PETRONAS, short for Petroliam Nasional Bhd, is Malaysia's national petroleum corporation established on 17 August 1974. Wholly-owned by the Government, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and adding value to these resources.


Since its incorporation PETRONAS has grown to be an integrated international oil and gas company with business interests in more than 30 countries. As at end of March 2004, the PETRONAS Group comprised 93 wholly-owned subsidiaries, 19 partly-owned outfits and 55 associated companies.

The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment

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PETRONAS Logo

The concept of the logo design relates to the corporate status of PETRONAS and its role in generating economic growth through the development of the petroleum industry.


The basic structure is geometric embodying metaphoric and alpha-glyphic nuances of an oil drop and a typographic "P", the latter being evident in the triangle assigned at the top right corner. The triangle is also an essential element to define directional movement and dynamism.The placement of a solid circle in the logo is interpretative of the wheel of oil industry while the outline of the drop simulates a driving system, the synergy for which to be derived from oil.


The colour chosen for the logo is emerald green, an obvious reference to the sea within which environment oil is drilled. The green also refers to land in reference to downstream activities where such operations are identified.

Petronas to develop Indonesian LNG terminal

JAKARTA - Malaysia's state-owned oil company Petronas will take part in the development of a liquefied natural gas (LNG) terminal by Indonesia's state-owned electricity company PLN in Cilegon, West Java.

PLN director Ali Herman Ibrahim said PLN and Petronas are currently discussing a development plan.

The terminal will be vital for PLN, as it has a number of gas-fired power plants in West Java and Jakarta in need of gas supplies from other islands, Ali said.

State-owned oil and gas company Pertamina has agreed to guarantee the gas supply to PLN's power plants, which will be supplied through the terminal, Ali said.

The terminal, which will be built at a cost of US$300 million, is expected to be operational in 2006-07. It will have a handling capacity of 400 million cubic feet of LNG per day, to be increased later to 800 million cubic feet per day.

(Asia Pulse/Antara)
Aug 4, 2004

Petronas reaches far and wide


By Sidek Kamiso

WHEN it comes to global presence, no other Malaysian company has its footprints as far afield as Petroliam Nasional Malaysia Bhd (Petronas).

In less than 30 years, the national oil corporation has carried the Malaysian flag to countries as far flung as Argentina in South America and as remote as Turkmenistan in Central Asia.

In Argentina, the group operates 4,300km of gas pipelines through its interest in Gasinvest SA and Transportadora de Gas Del Norte.

In Turkmenistan, where it is involved in exploration and development of that country's the oil and gas fields, Petronas recently discovered oil and gas reserves in Caspian Sea.

The growing ties among Organisation of Islamic Conference (OIC) members have also paved the way for Petronas to strengthen its presence in several West and Central African countries such as Benin, Gabon, Chad and Equatorial Guinea.

In East African countries such as Sudan, Petronas has expanded not only its exploration activities, but also made significant inroads in downstream activities.

Sudan is the first country in Africa to embrace the Petronas petrol station look now ubiquitous in Malaysia. The first station was opened in Khartoum while another 41 are being planned.

In South Africa, Petronas is not only a significant player in downstream and upstream activities through its unit, Engen Ltd, but has also become a showcase for modernising South Africa.

In Asean, Petronas is a formidable force in a field dominated by oil and gas giants such as Shell and Conoco.

With more than 100 subsidiaries and associates companies located in more than 30 countries, the Kuala Lumpur-based Petronas is the largest Malaysian company employing Malaysian expatriates.

Its global reach and financial prowess has attracted the backing of rating agencies, while its bonds are well taken up by international investors.

Petronas enjoys a single A rating by an international rating agency Standard & Poor’s (S&P), a rating which is consistent with Malaysia's sovereign rating of a single A for local currency and BBB for foreign currency.

According to the latest S&P rating research, Petronas' ratings reflected “the group's control of Malaysia's oil and gas reserves, its low-cost position, extensively integrated operations, strong financial profile and integration with Malaysian government, which owns the group”.

The group, a Fortune 500 company, posted total revenue of US$21.4bil for the year ended March 31, while profit was at US$3.9bil.

Its total assets stood at US$46.9bil.

Petronas' strength lies in its substantial petroleum reserves, according to S&P.

It maintains its high reserves by primarily engaging in domestic oil and gas exploration with multinational oil companies under production-sharing contracts.

The group currently has total reserves of 24.1billion barrel oil equivalent (BOE) as at Jan 1 this year, comprising 19.3 billion BOE in Malaysia and 4.8 billion through its equities in foreign countries.

The bulk of its local reserves (14.8 billion) is in gas.

According to Fitch Ratings, its reserves are estimated to last for about 12 years for oil and more than 41 years for gas.

S&P said Petronas' financial strength was also due to its strong cash flows, which are supported by its liquefied natural gas operations and domestic natural gas transmission activities.

“We expect further enhancement to its cash flow by the start of operations of its third LNG facilities as well as commissioning of its integrated petrochemical complexes,” the agency said.

At the same time, Petronas has a policy of keeping its total debt/asset ratio around 30%, thus giving it a very comfortable position and providing it with a natural hedge for its foreign currency debt.

The group generated a total of RM11bil from operations during the last financial year against its gross debt of RM60.1bil.

As part of its push to go global, Petronas has, over the years, also implemented various schemes to produce a capable workforce in its units and associates around the world.

Before Petronas was established in 1974, there were only a handful of Malaysians who worked abroad, but now, Petronas is known to employ many Malaysian expatriates in the more than 30 countries where the group is located.

Today, Petronas engineers do not only lead oil exploration abroad but have also become trail blazers in new areas such as automotive engineering – having been involved in the production of Petronas’s own FP1 motorcycle engine.

Interestingly, although Petronas has succeeded as a global company owing to oil, this alone does not qualify its inclusion in the Fortune 500 list.

Petronas' success story is due to a combination of several factors – oil, good management as well as the determination of its young management to make this youthful venture continue to serve its global clients as effectively as its established peers.

This global company has over the years maintained a tradition of being led by strong and capable management.

Among its past chairmen, chief executives and managing directors were Tan Sri Abdul Kadir Shamsuddin, Tan Sri Abdullah Salleh, the late Raja Tun Mohar Raja Badiozaman, Tan Sri Basir Ismail and Datuk Rastam Hadi, who were some of the best public servants.

Given its pace of growth over the years, Petronas may see its goal of becoming a “leading oil and gas multinational of choice” fast becoming a reality

Petronas enters UK natural gas market

KUALA LUMPUR Aug 11 - Petroliam Nasional Bhd (Petronas) has made a major breakthrough into the UK natural gas market and has secured an agreement to supply natural gas to Centrica plc of the United Kingdom.

Petronas, through its subsidiary, ASEAN LNG Trading Co. Ltd, Wednesday signed a Gas Sales Agreement with British Gas Trading Ltd, a subsidiary of Centrica plc to supply up to 3.0 billion cu. metres a year of natural gas for 15 years from 2007.

The deal with Centrica marked a major breakthrough in Petronas's quest to enter the UK natural gas market and enhance its overall position in the global LNG business, it said in a statement.

Centrica was formed in 1997 after the de-merger of British Gas plc into Centrica plc and BG plc.

Wednesday Centrica is a leading provider of energy and essential services in the UK, Europe and North America. It is also the largest supplier of residential gas and electricity in the UK and a leading supplier of energy to Britain's commercial sector.

Under the agreement signed with British Gas, Petronas will supply the gas to Centrica via the LNG receiving terminal being developed by Dragon LNG at Milford Haven, Wales.

