Wednesday, September 4, 2013

Oil & Gas in Malaysia

By 3 September 2013, The price per liter of RON95 grade petrol and diesel have increased by RM0.20. Malaysia’s Prime Minister Najib Abdul Razak have announced it on evening 2nd September 2013.

The RON95 price have increased from RM1.90 to RM2.10 per liter, Diesel increase from RM1.80 to RM RM2.00 per liter.  A normal petrol fill up of 40 liter, will have a RM8 increase per tank as average. This is could be due to the Syria and Egypt Crisis going on.

History

The discovery of oil by Shell on Canada Hill in Miri, Sarawak in 1910 had provided the bedrock for the development of Malaysia’s present day oil and gas industry. Shell's Miri No. 1 was spudded on 10 August that year, and began producing 83 barrels per day in December. Today,  the oil well, fondly known as the Grand Old Lady, is a state monument.

After the discovery of oil in Miri, Shell built Malaysia's first oil refinery in 1914. In the same year, Shell laid a submarine pipeline in Miri, a breakthrough in the technology of transporting crude to tankers at that time.

In 1960, Orient Explorer, the first mobile drilling rig ever used in Malaysia, arrived in Sarawak waters and began to explore off Baram Point. This eventually led to the discovery of Sarawak's first offshore field, Baram, in 1963.

The discovery of substantial reserves of natural gas offshore Sarawak in the 1960s represented a turning point for Shell. A natural gas liquefaction venture was formed, Malaysia LNG (Liquified Natural Gas) in Bintulu. The abundance of gas also prompted the establishment of the world's first commercial middle distillate synthesis plant in Bintulu in 1993.
                               
The Bintulu plant became the basis for the Pearl GTL (gas to liquids) project in Qatar, launched in 2006. Set to be the world’s largest plant, Pearl GTL will convert natural gas into 140,000 barrels per day of clean-burning liquid transport fuel and other products. The project will also produce 120,000 barrels of oil equivalent per day of natural gas liquids and ethane.

By 1974, Malaysia's output of crude oil stood at about 81,000 barrels per day (12,900 m3/d).
What followed thereafter were two crucial milestones in Malaysia’s oil and gas history:
• The passing of the Petroleum Development Act 1974 which say:
"The entire ownership in, and the exclusive rights, powers, liberties and privileges of exploring, exploiting, winning and obtaining petroleum whether on-shore or off-shore of Malaysia shall be vested in a Corporation to be incorporated under the Companies Act 1965, or under the law relating to incorporation of companies"
• Birth of PETRONAS short for Petroliam Nasional Berhad-Company wholly owned by the Government of Malaysia which  is ranked among Fortune Global 500's largest corporations in the world. Fortune ranks PETRONAS as the 68th largest company in the world in 2012. It also ranks PETRONAS as the 12th most profitable company in the world and the most profitable in Asia.

Production


Malaysia Crude Oil Production
Crude Oil Definition: A mixture of hydrocarbons that exists in liquid phase in natural underground reservoirs and remains liquid at atmospheric pressure after passing through surface separating facilities. Depending upon the characteristics of the crude stream, it may also include 1. Small amounts of hydrocarbons that exist in gaseous phase in natural underground reservoirs but are liquid at atmospheric pressure after being recovered from oil well (casing head) gas in lease separators and are subsequently comingled with the crude stream without being separately measured. Lease condensate recovered as a liquid from natural gas wells in lease or field separation facilities and later mixed into the crude stream is also included; 2. Small amounts of nonhydrocarbons produced with the oil, such as sulfur and various metals; 3. Drip gases, and liquid hydrocarbons produced from tar sands, oil sands, gilsonite, and oil shale. Liquids produced at natural gas processing plants are excluded. Crude oil is refined to produce a wide array of petroleum products, including heating oils; gasoline, diesel and jet fuels; lubricants; asphalt; ethane, propane, and butane; and many other products used for their energy or chemical content.

Crude oil output has plunged 21% in the last four years and Malaysia is expected to become a net energy importer by 2017.

