader Riek Machar said the government had chosen war over peace. But Mr Kiir's chief negotiator said the deal was a sell-out that could not be implemented as the rebels are split.... http://www.bbc.com/news/world-africa-33982009
• US Pursues New UN Sanctions on South Sudan as Deal Unsigned By THE ASSOCIATED PRESSAUG. 18, 2015, 6:08 P.M. E.D.T.  UNITED NATIONS — The United States has begun talks at the United Nations to sanction South Sudan if its government doesn't sign a peace deal with rebels within 15 days and all sides in the conflict don't promptly implement a cease-fire, President Barack Obama's national security adviser said Tuesday. http://www.nytimes.com/aponline/2015/08/18/world/africa/ap-un-united-nations-south-sudan.html?_r=0
• South Sudan economy 'in intensive care' as famine looms By James Copnall BBC South Sudan analyst 10 July 2014 http://www.bbc.com/news/business-28225098

23 June 2015: PETRONAS C$36 billion gas project faces dissent and low prices, with several LNG startups oversupply  / glut until 2020-2025, Axens to provide processing technology for naptha at PETRONAS RAPID, PSE Seven Heads agrees contract for Irish drilling

Petronas Canada Gas Bet No Cinch as Dissent Adds to Low Prices  by Rebecca Pentyand Allison McNeely June 22, 2015 — 10:04 PM HKT; Petroliam Nasional Bhd.’s C$36 billion ($29.4 billion) Canadian natural gas export project was treading water after the global market for the fuel weakened. Now local opposition is adding a new hurdle. A British Columbia aboriginal group that claims title to land earmarked for the liquefied natural gas terminal says it will take legal action if its environmental concerns aren’t addressed. That follows a decision by Petronas, as the Malaysian company is known, and investors earlier this month to press ahead with the Pacific NorthWest LNG terminal. The Lax Kw’alaams band, which has already turned down C$1.15 billion in compensation, says the terminal is slated for a culturally significant island and would damage salmon habitat, Deputy Mayor Stan Dennis said in an interview. In October, then-Petronas Chief Executive Officer Shamsul Azhar Abbas said the project needs to stay on schedule and begin shipments in 2019 or face a deferral of 10 to 15 years, until another market window opens. “One of the key risks is potential for delay,” said Tom Isaac, a partner at Osler, Hoskin & Harcourt LLP in Calgary who leads the firm’s aboriginal law group and has no stake in the project. “If litigation were initiated, that could take some time to wind its way through the courts.” Several planned LNG project startups this decade means buyers will be oversupplied until at least 2020. About 40 percent of respondents to a recent Bloomberg Intelligence survey said the glut may last until 2025, analysts led by Elchin Mammadov said in a June 16 presentation. Australia and Canada have the most expensive LNG projects in the world to develop, and some will be shelved or canceled, the analysts said....
http://www.bloomberg.com/news/articles/2015-06-22/petronas-canada-gas-bet-no-cinch-as-dissent-adds-to-low-prices

Malaysia’s Petronas to Build Natural-Gas Plant in British Columbia - Plan paves the way for export of cheap North American gas to Asia, By  Chester Dawson  June 12, 2015 1:53 a.m. ET
CALGARY—Malaysia’s state-owned energy company Thursday said it would build a large-scale natural-gas plant on Canada’s Pacific coast, paving the way for the export of cheap North American gas to high-demand markets in Asia. The 36 billion-Canadian-dollar (US$29.3 billion) project, known as Pacific NorthWest LNG, marks Canada’s emergence as a hub for exporting surplus North American natural gas to Asia. It is the first of nearly two...
http://www.wsj.com/articles/malaysias-petronas-to-build-natural-gas-plant-in-british-columbia-1434088430

PETRONAS selects Axens Technologies for Malaysia’s RAPID project Monday, Jun 22, 2015
Petroliam Nasional Berhad (PETRONAS), Malaysia’s national oil and gas company has selected Axens as a technology provider for PETRONAS’ Refinery and Petrochemicals Integrated Development (RAPID) project located in Pengerang, Johor, Malaysia..... RAPID is estimated to cost US$16 billion while the associated facilities will involve an investment of about US$11 billion. PIC is poised for its refinery start-up by early 2019.... Axens was initially selected in October 2010 for a Detailed Feasibility Study, after which their technologies were selected following an open bid in January 2012 on the basis of the best NPV (Net Present Value), as well as proven long term operating experiences supported by the technology and catalyst’s specific features; hence providing  additional benefits to the project. The following technologies from Axens was selected for the RAPID project:
•Naphtha Hydrotreating (NHT), this process purifies naphtha  removing dienes, olefins compounds, sulfur and nitrogen species with a feed capacity of 21,000 BPSD; •OctanizingTM a continuous catalytic regenerative (CCR) reforming process for maximizing the production of reformate from heavy hydrotreated naphtha , with a feed capacity of this unit 14,000 BPSD.........
http://www.youroilandgasnews.com/petronas+selects+axens+technologies+for+malaysia%E2%80%99s+rapid+project_117941.html

Petronas inks rig for Irish drilling  Written by  Elaine Maslin   Monday, 22 June 2015 03:59; Petronas subsidiary PSE Seven Heads has agreed a contract to drill on the Midleton prospect offshore Ireland starting in August, according to partner Lansdowne Oil & Gas. PSE Seven Heads, a subsidiary of Petronas' PSE Kinsale Energy will use Diamond Offshore Drilling's Ocean Guardian semisubmersible drilling rig to drill the well, in SEL 4/07, which covers part-blocks 49/11, 49/12, 49/17 and 49/18, immediately southeast of the Kinsale Head gas field, in the Celtic Sea offshore southeast Ireland. The Midleton prospect, about 20km northeast of the Kinsale Head field, has been estimated to contain 330 Bcf gas initially in place, according to Landsdowne.... http://www.oedigital.com/component/k2/item/9484-petronas-inks-rig-for-irish-drilling
10 June 2015:  Opinion: Uncertainty grows over LNG deal - ‘Conditional’ final investment decision expected from Petronas by June; Tanjung Offshore secures RM250m contract from Petronas Carigali  

Opinion: Uncertainty grows over LNG deal - ‘Conditional’ final investment decision expected from Petronas by June BY NG WENG HOONG, SPECIAL TO THE VANCOUVER SUN JUNE 5, 2015; The sobering reality is the project faces greater barriers and more uncertainties than a year ago when Zulkiflee’s predecessor, Shamsul Azhar Abbas, began to grasp the magnitude of his over-reach to develop natural gas reserves, pipelines and a large LNG terminal in B.C. all within five years. Company insiders confirmed they had underestimated the extent of environmental and First Nations opposition to fracking, and oil and gas pipeline projects in B.C. Also, like most in the industry, they had not anticipated the crippling effects of the oil price collapse. Political developments in Malaysia and China could add a few more black swans to halt the project’s progress.....Shamsul’s term was not renewed in March following clashes with his boss and PNW’s biggest supporter, Malaysian Prime Minister Najib Abdul Razak, who is now fighting for political survival over allegations of financial mismanagement of billions of dollars in state funds. It was Najib who announced the project’s massive $36-billion price tag, the equivalent of 10 per cent of Malaysia’s GDP, to a surprised Prime Minister Stephen Harper during a visit to Southeast Asia in 2013. Will Petronas or the Malaysian government continue to support PNW’s high-risk project if Najib is no longer prime minister?.........management. Zulkiflee made his first move by approving PNW’s offer to pay $1.15 billion to the 3,700-member Lax Kw’alaams First Nations group over 40 years for the right to build the LNG project over their property and ancient fishing grounds. Despite some calling it a generous “game changer,” the sum offered was insignificant as it amounts to less than $8,000 per person per year........“Industry analysts expect only one to three B.C. LNG projects to be operating by 2025. The market outlook for Asia is still uncertain,” she wrote. Also, Canadian projects, requiring the equivalent of crude oil prices at $76 to $90 US a barrel, are expensive when compared with their rivals in the U.S.... Another likely source of concern, not widely discussed, is the commitment of two of PNW’s cornerstone shareholders, Sinopec and IOC.... Amid the LNG price collapse, India is spoiled for choice to increase import volumes through existing channels with Qatar, Nigeria, Egypt and Australia while it pursues talks to develop new overland supply lines with Russia, Turkmenistan and even Iran, which could soon be free of trade sanctions imposed by the West. These developments are leaving Petronas looking increasingly quixotic in its quest to launch B.C.’s LNG industry. The company’s attempts to sell down its 62 per cent stake in PNW LNG to 50 per cent have stalled since the last deal was concluded with Sinopec in April 2014....Rather than clarify the situation, Petronas’ offer to make a conditional final investment decision could set the stage for further negotiations and uncertainty.  http://www.vancouversun.com/opinion/op-ed/Opinion+Uncertainty+grows+over+deal/11112497/story.html

