KUCHING: BMW Group Malaysia yesterday appointed Regas Premium Sabah as its newest dealer representative for the brands BMW, MINI and BMW Motorrad in the state of Sabah. Harald Hoelzl, managing director and chief executive officer of BMW Group Malaysia said East Malaysia has long been a contributing market to its growth and that they were […]
KUCHING: The encouraging take-up rates at the upcoming Sarawak Housing and Real Estate Developers Association (Sheda) Property Expo 2018 reflects positively on the property market in Sarawak. Organising chairman Gary Kho highlighted this at a briefing with exhibitors yesterday, and announced that all booths at the expo has successfully been taken up. The Sheda Property […]
PETALING JAYA: Sapura Energy Bhd has secured nine new contracts valued at RM1.8 billion, bringing the accumulative value in contract wins to date to RM4.5 billion for the group.
The combined value represents a three fold jump compared with the value achieved in the same corresponding period of the previous year, between February to June 2017.
Through its wholly owned subsidiaries, the group will be executing a series of diverse jobs across the upstream value chain in Malaysia, Australia, India and Mexico.
In Malaysia, Sapura Drilling Asia Sdn Bhd has been awarded a contract for the provision of its semi-submersible self-erecting tender assist drilling rig Sapura Berani and drilling services from Petronas Carigali Sdn Bhd for three wells in Malaysian waters.
Sapura Drilling Asia also accepted an extension of its contract with Sarawak Shell Bhd/Sabah Shell Petroleum Company Ltd for the provision of its semi-tender assist drilling rig Sapura Esperanza.
Sapura Fabrication Sdn Bhd has been awarded a contract by its wholly owned subsidiary, Sapura Exploration and Production (Sarawak) Inc for the provision of engineering, procurement and construction (EPC) for SK408 Larak and Bakong Development Project.
Sapura Fabrication has also been awarded a contract by Sarawak Shell for the provision of EPC for SK408E Gorek Development and F6 Brownfield Integrated Module Project.
In Australia, Sapura Energy Australia Pty Ltd won an award to undertake the provision of Riserless Light Well Intervention services for three wells located in the Montara development area, Timor Sea from PTTEP Australasia (Ashmore Cartier) Pty Ltd.
Meanwhile, Sapura Fabrication will undertake Subsea Wells and Pipeline Replacement Project V for Oil and Natural Gas Corp Ltd in India.
In addition, Sapura Offshore Sdn Bhd has secured a lump sum turn key Engineering, Procurement, Construction, Installation and Commissioning contract from Sikka Ports & Terminals Ltd in India.
In Mexico, SapuraKencana Mexicana, SAPI de CV has been awarded a contract to undertake engineering, procurement and construction of a gas oil pipeline from PP-Ayatsil-B platform to E-KU-A1 platform (line 16) in the Gulf of Mexico for Pemex Exploration and Production Mexico.
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) is committed to supporting Sarawak's aspiration to become a major player in the petroleum industry and has so far invested RM183 billion in the upstream sector in the state alone via production sharing contracts (PSCs).
According to infographics released to Bernama, the national oil company, since 1976 and up to last year, made cash payments worth RM33 billion to Sarawak.
In addition, through the state government's equity in Petronas' liquefied natural gas (LNG) complex in Bintulu, the state also received RM18 billion in dividends.
Through the Sarawak Joint Working Committee, Petronas also works closely with the state government to ensure Sarawakians and local companies get priority in career and business opportunities in both upstream and downstream activities in the region.
Petronas also spent RM411 million on scholarships and aid programmes for over 6,000 Sarawakian students while 5,000 Sarawakian professionals are working in Petronas operations, worldwide.
The Sarawak government, in March this year, launched state-owned Petroleum Sarawak Bhd (Petros) to boost its own participation in the industry.
The infographics also explained in detail the Petroleum Development Act 1974 , a Federal law enacted by Parliament, having the legislative competence under the Federal Constitution to promulgate laws relating to petroleum.
The PDA 1974 gives Petronas exclusive ownership to oil and and resources in Malaysia and makes it the sole regulatory body for upstream oil and gas activities through PSCs.
