Malaysia’s clogged oil shipping lanes underscore failure to reduce glut

Oil industry leaders meeting in Malaysia next week to discuss extending production cuts won’t have to look far for evidence the market remains awash in supply. Just off the coast, in the Straits of Malacca, dozens of tankers loaded with record amounts of unsold fuel show an OPEC-led agreement to cut production in the first half of 2017 has yet to tighten the market. While not on the official agenda at the bi-annual Asia Oil and Gas Conference in Kuala Lumpur from Sunday to Tuesday, the attendance of top oil executives and policy makers including Saudi Arabian energy minister Khalid Al-Falih, ensures the production cut will be a major talking point. Crude prices languishing near 2017 lows are also keeping the over-supply issue to […]

Saudi Aramco buys $7 billion stake in Petronas’ RAPID refinery project

Saudi oil giant Aramco IPO-ARMO.SE will buy an equity stake in Malaysian firm Petronas’ refining and petrochemicals project in the southeast Asian country, the companies confirmed on Tuesday, investing a total of $7 billion. In a joint statement, the firms said Aramco will take a 50 percent stake in select ventures and assets in the Refinery and Petrochemical Integrated Development (RAPID) project developed by Malaysian state-controlled Petroliam Nasional Berhad, known as Petronas. The deal signing was formally witnessed by Malaysian Prime Minister Najib Razak and Saudi King Salman, currently on a state visit to Malaysia. Petronas’ Chief Executive Officer Wan Zulkiflee Wan Ariffin told reporters Aramco will take a 50 percent stake in RAPID’s refinery and cracker project. Aramco will supply up to 70 percent […]

Petronas Posts 96% Quarterly Profit Decline on Lower Oil Prices

22 Aug 2016   Malaysia

Company to review Canada LNG project after government decision Malaysian energy firm sticks to $30/bbl 2016 price assumption Petroliam Nasional Bhd., Malaysia’s state oil company, said profit dropped 96 percent last quarter after it was hit by oil prices that remained sharply lower than a year earlier. Net income fell to 348 million ringgit ($86 million) in the three months through June, from 9.1 billion ringgit a year ago, the company said Monday. Revenue slid 21 percent to 48.4 billion ringgit. “The first half of 2016 remained difficult for Petronas,” Chief Executive Officer Wan Zulkiflee Wan Ariffin told reporters in Kuala Lumpur. “The continuous volatility of oil prices means that we cannot let up, but instead continue to grow on the back of better operational efficiencies, more controllable” spending on operations, he said. Petronas, as the company is known, said earlier this year a change in its business structure […]

Petronas May Cut 1,000 Jobs as Oil Slump Prompts Reorganization

1 Mar 2016   Malaysia

Petroliam Nasional Bhd., Malaysia’s state oil company, announced management changes and plans to cut workers as it seeks to trim operating costs to cope with the worst price slump in a generation. Petronas, as the company is known, said its new business structure is expected to result in the loss of about 1,000 jobs, according to a statement on its website. It didn’t specify if the positions to be vacated were those of permanent or contract employees. The company had about 51,000 workers as of the end of 2014. “Exhaustive efforts are on-going to re-deploy affected employees,” the company said. “Petronas will further embark on a separation exercise for these employees as needed, which is expected to be completed over the next six months.” The Kuala Lumpur-based company, which […]

Petronas posts $704 million fourth-quarter net loss, confirms spending cuts

29 Feb 2016   Malaysia

Malaysia’s Petroliam Nasional Bhd, or Petronas, reported a fourth-quarter net loss on Monday and announced spending cuts for the next few years, as the state oil company braces for a prolonged period of low oil prices. Petronas reported a net loss of 2.96 billion ringgit ($704.3 million) for the October-December period, compared with a loss of 7.3 billion ringgit a year ago. The company attributed the net loss to impairment of assets caused by low oil prices. Revenue for the quarter was 60.1 billion ringgit, down nearly a quarter from 79.4 billion ringgit for the corresponding period a year ago. The 70 percent slump in crude oil prices LCOc1 since […]

Malaysia’s Petronas to Slash $11.4 Billion in Capital, Operating Expenses

19 Jan 2016   Malaysia

Malaysia’s state-oil firm Petroliam Nasional Bhd., or Petronas, is planning to slash as much as 50 billion ringgit ($11.4 billion) in capital and operating expenditure over the next four years, according to an internal memo sent to staff by its chief financial officer. The plan comes as the continuing rout in oil prices has hurt major oil companies world-wide, with the price of Brent crude tumbling to $28 a barrel on Friday . The slide could spell a further drop in Petronas’s revenue and earnings as some domestic and international projects may become unprofitable. Petronas is the Malaysian government’s biggest source of revenue , covering as much as one third of the annual budget—even after cuts in subsidies and the introduction of new taxes to diversify sources of income. Malaysian Prime Minister Najib Razak , whose current budget was based on a $48 price for Brent crude, […]

Water Rationing Begins Outside Malaysia Capital Amid Drought

26 Feb 2014   Malaysia

Water rationing began in areas surrounding Malaysia ’s capital after a prolonged drought, as Selangor state officials sought to wrap up talks to nationalize the local industry. “The supply of raw water in Selangor state is in a critical condition,” Khalid Ibrahim, the state’s chief minister, said in a faxed statement late yesterday. “The water levels at a few dams have been shrinking to reach an alarming stage.” Rationing may also start in parts of Negeri Sembilan, south of Kuala Lumpur, if there is no rain in coming days, the New Straits Times reported today, citing the state’s Chief Minister Mohamad Hasan. Several other states have also reported shortages amid rising concerns over the potential impact on Malaysian palm oil crops if the drought continues. Prime Minister Najib Razak is due to discuss the situation in cabinet tomorrow, including the possibility of cloud-seeding, the official Bernama news service said. […]