Tanjung Offshore secures RM250m contract from Petronas Carigali Tuesday, 9 June 2015
KUALA LUMPUR:  Oil & gas services provider, Tanjung Offshore Bhd secured a RM250mil contract to provide topside maintenance to Petronas Carigali Sdn Bhd’s platforms in Sarawak.
It said on Tuesday the construction work request contract would involve the maintenance for Petronas Carigali’s offshore and onshore facilities in Sarawak. The contract is for two years with an option to extend for another year.... http://www.thestar.com.my/Business/Business-News/2015/06/09/Tanjung-Offshore-secures-RM250m-contract-from-Petronas-Carigali/?style=biz

1 June 2015: Petronas top official robbed of RM300,000 (c. USD 81,000) in house break-in

Petronas top official robbed of RM300,000 in house break-in Posted on 27 May 2015 - 09:21pm
KUALA LUMPUR: A gang of robbers escaped with more than RM300,000 in cash and valuables after holding up a top official of national petroleum company Petronas and his family at their bungalow near Taman Tun Abdul Razak, Ampang today.
The Petronas top official, who is a Datuk, was asleep when he and his family were woken up from their sleep by the robbers who broke in at about 5am.
The gang fled after getting cash, gold jewellery, luxury watches and other items.
Minutes after they left, the victims, who were unharmed, managed to untie themselves and alerted the police.
http://www.thesundaily.my/node/311694

22 May 2015: Malaysia's Petronas posts Q1 profit drop, cuts dividend; Petronas reports first oil from Indonesia's Bukit Tua field 

UPDATE 1-Malaysia's Petronas posts Q1 profit drop, cuts dividend on oil price fall  By Anuradha Raghu Fri May 22, 2015 6:59am EDT * Q1 net profit 11.4 bln rgt vs 18.8 bln rgt in Q1 2014 * Maintains projection for crude prices at avg $55/barrel in 2015 * Price will be rangebound for many, many quarters- CEO (Adds details of results, CEO quotes) KUALA LUMPUR, May 22 (Reuters) - Malaysian state-owned oil firm Petronas posted a 39 percent drop in first-quarter net profit on lower crude prices, but a mild rebound in oil helped earnings bounce from the previous quarter when it made its first quarterly loss in at last five years. Global oil prices have climbed more than 40 percent from six-year lows hit earlier this year to touch 2015 highs in early May. Prices, though, are still well-down from the peaks of June 2014, when growing evidence of a worldwide glut sent crude markets into free fall. Petroliam Nasional Bhd, which is called Petronas, reported on Friday a net profit of 11.4 billion ringgit ($3.18 billion) for the January-March period, compared to a profit of 18.8 billion ringgit in the same period in 2014. It had suffered a net loss of 7.3 billion ringgit ($2.03 billion) in the previous quarter. Malaysia, a net energy exporter, relies heavily on Petronas for most of its oil and gas revenue. Out of the 66 billion ringgit of oil revenues in 2014, 29 billion came in the form of dividends paid by Petronas, a government report showed. That dividend would be cut to 26 billion ringgit in 2015, Petronas said..... http://www.reuters.com/article/2015/05/22/petronas-results-idUSL3N0YC3QY20150522

Petronas reports first oil from Indonesia's Bukit Tua field WorldOil (subscription) KUALA LUMPUR, Malaysia -- Petronas has reached a significant milestone in its upstream operations in Indonesia with first oil achieved from Bukit Tua field on May 17. “This upstream project is an integrated development as it also involves the ...
http://www.worldoil.com/news/2015/5/22/petronas-reports-first-oil-from-indonesia-s-bukit-tua-field

18 May 2015: LNG's adverse impact on Petronas and Malaysia  - Citigroup cited in The Star; PETRONAS suggests that Malaysia's many O&G players should consolidate

LNG's adverse impact on Petronas and Malaysia Monday, 18 May 2015  By: TEE LIN SAY PETALING JAYA: The earnings of state-owned Petroliam Nasional Bhd (Petronas) and the country’s current account are expected to come under pressure in the next few months due to the steep drop in the average price of spot liquefied natural gas (LNG). LNG prices track crude oil prices and have more than halved, with the average spot price down as of April to US$7.60 mmbtu (million British thermal units)since oil prices started their downward descent last July. LNG makes up two-thirds of Petronas’ total oil and gas production, and with contract agreements up for renewal, analysts pointed out that earnings would be hit. The average price of spot-LNG in July 2014 was US$13.8MMbtu, and prices rose slightly to US$15.1mmbtu as of Dec 2014. It started adjusting early this year, and as of April, it stands at US$7.9mmbtu. Economists believed that the country would face a current account (CA) deficit in the second quarter if countracts negotiated were not favourable. Citigroup Inc economist Kit Wei Zheng warned that headwinds from lower oil prices, which have not been as severe based on first-quarter gross domestic product (GDP) data, could increase going forward.  “The impact of weaker LNG prices on the CA should be maximum in the second quarter, and the CA surplus should recover in the second-half for leading to a full year surplus of 3.2% of GDP,” he said in a report following the release of Bank Negara’s first-quarter GDP data last Friday. In 2014, Petronas produced a total of 1,358 kboe (kilo barrel of oils equivalent) of gas out of a total of 2,226 kboe of oil and gas. Gas made up 61% of Petronas’ total oil and gas production that year. The LNG sales volume that year increased 4% to 30.12 million tonnes from 28.85 tonnes in 2013, driven by higher trading volume and higher sales from the Petronas LNG complex in Bintulu, Sarawak. Not only would that have implications on Petronas earnings, but Petronas’ contributions to government revenue could be impacted. Petronas contribution had dropped to about 22%, from 30%. In 2012 and 2013, when the going was still good and Brent crude stood above US$100 per barrel, Petronas had contributed RM80bil and RM73.4bil respectively to the Government.
http://www.thestar.com.my/Business/Business-News/2015/05/18/LNGs-adverse-effect-on-Petronas-and-Malaysia/?style=biz

