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(KUALA LUMPUR) Petroleum Nasional Bhd (Petronas) has signed a small field asset (SFA) production sharing contract (PSC) with Vestigo Petroleum Sdn Bhd for a discovered resource opportunity cluster, which was marketed under the Malaysia Bid Round Plus (MBR+). The signing was done through Malaysia Petroleum Management (MPM).  Situated off the coast of Sabah, the NBE cluster which consists of Nosong, Bongawan North and Epidot fields, is a predominantly gas discovery cluster. A comparable field is Samarang, a mature field located 25 kilometres south of Nosong that has demonstrated proven production deliverability. This marks the inaugural award of PSCs in Sabah under the MBR+ promotion. "We welcome capable operators like Vestigo to explore, invest and develop Sabah's oil and gas resources. "At the same time, we are committed to fostering the growth of local oil and gas services and equipment companies in Sabah and encourage collaborations that increase participation of qualified Sabahan companies in the industry," said the state's finance minister Datuk Seri Masidi Manjun. A signing ceremony was held in conjunction with the Sabah Oil and Gas Conference and Exhibition, witnessed by Masidi. Petronas was represented by MPM senior vice president Datuk Ir. Bacho Pilong while Vestigo was represented by its chief executive officer Khairul Azhar Abu Bakar. Bacho Pilong said the award signified a successful outcome of the MBR+ cycle which was introduced in October 2023. "It provides an additional avenue for investors to explore and acquire DRO and Late Life Assets (LLA) available in Malaysia beyond the annual MBR by utilising and assessing information made available through the Petronas myPROdata. "We continue to collaborate with the Sabah state government in steering a vibrant investment climate and ecosystem, which is essential in supporting Sabah local communities and players to further progress in this industry," he added. In the coming weeks, Petronas will be signing new PSCs with more MBR+ winning bidders. MPM acts for and on behalf of Petronas in the overall management of Malaysia's petroleum resources throughout the lifecycle of upstream oil and gas assets. #energy #oilandgas #PSC #gasdiscoverycluster #upstream

☢️♻️ [ Back in early 2000, the Kikeh project was projected capital cost of US$1.4 billion, excluding the FPSO charter. Companies suggested to be up for the upcoming job include #MISC, #Yinson, #BumiArmada and MTC Group. Given Petronas’s equity stake of 51% in MISC and the group’s experience with the Kikeh field since the inception of the charter contract in 2007, MISC has a strong chance to win the replacement charter contract if it were to happen. ] ♻️☣️ Interest has been expressed in a #PTTEP early invitation to replace an ageing floating production, storage and offloading vessel on the Kikeh oilfield offshore #Malaysia. PTTEP issued a pre-qualification document to floater lessors in September and several #FPSO market sources said it has received submissions from several contractors to supply a unit. The same sources said PTTEP will select certain players to participate in a limited tender early next year, 2024. PTTEP is the operator of the deep-water development with Malaysian joint-venture partner #Petronas. The field is currently served by the Kikeh FPSO owed by Malaysia’s MISC in a joint venture with SBM Offshore, but its hull will be 50 years old next year, and the current lease contract is set to expire in January 2028.

🇲🇾 It's time for another #TravelTuesday with Oilfield Technology, and this week we are heading to Malaysia! 💡 All the way back in our Summer 2021 issue, Fuziana Tusimin, Latief Riyanto and Norbaizurah Ahmad Tajuddin, PETRONAS, and Mojtaba Moradi, Raam Kumar Marimuthu and Michael Konopczynski, TAQA Well Completions, revealed how the well performance of a complex oil reservoir offshore Sarawak was optimised by autonomous inflow control device technology. 💬 "Well completion design with inflow control devices (ICDs) is one of the important steps in efficient field development planning. It has a strong influence on not only the production profile but also the economics. Technology advances, in conjunction with drilling capabilities, have significantly improved well productivity and enhanced hydrocarbon recovery." Make sure to register for your FREE issue of Oilfield Technology here 👇 https://lnkd.in/dKc9dM9

As Malaysians, why some of you have been reluctant, underestimated gasoline or diesel at Petronas Gas Station?  (1) Those gas stations including Petronas, Shell, Caltex in east coast regions like Kelantan, Terengganu and Pahang have been getting their supplies of gasoline and diesel from Petronas Refinery Truck Loading at Kerteh using lorry tankers. Those Petronas, Shell, Caktex Gas Stations, in other States like KL, Selangor, Negeri 9,etc. have been getting their supplies of gasoline and diesel from Petronas Refinery Melaka & Esso Refinery at Port Dickson. It's all  related to logistic rationalization. 😂 (2) Petronas Gas Stations are under supply chain of Petronas Dagangan Sdn Bhd & Petronas Refinery , delivering products of our nation.  (3) Other private gas stations are under supply chain of profit oriented companies supporting foreign Corporations like Shell, Caltex, etc.  (4) Weird mindset : Some Kancil, Myvi, Axia drivers filling up gas of Ron 97 instead on Ron 95. Some Mercedes or BMW drivers filling up gas of Ron 95 instead. It's all gimmick huh. For me Ron 95 suits all. 

