Latest news with #PetronasCarigali
Daily Express
22-07-2025
- Business
- Daily Express
Wait and see on Ambalat
Published on: Monday, July 21, 2025 Published on: Mon, Jul 21, 2025 By: David Thien Text Size: Kota Kinabalu: Shell and Conoco officials are not aware of any plans to explore the 'Ambalat' region south of the Tawau Basin reported to hold significant natural oil and gas deposits. Twenty years ago in 2005, Shell and national upstream company Petronas Carigali signed production sharing contracts for two deep-water blocks – Blocks ND6 and ND7 in waters up to 4,000 metres deep off Sabah on disputed acreage that overlaps blocks awarded to Unocal by Indonesia. Before that, in 2002, the International Court of Justice awarded the islands of Sipadan and Ligitan in the Celebes Sea area of Ambalat, to Malaysia. But it did not establish delimitations in the surrounding waters. Shell and Petronas Carigali were awarded joint operatorship of the two deep-water tracts with each holding 50 per cent equity. Subscribe or LOG IN to access this article. Support Independant Journalism Subscribe to Daily Express Malaysia Access to DE E-Paper Access to DE E-Paper Exclusive News Exclusive News Invites to special events Invites to special events Giveaways & Rewards 1-Year Most Popular (Income Tax Deductible) Explore Plans Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Yahoo
20-06-2025
- Business
- Yahoo
Halliburton and Petronas collaborate to speed up time to first oil
US-based Halliburton has announced a collaboration with Petronas exploration and production (E&P) subsidiary Petronas Carigali to deploy next-generation subsurface modelling and reservoir management solutions. This partnership aims to integrate exploration and development workflows and expedite the process of achieving first oil production. Petronas will implement Halliburton DecisionSpace 365 Geosciences Suite and Unified Ensemble Modelling solutions. The next-generation technologies represent a leap forward from conventional grid-based modelling and deterministic reservoir forecasting. They are designed to facilitate real-time collaboration among Petronas Carigali's exploration and asset teams, using a unified live earth model to improve reserve estimations through ensemble modelling. The Geosciences Suite's scalable earth modelling ensures geological fidelity at all scales, from basin-wide perspectives to individual fields. This consistency in data and models from exploration to development supports quicker project maturation through the Front-End Loading process. Petronas Carigali CEO and senior vice-president of Malaysia Asset Hazli Sham Kassim said: 'A harmonized, AI-assisted workflow anchored on a single live-earth model across the exploration and development phases is central to our strategy in achieving our ambitious project delivery targets.' The Unified Ensemble Modelling solution enables the automation of multiple probabilistic geological scenarios while incorporating real-time reservoir flow data, enhancing forecast accuracy, expediting scenario analysis and bolstering confidence in decision-making. Petronas exploration vice-president Ahmad Faisal Bakar added: 'Adopting DecisionSpace 365 Geosciences Suite and Unified Ensemble Modelling solutions aligns with PETRONAS' vision to accelerate our project deliveries and ensure seamless continuity from exploration through development and production.' Earlier this month, Chevron USA and Halliburton introduced innovative intelligent hydraulic fracturing technology in Colorado, US. This technology employs a closed-loop, feedback-driven system aimed at optimising energy delivery into wellbores. "Halliburton and Petronas collaborate to speed up time to first oil" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-06-2025
- Business
- Yahoo
TotalEnergies acquires blocks in Malaysia and Indonesia
TotalEnergies has acquired interests in several offshore blocks in Malaysia and one block in Indonesia from Petronas. The licences span more than 100,000km² and are in various stages of development. Under the agreement, TotalEnergies will operate a 50% interest in Blocks SK301b and SK313 in in Malaysia alongside Petronas Carigali, a subsidiary of Petronas. The blocks contain estimated gas reserves exceeding four trillion cubic feet, with development aimed at contributing to Malaysia's liquefied natural gas (LNG) exports from 2030. In addition to the operated blocks, TotalEnergies will also hold interests in several exploration blocks offshore Malaysia. The completion of this transaction is pending customary conditions including regulatory approvals. This development follows the acquisition of SapuraOMV in December 2024 and reinforces TotalEnergies' position in South East Asia, with Malaysia serving as a strategic hub in partnership with Petronas. A strategic cooperation agreement has been signed by Patrick Pouyanné, chairman and CEO of TotalEnergies, and Tan Sri Tengku Muhammad Taufik, president and Group CEO of Petronas, to further bolster their collaboration in exploration and production businesses globally. Pouyanné said: "TotalEnergies has established itself as a significant gas producer in Malaysia. We are pleased to further expand our presence in the country, which we see as a strategic platform for our future low-cost, low-carbon production and cash flow growth, underpinned by the exposure to Asian LNG market. 'TotalEnergies and Petronas' strategic collaboration, which extends well beyond Malaysia through our multiple joint ventures worldwide, enables us to access a large and diverse portfolio in the country, spanning from exploration to production.' TotalEnergies has entered into an agreement to acquire a 24.5% interest in the Bobara block offshore Indonesia from Petronas. Taufik added: 'For a long time, Petronas and TotalEnergies have demonstrated how complementary strengths can unlock new opportunities. Today's signing marks another significant step forward in our shared commitment to responsible growth and long-term value creation. "Together, we will pursue and develop advantaged barrels across Malaysia's and Indonesia's frontier emerging exploration blocks. Our focus is on maximising high commercial potential while delivering sustainable value for all stakeholders.' "TotalEnergies acquires blocks in Malaysia and Indonesia" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New Straits Times