Petronas will deliver LNG from its portfolio of current and future supply sources to Milford Haven via tankers owned by its subsidiary Malaysia International Shipping Corporation Bhd. At the terminal, the LNG will be re-gasified before it is supplied to Centrica, which in turn will supply the gas to its British Gas customers.

Petronas has 30 percent equity in Dragon LNG while BG Group and Petroplus have 50 percent and 20 percent stakes respectively.

The terminal will be able to process up to 6.0 billion cubic metres of gas a year and is scheduled to start operation by 2007.

The 3.0 billion cubic metres of natural gas to be supplied to Centrica will make up the entire 50 percent of the terminal's planned throughput capacity that Petronas intends to use, under a separate agreement reached between the partners. The other half of the capacity will be used by BG Group.

Petronas is currently the world's largest LNG capacity owner. Apart from its Malaysian production facility in Bintulu, Sarawak and the Milford Haven project, Petronas has a 35.5 percent stake in the Egyptian LNG (ELNG) Project.

The ELNG Project will receive its natural gas supply from an Egyptian gas concession equally owned by Petronas and BG Group.

Petronas said the deal with Centrica and its proposed investments in the UK and Egypt would provide another link to its gas business value chain.

This would not only help establish its position in the Atlantic Basin but would also enhance its overall standing in the global LNG business.

Petronas currently has long-term contracts mainly with traditional customers in the North Asian market, meeting about half of Taiwan's LNG needs, 25 percent of Japan's needs and 20 percent of South Korea's requirements.

Earlier this year, Petronas also signed a shareholders agreement for a 20 percent stake in Pars LNG, a joint venture to develop an LNG production facility in Iran.

Petronas Displays Its Artwork Collection In Suria KLCC


KUALA LUMPUR, Aug 17 (Bernama) -- Petronas for the first time is sharing with members of the public artworks from its collection in a series of major exhibitions featuring Malaysian art pieces produced from 1948 to 2003.

The first of these major exhibitions themed "Petronas Art Collection: Series 1", which will be held from Wednesday till Nov 12 2004 was launched Tuesday by Petronas president cum chief executive Tan Sri Mohamed Hassan Marican at Suria KLCC. He also launched the "Galeri Petronas website".

Organised in conjunction with Petronas' 30th anniversary, the exhibitions present a glimpse into the corporation's collection that aims to enrich and complement the resources of Malaysian art.

Currently, the Petronas Art Collection comprises 872 paintings, drawings, photographs, prints, sculptures, textiles pieces, costumes, crafts and ceramics from Malaysia and abroad, out of which 100 are being displayed now.

The remaining artworks in the Petronas Art Collection will be displayed at Galeri Petronas in a few more major series of exhibitions, a statement said.

-- BERNAMA

From Corporate Calendar 2002...March

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Petronas Carigali Drills Malaysia's Longest Well


KUALA LUMPUR, Aug 20 (Bernama) -- Petronas Carigali Sdn Bhd, a wholly-owned exploration and production arm of Petronas, has reached another milestone in Malaysia's oil and gas exploration history when it drilled the country's longest development well to-date.

The Angsi A-28ST-1 well, drilled at the Angsi oil and gas field offshore Peninsular Malaysia, reached its total depth of 6,339 metres on Aug 11, just 44 days after it was spudded on June 29, Petronas said in a statement Friday.

It said that the 80-degree extended reach drilling (ERD) well penetrated an oil reservoir, potentially containing 4.5 million barrels of oil, about 5.8 kilometers from the Angsi platform.

The well will be completed as oil producing well before the end of this month, Petronas said.

The Angsi A-28ST-1 well is another testimony of Petronas' commitment towards enhancing exploration and production (E&P) processes and technology in its effort to augment Malaysia's oil and gas reserves.

With the ERD capability, contractors would be able to reach and recover oil and gas from reservoirs located at a distance from an existing drilling platform without having to install another structure.

This would significantly reduce E&P capital expenditures.

The Angsi field is an integrated oil and gas development project undertaken by Petronas Carigali and ExxonMobil Exploration and Production Malaysia Inc. with each company having 50 percent equity interest.
Petronas Carigali is the operator of the field.

The Angsi field is part of the Gas Production Sharing Contract awarded to Petronas Carigali and ExxonMobil in 1997.

Developed in three phases, the field is now producing about 100,000 barrels of oil and 200 million standard cubic feet of gas per day.
-- BERNAMA

PDB to spend RM350mil on new service centres

BY SABRY TAHIR

PETRONAS Dagangan Bhd (PDB) is to invest some RM350mil from now to March next year to open 60 to 70 more petrol stations or Petronas service centres nationwide.

PDB managing director and chief executive officer Ibrahim Marsidi said the expansion was in line with the increasing petrol consumption propelled by the increase in the number of vehicles and the growth in the local shipping industry.

PDB to date has opened 690 service centres nationwide.

We are confident that PDB will continue to chart positive growth in sales for the financial year ending March 31, 2005, he said after the launch of a service centre in Kota Damansara yesterday.

PDB is Petronas local distribution arm for petrol, diesel, kerosene, paraffin and liquid petroleum gas.

PDB has teamed up with Malayan Banking Bhd (Maybank) and A&W restaurant operator KUB Bhd to launch the first Petronas service centre which features a Maybank branch and drive-in ATM service, an A&W outlet and the regular Mesra service. These facilities operate round the clock .

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Ibrahim Marsidi (centre) getting some root beer after the launching of the service centre in Kota Damansara Thursday. With him are KUB Bhd chairman Datuk Hassan Harun (left) and Izham Yusoff.

Ibrahim said PDB was expected to start another such three-in-one service centre in Klang Valley soon.

Maybank has to date set up 57 ATM and 32 e-Kawanku centres at Petronas service centres.

Ibrahim said the company had yet to see signs of crude oil prices going down.

KUB managing director and chief executive officer Izham Yusoff said the group planned to open 15 new outlets this year. He said the expansion programme both locally and in Thailand would generate 10% to 15% growth in revenue this year.

First Batch Of 19 Foreign Students Receive Scrolls At 4th UTP Convocation


BANDAR SERI ISKANDAR, Aug 22 (Bernama) -- The first batch of 19 foreign students Sunday received their scrolls at the 4th Convocation of the Universiti Teknologi Petronas (UTP) here.

The Petronas-sponsored students were among 464 to have received their scrolls from UTP Chancellor Tun Dr Mahathir Mohamad at the convocation.

The foreign students are from South Africa (10), Turkmenistan (6) and Sudan (three), the countries where Petronas has investment.

At the convocation, three students received Master's degree while the rest bachelor's degree (honours) in chemical engineering (83), civil engineering (eight), electrical and electronic engineering (102), mechanical engineering (75), information systems (77) and information technology (116).

In his speech, Dr Mahathir hoped that UTP would fully utilise Petronas' capability to promote itself as a university capable of producing quality graduands.

"The UTP should always improve on programmes it offered to be the leader in the field of technology and innovation," he said at the convocation.

Also present were UTP Pro Chancellor Tan Sri Mohd Hassan Marican and UTP Rector Dr Rosti Saruwono.

To the graduands, he advised them to be humble always, not arrogant.

"With the edge and comprehensive education, graduands should be prepared to step into the world in this era of globalisation. Make use of state-of-the-art technology and education to build credibility," he said.

Dr Mahathir also presented the Chancellor's Awards to electrical and electronics graduand Mohd Azmin Ishak (gold), mechanical graduand Teh Eng Soon (silver) and electrical and electronic graduand D. Dimitry (bronze) academic excellence and leadership.