M'sian O&G companies should explore consolidation opportunities, says Petronas Monday, 18 May 2015 KUALA LUMPUR: Malaysian oil and gas (O&G) companies must consider exploring consolidation opportunities within the fraternity to increase competitiveness and put the industry in a good stead when the global oil market recovers. Petroliam Nasional Bhd (Petronas) President and Group Chief Executive Officer Datuk Wan Zulkiflee Wan Ariffin said consolidation opportunities were  plentiful.   "Those with heftier cash and other means to fund consolidation and guided by a clear strategic focus, will be able to beat competitors to the negotiating table for winning deals," he said. The manoeuvres, he added, would also position the companies ahead of the pack when oil prices recover. Wan Zulkiflee said this in his welcoming remarks at the Asia Oil and Gas Conference 2015 here today. http://www.thestar.com.my/Business/Business-News/2015/05/18/Msian-OnG-companies-should-explore-consolidation-opportunities-says-Petronas/?style=biz

6 May 2015: PETRONAS JV group offers US$950 million to native group for Pacific NorthWest LNG project, Petronas completes asset acquisition - 15.5% interest in the Shah Deniz production sharing agreement in the Caspian Sea, a 12.4% stake in Azerbaijan Gas Supply Co and a 15.5% share in the South Caucasus Pipeline Co; PETRONAS carigali pay cut report quickly denied

Petronas-led JV offers aboriginal group US$950m in Canada for project nod (Update) Tuesday, 5 May 2015; KUALA LUMPUR: Pacific NorthWest LNG is offering up to C$1.15bil (US$950mil) over 40 years to an aboriginal community in Canada to approve its natural gas export terminal on Canada’s Pacific Coast.  Reports said on Tuesday the joint venture, which is led by Petroliam Nasional Bhd (Petronas) had made the offer to the community, which would be paid over 40 years.
Pacific NorthWest LNG is offering the payments to the Lax Kw’alaams First Nation so it can build the unit on the community’s traditional lands at the port of Prince Rupert in northern British Columbia, the native group said on its website. The reports said the deal also included incentives from the provincial government and gas pipeline developers.  According to the native group, the payments are for the life of projects (approximately 40 year to 60 years) using 40 years as an assumption in its summary.  http://www.thestar.com.my/Business/Business-News/2015/05/06/Petronas-seeks-Canadian-community-support-for-project/?style=biz

Petronas still in talks with Canadian aboriginal group By Fatin Rasyiqah Mustaza / The Edge Financial Daily   | May 6, 2015 : 8:41 AM MYT KUALA LUMPUR: A Petroliam Nasional Bhd (Petronas) led consortium has yet to conclude the long drawn out negotiations with the Lax Kw’alaams First Nation group on the oil company’s plan to build a gasification terminal to export liquefied natural gas (LNG) at the port of Prince Rupert, western Canada.  The consortium’s Pacific NorthWest LNG project is required to have the consent of the Lax Kw’alaams to construct a LNG terminal within their territory. The project will liquefy and export natural gas produced by Progress Energy Canada Ltd in which Petronas also holds a controlling stake. Currently, Petronas owns 62% of Pacific NorthWest LNG. Other stakeholders include China Petroleum & Chemical Corp Ltd (15%), Japan Petroleum Exploration Co Ltd (10%), Indian Oil Corp Ltd (10%) and Brunei National Petroleum Company Sdn Bhd (3%). Petronas said an impact benefit agreement offer has been tabled to the Lax Kw’alaams, in addition to offers from both the government of British Columbia and TransCanada Corp.... http://www.theedgemarkets.com/my/article/petronas-still-talks-canadian-aboriginal-group?google_editors_picks=true

Petronas completes asset acquisition Monday, 4 May 2015 - 15.5% interest in the Shah Deniz production sharing agreement in the Caspian Sea, a 12.4% stake in Azerbaijan Gas Supply Co and a 15.5% share in the South Caucasus Pipeline Co; BAKU: Malaysia’s state-owned oil and gas (O&G) giant Petronas has completed its transaction for the acquisition of O&G related assets in Azerbaijan, following a sales and purchase agreement it signed with Norway-based Statoil in October last year.
Petronas’ Azerbaijan country chair Zainal Abidin Zainudin said Petronas completed the acquisition on April 30 and now officially owns a 15.5% interest in the Shah Deniz production sharing agreement in the Caspian Sea, a 12.4% stake in Azerbaijan Gas Supply Co and a 15.5% share in the South Caucasus Pipeline Co. It was reported earlier that Statoil sold its stake in the Shah Deniz project for US$2.25bil (RM8bil). The deal was Petronas’ third largest acquisition, after its US$5.7bil acquisition of Canada’s Progress Energy Resources in 2012 and the US$2.5bil acquisition of Gladstones LNG project in Australia in 2008. Zainal Abidin said the acquisition gives Petronas a strategic presence in a producing field in oil-rich Azerbaijan, where the company is involved in project development totalling around US$38bil.... http://www.thestar.com.my/Business/Business-News/2015/05/04/Petronas-completes-asset-acquisition/?style=biz

*This was soon denied: Petronas Carigali cuts salaries by 20% Posted on 15 April 2015 - 05:39am  by Eva Yeong PETALING JAYA: Petronas Carigali Sdn Bhd has asked its staff to take a 20% pay cut in view of the challenging market conditions caused by low global oil prices, a source told SunBiz. According to a memo obtained by SunBiz, Petronas Carigali indicated that a 20% reduction in current salaries would be required effective May 1, 2015. The company said in the memo that it intends to continue investing to sustain production levels despite the low oil price environment affecting its expenditure and projects feasibility. However, it would be challenging to do so at the current cost structure and as part of its cost optimisation efforts, the company has decided to revise salary rates. Petronas Carigali is the exploration and production (E&P) subsidiary of Petroliam Nasional Bhd (Petronas).

UPDATE 1-Petronas not cutting pay or staff, chief executive say (Adds details from Petronas statement) Wed Apr 15, 2015 7:39am EDT  (Reuters) - Malaysian state oil firm Petroliam Nasional Bhd (Petronas) on Wednesday denied a media report that said staff at one of its units were asked to take a pay cut due to the plunge in global oil prices. "It is misreporting. There is no salary cut and retrenchment for Petronas staff," Chief Executive Wan Zulkiflee Wan Ariffin told reporters following a shareholders meeting for a Petronas unit. Local newspaper SunBiz earlier reported that Petronas Carigali issued an internal memo asking its staff to take a 20 percent pay cut due to low oil prices.
http://www.reuters.com/article/2015/04/15/malaysia-petronas-idUSL4N0XC42B20150415

21 April 2015: PETRONAS FLNG by 1Q2016, Carigali strives to improve efficiency, Petronas Chemicals gears up for 80%-85% plant utilisation rate; Pengerang terminal added to Platts recognised loadings from Pasir Gudang, Tanjung Langsat, Tanjung Bin and certain floating storage units in nearby waters for its Singapore price assessment process

Petronas FLNG to tap marginal fields by 1Q of 2016 Tuesday, 21 April 2015 By: INTAN FARHANA ZAINUL; KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) expects to complete its ambitious floating liquefied natural gas (FLNG) vessel by the first quarter next year.  Petronas vice president and venture director LNG project domestic Datuk Abdullah Karim said on Tuesday the Petronas FLNG 1 (PFLNG) is now 91% completed. "With PFLNG we are able to monetise gas fields which previously were considered too small or stranded," he told reporters at the PFLNG briefing.
He explained that a marginal field for gas would have a reserve of about half a trillion cubic metres.
For the PFLNG1, Abdullah said would be on site, which is in Bintulu, Sarawak (Kanowit field) by March 1 next year. "We are looking about 1.2 million tonnes per annum of LNG production from the PFLNG 1," he said. The PFLNG 1 was designed to operate in shallow waters. The final investment decision for the PFLNG Satu was made on March 27, 2012......... http://www.thestar.com.my/Business/Business-News/2015/04/21/Petronas-FLNG-sails-1Q-next-year/?style=biz

