Wednesday, July 24, 2019

Kit Siang seems to have forgotten this Petronas trading scandal, believed to cost Petronas USD 2 Billion a year

by Ganesh Sahathevan

The following has been reproduced from Lim Kit Siang's blog. Market sources who this writer spoke with in 2009 confirmed these arrangements and estimated that the loss to Petronas my be approximately USD 2 Billion a year.

Oil Trading: Dark Side of PETRONAS

Perhaps the most serious allegation was the disclosure made by Jeffrey Kittingan in June 2008 that 80% of Petronas oil is not sold directly to the world market but is funneled through six option holders. Apparently these option holders or selling agents have obtained their supply from Petronas at well below market price for the next 20 to 30 years. 
If this allegation proves to be correct then these profits would be much less than what could have been realized had the sales been conducted through open and more transparent forward sales. 
When he initially made these allegations more than 4 years ago, Jeffrey Kittingan asked for a white paper or royal commission of enquiry to investigate this scandal. He also asked for a review of the Petronas agreements and to make Petronas open and transparent.

No comments:

Post a Comment