-- BERNAMA

Dr M: Petronas has done very well


THE pluck shown by Petroliam Nasional Bhd (Petronas) to venture abroad and take on the “big boys in the oil industry” and its sheer determination to excel in its own way have turned the company into what it is today
“If compared with other national oil companies, its success is remarkable as no other company has expanded so much despite the fact that Malaysia is a small producer,” said Dr Mahathir, who is now an adviser to Petronas.

In an interview at his office in Putrajaya, he said Petronas had done very well by having a strong presence in 35 countries and being involved in every aspect of the oil industry from exploration, production to marketing.

Dr Mahathir said Petronas, incorporated in 1974, was not modelled after any other company as it was the first national oil company to go abroad to get involved in all aspects of the petroleum business.

“Usually countries (with oil resources) are quite content to collect royalties but (as the national oil corporation) Petronas had right from the start wanted to learn how to produce oil and participate in the oil business,” he said.

It formed its first subsidiary, Petronas Carigali Sdn Bhd, in 1978. This exploration and production arm made its first oil discovery in 1982 in the Dulang oilfield, offshore Terengganu.

Petronas began its globalisation drive in 1990 as a member of a consortium for a maiden exploration and production venture in Myanmar.

Today, Petronas is involved in upstream activities in 25 countries. Diplomatic initiatives. too, had opened doors for Petronas, Dr Mahathir recalled.

At first, he said, it was quite difficult to convince some developing countries, which were already familiar with the oil majors, that Petronas, too, could do what the bigger oil companies were already doing.

“But we have good relations with developing countries, which is part of our policies with the countries of the South. So, they are willing to give Petronas a chance,” he explained.

At the same time, some countries also found it difficult to work with some of the oil majors, he said.

Dr Mahathir cited the case of Sudan, a country “not very popular with some of the big powers”.

So Sudan requested for Petronas’s assistance and together with the latter’s venture partner from China, the oil corporation helped to enrich Sudan in a way it had helped to enrich others as well, he said.

Besides being involved in Sudan’s retail marketing and upstream sectors, Petronas also provided various social and educational services to local communities in that country.

For the record, Petronas registered a record revenue of RM97.51bil and a pre-tax profit of RM37.44bil for the year ended March 31.

From a start-up capital of just RM10mil when it was incorporated in 1974, its total assets had now ballooned to RM203.21bil with shareholders’ funds worth RM97.6bil. Revenue from international operations had also doubled from RM17.1bil in 1995 to RM34.15bil currently, accounting for 35% of the group’s total revenue.

Petronas president and chief executive officer Tan Sri Mohd Hassan Marican said the excellent showing was due to talented and committed employees who embraced the challenge and delivered results.

The late Petronas chairman, Tan Sri Azizan Zainul Abidin, said this at Petronas’s 10th anniversary in Vietnam in 2001: “We share a common aspiration to prove that the people of developing nations have both the capability and will to successfully participate in the oil industry.”

On his thoughts on its prospects in the next 10 years, Dr Mahathir said Petronas would want to expand itself into all areas of the petroleum industry to build up reserves and have an edge through investments in numerous countries.

Reflecting on the difficulties faced in the early days of Petronas, Dr Mahathir said, “The problem started before its incorporation. We were not very knowledgeable about oil production and we gave concession to one company for the whole area east of Terengganu.”

The difficulty was when Petronas had to renegotiate to get back the concession in order to give small areas to different companies. Once that was done, he said Petronas was on the right track.

With upstream ventures in 25 countries, Petronas's overseas oil and gas production now accounts for 22.8% of its total output.

Would Petronas continue to be state-owned?

To this, Dr Mahathir said “the national oil corporation is doing very well as it is and is seen as a source of income for the government.”

In giving an insight into his dealings with Petronas during his tenure as prime minister, he stressed that the government did not interfere with its operations.

“When I was PM, they (the management) reported directly to me. They were willing to listen to advice but the decisions were made by themselves based on good business practice. We should make it that way,” he said, adding that this was what generally happened when Petronas was doing well.

“When it is not doing well, then the government will have to ask many questions,” he said with a smile at the end of the interview. – Bernama

Petronas gets nod
By Yap Lih Huey


Petroliam Nasional Bhd (Petronas) is set to expand its downstream business in Indonesia after receiving approval from the authorities there to distribute fuel products including the setting up of petrol stations in the country.

A spokesman with the national oil and gas company says this development will help Petronas to become a long-term player in Indonesia’s lucrative downstream sector.

It is in the midst of identifying suitable locations to site its petrol stations and will build the required infrastructure to start its business.

“Demand for fuel products in Indonesia is currently very much concentrated in Java, especially West Java. Naturally, this will be the area we are looking at initially,” he tells FinancialDaily in an email reply.

“We have already entered Indonesia’s lubricants market and are now working towards starting our retailing business,” he adds.

The latest venture will strengthen Petronas’ existing automotive lubricants market in Indonesia, which includes a range of premium grade engine oils. Petronas entered the lubricant market in October last year via its subsidiary PT Petronas Niaga Indonesia.

With a population of over 200 million and experiencing strong economic recovery, he says there is good potential for Indonesia’s retail fuel market.

“The country’s fuel market is still very much under-pumped and services offered are rather inadequate,” he adds.
Petronas, he says, will export its current local petrol stations concept with the Kedai Mesra outlets to Indonesia.

Besides Petronas, eight other companies have been given licences to distribute fuel products in Indonesia. Seven of them have already revealed their investment plans involving a total of US$345 million (RM1.31 billion).

However, the spokesman declines to reveal the amount of investment that Petronas will pour in.

“The market is sizeable and is growing, which makes it more than possible for many players to participate in a healthy competitive environment.

“In Indonesia, where we are already an active player in the upstream sector of the oil and gas industry, we aim to be one of the long-term players in the downstream sector of the industry,” he says.

He adds that Petronas will take a long-term view on its profits and return on investments as fuel retailing there demands high and constant investment.

The spokesman says the company is monitoring the Indonesian government’s move to deregulate its oil and gas industry so that Petronas can better chart and strategise its business plans.

Petronas-led group strikes oil off Vietnam

A Petronas Carigali Sdn Bhd-led consortium has struck oil at a new oilfield offshore northern Vietnam with recoverable reserves estimated at 320 million barrels.

An appraisal well would be drilled at the end of this year or early 2005, and it would take around 36 months to put the field into production, according to a Reuters report quoting a consortium official in Hanoi on Oct 19.

"We plan to invest at least US$300 million (RM1.14 billion) to develop the Yen Tu oilfield," said the senior consortium official who asked not to be identified.

Petronas Carigali has a 50% stake in the Yen Tu oilfield, Petrovietnam (20%), Singapore Petroleum Co (10%) and American Technologies Inc Petroleum (20%). The oilfield is located 70km off the northern port city of Haiphong.

Initial analysis of oil sample from the Yen Tu-1X well in Block 106 showed that the crude is light and sweet with an American Petroleum Institute (API) gravity degree of 43.2, and pour point of 4.5 degree, said the official.

Vietnam's benchmark light sweet Bach Ho crude has an API gravity degree of 40.5 and a sulphur content of 0.035%.

Vietnam had said its crude output in the first nine months of this year would have surged 13.9% from a year earlier to 14.92 million tonnes, or 399,110 barrels per day (bpd). The booming Asia-Pacific region faces a dire crude deficit, producing about 7.7 million bpd against demand of nearly 23 million bpd.

