Dear Big Brother, please stop squeezing PETRONAS until its last drop

Petronas looking at 30% dividend deal with government from 2013

KUALA LUMPUR: Petronas is looking at setting the amount of dividend to be paid to the government at 30% of the net profit from the 2013 financial year onwards.

"This will give some certainty and predictability," its executive vice-president of finance Datuk George Ratilal said here on Wednesday.

"Petronas has discussed this with the government and come to an understanding on the matter," he told reporters at the announcement of Petronas results for the financial year ended March 31, 2011.

The national oil firm declared RM30bil in dividend payment to the government for the year, which equals to 69% of the gross profit of RM97.8bil the national oil company registered for the financial year ended March 31, 2011.

Petronas also paid a similar dividend to the government for the financial year ended March 31, 2010, which was 63.6% of the gross profit of RM82.4bil.

A Strong Reason Why Government Should Think Twice Before Increasing Petrol Price

Petronas: Oil prices should remain in US$75-US$85 range

KUALA LUMPUR: Petroliam Nasional Bhd believes crude oil prices should remain within the range of US$75 to US$80 per barrel given the current state of market fundamentals and cost environment.

President and chief executive Datuk Shamsul Azhar Abbas said prices played a pivotal role in resource allocation decisions of both consumers and producers, but were influenced by the actions of central bankers and financial speculators.

“How have we reached these price levels this early in the economic cycle given the absence of any real evidence of shortages in the physical market?” he asked in his keynote address at the 16th Asia Oil and Gas Conference here yesterday.

He pointed out that key crude price benchmarks were in their triple digits, having risen by more than US$25 per barrel in a matter of months, amid the fear of supply disruption in the Middle East and North Africa and a weakening US dollar pushing up the price.

He said the Organisation of the Petroleum Exporting Countries (Opec) spare capacity has fallen below four million barrels per day, while inventory levels of crude oil and petroleum products have come off their highs.

“Global natural gas demand rebounded strongly by 4.9% and LNG demand, an astounding 21%. The buffers in supply that exist today might indeed absorb these demand increase quite comfortably,” he added. Bernama

Shamsul Azhar said Asia would have consumed more than 250 billion barrels of oil by 2030, more than six times its current proved reserves of about 40 billion barrels.

He said geology-based assessments have suggested that the region's mean undiscovered oil resources is in the order of about 50 billion barrels.

“At a recovery factor of 30%, these undiscovered resources would translate into a resource base, one-and-a-half times the combined proved reserves of Indonesia, Vietnam and Malaysia,” he said.

Meanwhile, Pemandu chief executive officer Datuk Seri Idris Jala said the oil and gas industry needs to undergo a structural revamp to keep fuel prices low for its benefit and that of consumers.

“Players in the industry need to have more collaboration on a level playing field as well as compete at the same time,” he said.

Quotes Of The Day

"Truly, man is the king of beasts, for his brutality exceed theirs"

Leonardo Da Vinci

PETRONAS... A Bold Move Indeed

PETRONAS buys Canadian shale gas assets worth RM3.32 bil

PETALING JAYA: Petroliam Nasional Bhd (Petronas), via its wholly-owned subsidiary Petronas International Corp Ltd (PICL), has signed an agreement with Canada-based Progress Energy Resources Corp to acquire 50% of the latter's interest in shale gas assets worth C$1.07bil (RM3.32bil).

In a statement yesterday, Petronas said the agreement was signed to develop the Altares, Lily and Kahta shale gas assets in north-eastern British Columbia.

“The assets included in the transaction cover approximately 150,000 gross working-interest acres of land with an estimated contingent gas resource of more than 15 trillion cu ft. The assets will be operated by Progress,” said Petronas.

It said the proposed acquisition would mark Petronas' maiden entry into Canada and would allow for accelerated upstream growth that could potentially advance a liquefied natural gas (LNG) export value proposition in that country.

“Petronas views the acquisition as a highly attractive opportunity, paving its entry into the North American shale gas industry while at the same time further strengthening its position as a leading global LNG player.”

As part of the acquisition, Petronas and Progress have agreed to establish an LNG export joint venture to conduct a feasibility study on the economic viability of an integrated LNG export facility in western Canada.

“This could provide a strategic alternative to the traditional North American pipeline gas market,” Petronas said.

The two companies have also agreed to collaborate on other potential natural gas opportunities in western Canada.

“The transaction is conditional upon relevant regulatory approvals and Petronas expects the transaction to close in the third quarter of 2011.”

Bank of America Merrill Lynch is the exclusive financial advisor to Petronas on this transaction.

MTV Concert In a Limbo

Scores of foreign artists has been banished from Malaysia in the previous years, and now its MTV's turn to be in the limelight. What is the centre of the attention? The state of Selangor, under PKR. Its the classic "Clash of the Titans" amongst Pakatan Rakyat, if not Barisan Nasional will be a bystander or maybe an agent of provocateur.

Read All About It! The 2 Sides of The Story

The Pro MTV

The Anti MTV

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