Petronas Carigali strives to improve efficiency to mitigate oil plunge impact Published: 21 April 2015 5:58 PM Petronas Carigali has implemented strategies to improve cost efficiency. – The Malaysian Insider pic, April 21, 2015. Petroliam Nasional Berhad (Petronas)'s upstream arm Petronas Carigali Sdn Bhd has implemented strategic approaches to improve its cost efficiency to mitigate the adverse impact of the plunge in oil prices. Among the initiatives taken is production with minimal cost, leaner operations and drilling, integrated logistics, and better innovation and collaboration, according to a statement issued by the state oil company today. In the same statement, Petronas Carigali president Datuk Mohd Anuar Taib urged Petronas contractors to remain agile, resilient and versatile.  Anuar also shared that Petronas Carigali's deliverables were significantly growing in terms of number and complexity....  http://www.themalaysianinsider.com/business/article/petronas-carigali-strives-to-improve-efficiency-to-mitigate-oil-plunge-impa#sthash.4SzG0ueH.dpuf

Petronas Chemicals gears up for 80%-85% plant utilisation rate Tuesday, 21 April 2015
KUALA LUMPUR: Integrated chemicals producer, Petronas Chemicals Group Bhd (PCG) is currently pushing for a higher average plant utilisation rate of between 80 to 85 percent in a bid to drive sales volume. PCG President  and  Chief Executive Officer Datuk Sazali Hamzah said the company's efforts in this respect are progressing well.  "PCG has improved operational excellence, with a plant utilisation rate of 80 per cent last year compared with 78 per cent in 2013, and for 2015 our utilisation rate is expected to rise to 80 to 85 per cent.  "And with the latest Sabah Ammonia Urea (SAMUR) plant due for commission next year, PCG's utilisation rate could hit beyond 85 per cent from 2016," he told Bernama on the sidelines of the 3rd Hazards Asia Pacific symposium held here today.......... On the SAMUR project in Sipitang, Sabah and the Refinery and Petrochemical Integrated Development (RAPID) in Pengerang, Johor, Sazali said they are progressing well and on track. "SAMUR is 90 per cent completed and we target to commission it by the first quarter of 2016.
"As for RAPID, as far as I know the project is also progressing as planned," he said.
The world-class SAMUR project aims to produce 740,000 metric tonnes per annum (mtpa) of liquid ammonia and 1.2 mtpa of granulated urea. Meanwhile, RAPID is expected to produce 7.7 mtpa of differentiated and specialty chemicals such as synthetic rubber and high-grade polymers, and its refinery will be capable of producing petrol and diesel that meet Euro 4 and Euro 5 fuel specifications.......... http://www.thestar.com.my/Business/Business-News/2015/04/21/PCG-gears-up-for-80-85-PCT-plant-utilisation-rate/?style=biz

Pengerang gets Platts’ nod Tuesday, 31 March 2015; PETALING JAYA: The Pengerang oil terminal in Johor is expected to receive greater interest following its inclusion into oil agency Platts Singapore’s pricing assessments for middle distillates and gasoline. Industry players said the inclusion of the Pengerang oil terminal was expected to offer traders more flexibility in loading cargo and improve market liquidity.  “This will help efforts to make Johor the region’s oil and gas trading hub by providing traders accurate and timely information on the prices of oil products,” an analyst said. The Pengerang terminal, majority owned by the 51%-49% joint venture between Dialog Group Bhd and Dutch oil and chemicals storage company Vopak, started operations last year.
“The accreditation (by Platts) will help us in marketing our terminal. We can market to those traders on Platts.  ........Meanwhile, Reuters quoted a source from Vopak who said that the facility was in the process of being filled but it has not yet reached full capacity. “With the Platts approval, we expect interest to pick up,” Reuters quoted the source as saying.  .......Apart from landed storage tanks in Singapore, Platts currently recognised loadings from Pasir Gudang, Tanjung Langsat, Tanjung Bin and certain floating storage units in nearby waters for its Singapore price assessment process.
.......Platts said Pengerang joined those as an alternative delivery location, and would be subject to the same performance requirements and normalisation processes. The terminal has five berths, with the largest able to accommodate a VLCC (very large crude carrier).  The new terminal has an initial storage capacity of 1.3 million cu m over 50 tanks, though a second stage could add an additional one million cu m....... http://www.thestar.com.my/Business/Business-News/2015/03/31/Pengerang-gets-Platts-nod/?style=biz

12 April 2015: Low oil prices improving economics for Petronas-led B.C. LNG project

Low oil prices improving economics for Petronas-led B.C. LNG project by Yadullah Hussain | April 9, 2015 12:06 PM ET TORONTO – Low oil and gas prices have improved the economics for a Petronas-led natural gas export project on the British Columbia coast as the company looks to make a final investment decision in June. “Over the past three months, we have driven costs down … in a very significant way,” Michael Culbert, CEO of Pacific NorthWest LNG, a consortium led by Malaysia’s state-owned Petronas, told an energy conference in Toronto this week. http://business.financialpost.com/news/energy/low-oil-prices-improving-economics-for-petronas-led-b-c-lng-project?__lsa=1169-da7e

5 April 2015: Japan's Toho Gas to buy LNG,  Petronas’ Botswana operation hit by fall in prices

Japan's Toho Gas to buy LNG from Malaysia's Petronas TOKYO, Tue Mar 31, 2015 1:35am EDT
(Reuters) - Japan's third-biggest city-gas supplier, Toho Gas Co, said on Tuesday it signed a basic agreement with a wholly-owned unit of Malaysia's Petroliam Nasional Bhd (Petronas) to buy liquefied natural gas (LNG). The company is set to accept seven to nine LNG cargoes a year during the 10-year contract starting in April 2017, it said in a statement. The prices will be linked to crude and U.S. Henry Hub prices, with an option to change the destination on condition of obtaining the seller's prior consent, it added....... http://www.reuters.com/article/2015/03/31/toho-gas-petroliam-lng-idUSL3N0WX23Y20150331

Petronas’ Botswana operation hit by fall in crude oil prices By: MOHD HAFIDZ MAHPAR Friday, 3 April 2015 KUALA LUMPUR: Petroliam Nasional Bhd’s (Petronas) Botswana-listed operation last year recorded its first profit drop in four years due to the decline in international crude oil prices.
Engen Botswana Ltd told the Botswana Stock Exchange on Friday that its net profit was halved to 65.2 million pula (RM24.1mil) last year on the back of a slightly lower revenue of 2.6 billion pula (RM962mil). The downstream petroleum marketer said its gross profit fell by 26.9% mainly due to the decline in international crude oil prices, which necessitated the revaluation of inventories during the course of the year in line with International Financial Reporting Standards. Foreign exchange gains also decreased from 9.7 million pula (RM3.6mil) at the end of 2013 to 1.4 million pula (about RM520,000) at the end of 2014. It said this was due to the depreciation of the Botswana pula against the South African rand. Engen Ltd, which operates South Africa’s second largest refinery, is 80% owned by Petronas and has a 70% stake in Engen Botswana, according to Engen Botswana’s 2014 annual report..... http://www.thestar.com.my/Business/Business-News/2015/04/03/Petronas-Botswana-operation-profit-hit-by-fall-in-oil-prices/?style=biz