The Hawaii-based FACTS consultancy said regional crude oil production would be flat in coming years, with Australia, Malaysia and Indonesia shedding some output, while Vietnam, China and Thailand might see a rise.

Light sweet crudes are sought after by most Asian refiners in a region thirsty for auto fuels and heating oil, as their facilities are not sophisticated enough to process large volumes of the heavy-sour Middle Eastern grades, except in Japan, South Korea and Singapore. -- Reuters

Petronas, US Anadarko win Indonesia oil licences

Indonesia has awarded a dozen oil exploration licences to boost flagging output, including one each to Malaysia's Petronas and US independent Anadarko Petroleum Corp, a mines and energy ministry official said on Nov 2.

The winners, most of whom were little-known local Indonesian firms, had committed investments totalling US$163 million (RM619.4 million) over a three-year period, the official said.

Malaysian state oil firm Petronas was awarded the Madura IV block and Anadarko won the Madura III block, both offshore northeast Java. The other blocks are in the offshore Aceh province, offshore West Java and onshore Monokwari in Papua.

The awards were part of a bid round launched in June in which the government offered a higher production split to investors.

According to the initial offer, the government was to take 80% of oil and 65% of gas output from the Madura III licence and five percentage points less from Madura IV.

The country's standard production sharing contract is 85:15 for oil and 70:30 for gas.

Indonesia, Opec's only member in Asia Pacific, became a net importer of oil this year because of production problems, but officials have insisted the country should be able to restore its net exporter status on a longer-term basis.

Indonesia produced 975,000 barrels per day (bpd) of crude in September compared with 965,000 bpd in August, well below its Opec quota of 1.347 million bpd. Its condensate output, excluded from Opec limits, was down to 120,000 bpd in September. - Reuters

Petronas to merge Engen with Sasol
By Yap Lih Huey

Petroliam Nasional Bhd's (Petronas) sub-subsidiary Engen Ltd and Sasol Ltd have proposed to merge their liquid fuels operations to form South Africa's largest liquid fuels business in a joint-venture (JV) company, Uhambo Oil Ltd.

Petronas and Sasol will each have a 37.5% stake in Uhambo, while Worldwide African Investment Holdings (Pty) Ltd, through wholly-owned Afric Energy Resources (Pty) Ltd, and a Sasol black economic empowerment entity Tshwarisano LFB Investment (Pty) Ltd, will each hold 12.5%.

Petronas, through its wholly-owned subsidiary Petronas International Corporation Limited (PICL), holds 80% of Engen, with the remaining interest owned by Worldwide.

In a joint statement on Nov 2, the parties said Uhambo would be the leading South African liquid fuels refining, marketing and distribution business, with a capacity to produce more than 13 million cubic metres of petrol, diesel and kerosene a year.

It is estimated that the JV will have a market share of about 33% in South Africa for white petroleum products - mostly gasoline, kerosene, jet fuel and diesel. The merger is expected to be completed upon the approval of authorities in South Africa and the European Union in the first half of 2005.

Sasol holds 63.3% of the Natref crude oil refinery at Sasolburg and about 1,600 retail service stations in South Africa and liquid fuel operations in 13 other sub-Saharan African countries.

In South Africa, Engen has over 1,250 services stations and more than 450 Quickshop convenience stores. It owns and manages a 135,000 barrel a day crude oil refinery and a lubricants blending plant at Durban. Engen is represented in 13 countries outside South Africa.

Uhambo will be looking to sell about 60% of its output directly into its own marketing network and a minimum of 25% to other oil companies with the remaining volumes initially destined for the export market.

PETRONAS OPENS FIRST SERVICE STATION, AWARDED NEW EXPLORATION BLOCK IN SUDAN
Source: www.GulfOilandGas.com

PETRONAS has further enhanced and strengthened its presence in Sudan by entering into the retail marketing business and expanding its involvement in the upstream sector, reinforcing its commitment to provide a mutually beneficial contribution to the development of Sudan's petroleum industry.

The company yesterday opened its first service station in Sudan, officially marking its entry into the retail marketing business in the country following its acquisition of the entire retail assets of Mobil Oil Sudan Ltd earlier this year.

The ceremony, held in Khartoum in conjunction with the fourth anniversary celebrations of Sudan's Petroleum Day, was officiated by Sudan's Minister of Energy and Mining Dr Awad Ahmed El-Jaz. Also present was PETRONAS President and Chief Executive Officer Tan Sri Dato Sri Mohd Hassan Marican. More than 300 guests, including officials from relevant government departments and the Malaysian Embassy, as well as PETRONAS' business partners and customers attended the ceremony.

The first PETRONAS service station, located on Street 19 in Amarat, Khartoum, has been renovated and re-imaged to reflect the PETRONAS brand and identity and carries the same look as its service stations in Malaysia. PETRONAS Marketing Sudan Limited, a newly incorporated PETRONAS' subsidiary in charge of the retail business in Sudan, is currently re-imaging the rest of the 41 stations in the network, as well as the three main bulk terminals in Gaily, Shagara and Port Sudan and 14 other depots located in Sudan's upcountry areas.

PETRONAS currently markets motor gasoline, gas oil, fuel oil, Jet A-1, and lubricants in Sudan. It also owns an aviation depot in Port Sudan and has hospitality arrangements for aviation facilities at Khartoum International Airport

Later yesterday at a separate ceremony, PETRONAS was awarded Sudan's exploration Block 8 with the signing of the Exploration and Production Sharing Agreement for the block. The onshore Block 8 covers an area of 65,856 square kilometres within the Blue Nile Basin, northeast of Sudan's highly prolific Melut Basin. PETRONAS Carigali Overseas has a 77 per cent interest in the block while the remaining equity is shared between Sudan's national oil company SUDAPET (15 per cent) and High Tech Group (8 per cent), a Sudanese company. PETRONAS Carigali Overseas and SUDAPET will jointly operate the block.

PETRONAS' entry into Sudan's downstream business and the award of Block 8 are testimonies to PETRONAS' long-term commitment to the development of the petroleum industry in Sudan. PETRONAS is already active in the upstream sector of the Sudan's oil industry. Apart from Block 8, PETRONAS already has interests in Blocks 1, 2 and 4; Blocks 3 and 7; Block 5A and Block 5B.

Petronas could list more units, says Dr Mahathir


Petroliam Nasional Bhd (Petronas) may privatise more subsidiaries as it pursues costly international expansion, but it should remain in state hands, Petronas' special adviser said on Nov 2.

"It all depends upon the finances of Malaysians," the adviser, former prime minister Tun Dr Mahathir Mohamad, told Reuters.
"If Petronas is short of funds, it may be necessary to privatise it. But at the moment, Petronas is very well off and it is able to borrow on the strength of its performance."

But he said the parent firm should remain in government control and, if necessary, should moderate growth rather than find itself in a position where it needed to raise private equity.

"It should remain a national oil company and all the benefits and revenues and whatever should accrue to the people via the government," Dr Mahathir said.

Petronas has so far listed three operating units: shipping firm Malaysian International Shipping Corp Bhd, petrol station operator Petronas Dagangan Bhd and domestic gas distributor Petronas Gas Bhd. It has also listed its real estate arm KLCC Property Holdings Bhd.

Dr Mahathir also said Petronas should get an increase when it next reviews charges for supplying gas to generator Tenaga Nasional Bhd. Current prices come up for possible review in December 2005.