14-05-2025
- Business
- New Straits Times
Petronas-Petros commercial deal: Where we're at, what's at stake
KUALA LUMPUR: When Sarawak accused Petronas Carigali of operating illegally in violation of the state's Distribution of Gas Ordinance 2016 (DGO), a nationwide outcry ensued. Prime Minister Datuk Seri Anwar Ibrahim and Sarawak premier Tan Sri Abang Johari Openg were forced to call for calm and committed to resolve the issue amicably. Negotiations between Petronas and Petros, Sarawak's state-owned oil and gas company, are still ongoing. At the heart of the dispute is Sarawak's insistence that Petros be designated as the sole gas aggregator. At present several issues remain unresolved: the fate of Petronas' long-term export contracts, governance issues relating to the gas value chain, and broader implications of the proposed deal to Malaysia's energy framework. FMT explores these key concerns and what may lie ahead. The core dispute At its core, the dispute is over control of Malaysia's oil and gas sector - along with billions in revenue. Experts estimate that if Sarawak's demands are fully met, the state could benefit by up to RM20 billion annually at Petronas's expense. The players Petronas, Malaysia's national oil company, is wholly owned by the federal government. Established under the Petroleum Development Act 1974 (PDA), it has full ownership of all oil and gas resources nationwide, both on and offshore, and exclusive rights to explore, produce and manage them. Petros was established in 2017 to oversee and develop the state's energy sector. It is tasked with ensuring Sarawak plays a central role in managing and benefiting from its own energy assets. How a gas aggregator works A gas aggregator plays a pivotal role in the value chain, purchasing gas from upstream producers, consolidating supply, and then selling it to downstream buyers - typically at prices it sets. The aggregator's responsibilities also include the construction, management and operation of key infrastructure, including pipelines and processing facilities, ensuring the consistent delivery of gas that meets technical specifications, managing supply disruptions, and responding to fluctuations in global demand. Since 1974, Petronas has fulfilled this role, earning a reputation for reliability and performance. Its long standing relationship with key markets - most notably Japan - has positioned it as one of the region's most trusted LNG suppliers. Replacing such a well-established aggregator is by no means a simple task. It risks disrupting the continuity, credibility and supply assurances that Malaysia's global partners have come to expect. The big question Petros is looking to replace Petronas as Sarawak's sole gas aggregator - purchasing gas from upstream producers and reselling it to customers. This shift would give Petros control over pricing, a role traditionally held by Petronas. The proposed change presents a significant challenge. Petronas has signed several long-term LNG export contracts with companies in various countries, including Japan and South Korea, many spanning 20 to 30-year terms. These contracts are still in force and do not allow for unilateral changes in pricing or terms. If Petros raises gas prices, Petronas would either have to absorb the additional cost, cutting into its margins, or risk breaching binding agreements - an unacceptable scenario. By seeking to enforce the DGO, Sarawak is asserting control in a way that could affect Petronas's ability to meet its existing and future obligations to international buyers. What the PM said In February, the prime minister reaffirmed that the PDA remains the overarching law governing oil and gas activities nationwide, including in Sarawak. The federal government acknowledged Sarawak's right to regulate downstream gas through the DGO. It was also agreed that Petronas and its subsidiaries will honour all existing contractual obligations, including long-term international supply agreements, and will not be required to obtain additional licences to operate in Sarawak beyond those mandated by the PDA. However, Sarawak's legal notice to Petronas Carigali for allegedly operating without a licence, suggests that the state is at odds with the prime minister on a significant term of the agreement. What Sarawak said Sarawak wants to have more control over how gas is used and priced in the state. By giving this job to Petros, the state hopes to make sure there is enough gas for local factories, power stations and industries under the Sarawak Gas Roadmap 2030. The state also wants to attract more investment and grow its economy. How much more gas? The prime minister had on Feb 17 told the Dewan Rakyat that Petros would be guaranteed up to 1.2 billion cubic feet per day in natural gas, up from 450 million cubic feet per day, for its domestic needs. Sarawak plans to utilise the additional supply