Malaysia’s Bintulu LNG export complex in restart mode after power loss-induced shutdown Malaysia LNG (MLNG), a Petronas unit, reported a #power loss at the Bintulu #plant at approximately 11:30 PM on May 10. While the specific cause has been identified and start-up efforts are underway, MLNG confirmed that the plant was operating at optimal efficiency prior to the incident. A three-day shutdown at Bintulu equates to a production loss of around 240,000 tons of #LNG, equivalent to four 60,000-ton cargoes, assuming full nameplate capacity. According to Kpler data: ◾ The last shipments from Bintulu were on May 12, with two cargoes totalling 0.13 million tons. ◾ A 0.7 million-ton cargo was shipped on May 10. ◾ There were no exports on May 11 and 13. Currently, seven vessels are waiting near the Bintulu terminal to load. #kpler #powerloss #malaysia

Future Outlook for Malaysian O&G Sector • Petronas' commitment to spend RM300 billion over five years (RM60 billion annually) indicates a robust project pipeline. • Offshore service providers, FPSO players, rig operators (Velesto), and platform fabricators (Malaysia Marine and Heavy Engineering, Sapura Energy) are expected to benefit from rising upstream activities. Key Takeaways for Different O&G Sectors: • Offshore Equipment and Services: Expected to remain strong due to active offshore developments. • FPSO Providers: Likely to benefit from continued momentum in the offshore sector. • Rig Operators (Velesto): Well-positioned to gain from rising upstream activities. • Platform Fabricators (Malaysia Marine and Heavy Engineering, Sapura Energy): Anticipated to see increased business in the next three years Biggest Winners in 1Q2024 Contract Awards • Dayang Enterprise Holdings Bhd (Dayang) • Perdana Petroleum Bhd (Perdana) These companies likely benefited from the extensions of Pan-Malaysia MCM contracts. —AmInvestment Bank June 14, 2024, Friday

PETRONAS’s recent signing of Production Sharing Contracts (PSCs) for 12 offshore fields in Malaysia marks a significant advancement in the country’s oil and gas sector. Here are some key insights from this development: 1. Strategic Expansion of Oil and Gas Assets • Focus on Discovered Resource Opportunities (DRO): The awarded PSCs are part of PETRONAS’s strategy to capitalize on existing discovered resources, which can lead to quicker monetization compared to exploring new fields. This approach allows for more efficient use of resources and infrastructure. • Diverse Partnerships: The involvement of multiple companies, such as Ping Petroleum, Duta Marine, Jadestone Energy, and Hibiscus Oil & Gas, highlights PETRONAS’s strategy of fostering collaboration with various players in the industry. This can enhance innovation and operational efficiency through shared expertise. 2. Geographical Advantages • Proximity to Existing Infrastructure: The fields are located in the Malay basin, a proven oil and gas region with established infrastructure. This proximity can significantly reduce development costs and timelines, making the projects more economically viable. • Synergistic Development Potential: The clustering of these fields presents opportunities for synergistic development, allowing operators to share resources and streamline operations, further enhancing profitability. 3. Supportive Regulatory Environment • Malaysia Bid Round Plus (MBR+): The MBR+ initiative is designed to attract investment in Malaysia’s oil and gas sector by providing a clear framework for PSCs. This regulatory support is crucial for building investor confidence and encouraging participation in the sector. • Improved Revenue Over Cost Terms: The contracts awarded under improved revenue terms indicate a favorable regulatory approach aimed at maximizing returns for both the government and the operators, which can stimulate further investment in the sector. 4. Emphasis on Safety and Efficiency • Technical Expertise and Agility: The mention of the operators’ niche technical expertise and agility underscores the importance of having skilled teams capable of addressing the unique challenges of offshore development. This focus on safety and efficiency is critical in mitigating risks associated with oil and gas operations. • Commitment to Support: Datuk Ir. Bacho Pilong’s commitment to providing necessary support and fostering collaboration illustrates PETRONAS’s proactive approach to ensuring the success of these projects, which can lead to more sustainable operations. 5. Economic Implications • Investment Opportunities: The signing of these PSCs is likely to attract further investment into Malaysia’s oil and gas sector, promoting economic growth and job creation. The involvement of both local and international companies can enhance Malaysia’s position as a competitive player in the global energy market.

"The ongoing negotiations for Petroleum Sarawak Bhd (#Petros), which is looking to take control of national oil company Petroliam Nasional Bhd’s (#PETRONAS) activities; related to the acquisition, supply, distribution and sale of natural gas in #Sarawak, have created quite a stir, with the policy shift raising concerns about the impact on Petronas’ earnings and its annual capital expenditure (capex). In a nutshell, if Petronas slashes its capex, there will be a dearth of jobs for O&G players. Given the size of Sarawak’s business, several research houses believe that Petronas’ annual capex could be significantly impacted by the policy shift. This, in turn, could affect contracts flow to local service providers. Under a capex deferral scenario, the research house expects the O&G service providers that are highly reliant on local contracts, especially in the offshore support vessel (#OSV), hook-up and commissioning (#HUC), and offshore fabrication services, to be the first to be adversely affected." Read full article: https://lnkd.in/gbTU62nh

Petronas Faces Revenue Shake-Up as Sarawak's Petros Poised to Claim a Share as Sole Gas Aggregator. Read full article: https://lnkd.in/gVDksZSa #OilAndGas #Petronas #Petros #Sarawak #HRProfessional #HRTips #Productivity #Economy #News #HRTips #HRNews #IndustryNews

Petronas Faces Revenue Shake-Up as Sarawak's Petros Poised to Claim a Share as Sole Gas Aggregator. Read full article: https://lnkd.in/gVDksZSa #OilAndGas #Petronas #Petros #Sarawak #HRProfessional #HRTips #Productivity #Economy #News #HRTips #HRNews #IndustryNews