He said it was unrealistic to expect Petronas to continue to supply gas to the country's biggest power producer at fixed prices below market rates at a time when energy costs were climbing. Three-quarters of Malaysia's power relies on Petronas gas.

"It should get some increase, not too much," he said.

"It has to undertake its obligation to the Malaysian public, but there must be some limit to that. You have to recognise that oil prices have actually doubled and to insist... that there should be no increase at all in the price of electricity is not very reasonable."

-- Reuters

Source: The Edge Daily

Petronas 1H cash flows up 66%

Malaysia's state oil company, Petroliam Nasional Bhd, reported a 66% rise in half-year operating cash flow on Nov 5, as rocketing oil prices gave it more firepower to spend on an ambitious global expansion.

Petronas, Malaysia's biggest company and a significant bond issuer, wants to rank in the top tier of global oil firms and has been stepping up capital expenditure as it looks to build oil and gas reserves worldwide.

Were fully state-owned Petronas to join the world's listed companies, it would stand just outside the top 10 in terms of production, with 1.6 million barrels of oil equivalent (boe) a day, more than Spain's Repsol, and about a third that of world number one Exxon Mobil.

Operating cash flow totalled US$4.8 billion (RM18.24 billion) for the six months ended Sept 30, contributing to a net cash surplus for the period of US$2 billion. It had a cumulative cash surplus of US$11.1 billion at end-September.

Net profit also rose in the half-year, surging 88% to US$4.44 billion from US$2.36 billion a year earlier.

Petronas, Malaysia's most profitable company, had long-term debts of about US$13.3 billion at the end of September. Capital expenditure fell to US$2.08 billion at the end of September from US$3.75 billion a year earlier.

Born out of the 1970s oil crisis to protect Malaysia's energy security, Petronas has grown rapidly since it was allowed in the early 1990s to go offshore. Thirty-six percent of its revenue now comes from overseas operations, which span over 30 countries.

It has made a speciality of investing in emerging markets like North Africa and is taking larger steps abroad into downstream businesses, such as gas processing and pipelines. Petronas and French firm Total were recently reported to be close to clinching a deal to make liquefied natural gas in Iran.

Petronas controls several listed units including Malaysia International Shipping Corp Bhd, petrol station operator Petronas Dagangan Bhd and gas distributor Petronas Gas Bhd.

The group's adviser, former prime minister Tun Mahathir Mohamad, told Reuters this week that Petronas might privatise more subsidiaries as it pursued global expansion, but that the business should remain in state hands.

Mahathir was influential in the firm's development in his 22 years as prime minister. He was appointed adviser after his retirement as prime minister last year. -- Reuters

Petronas adds 2 PSC blocks in Indonesia
By Jimmy Yeow

Petroliam Nasional Bhd (Petronas) had added two new blocks to its upstream portfolio in Indonesia, bringing the number of its production sharing contract (PSC) blocks to eight in the country.

The latest PSC was awarded to its subsidiary PC (North East Madura IV) on Sunday for the North East Madura Offshore Block IV by Indonesia’s Badan Perlaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (BPMIGAS).

BPMIGAS had on Oct 6 also approved the acquisition of BP (Muriah) Ltd’s entire equity in the Muriah Block PSC by Petronas subsidiary Petronas Carigali Overseas Sdn Bhd (PCOSB).

“The award of the North East Madura Block IV PSC as well as the approval of the Muriah Block PSC acquisition paved the way for Petronas to further expand its presence in Indonesia.

"These two blocks bring Petronas’ upstream interest in Indonesia to eight blocks, two of which are already producing,” Petronas said in a statement on Dec 13.

PC (North East Madura IV) will acquire, process and interpret 500 sq km of offshore 3D seismic data, drill four exploration wells and undertake geological and geophysical studies in the North East Madura Block IV during the PSC’s exploration phase.

The PSC for the Muriah Block was first awarded to Shell in 1991 and subsequently acquired by BP in 1999.

Petronas said the block, located about 180km from Semarang, Central Java, contained a fully appraised, ready-to-be developed gas field, Kepodang, which is strategically located to supply gas to PT Indonesia Power’s Tambak Lorok power plant.

"A relatively new player in Indonesia, Petronas is currently building its oil and gas business portfolio in that country," Petronas said.

Apart from its upstream assets, it holds equity in a gas transmission pipeline network. It recently ventured into petroleum products marketing and is now set to start its service station business in Indonesia.

Petronas finds new gas field
By Tamimi Omar


Petronas Nasional Bhd (Petronas) says it has discovered a new gas field in the offshore block SK310 about 130km northwest of Miri, Sarawak.

The F2 Attic-1 exploration well, located in a water depth of 91 metres, encountered significant gas accumulation in a limestone resevoir, it said in a statement on Dec 9.

“A single production test was conducted at the well, which resulted in a flow rate of 31 million standard cubic feet of gas per day, with 7% carbon dioxide and 35 ppm hydrogen sulphide,” Petronas said.

It said that the well had been drilled to a depth of 2,400 metres below sea level on Sept 23, 2004.

Other gas fields in the vicinity of the F2 Attic discovery were B11, B12 and F38, Petronas added.

Petronas To Contribute RM25 Bln To Govt This Year


KUALA LUMPUR, Dec 9 (Bernama) -- National oil and gas corporation Petronas is expected to contribute RM25 billion to the country's income this year based on the company's profit for 2004, Minister in the Prime Minister's Department Datuk Mustapa Mohamed said here Thursday.

He said that the contribution would be in the form of dividends and other revenues.

"It contributes some 25 percent to the country's revenue," he said in his reply to a supplementary question by Senator Datuk Rhina Bhar at the Dewan Negara here Thursday.

Mustapa said that the government was not only satisfied with Petronas' performance and the revenue obtained but also with the way the company's projects were managed locally and overseas.

Earlier, in his reply to Rhina's question, Mustapa said that the country's oil reserves had increased 7.2 percent to 4.84 billion barrels while natural gas reserves increased to 89 trillion cubic feet (TCF).

He said that the increase was due to the success in opening up new areas especially deep sea.

"Based on the current production rate for oil and gas, it can last for 18 years, while for gas 35 years," he said.

Mustapa said that up to January this year, Malaysia is ranked 24th in terms of world oil reserves and 13th for gas.

To a supplementary question from Datuk Karim Ghani, he said that 56 percent of the oil reserves are in Peninsular Malaysia, 19 percent in Sabah and the rest in Sarawak.

He also said that the government did not propose to increase the five percent oil royalties given to the states concerned.

-- BERNAMA

Senate: Petronas Invests In 35 Countries


KUALA LUMPUR, Dec 15 (Bernama) -- Petronas has established joint ventures for petroleum and gas exploration activities in 35 countries, involving investments worth US$9.4 billion up to September this year.

Parliamentary Secretary in the Prime Minister's Department Datuk Mohd Johari Baharum said among the countries were Algeria, Angola, Cameroon, Bahrain, Indonesia, Egypt, Libya, Iran, Pakistan, Myanmar and Mozambique.

The joint ventures, he said, had contributed US$4.9 billion in profits.

"The profits are expected to increase in the future, in accordance with the petroleum and gas productions," he said when replying to Senator Datuk Yaakob Mohammed at the Dewan Negara here Wednesday.

Mohd Johari said Petronas also implemented long-term strategies, like participating in downstream industries, including oil refining and natural gas processing activities and the trading of petroleum and petrochemical products to add value to the company's oil and gas products.