31 March 2015: Cost management crucial for O&G, says Petronas

Cost management crucial for O&G, says Petronas COO By: WONG WEI-SHEN  Tuesday, 31 March 2015 “I strongly believe that one of the issues that the O&G industry needs to focus on in the current environment is cost management,” said Petroliam Nasional Bhd (Petronas) chief operating officer and executive vice-president of downstream Datuk Wan Zulkiflee Wan Ariffin (pic). Due to falling prices and increasing costs, companies are now re-prioritising shareholders’ returns over production growth, he said at the launch of the Offshore Technology Conference (OTC) Asia 2016. He added that across the board, there had been a reduction in budgeted capital expenditure, lower production plans and more targeted exploration efforts, as well as rationalisation of the downstream business.
Petronas executive vice-president and chief executive officer of upstream Datuk Wee Yiaw Hin said: “In this challenging environment, it becomes more important that we really push technology to the limit to help manage cost.”........ http://www.thestar.com.my/Business/Business-News/2015/03/31/Cost-management-crucial-for-OG-says-Petronas-COO/?style=biz


26 March 2015: PETRONAS Carigali JV strikes oil off Sabah

Petronas Carigali JV strikes oil off Sabah By: MOHD HAFIDZ MAPHAR  Wednesday, 25 March 2015; KUALA LUMPUR: A Japanese-led group exploring Deepwater Block R off Sabah, which includes Petronas Carigali, has made “a significant oil discovery” at the Bestari-1 exploration well. The group comprises operator JX Nippon Oil & Gas (27.5% interest), Inpex Corp of Japan (27.5%), Petronas Carigali (25%) and Australia-listed Santos (20%).... Santos told the Australian Stock Exchange on Wednesday that the discovery was being evaluated with a view to planning an appraisal campaign. “The Bestari-1 well encountered 67 metres of net oil pay in multiple sand packages within the primary Miocene age formation at true vertical subsea depths ranging from 1,860m to 2,702m,” it said. “The oil bearing sands are of high quality with good porosity and permeability. Oil samples, recovered from wireline pressure and sampling tools, confirm 27-30 degree API Oil with no indication of hydrogen sulphide and neglible carbon dioxide.”.... Petronas awarded the production sharing contract for Deepwater Block R, a 672 sq km area where the well is located, in January 2012. .... The national oil company said the exploration block was near key discoveries such as the Kikeh, Kebabangan, and Gumusut-Kakap fields. http://www.thestar.com.my/Business/Business-News/2015/03/25/Petronas-Carigali-JV-strikes-oil-off-Sabah/?style=biz

24 March 2015: Petronas says $5 bln bond issue for capex, possible M&As - Reuters

Malaysia's Petronas says $5 bln bond issue for capex, possible M&As KUALA LUMPUR, March 19  Thu Mar 19, 2015 4:00am EDT (Reuters) - Malaysia's Petroliam Nasional Bhd (Petronas) plans to use the $5 billion it raised in Asia's largest bond offering so far this year for corporate expenses as well as possible acquisitions, the company said. In a statement to Reuters, the state-owned energy firm, which posted its first quarterly loss in at least five years in the fourth quarter due to the slump in global oil prices, declined to give any details about its potential M&A plans. It had earlier stated plans to cut capital expenditure by 10 percent and operating expenses by up to 30 percent this year, but still went ahead with the bond and sukuk issue, its first foray into the debt market in six years. http://www.reuters.com/article/2015/03/19/malaysia-petroliam-bonds-idUSL3N0WK3SJ20150319

 12 March 2015: US$5 billion bonds sold, some bonds sold at lower premium than initially offered, analyst says "risk on for Asia" when PETRONAS gets the deal out, new PETRONAS bonds seemed expensive compared to the curve but cheaper than CNOOC (PETRONAS used to trade inside CNOOC)

Malaysia’s Petronas Sells $5 Billion of U.S. Dollar Bonds by Elffie Chewand Christopher Langner 2:25 PM HKT  March 11, 2015; (Bloomberg) -- Petroliam Nasional Bhd., Malaysia’s state-owned oil company, sold $5 billion of dollar-denominated bonds Wednesday.... Petronas issued the debt in four parts, including a sukuk tranche, according to data compiled by Bloomberg. The longest-dated portion was $1.5 billion of 4.5 percent, 30-year bonds that yield 1.9 percentage points more than similar-maturity U.S. Treasuries.... The Kuala Lumpur-based energy company borrowed in dollars at a time when Malaysian issuers in the currency are the worst performers in Asia for the year. It also sold $1.5 billion of 3.5 percent, 10-year notes, $750 million of 3.125 percent, seven-year securities, and $1.25 billion of five-year 2.707 percent sukuk, according to data compiled by Bloomberg.
Petronas’s new Islamic bonds were sold at a premium of 110 basis points. It had initially offered the debt with a yield of about 135 basis points, people familiar with the matter said earlier this week.
Its seven-year conventional debt paid 130 basis points, versus a marketing spread of about 150, while the 10-year and 30-year securities were marketed at about 175 basis points and 220 basis points respectively. The 30-year debentures priced at a 190 basis-point premium.
http://www.bloomberg.com/news/articles/2015-03-11/petronas-prepares-7-billion-bond-as-borrowing-costs-soar-on-oil

ASIA CREDIT CLOSE: Petronas curve holds steady as EM bonds weaken Wed Mar 11, 2015 4:54am EDT; SINGAPORE, March 11 (IFR) - Malaysian energy giant Petronas Corp dominated attention today with its four-tranche bond and sukuk offering, which is expected to be USD6bn-7bn in size.... "If Petronas can get this deal out of the door, it will be risk on for Asia," said one credit trader. "That's not a given, thanks to the size and the weak oil price."... Petronas's old bonds were little changed, despite the new supply. The 2019s were at Treasuries plus 115bp/122bp, around 2bp wider, while the 2022s were at T+135bp/140bp. The new bonds offer around a 5bp concession to the curve, according to a bond investor. However, many investors are underweight Malaysia, and a new issue of benchmark bonds gives them a quick way to balance their portfolios.... Investors said that the new Petronas bonds seemed expensive compared to the curve, but cheap in comparison to CNOOC's 2018s, for example, which were quoted today at a Z spread of 77bp/86bp. Petronas used to trade inside CNOOC.... http://www.reuters.com/article/2015/03/11/markets-asia-debt-idUSL4N0WD35920150311


9 March 2015: PETRONAS starts roadshow for RM17 billion bond and sukuk, S&P assigns preliminary A- to sukuk,  Mahathir urges external auditors to allay public concerns about the billions of overseas investments by PETRONAS and other key entities / agencies

REFILE-Malaysia's Petronas begins $17 bln bond and sukuk drive Thu Mar 5, 2015 7:28am EST
(Reuters) - Malaysian energy company Petronas began roadshows on Thursday to raise up to $17 billion from conventional and Islamic bonds, or sukuk, for working capital.... State-owned Petronas met potential investors for a $15 billion multi-currency conventional bond programme and a one-off dollar-denominated sukuk issuance of $2 billion, two sources told Reuters.... A spokesman from Petronas confirmed the plans.... Bank of America Merrill Lynch, CIMB Group Holdings , Morgan Stanley MUFG, JP Morgan and Citibank are lead arrangers, while HSBC and Deutsche Bank are playing smaller supporting roles, the sources said. Petronas will conduct roadshows in Kuala Lumpur, Abu Dhabi, Dubai, London, Hong Kong, Boston, Los Angeles and New York from Thursday to March 10, they added. Ratings agency Standard & Poor's on Thursday assigned a preliminary rating of A- to the Petronas sukuk.... The move by Petronas comes after the company announced its first quarterly loss in at least five years on Feb. 27 because of the global slump in oil prices. It stated plans to cut capital expenditure by 10 percent and operating expenses by up to 30 percent this year.... http://www.reuters.com/article/2015/03/05/petronas-bond-idUSL4N0W744U20150305

Felda chairman’s son quizzed on London luxury hotel buy Published: 7 March 2015 5:09 PM; Felda's overseas buying spree was raised by former prime minister Tun Dr Mahathir Mohamad earlier this year, when he urged Putrajaya to appoint external auditors for all its agencies to allay public concerns about the billions being spent on investments across the world. "We see entities such as Felda, EPF, Tabung Haji spending billions in acquiring foreign properties while others such as MAHB (Malaysia Airports Holdings Bhd) and Petronas have bought shares in airports and Canadian ventures also involving huge sums of money," the former PM had written in his blog.... http://www.themalaysianinsider.com/malaysia/article/felda-chairmans-son-quizzed-on-london-luxury-hotel-buy#sthash.ATeX0UAr.dpuf

28 February 2015: PETRONAS says no more RSCs when oil price below US$80, earnings weakness in Malaysia O&G inevitable with 10-15% capex cuts in 2014-2015 (mulling 30% opex cut too), Canada project FID by June 2015 with award of capital tax allowance (sources earlier said not given) and re-bidding of tenders to save cost.