 Major Oil and Gas companies in Malaysia

  1. BHP Billiton Petroleum (Sabah) Corporation
  2. Conoco Asia Pacific Sdn Bhd
  3. ExxonMobil Exploration And Production Malaysia Inc
  4. Hess Oil & Gas Sdn Bhd
  5. Inpex Offshore North West Sabah Ltd
  6. Lundin Malaysia B.V.
  7. MDC Oil & Gas (SK 320) Ltd
  8. Murphy Peninsular Malaysia Oil Co. Ltd.
    Murphy Sabah Oil Co. Ltd.
    Murphy Sarawak Oil Co. Ltd.
  9. Newfield Peninsula Malaysia Inc.
    Newfield Sarawak Malaysia Inc.
  10. Nippon Oil Exploration (Malaysia) Ltd
  11. Petrofac (Malaysia PM-304) Limited
  12. Petroliam Nasional Berhad
  13. Shell Malaysia
  14. Talisman Malaysia Ltd
  15. Total E&P Malaysia

 Malaysian Fuel Price History


Sen Per Litre
DATE RON97 RON95 RON92 DIESEL
Before 1990s 110
106 ( ) 65.1 ( )
20-Oct-2000 120 (+10)
116 (+10) 70.1 (+5)
20-Oct-2001 130 (+10)
126 (+10) 70.1 ( )
01-May-2002 132 (+2)
128 (+2) 72.1 (+2)
01-Nov-2002 133 (+1)
129 (+1) 72.1 ( )
01-Mar-2003 135 (+2)
131 (+2) 76.1 (+4)
01-may-2004 137 (+2)
133 (+2) 78.1 (+2)
01-Oct-2004 142 (+5)
138 (+5) 83.1 (+5)
01-Apr-2005 142 ( )
138 ( ) 88.1 (+5)
01-May-2005 152 (+10)
148 (+10) 108.1 (+10)
31-Jul-2005 162 (+10)
158 (+10) 128.1 (+20)
28-Feb-2006 192 (+30)
188 (+30) 158.1 (+30)
05-Jun-2008 270 (+78)
262 (+74) 258 (+100)
23-Aug-2008 255 (-15)
240 (-22) 250 (+8)
25-Sep-2008 245 (-10)
230 (-10) 240 (-10)
15-Oct-2008 230 (-10)
220 (-10) 220 (-20)
01-Nov-2008 215 (-5)
205 (-5) 205 (-5)
18-Nov-2008 200 (-15)
190 (-15) 190 (-15)
03-Dec-2008 190 (-10)
180 (-10) 180 (-10)
16-Dec-2008 180 (-10)
170 (-10) 170 (-10)
12-May-2009 180 ( ) 175
170 ( )
01-Sep-2009 205 (+25) 180 (+5)
170 ( )
16-Jul-2010 210 (+5) 185 (+5)
175 (+5)
02-Nov-2010 215 (+5) 185 ( )
175 ( )
01-Dec-2010 230 (+15) 190 (+5)
180 (+5)
05-Jan-2011 240 (+10) 190 ( )
180 ( )
01-Feb-2011 250 (+10) 190 ( )
180 ( )
02-Apr-2011 270 (+20) 190 ( )
180 ( )
05-May-2011 290 (+20) 190 ( )
180 ( )
16-Jun-2011 280 (-10) 190 ( )
180 ( )
05-Apr-2012 290 (+10) 190 ( )
180 ( )
07-Jun-2012 280 (-10) 190 ( )
180 ( )
05-Jul-2012 260 (-20) 190 ( )
180 ( )
24-Aug-2012 270 (+10) 190 ( )
180 ( )
06-Sep-2012 300 (+30) 190 ( )
180 ( )
27-Feb-2013 270 (-30) 190 ( )
180 ( )
07-Mac-2013 290 (+20) 190 ( )
180 ( )
22-May-2013 270 (-20) 190 ( )
180 ( )
03-Sep-2013 270 ( ) 210 (+20 )
200 (+20)
05-Sep-2013 285 (+15 ) 210 ( )
200 ( )
16-Jul-2010 – No more subsidy for RON97, the price will be subjected to the current price of crude oil (RM2.10 as of 7/23)

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