-- BERNAMA

From Forbes
Associated Press
Malaysian Oil Company Expands in Thailand
12.25.2004, 10:19 AM

Malaysia's national oil company said it will expand its investments in Thailand by buying the Thai operations of Kuwaiti Petroleum International, which operates over 117 gasoline stations across the country.

Under the agreement signed Friday, Petronas would acquire Kuwait Petroleum (Thailand), taking over the gasoline stations and KPTL's lubricant businesses, the company said in a statement. No financial details were disclosed.

The acquisition - expected to be completed by end January - does not include KPTL's aviation business, which will be handed over to a subsidiary of Kuwaiti Petroleum, the statement said.

About 70 percent of KPTL's 117 gasoline stations are located in the Thai capital, Bangkok.

The statement said Petronas will embark on a 12-month program to upgrade the stations to provide more products and services.

It said the deal would enable Petronas - which currently operates three gasoline stations in Thailand - to reach a wider market for its fuel and petroleum products.

Petronas, Namhae to relocate Korean melamine plant to Bintulu


Petroliam Nasional Bhd (Petronas) subsidiary Asean Bintulu Fertilizer Sdn Bhd (ABF) has teamed up with Korea's Namhae Chemical Corporation (NCC) to relocate the latter's melamine plant in Yeosu, Korea to Bintulu at a cost of RM150 million.

Under the joint venture, ABF and NCC will form a JV company -- ABF Namhae Melamine Sdn Bhd -- that will relocate NCC's existing melamine plant in Yeosu to a new site adjacent to ABF's ammonia and urea plants in Bintulu.

ABF and NCC signed a shareholders agreement yesterday (Jan 20) to form the JV company on an equal basis, with an authorised capital of RM150 million.

"The cost of the project is estimated at RM150 million and will be funded by shareholders equity and third party loans," Petronas said in a statement.

It said the agreement marked a major milestone in ABF's 20-year history.

"Not only will the plant be the country's maiden melamine venture, it also signifies ABF's first diversification into further downstream, value-adding products," it said.

"The project is expected to be completed and commissioned in early 2006," it said, adding that ABF would supply urea as feedstock to the melamine plant and would operate the plant on behalf of the JV company.

Petronas said the new plant would have an annual production capacity of 15,000 tonnes of melamine.

Melamine is an organic chemical product manufactured from urea and which comes in the form of a white crystalline non-toxic powder.

Melamine is used mainly as a component to make products such as paints, adhesives, decorative laminates, water-resistant chipboard and plywood as well as in the formulation of moulding powders for the manufacturing of electrical components and unbreakable tableware.

The shareholders agreement was signed in Kuala Lumpur where ABF was represented by its chairman Tan Sri Mohd Hassan Marican and NCC by its president KT Jang.

ABF was the first petrochemical plant owned and operated by Petronas and was set up as an Asean industrial JV project. Malaysia has a 63.5% stae, Indonesia (13%), Thailand (13%), the Philippines (9.5%) and Singapore (1%).

Petronas well off Turkmen coast starts production

ASHGABAT: An offshore oilwell in Turkmenistan's section of the Caspian Sea has begun producing major oil flows, Petronas, which has exploration rights to the field, said yesterday.

The well drilled by Petronas in the Makhtumkuli field, known in Soviet times as East Livanov, is producing nearly 800 tonnes of oil and half a million cubic metres of natural gas daily, the company said in a written statement.

The Makhtumkuli field lies some 70km from Turkmenistan's coast and some 4,500 metres below the seabed, Turkmen officials have said.

Commercial production at the site could begin in the second half of this year, Petronas said.

“In the coming year the company intends to drill another three highly rated wells that will provide a chance to define the reserves of mineral resources and to establish a timetable of exploitation work and a plan for extracting oil and gas,” the statement read.

Commercially viable oil flows have also begun at two other offshore fields whose exploration rights Petronas owns, Ovez and Diyarbekir, the company said. – AFP

Petronas Enters Lubricant Marts In Switzerland, Liechtenstein


KUALA LUMPUR, Jan 22 (Bernama) -- PETRONAS, Malaysia's oil and gas multinational, has officially introduced its range of premium grade automotive engine oils in Switzerland and Liechtenstein.

These products were launched on Jan 20, in Langenthal, Switzerland, said Petronas in a statement here.

The company had earlier signed an agreement with Switzerland-based Bucher Ag Langenthal, also known as Motorex, to market and distribute PETRONAS' SYNTIUM brand premium grade lubricants in these two countries.

Under the agreement, Motorex will initially market the lubricants, including the synthetic range of SYNTIUM 5000 FS, SYNTIUM 3000S and SYNTIUM 1000S through a select number of gas stations and supermarket outlets of Coop, Switzerland's second largest consumer products retailer.

All products in the SYNTIUM range have been developed using race-proven Formula One technology through PETRONAS' involvement in and close collaboration with the SAUBER PETRONAS Formula One team.

PETRONAS is confident that the collaboration with Motirex would eventually pave the way for its lubricant to enter other European markets in the near future.

Its lubricants now enjoy a significant share of the Malaysian market, and are also available in China, Macau, Hong Kong, Indonesia, the Philippines, Thailand, Sudan and South Africa.

-- BERNAMA

Petronas Awards Contracts To Shell And Petronas Carigali


KUALA LUMPUR, Feb 16 (Bernama) -- PETRONAS Wednesday awarded two Production Sharing Contracts (PSCs) to Shell and Petronas Carigali Sdn Bhd for the ultra-deepwater Blocks ND6 and ND7 offshore the east coast of Sabah.

The two blocks are situated in water depths ranging from 200 to 4,000 metres in the Tarakan Basin, between 100km and 180km south east of Tawau, the company said in a statement here Wednesday.

Block ND6 covers an area of about 8,700 sq km, while Block ND7 has an area of about 17,000 sq km.

PETRONAS said that under the terms of PSCs, Shell and Petronas Carigali will jointly operate both blocks.

Shell has 50 percent working interests; split between Sabah Shell Petroleum Co. Ltd (40 percent) and Shell Sabah Selatan Co. Ltd. (10 percent) while PETRONAS Carigali, the exploration and production arm of PETRONAS, owned the remaining 50 percent interests.

For Block ND6, the partners will acquire and process 1,700 sq km of new 3D seismic data and drill three wildcat wells. The minimum financial commitment for the block is US$37 million (US$1.00=RM3.80).

As for Block ND7, the partners will acquire and process 800 sq km of new 3D seismic data and drill one wildcat. The minimum financial commitment for the block is US$13 million.

PETRONAS said that it had received highly competitive bid proposals for both Blocks ND6 and ND7 data from international petroleum companies, reflecting their confidence in the hydrocarbon prospects in the Tarakan Basin as well as in the Malaysian deepwater areas south east of Sabah.

-- BERNAMA

Petronas and partners start LNG shipment from Egypt


PETRONAS Bhd, together with its partners BG International Ltd and Egyptian General Petroleum Corp (EGPC), have successfully delivered their first liquefied natural gas (LNG) cargo to Asean LNG Trading Co Ltd (ALTCO).

In a statement yesterday, Petronas said the delivery was the partners’ first cargo commitment under a five-year sale and purchase agreement signed with ALTCO, and BG Gas Marketing Ltd.

ALTCO is a subsidiary of Petronas.

Under the agreement, ALTCO and BG Gas would on a 50:50 basis lift 1.45 million tonnes of LNG annually from the Damietta LNG complex in Egypt, owned by Spanish Egyptian Gas Co (SEGAs).

The plant receives its feed gas from the West Delta Deep Marine (WDDM) concession area under a separate five-year processing agreement it reached with Egyptian Natural Gas Co Holding (EGAS).