 Malaysia’s Petronas Swings to First Quarterly Loss- State oil-and-gas firm intends to cut investment plans over next two years after $2.7 billion loss.By Saurabh Chaturvedi  Feb. 27, 2015 8:33 a.m. ET
KUALA LUMPUR, Malaysia--Malaysia’s national oil-and-gas company, Petroliam Nasional Bhd., or Petronas, on Friday said it would cut its investment plans by as much as 30 billion ringgit ($8.3 billion) in the next two years as the company reported its first-ever quarterly loss.... Petronas Chief Financial Officer George Ratilal told reporters that the loss was primarily due to the fall in global crude-oil prices and on account of some asset impairment charges totaling 20 billion ringgit for the full year. ... The company’s cut represents a reduction of 10%-15% for this year and the next as Petronas expects crude prices to hover around the $55-a-barrel level, Chief Executive  Shamsul Azhar Abbas  told reporters at an earnings briefing. The company is also evaluating options to cut operating expenses by 30%.... http://www.wsj.com/articles/malaysian-state-oil-gas-energy-firm-petronas-posts-first-ever-quarterly-loss-1425043981

Shamsul: No more RSC for third party for now  By: NG BEI SHAN  Saturday, 28 February 2015
THERE was a time when redeveloping marginal oil fields was a “hot” topic among local oil and gas services players.... Some of these companies’ aspirations to move upstream, however, are shattered as Petrolaim Nasional Bhd (Petronas) has reiterated that it would not dish out any more new risk sharing contracts (RSC) at below US$80 per barrel.... “We don’t see any future awards of RSC contracts at prices below that,” says president and chief executive officer Tan Sri Shamsul Azhar Abbas....
It will be re-developing the brownfields on its own via Vestigo Petroleum Sdn Bhd, a subsidiary that was set up less than two years ago to develop small and mature fields... “We reckon the time has come for us to say that we are capable of doing this ourselves rather than award to other international or local players,” he says, explaining that the upstream unit of the national oil company has garnered the capabilities and knowledge from its partners over the years.... To recap, Petronas’ upstream unit Petronas Carigali Sdn Bhd has established Vestigo in July 2013 to complement the former’s upstream activities with the focus on small, marginal and mature fields.... http://www.thestar.com.my/Business/Business-News/2015/02/28/Shamsul-No-more-RSC-for-third-party-for-now/?style=biz

Earnings weakness from O&G inevitable Saturday, 28 February 2015; IT must have come as a shock for Petroliam Nasional Bhd (Petronas) to report its first quarterly loss in five years since it started reporting quarterly figures. The RM7.3bil loss was mainly due to an impairment of assets after a revaluation, but the headline figure does indicate that 2015 is not going to be rosy. Petronas has said it will cut capital expenditure (capex) by 10% this year and by 30% for some items. This directly means less activity for the sector, and it has started to show in some of the oil and gas (O&G) service providers in the latest earnings season. http://www.thestar.com.my/Business/Business-News/2015/02/28/Earnings-weakness-from-OG-inevitable-Any-more-Stuart-Gullivers-out-there-Feeling-the-pinch-from-MAS/?style=biz

Canada project on track Saturday, 28 February 2015; PETROLIAM Nasional Bhd (Petronas) will make a final investment decision (FID) on a project to build a multi-billion-ringgit liquefied natural gas (LNG) export terminal in British Columbia, Canada, by June this year... However, president and chief executive officer Tan Sri Shamsul Azhar Abbas has alluded that the national oil company would pursue the development as it has received what it wanted from the Government and was waiting for further approvals.... “The issues outstanding with the local provincial government and the Canadian government have been resolved. The capital allowance will be given, which will further improve the economics of the project,” he said yesterday... He also dismissed speculation that Petronas was considering walking out of the project because of the economics.... “Enough of such speculation …we can wait until the end of June and still complete it within time,” he reiterated.
Petronas will be re-bidding the tenders for the job to build the LNG plant because cost has come down with the decline in oil and gas prices.... http://www.thestar.com.my/Business/Business-News/2015/02/28/Canada-project-on-track/?style=biz


27 February 2015: PETRONAS 4Q2014 loss or RM9.9 billion / US$2.7 billion on US$76.27 Brent (down from US$109.27 a year ago) and impairment, planned capex spend will be cut by RM30 billion over next two years, PETRONAS cash from operations RM10 billion shortfall versus capex spend and dividend commitments in 2015 says Moody's; Shamsul's says 2015 outlook likely "bad"

Petronas Turns to $2.7 Billion Fourth-Quarter Loss on Oil Slump 'By' Pooi Koon Chong 5:31 PM AWST   February 27, 2015 (Bloomberg) -- Petroliam Nasional Bhd., the Malaysian state oil company preparing for a leadership transition in April, reported a loss in the fourth quarter following crude’s plunge. The loss was 9.9 billion ringgit ($2.7 billion) in the three months through Dec. 31, compared with a 9.6 billion ringgit profit a year ago. Revenue dropped 6.4 percent to 79.4 billion ringgit. ... “Petronas Group is taking steps to reduce its planned capital investments and operating expenditure in order to mitigate the potential adverse effect on its profitability and cash flows,” the company said in a statement today.... Natural gas futures dropped to $2.58 per million British thermal units on Feb. 6, the lowest since 2012, while Brent futures are down 44 percent since June. Petronas derived 21 percent of its revenue from gas and an equal amount from crude, with petroleum products being the... Petronas will pay Malaysia’s government, its sole shareholder, a dividend of 26 billion ringgit from 2014 profit of 37 billion ringgit, Petronas Chief Financial Officer George Ratilal told reporters in Kuala Lumpur. Planned capital spending will be cut by as much as 30 billion ringgit over the next two years, he said.... Petronas won’t generate enough cash from operations this year to cover capital spending and dividend commitments, said Vikas Halan, a Singapore-based vice president at Moody’s Investors Service Inc., estimating the shortfall to be at least 10 billion ringgit. .. Petronas deferred its final decision to build a C$36 billion ($29 billion) liquefied natural gas project in Canada’s British Columbia in December, citing low oil prices...Petronas has said it aims to reduce its share in the development to as low as 50 percent..... http://www.bloomberg.com/news/articles/2015-02-27/petronas-turns-to-2-7-billion-fourth-quarter-loss-on-oil-slump

Petronas postst first quarterly loss in 4Q, braces for grim year ahead - Petronas said the Dated Brent averaged US$76.27 in 4QFY14, a decline from US$109.27 a year ago...on prospects, Shamsul 2015 will likely be "bad"... http://www.theedgemarkets.com/my/article/petronas-posts-first-quarterly-loss-4q-braces-grim-year-ahead-0