The PSC system addresses the need for a greater centralised management of the petroleum industry for the benefit of the nation and the states.
This has allowed Petronas to create significant value for the nation, hence contributing to the well-being and development of the nation and the respective states.
“The PDA 1974 serves to protect the interest of all Malaysians, ensuring that the nation will benefit the most from its petroleum resources,” Petronas said in the infographics.
Under the Act, profit share is split between Petronas, contractors and income tax payment to the government with the states and Federal government getting five per cent royalty each from the Profit Oil, Petronas and the contractors sharing 12.5% each from the 1985-type PSC and 15% for income tax.
From two other types of PSC, Profit Oil is only 10% with 3% each for both parties and 4% for income tax (under Deepwater/Ultra Water PSC) and for Revenue/Cost PSC, Profit Oil is at 20% of which 6% each is for Petronas and contractors and 8% for income tax.
The infographics also highlighted the fact that PSCs are risky, highly capital intensive and take a long time to provide returns while exploration took between three and five years with no income and the probability to discover oil rated at only between 20% and 25%.
The risks is extended to the development period of between four and six years' spending to monetise the discovery, a period when still no income is made.
Once production commences, the 10% cash payment to the federal government and the states starts while both Petronas and the contractors pay 38% income tax from the profits made.
The national oil company also pays annual dividends to the federal government.
Contrary to general perception, these cash payments are paid, twice a year, irrespective of whether the production from the field is profitable or not.
According to the infographics, an increase of the royalty payment from 5% to 20% as demanded by producing states will have an adverse impact on the industry.
Such an increase in cash payment would also reduce the attractiveness of Malaysia as an oil and gas investment destination for many players.
There are currently over 40 investors in PSCs of which about 80% are foreign companies which view the Malaysian petroleum sector as stable and favourable based on current PSC arrangements. – Bernama
KUALA LUMPUR, June 21 — Sapura Energy Bhd has clinched nine new contracts worth RM1.8 billion, bringing the oil and gas services and solutions provider’s order book to RM4.5 billion. The combined value represented a jump of nearly 250 per cent…
LONDON/ OSLO: Royal Dutch Shell (RDSa.L) announced the sale on Wednesday of oil and gas assets in Norway and Malaysia for over US$1.3 billion, bringing it closer to a target of US$30 billion in disposals by year-end. The Anglo-Dutch company agreed to sell to OKEA, a Norwegian producer backed by private equity firm Seacrest Capital, […]
KUCHING: The announcement of Cahya Mata Sarawak Bhd’s (CMS) state road maintenance concession being extended by the Sarawak state government for another year should lift the sentiment on the stock, which has been under selling pressure since the 14th General Election. To note, the extension is for up to June 30, 2019 based on the […]
LONDON, June 20 — Royal Dutch Shell announced the sale today of oil and gas assets in Norway and Malaysia for over US$1.3 billion (RM5.21 billion), bringing it closer to a target of US$30 billion in disposals by year-end. The Anglo-Dutch company…
SINGAPORE (June 20): Shell Gas Holdings (Malaysia), a subsidiary of Royal Dutch Shell, completes sale of its 15% stake in Malaysia LNG (MLNG) Tiga, Shell says on Wednesday, The stake was sold to the Sarawak State Financial Secretary for US$750 million, The net amount paid to Shell after adjustments for dividends the company received up to completion is about US$640 million. Sarawak State Financial Secretary is an existing shareholder of MLNG Tiga and will increase its stake to 25% once the transaction is complete, says Shell. Other shareholders are majorityRead More
PETALING JAYA: Cahya Mata Sarawak Bhd fell 9.1% in early trade to a low of RM2.30 despite being granted extension for its road maintenance contract by the state government.
At 11.07 am, the stock was trading at RM2.42 with 3.70 million shares done.
CMS said in a filing with Bursa Malaysia yesterday that its indirectly owned subsidiary CMS Roads Sdn Bhd had received a letter last Thursday from the Sarawak government informing of the contract extension.
The one year extension is on top of the six-month extension that was granted on Dec 4, 2017, from Jan 1, 2018 to June 30, 2018.
The contract extension is worth RM180 million and is expected to contribute positively to the group's earnings during the tenure of the contract.