Petronas has a 50% working interest in the WDDM concession area, about 140km from the LNG complex.

The cargo was among the first batch of LNG shipments from Egypt and marked the product’s first export by Petronas and its partners from the country.

Petronas, which first entered Egypt in 2001 through a joint venture with Shell in the North Mediterranean Deep Water (NEMED) block, is an active player in the country’s upstream and downstream oil and gas activities. – Bernama

PETRONAS Commences Gas Production In Pakistan


KUALA LUMPUR, April 5 (Bernama) -- Petroliam Nasional Bhd's (PETRONAS) subsidiary, PETRONAS Carigali (Pakistan) Ltd has started sales gas production from the Rehmat Field in Block 2769-4 (Mubarak) in Pakistan's Sindh Province.

In a statement Tuesday, the national oil corporation said the processed gas was supplied to Sui Northern Gas Pipeline Ltd's Sawan-Qadirpur trunk line starting from March 26 through a 35 km pipeline from the Rehmat Gas Plant in Ghotki, near Sukkur, about 750 km south east of Islamabad.

PETRONAS said that initial production rate of the plant was 15 million standard cubic feet per day (mmscfd) but would be increased to 70 mmscfd within the next two months.

PETRONAS Carigali Pakistan is the operator of the Rehmat Field, where upstream activities are being undertaken on a joint venture basis with partners ENI Pakistan Ltd and Pakistan's Government Holdings Pte Ltd.

The gas field was discovered in August 2001.

The commencement of production from the Rehmat Field is PETRONAS' first success in Pakistan after entering the country in 1996 and this serves as a testimony to its commitment in the development of the oil and gas industry in the country.

-- BERNAMA

Petronas drops plan for Indon LNG plant


PETROLIAM Nasional Bhd (Petronas) won't build a liquefied natural gas (LNG) plant in Indonesia as gas reserves at the proposed site fall short of requirements.

Petronas's plant in Matindok on Sulawesi island was intended as a base from where the fuel could be supplied to customers in the US and Mexico, said Amril Adnan, head of exploration at Indonesia's state oil company PT Pertamina, a partner in the project.

“Petronas only wants to participate if the Matindok block could be developed as an LNG project,'' Adnan told reporters in Jakarta on Thursday. “We're still not sure whether the gas reserves are sufficient for the project.''

Petronas officials in Jakarta couldn't be reached immediately for comment.

Pertamina in May 2003 delayed marketing gas from Matindok's Donggi field after test wells showed less gas than estimated. The company said in 2002 the field might hold as much as 22 trillion cu ft of gas. – Bloomberg

Petronas-Shell JV Makes Fourth Gas Discovery


KUALA LUMPUR, April 14 (Bernama) -- CS Mutiara Petroleum Sdn Bhd, a 50:50 joint company between Petronas Carigali Sdn Bhd and Shell Exploration and Production Malaysia B.V. has made another gas discovery in Block PM301, off the north east coast of Peninsular Malaysia.

Drilling operations on the Bumi South-1 well started on Feb 25, 2005, CS Mutiara Petroleum said in a statement today.

The exploration well, located in a water depth of 55 metres was drilled to a total depth of 1,650 metres and encountered multiple gas zones. Further technical evaluation is required to determine the reserves, it said.

The discovery is the fourth by CS Mutiara Petroleum, following the recent exploration successes of Bunga Kamelia, Bunga Zetung and Bunga Anggerik.

The latest discovery is located 25km northwest of the Bunga Anggerik gas field discovered in November 2004.

Technical studies is currently undertaken to assess the development options of this cluster of gas discoveries with plans to continue with exploration and appraisal activities in the same block.

CS Mutiara Petroleum was formed in July 2001 and operates Block PM301 and PM302, both located off the north east coast of Peninsular Malaysia.

-- BERNAMA

me so proud being the petronas scholar (sigh)

Petronas Carigali Installs First Sand Control Tool


KUALA LUMPUR, April 26 (Bernama) -- Petronas Carigali Sdn Bhd, the exploration and production arm of Petronas, has successfully installed the first Stratapac Separation Tool in its TK-54L well in Tukau Field, offshore Miri, Sarawak.

The Stratapac Separation Tool, believed to be the first such installation in the world, was completely installed on Feb 27, 2005, and has resulted in the well production increasing by about 400 percent, Petronas said in a statement Tuesday.

The tool is designed to be set inside the well tubing of sand control purposes. By positioning it in the middle producing zone, it can separate sand from oil in the reservoir, thus preventing the sand to be produced together when oil is flowed to the surface, Petronas added.

A conventional sand control tool is normally installed at the end of the production tubing, it explained.

The Stratapac Separation Tool provides a practical and cost-effective solution for oil field operators working on wells that are experiencing sand failure, Petronas said.

"With the application of this new technology, the operators will be able to capitalise fully on the potential of the wells. The method proves to be an effective alternative to other expensive conventional sand control tools," it said.

The technology was developed in collaboration with Weatherford (M) Sdn Bhd, an oilfield service company specialising in providing well completion services and production systems.

According to Petronas, it represents another milestone for Petronas Carigali in its continuous effort towards achieving operational excellence through close collaboration with its service providers.

-- BERNAMA

Petronas Carigali Makes Malaysia's First Basement Oil Discovery


KUALA LUMPUR, April 25 (Bernama) -- Petronas Carigali Sdn Bhd, the upstream exploration and production arm of Petronas, has made the country's first basement oil discovery.

It discovered oil in the basement of an exploration well drilled within the Southern Malay Basin offshore Terengganu, Petronas said in a statement.

The Anding Utara-1 exploration well and its sidetrack were drilled recently and both tested oil and gas in the basement, the bottom layer of a hydrocarbon prospect usually devoid of any potential, Petronas said.

It added that the Anding Utara-1 well was drilled to a total depth of 2,610 metres, including 120 metres of vertical depth into the basement.

The sidetrack well reached a total depth of 2,740 metres, including 250 metres of penetration into the basement, it said.

Anding Utara is located within the Malong-Sotong-Anding Production Sub-block of Block PM12, Petronas said.

Petronas Carigali has completed conventional testing of the wells and is now evaluating the potential of this discovery.

-- BERNAMA

INTERVIEW WITH SAUBER PETRONAS DRIVER JACQUES VILLENEUVE

Wednesday, April 27, 2005

Question: You scored your first championship points for SAUBER PETRONAS in Imola - how do you feel looking back on the race?

Jacques Villeneuve: I feel great because we took every opportunity there and maximised it. The team had a fine strategy and did a good job with the pit stops. In addition, the characteristics of the car were such that I could really push it to the limit for the first time.

Q: Was this a big relief after the difficult races you have had so far?

JV: I never had any doubts, but I believe that this result will make everybody more positive and life easier in general.


Q: Why were you able to progress so much in Imola?

JV: There were several reasons for that. One of them was for sure the new aero package which was really a big step in terms of performance but also stability. Furthermore, we worked on the mechanical set-up of the car with more freedom than in previous races, which enabled me to adjust it to my liking. And, in addition, we used a modified traction control programme that was developed by the SAUBER PETRONAS engineers based on my input in order to better suit my driving style. All these factors together resulted in a significant step forward.


Q: Do you think that there is more room for improvements in this direction?

JV: Absolutely, there is potential for more to come! This was only the first step with the traction control. I am sure that we can further optimise it. We will do more testing this week in Fiorano, and one part of the programme is to work on the traction control.


Q: Do you expect the same sort of result in Barcelona?