Malaysia's Petronas posts $2 bln quarterly loss amid global oil slump KUALA LUMPUR  Fri Feb 27, 2015 3:03pm IST http://in.reuters.com/article/2015/02/27/petronas-results-idINL4N0VL1TV20150227

25 February 2015: Canada hopes C$18+ billion BC LNG project put on hold on 3 Dec 2014 will be revived on major cost drop; PETRONAS "humble pie" says Kinibiz on novation of four LNG carriers costing US$1.1 billion to MISC 

Petronas visit bolsters hopes for dormant B.C. LNG project  by BRENT JANG; VANCOUVER — The Globe and Mail;  Published Sunday, Feb. 22 2015, 4:27 PM EST; A major B.C. LNG project put on hold by Petronas in December is showing signs of a revival as three executives from the Malaysian energy giant prepare to visit Canada..... The Pacific NorthWest LNG joint venture, led by Malaysia’s state-owned Petronas, is positioned to become the first major exporter of liquefied natural gas from Canada, despite a delay that has lasted nearly three months.... On Dec. 3, Petronas and its four Asian partners placed the venture on hold indefinitely due to anticipated high capital costs that make the project uneconomic to build.... Since then, Petronas-led Pacific NorthWest LNG has made progress in extracting cost savings from prospective contractors and suppliers, B.C. Deputy Premier Rich Coleman said. “Evidently, those costs have come down dramatically,” he said in an interview.... The Petronas-led group estimates that $36-billion will need to be spent in order to achieve planned exports to Asia in 2019. The huge budget includes $6.7-billion in two pipeline projects and $11.4-billion for the export plant at Lelu Island, located near Prince Rupert in northwestern British Columbia... Incoming Petronas chief executive officer Wan Zulkiflee Wan Ariffin will travel to Vancouver to meet with B.C. Premier Christy Clark and Mr. Coleman....Pacific NorthWest LNG is scrutinizing international engineering costs, subcontractors and two natural gas pipelines to be built by TransCanada Corp. – the $5-billion Prince Rupert Gas Transmission plan and the $1.7-billion North Montney Mainline.... http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/after-delay-in-lng-deal-petronas-chiefs-to-visit-bc-in-march/article23141240/

Petronas eats RM4bil humble pie By TigerTalk  8:47AM Feb 25, 2015; KINIBIZ The collapse of crude oil price in the last 12 months is forcing many oil giants (to quote the usual biz speak) “rethink”, “reprioritise” and “reposition” their business plans drastically. Budgets are slashed. Expenditure reduced. Mega projects are postponed or scaled down.... In many cases, some may say that they are eating a long overdue humble pie.... Case in point is the recent move by Malaysia’s state oil company Petroliam Nasional Bhd (Petronas) to transfer ownership of four new liquefied natural gas (LNG) carriers to Malaysia International Shipping Corporation Bhd (MISC).... The carriers will be constructed for an estimated US$1.1 billion (RM4 billion) and are to be delivered to MISC in 2016-2017.... Petronas will then charter these LNG vessels from MISC for 15 years, or maybe even more.... The deal is practically an amendment to a deal that was signed two years ago. It novates or replaces a previous shipbuilding contract signed in 2013 between Petronas, MISC and Hyundai Heavy Industries (HHI)... http://www.malaysiakini.com/news/290144

24 February 2015: MISC - PETRONAS extends time on 5 and signs 5 new LNG carriers

MISC reports that Petronas extends the time charter of five existing LNG carriers and signs on five new LNG carriers. UOBKH Research 24 Feb 2015.

22 February 2015: SapuraKencana's Mokzhani sees need for PETRONAS to manage expectations of Malaysia O&G players as well as sector consolidation (4,000 companies of which 40 are public listed); PETRONAS to set aside RM2.1 billion for Sarawak O&G contractors; Johor to take 10% stake in Pengerang Terminals 2 and Pengerang LNG 2; Pengerang Package III contracts awards; Petronas-Vopak-Dialog industrial terminal info

New Petronas CEO urged to encourage consolidation By: WONG WEI-SHEN Saturday, 21 February 2015; A prominent oil and gas (O&G) player feels that one of the primary tasks of the newly appointed president and chief executive officer of Petroliam Nasional Bhd (Petronas) should be to encourage consolidation within the industry....  “He has to encourage consolidation, as a lot of service companies had mushroomed in the last five to 10 years, enjoying US$100 oil. Having said that, at US$50 oil, we will all have to revisit our cost structures and find efficiencies to help with bringing costs down,” says SapuraKencana Petroleum Bhd vice-chairman Tan Sri Mokhzani Mahathir (pic) of Petronas’ new head Datuk Wan Zulkiflee Wan Ariffin.... Mokhzani is one of the major shareholders in SapuraKencana with a 10.38% equity stake. He also has a 18.55% stake in Yinson Holdings Bhd via Kencana Capital Sdn Bhd.... To paint a clearer picture, there are currently about 4,000 O&G firms that come under the purview of the International Trade and Industry Ministry, while only about 40 of them are listed on the local bourse.... Wan Zulkiflee will be taking over the helm from Tan Sri Shamsul Azhar Abbas starting April 1.... Mokhzani foresees more companies turning to Petronas for help and shelter during this “rough patch” for the next two years.... While there is no more cheap oil production, innovative solutions can help save, Mokhzani adds.... “That’s where Petronas has to encourage Vestigo/Carigali to work smarter with contractors to do this. I think Wan Zulkiflee will be the right person to spearhead this new business approach.... “He has to manage the expectations of both his shareholder and stakeholders (everyone involved in the O&G industry),” he says.... http://www.thestar.com.my/Business/Business-News/2015/02/21/New-Petronas-CEO-urged-to-encourage-consolidation/?style=biz

RM2.1bn Petronas ang pow just for Sarawak by FMT Reporters  | February 21, 2015
Exclusive yearly bonanza for oil and gas contractors in the state; KUCHING: Oil and gas contractors in Sarawak have been given a RM2.1 billion “ang pow” from Petronas, to be given every year. The figure is the value of yearly contracts that will be set aside by the national oil corporation exclusively for oil and gas contractors in the state, Star Online reported today.... http://www.freemalaysiatoday.com/category/nation/2015/02/21/rm2-1bn-petronas-ang-pow-just-for-sarawak/

Johor state to take 10% stake in Petronas’ Pengerang terminals Thursday, 5 February 2015  KUALA LUMPUR: The State Secretary, Johor (Incorporated) will take a 10% stake in two terminals at Petroliam Nasional Bhd’s Pengerang Integrated Complex (PIC).  The Johor government had on Thursday signed two lease agreements with Pengerang Terminals (Two) Sdn Bhd (PT-2) and Pengerang LNG (Two) Sdn Bhd (PLNG-2) respectively.  “The issuance of the lease agreements by the state of Johor marks the next stage of progress in the development of Petronas’ Pengerang Integrated Complex (PIC) in Pengerang, Johor,” said the national oil company. Subsequent to the signing of the agreements, the Johor government would hold a 10% equity in PT-2 and PLNG-2 respectively. PT-2 terminal will serve as a dedicated storage and industrial terminal for Petronas’ Refinery and Petrochemical Integrated Development (RAPID) complex.... RAPID is estimated to cost US$16bil while the associated facilities will involve an investment of about US$11bil.  http://www.thestar.com.my/Business/Business-News/2015/02/05/Johor-state-to-take-10pct-stake-in-Petronas-Pengerang-terminals/?style=biz

