Offshore Oil & Gas Future Development

Baria-Vung Tau, 29 June 2001: Phu My Plastics & Chemicals Company Ltd (PMPC), a joint venture between Petroliam Nasional Berhad (PETRONAS), PetroVietnam and Tramatsuco, has commenced the construction of its US$70 million polyvinyl chloride (PVC) plant in the Phu My Industrial Area. A ceremony to mark the beginning of the plant’s construction was held here today, officiated by His Excellency Nguyen Tuan Minh, Chairman of the People’s Committee of Baria-Vung Tau Province.

The plant, with a production capacity of 100,000 tonnes per year, is strategically located within the petrochemical area of Baria-Vung Tau Province about 85 kilometres south-east of Ho Chi Minh City. It will produce PVC resins of various grades, which are the necessary raw materials for the manufacture of a variety of plastic products. (more…)

Petroliam Nasional Bhd (PETRONAS) has signed a Production Sharing Contract (PSC) with Sabah Shell Petroleum Company Ltd (SSPC), Shell Sabah Selatan Sdn Bhd (SSS) and PETRONAS Carigali Sdn Bhd for Block SB 303, offshore Sabah. SSPC will have a 50 percent interest in the block, SSS 10 percent, while PETRONAS Carigali, the exploration and production arm of PETRONAS, will own the remaining 40 percent. SSPC will be the operator of the block.

Block SB 303, which is located about 100 kilometres offshore Kota Kinabalu, covers an area of 8,170 square kilometres in an average water depth of 75 metres. Parts of the block have previously been operated by other PSC contractors at various periods from 1966 to 1999. A total of 15 exploration wells had been drilled in the area, resulting in the discovery of the Tiga Papan oil field and the Titik Terang gas field. The block remains relatively prospective, as about 30 small to medium-sized reserves of between 10 million to 50 million barrels of oil have been identified. (more…)

Petroliam Nasional Bhd (PETRONAS) has signed a Production Sharing Contract (PSC) with Sabah Shell Petroleum Company Ltd (SSPC), Shell Sabah Selatan Sdn Bhd (SSS) and PETRONAS Carigali Sdn Bhd for Block SB 303, offshore Sabah. SSPC will have a 50 percent interest in the block, SSS 10 percent, while PETRONAS Carigali, the exploration and production arm of PETRONAS, will own the remaining 40 percent. SSPC will be the operator of the block.

Block SB 303, which is located about 100 kilometres offshore Kota Kinabalu, covers an area of 8,170 square kilometres in an average water depth of 75 metres. Parts of the block have previously been operated by other PSC contractors at various periods from 1966 to 1999. A total of 15 exploration wells had been drilled in the area, resulting in the discovery of the Tiga Papan oil field and the Titik Terang gas field. The block remains relatively prospective, as about 30 small to medium-sized reserves of between 10 million to 50 million barrels of oil have been identified. (more…)

BANGKOK, 1 June 2001: Petroliam Nasional Berhad (PETRONAS), through its subsidiary PETRONAS NGV Sdn Bhd, today signed a three-year Memorandum of Understanding (MoU) with Petroleum Authority of Thailand (PTT), for the introduction of the natural gas-powered vehicles, the Enviro 2000, in Thailand. The MoU is part of a long-term approach to be undertaken by both parties to promote the use of natural gas for vehicles (NGV) and related NGV businesses in Thailand.

Under the MoU, both PETRONAS NGV and PTT will embark on a six-month Field Demonstration on the roads in Bangkok, Thailand involving five units of Enviro 2000, natural gas-powered vehicles. The Enviro 2000 vehicles have been used as taxis on the streets of Kuala Lumpur since 1998. In Thailand, the vehicles are expected to be utilised for public transportation as well as for other official use.

The field demonstration will also serve as part of PETRONAS’ overall plans to promote and create market awareness of NGV and Enviro 2000 outside Malaysia, in line with its continuous efforts to increase the usage of the cleaner, cheaper and environment-friendly alternative fuel.

The terms of the MoU also call for both parties to undertake a joint feasibility study on the development of other related NGV businesses in Thailand. These would include areas like NGV refuelling station construction and operation, promotion and marketing of NGV and production of bi-fuel and monofuel NGV vehicles in Thailand.

During the three-year MoU period, PETRONAS NGV will upon request provide technical assistance and expertise to PTT in relations to the development of regulations and safety standards of the NGV vehicles, refuelling stations and other related matters.

The MoU was the result of a series of discussions and visits to PETRONAS by PTT which is keen to emulate the way PETRONAS NGV develops and expands the NGV business in Malaysia.

In Malaysia, PETRONAS introduced the NGV programme as early as 1986 as part of its efforts to add value to the country’s abundant natural resources. Today, there are close to 4,000 NGV vehicles, including 1,000 units of Enviro 2000, on the road in and around Kuala Lumpur served by 21 NGV refuelling stations which receive their supply through pipeline or trailer systems. PETRONAS is looking for more opportunities to expand the business in the future both in Malaysia and overseas.

In the case of Thailand, last year, PTT commenced a pilot project to promote the use of natural gas for taxis in Thailand. Under the project, 100 units of taxis were successfully converted by PTT to run on bi-fuel system which operates on either natural gas or gasoline. Each vehicle can save an expense of 200-300 Baht/day as NGV is 7.09 Baht/litre gasoline equivalent (while gasoline is 16.79 Baht/litre).

By October 2001, the contractors awarded by PTT are expected to have converted another 500 units to bi-fuel system. A further 500 units will be completed by mid 2002. These vehicles will be served by 8 new NGV refuelling stations which will be completed by that time. The conversion programme requires a budget of 40 million Baht. Furthermore, PTT is planning to have 30 NGV refuelling stations by the year 2005, with a total investment of 1.4 billion Baht.

The exhaust emission by these NGV vehicles is well below EURO II limits on carbon monoxide, hydrocarbon and nitrogen oxide. The vehicle can travel up to 480 km per filling of NGV rendering its performance equivalent to a petrol-powered vehicle. More importantly, these NGV vehicles can generate a significant saving on fuel expense.

At the signing ceremony held at the Head Office of Petroleum Authority of Thailand (PTT), Bangkok today, PETRONAS was represented by Mr. Muri Muhammad, Chairman of PNGV, and PTT was represented by Mr. Prasert Bunsumpun, President of PTT Gas.

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Legal & Corporate Affairs