JV: I don't know. Barcelona is a very different track from Imola, and we had a difficult test there. On top of that, we didn't have the new aero package then, which really makes a big difference. A lot will depend on how quickly we will be able find the right set-up. However, in any case, we improved the car significantly in Imola and this should also help us in Barcelona.


Q: This is the first time in your Formula One career that you are driving for a private team - what is the difference to the big factory teams?

JV: The biggest difference is the budget which means that everything has to be much more controlled. We do considerably less testing than the factory teams, and as a result there is less freedom to try different ideas. This forces the people to be very efficient.


Q: How do you get along with your team-mate Felipe Massa?

JV: Our relationship is very friendly! I didn't really know Felipe until the beginning of the season. However, we got on well right from the start, and there is a good amount of respect. Although he is still very young, he has already a considerable amount of experience.


Q: What are your goals for the remainder of the season?

JV: The main goal is really to keep the momentum that we have now and to work in the same direction as we did in Imola. I am convinced that this will enable us to make further progress.

Petronas may withdraw from Iran’s LNG project


LNG project PETRONAS may withdraw from a joint venture to develop Iran’s Pars liquefied natural gas (LNG) project “if the commercial terms do not meet our financial criteria,” said president and chief executive officer Tan Sri Hassan Marican.

The project, to be undertaken with Total SA of France, involves the participation in a plant for the downstream development of LNG.

He was speaking to reporters after the unveiling of a new brand identity for Malaysia Shipyard and Engineering Sdn Bhd in Pasir Gudang yesterday.

News reports last week said both companies were in talks over the likelihood of Petronas withdrawing from the project.

Petronas reportedly has a 20% stake in the Pars LNG production company set up last year to build a US$2bil liquefaction facility in Iran.

Total SA has a 30% stake and the National Iranian Gas Export Co (Nigec) holds the balance.

News reports quoted a Petronas spokesman last week as saying that the national oil corporation might limit its role to the upstream portion of the development.

Petronas also has a 40% equity in developing phase 11 of the South Pars gas field, which is to be developed under a separate buy block contract with Total SA holding 60%.

The spokesman had also said Petronas was committed to the upstream development of the project. – Bernama

Petronas Organising Tenth Annual Asia Oil & Gas Conference


KUALA LUMPUR, May 11 (Bernama) -- Petronas will organise the 10th Annual Asia Oil And Gas Conference (AOGC 2005) at the newly completed Kuala Lumpur Convention Centre from June 12 to 14.

Prime Minister Datuk Seri Abdullah Ahmad Badawi is expected to officiate the conference themed "Coping With A New World Order: Challenges For The Oil and Gas Industry," Petronas said in a statement here Wednesday

It said that the theme was most appropriate in view of the many changes and challenges that are happening today in the oil and gas industry.

Among notable international speakers sharing their views and thoughts at the conference are chairman of the Board of Shell Companies Jeroen van der Veer, who will deliver the conference's Industry Address.

Other prominent speakers include R.M. (Rich) Kruger Vice President Asia Pacific/ Middle East ExxonMobil Production Company, US, Cristophe de Margerie President, Exploration and Production, TOTAL, France, Alexander Potapushin President, Lukoil, Russian Federation and Iin Arifin Takhyan Director General, MIGAS, Indonesia.

The conference chairman, Dr Fereidun Fesharaki of FACTS Inc, US will also share his thoughts on oil market and prices in the near term.

Prominent senior officials from oil and gas companies and related research, consultancy organisations and media invited include PT PERTAMINA PERSERO, Indonesia, Philippine National Oil Company, Singapore Petroleum Company Ltd, Brunei National Petroleum Sdn Bhd, PTT Public Company Ltd, Thailand, PETROVIETNAM, Shell Malaysia, BP Malaysia, ExxonMobil, Murphy Sarawak Oil co. Ltd., Secretary General of ASEAN and Malaysian Institute of Economic Research (MIER).

AOGC 2005 is expected to attract more than 1,000 participants comprising members of the oil and gas fraternity as well as other industries, worldwide.

More information on AOGC 2005 can be obtained from the AOGC Secretariat telephone number 603 2331 4548 / 2331 2122, fax number 603 2331 1543, AOGC website: www.AOGC-petronas.com or e-mail: aogcsecretariat@petronas.com.my.

-- BERNAMA

Petronas Aims To Raise Involvement In OIC Countries
By Wan Nurzila Abdul Rahman

PUTRAJAYA, June 21 (Bernama) -- Petronas, having played a key role in developing oil resources in both Islamic and South-South countries, will continue to do so as part of its responsibility in the development of the Ummah.

Its president and chief executive officer, Tan Sri Mohd Hassan Marican, said the national oil company now has presence in 36 countries, of which 16 are Organisation of Islamic Conference (OIC) member countries.

"Our strength is based on the long-term partnership and presence in those countries. We always wished to do more in OIC countries," he said on the second day of the OIC trade forum in Putrajaya Tuesday.

The national oil corporation has spent about US$5 billion in the last five years in developing and producing oil in the OIC countries.

"Some 70 percent of the world's oil reserves are in the OIC countries. We have been very active in the last five years, developing and producing hydrocarbon," he said.

Sharing Petronas's experience in venturing abroad, Mohd Hassan cited Sudan as among many of its successful ventures in going global.

He said, Petronas, through its joint venture company in Sudan, had weathered many obstacles during the earlier part of the venture including political and economic turmoil.

Now, as a result of the intensive work and total commitment in the country, Petronas aims to raise output in Sudan through its joint venture to one million barrels per day by 2007, up from 300,000 barrels.

Mohd Hassan said Petronas decided to go global about 15 years ago, exploring the opportunities while balancing national interests.

"We work with the (various) governments as well as multinational companies and the people of the respective nations. These are some of the ingredients of Petronas's success overseas," he said.

"One of the biggest challenges is to change the mindset of our own people from behaving as the owner. We may be the boss at home (but) outside, we are just like anybody else," he said.

Mohd Hassan said that along the way, Petronas was able to develop capacity and skills through such alliances.

-- BERNAMA

Petronas To Raise Oil Output In Sudan
By Wan Nurzila Abdul Rahman

PUTRAJAYA, June 21 (Bernama) -- Petronas, through its joint venture company, aims to raise oil output in Sudan to one million barrels per day by 2007 up from 300,000 barrels now, president and chief executive officer of Petronas Tan Sri Mohd Hassan Marican said.

Petronas is involved in the upstream sector -- in exploration and production -- in Sudan's lucrative oil resources with a joint operatorship with the Sudan National Oil Company and China National Petroleum Corporation since 1997.

It is also involved in product retailing and marketing and operates service stations as well as marketing petroleum products.

Recent news reports said that Sudan would be exporting oil from the Melut Basin starting August this year, n which Petronas -- Asia's largest refiner, has a major role.

Mohd Hassan told a session at the IDB group meetings here today that Petronas intends to increase its presence in the African region.

Among Petronas' interests are in ongoing projects in exploration of oil reserves in Chad as well as in the construction of 170 km of the 1,070 km pipeline from oil fields in Southern Chad to the coast of Cameroon.

Besides that, Mohd Hassan said Petronas intends to play greater role in developing oil resources in the Organisation of Islamic Conference (OIC) countries.

He was speaking on the final day of the two-day OIC-Trade Forum, which is a side event of the 30th Annual Meeting of the Islamic Development Bank Board of Governors, here.

The national oil company now has a presence in 36 countries, of which 16 are OIC member countries.

-- BERNAMA