for new power stations and petrochemical plants. However, there are concerns that local demand may not be sufficient to absorb the full output. "At this point, I think there are no confirmed off takers or large demand centres to absorb this gas," an industry analyst told FMT, although he believes there is "a chance" that the Bintulu and Samalaju industrial areas could absorb it. Gas supply contracts typically require a guaranteed demand commitment. That raises the question: where will these new demand centres emerge, and when will they begin off-taking? Impact on ordinary Malaysians Any reduction in Petronas's profits is likely to translate into smaller dividend payments to the federal government - and, in turn, fewer energy subsidies for the public. Asrul Hadi Abdullah Sani, partner at ADA Southeast Asia, warns: "The impact of government expenditures related to energy subsidies will be significant. It could lead to a reduction in government handouts as dividends from Petronas are anticipated to decrease. "Additionally, the rise in fuel and electricity costs will affect the prices of goods and increase the cost of living for those in the middle income group (M40) and below." Oil and gas analyst Jamil Ghani said Malaysia's extensively subsidised fuel regime will get a true reality check, and it is the working people who will be hit hardest. "All the data centres that rely on cheap electricity will also have a second look at things." How this affects the country Granting Petros the sole aggregator role could reduce Petronas's revenue by between RM10 billion and RM20 billion and affect its ability to pay annual dividends of between RM30 billion and RM50 billion to the government, placing pressure on the federal budget. It may also set a precedent for other states to form their own oil and gas firms, leading to fragmentation of Malaysia's energy sector. Investor concerns are already emerging, as seen by ConocoPhillips's withdrawal from the RM13.7 billion Salam-Patawali deepwater oil and gas project off Sarawak's coast, and Shell MDS (Malaysia) Sdn Bhd's lawsuit against Petronas and Petros over gas supply rights in Sarawak. Without the economies of scale available to Petronas, Petros may need foreign partners, raising questions over energy sovereignty and supply-chain efficiency. The broader impact could include slower growth, higher costs, and increased fiscal and regulatory uncertainty. Drawing the line Should Petros be handed sole authority over gas in Sarawak? How would Petros's appointment reshape energy governance in Malaysia? What would the Petros's appointment do to Petronas's existing and future business, the scale of its operations, its financial viability and its role as contributor to national revenue? At stake is more than just a state's ambition - it is the ability to manage the delicate balance between federal authority and regional autonomy.
New Straits Times
13-05-2025
- Business
- New Straits Times
Anwar and Abang Johari set to sign landmark oil & gas deal in 2 days
KUCHING: Premier Tan Sri Abang Johari Openg says that he and Prime Minister Datuk Seri Anwar Ibrahim are set to sign an agreement in two days to resolve long-standing issues surrounding Sarawak's oil and gas resources. "Just wait — there will be a formal document between the prime minister and myself concerning the oil and gas agreement," he said after officiating the International Construction Week (ICW) Borneo Region here. He was responding to questions about his recent meeting with Anwar, which focused on finalising matters related to negotiations between Petronas and Sarawak's state-owned Petroleum Sarawak Berhad (Petros). Abang Johari hinted that the federal government had agreed to recognise both the Petroleum Development Act 1974 (PDA74) and Sarawak's Oil Mining Ordinance 1958 (OMO) as coexisting legal instruments governing the industry. He also confirmed that Putrajaya recognised Petros as the sole aggregator of oil and gas resources in Sarawak. Abang Johari said both governments had reached a consensus on the commercial agreement between Petronas and Petros, including increasing Sarawak's equity in liquefied natural gas (LNG) facilities in Bintulu. The Prime Minister's Office had earlier issued a statement confirming that both parties had come to an agreement aimed at resolving all prior disputes and facilitating closer collaboration between Petronas and Petros. The statement said that the move was vital to unlocking the sector's full potential and ensuring its effective implementation, including the expedited commercial supply of energy to Asean nations. The high-level meeting took place at Perdana Putra in Putrajaya on May 9 and was attended by top executives from both Petronas and Petros. The announcement comes amid heightened tensions between the Sarawak government and Petronas. Recently, the Sarawak government issued a legal notice alleging that Petronas Carigali was operating unlawfully in the state, having failed to comply with Section 7(e) of the Sarawak Distribution of Gas Ordinance 2016. Petronas Carigali was given 21 days to obtain the necessary operating licence, with failure to do so potentially resulting in financial penalties under Section 21A of the same ordinance. Last week, Petronas failed in its bid to secure a court injunction at the Kuching High Court to halt a suit filed by Petros. The suit challenges Petronas over unpaid gas revenues and seeks to prevent the court from proceeding with the case. Abang Johari recently commented that he was "playing ball" with Petronas amid the ongoing legal and political negotiations over natural gas rights in Sarawak.
