Friday, July 28, 2017

Pertonas must not hide billions lost in shale misdaventures -Heads must roll- Wee Yaw Hin must pay for losses

by Ganesh Sahathevan

After a six-year stint as head of Petroliam Nasional Bhd’s (Petronas) upstream business, Datuk Wee Yiaw Hin  said (in 2016) that he is “ready to take a break from the industry.”
In typical style Petronas maintains that these write-downs by its partners have nothing to do with Pertonas:

In Australia

Santos has advised of a further $US1.5 billion write-down on the value of its new GLNG gas export project in Queensland in a move that has fuelled expectations the plant will have to be run at well below full capacity for many years.
The impairment, which chairman Peter Coates said reflects "the reality of the current oil price environment", also means Santos will almost certainly plunge deep into the red when it reports its first-half results on Friday.
The latest write-down, of about $US1.05 billion after tax, comes on top of the $565 million ) pre-tax impairment on GLNG in February.

Petronas share of the write-down equals approximately about RM 6.2 Billion .Santos owns 30% of the project while Petronas's share equals 27.5%.The figure is based on Petronas having equal share BUT an exchange rate of 1 AUD equal MYR 3. The current exchange rate is 1 AUD equal MYR 3.42.

In Canada

The impairment, which would have an effect on the profitability of the national oil company but not its cash-flow situation, is estimated based on the provisions made by one of the joint-venture (JV) partners in the LNG project. According to wire reports, Japan Petroleum Exploration Co (Japex) that has a 10% stake in the Pacific NorthWest LNG project consortium would take a loss of about C$102mil (RM349mil) in the year to end-March following Petronas’ decision to abort its Canadian LNG project.

“Based on what Japex will provide, Petronas’ portion would be about six times the amount considering its 62% stake in the consortium,” said an industry analyst.

Therefore, Petronas's share of the write-down would be approximately, RM 2.1 Billion

In Sudan
This statement from 2014  says much about Petronas's ostrich like attitude attitude:

“Sudan and South Sudan have done very well despite the security issues,” Petronas executive vice-president for exploration and production Datuk Wee Yiaw Hin toldStarBiz in a recent interview.

“We must look at it as a long-term investment. Production from Sudan and South Sudan average about 220,000 bpd today.

“Despite zero production for many years, we didn’t have to make any impairments for our operations there because we have made so much money and the remaining value is huge.”

No indication has been given anywhere of what  
remaining value is huge means.



JULY 20, 2016 / 3:07 AM / A YEAR AGO
China's CNPC says evacuates most of its staff from South Sudan

Reuters Staff


HONG KONG (Reuters) - China National Petroleum Company (CNPC) has evacuated the bulk of its workers from South Sudan after fighting started in the capital Juba earlier this month, but its operations were unaffected, a CNPC-run paper said on Tuesday.

Many foreigners have been evacuated from South Sudan, the world's newest nation, which is still recovering from a two-year civil war that started in 2013 which killed tens of thousands of people and drove more than 2.5 million from their homes.

The latest fighting erupted on July 7 and lasted for four days. It was between followers of President Salva Kiir and Riek Machar, the former rebel leader who became vice president under a deal to end a two-year civil war. The violence killed at least 272 people.

"From July 12-18, the company has successfully evacuated 191 CNPC employees due to the conflict in South Sudan. CNPC also helped to evacuate another 157 people working in China organizations there," CNPC's China Oil News said.

"So far, CNPC’s production operations are still stable and in good order in South Sudan."

Other leading investors in South Sudan's oil industry include Malaysia's state-run oil and gas firm Petronas and India's ONGC Videsh.

In 2014, CNPC entered into an agreement with South Sudan to boost production of existing oilfields, with its engineering and services team working with oil producers in three blocks, and also conduct training on technologies to enhance oil recovery (EOR).

CNPC said after the evacuation it will have 77 staff members left to maintain security at its operations, with 24 of them based in Juba.

South Sudan's oil production, which stood at 245,000 barrels per day before violence in December 2013, is down by roughly a third.

Reporting Hong Kong Newsroom; Writing by George Obulutsa in Nairobi, editing by William Hardy

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