Muhibbah gets RM116m Petronas Rapid job in Pengerang Published: February 4, 2015 02:48 PM
KUALA LUMPUR, Feb 4 — Muhibbah Engineering (M) Bhd today announced it has been awarded a RM16 million contract by Tecnicas Reunidas, SA Group for the design and building of temporary construction facilities and accommodation camp for package three in Petronas’ Refinery and Petrochemicals Integrated Development (Rapid) project in Pengerang, Johor. In a filing to Bursa Malaysia, Muhibbah said the construction was scheduled to commence in the first quarter and was expected to be completed by the first quarter of 2016. Tecnicas Reunidas is one of the leading international engineering and construction company for oil and gas production, refining and petrochemicals and power generation projects. The company was awarded by Petronas as an engineering, procurement, construction and commissioning (EPCC) contractor for Package III, the construction of kerosene hydrotreating unit, diesel hydrotreating unit, naphtha hydrotreating unit, cracked naphtha hydrotreating unit, and continuous catalytic reformer units in Petronas’ Rapid project. - See more at: http://www.themalaymailonline.com/money/article/muhibbih-gets-rm116m-petronas-rapid-job-in-pengerang#sthash.CzKiXoVh.dpuf

Petronas, Vopak, Dialog to develop major storage terminal in Malaysia 4 February 2015 The companies recently signed a shareholders agreement for the development in Pengerang, JohorPetronas, Dialog and Vopak are to develop and operate an industrial terminal in Pengerang, Johor, Malaysia. The industrial terminal will serve the world scale Petronas Refinery and Petrochemicals Integrated Development (RAPID) project. Each company recently signed the shareholders agreement to jointly develop an industrial terminal in Pengerang, Johor, Malaysia. Vopak will have a 25% share. The industrial terminal will serve the users of the new world-scale Petronas' RAPID project which is an integral section of Petronas Pengerang Integrated Complex (PIC). The industrial terminal will have a storage capacity up to 2.1 million m3 for crude, refined products, petrochemical products and liquefied petroleum gas (LPG). The marine infrastructure includes 12 berths. The 24m draft can accommodate very large crude carriers. Berths for unloading and reloading of LNG vessels up to QMax are included in the project plans. - See more at: http://www.tankstoragemag.com/industry_news.php?item_id=8809#sthash.D29xVXWC.dpuf


13 February 2015: "1MDB Mess Clouds Petronas $7 Billion Debt Proposal" - Bloomberg

1MDB Mess Clouds Petronas $7 Billion Debt Proposal; 'By' Christopher Langner and Elffie Chew  12:00 AM AWST  February 13, 2015; (Bloomberg) -- Malaysia’s national oil company Petroliam Nasional Bhd is paying for troubles at a state investment fund.... The yield premium on Petronas’s 2022 U.S. dollar-denominated debt over Treasuries has surged 54 basis points in the last six months after the government said it wasn’t liable for 1Malaysia Development Bhd’s debt and the fund missed a loan payment. That was unfortunate timing for Petronas, which is planning its first dollar bond in five years to raise as much as $7 billion, according to people familiar with the matter.... The cost of insuring Malaysian sovereign debt reached a 16-month high on Jan. 13, one week after local media reported 1MDB’s missed payment, and is up 27 basis points since Dec. 31. Fitch Ratings said last month it may downgrade Asia’s only net crude exporter, citing plunging oil prices and “uncertainty” surrounding finances of the investment fund, whose advisory board is headed by Prime Minister Najib Razak.... “The 1MDB mess is being factored into the spreads for Malaysia and there aren’t that many bonds in which you can express that view,” said Dilip Parameswaran, the Hong Kong-based head of independent advisory firm Asia Investment Advisors Ltd. “That, mixed with lower oil prices and a potential downgrade of the sovereign, are all weighing on Petronas.” ... Natural gas futures dropped to $2.58 per million British thermal units on Feb. 6, the lowest since 2012, while the price of Brent futures is down 46 percent since June. Petronas derived 21 percent of its revenue from gas and an equal amount from crude, with petroleum products being the biggest contributor to its top line, according to its 2013 annual results...The investment fund (1MDB) failed to repay a 2 billion ringgit loan due in December, Edge Financial Daily reported Jan. 6. The spread on the 2023 notes soared 115 basis points in two days to 417 basis points. It had widened to a record 430 basis points on Feb. 12....  http://khoryuleng.blogspot.com/2014/08/sovereign-wealth-fund-swf-news.html

Today Petronas announced their biggest USD bond offering ($7b)  where they mandated Deutsche, CIMB & Bk of America.

KL bank specialists have interesting observations on choice of mandated banks.

Note: our annotations include yellow highlight of PETRONAS Rapid project area and red circled approximate area of Country Garden's land reclamation project. Notable that the Rapid project zone looks to be bigger than Singapore's Jurong Island. Legend removed - please do go to the original map source. Map source: "THE EXTENDED STRAIT - Singapore's Oil Hub" by Martin Garcia and Magnus Nickl, Draft Version. Which notes that the key oil hubs in the Malacca Straits are: "1. Port Klang: Port Klang is divided mainly in two ports, each one with its own operator. These are called the North Port and the West Port. Both have oil tank facilities of considerable dimensions. Port Klang is the biggest oil storage harbour in the Strait of Malacca. 2. Port Dickson: Port Dickson is one of the locations of Royal Dutch Shell in Southeast Asia and ExxonMobil, each of them running a refinery at this location. 3. Malacca Oil Storage Terminal: Very near Malacca in Sungai Udang petronas erected a refinery taking a large part of the terrain. Through one major jetty the tankers that brings the crude oil and takes the refining products can dock perfectly even if the depth are quite small. 4. Jurong Island in Singapore: Jurong Island of Singapore is the biggest oil and petrochemical hub in the region and is the preffered location for bunkering of both tankers and cargo vessels because a lot of their main operative actions take place in Singapore."

Dialog Group is leading the oil storage thrust in Johore with key JV partners. There are several other storage projects in Johore, and some seem likely to compete with each other, while several are part of Dialog (company website link: http://www.dialogasia.com/core_CTF.htm ). The Dialog JVs seem akin to the Tanjung Pelepas move in Johore in the late 1990s when two key container line operators were encouraged to relocate from Singapore. The latest news, is that Malaysia's Pengerang oil terminal seeks to extend its storage to biodiesel and LNG too.

Related to this are large Johore land reclamation projects (located off Singapore's western tip) that are apparently raising new transboundary questions. Specialists tell us that congestion in maritime traffic is resulting in a rise in the number of vessel collisions in the waters off Johore - Singapore.

Source: http://www.themalaysianinsider.com/malaysia/article/no-eia-but-johor-coastal-reclamation-projects-already-underway-say-sources

NST news link: http://www.nst.com.my/node/5883 ; "The Department of Environment has issued a temporary stop-work order against all coastal land reclamation works for the development of the massive Forest City off Tanjung Kupang here pending a detailed study.... State Health and Environment Committee chairman Datuk Ayub Rahmat said any negotiation on lifting the suspension would be between the department and the project’s joint developers, China’s Country Garden Holdings Co Ltd and state-owned Kumpulan Prasarana Rakyat Johor... The project hit a snag after the Singaporean government raised concerns over the state’s coastal land reclamation projects, citing that it might cause trans-boundary issues...."[3]

[3] Other land reclamation (non-oil & gas sector) in Danga Bay area, just west of Johor Bahru town: Land and development on man-made Danga Bay island to cost RM8bil, Published: Tuesday February 19, 2013 MYT 12:00:00 AM; http://www.thestar.com.my/Business/Business-News/2013/02/19/Land-and-development-on-manmade-Danga-Bay-island-to-cost-RM8bil/