COMPANY PROFILE
2014
Petronas
603 2051 5000 | www.petronas.com.my
Global power players Editorial: Helen Lake
From starting out as just managing and regulating Malaysia’s upstream sector, Petronas has developed into a fully integrated oil and gas corporation that is ranked among the Fortune Global 500 largest corporations in the world.
Incorporated on the 17th August 1974,
involve the exploration, development and
hull of the world’s first Floating LNG facility
Petronas is the national oil and gas company
production of crude oil and natural gas both
at the Daewoo Shipbuilding and Marine
of Malaysia, wholly owned by the Malaysian
in Malaysia and overseas as well as the
Engineering (DSME) shipyard in Okpo,
Government and entirely responsible for
manufacture and trading of petroleum and
South Korea. The hull itself is 365 metres
controlling the petroleum resources of the
petrochemical products. They also deal with
long and was launched to anchor at a
country. Its objective is to become the
the liquefaction, sale and transportation of
quayside of DSME where the vessel is being
leading oil and gas multinational of choice,
Liquefied Natural Gas (LNG), a process that
constructed.
ensuring business sustainability and striving
is at the foreground of their most innovative
to responsibly manage natural resources
recent projects.
while contributing to the wellbeing of the
Petronas Vice-President and Venture Director of LNG Projects (Domestic), Gas & Power Business Datuk Abdullah Karim
people and nations in which they work.
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said: “Petronas is currently working closely
The company’s main business activities
April 2014 saw Petronas launching the
with its strategic partners, Technip and
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Petronas Daewoo Shipbuilding & Marine Engineering
will mean these processes can be carried
Dato’ Shamsul Azhar Abbas said: “The FID
to ensure that the project is delivered safely,
out hundreds of kilometres offshore, much
is a critical stage gate in our decision making
in accordance with project specification and
closer to the gas fields. This in turn makes it
process. Petronas undertook a rigorous
quality, within cost and on schedule.”
more economical to develop and evacuate
review of the project, including independent
gas reserves in Malaysia’s remote and
third party assessments to ensure it meets
of 2015, the Petronas Floating Liquefied
stranded fields where it has previously been
our criteria for long-term profitable and
Natural Gas 1 (PFLNG 1) vessel will be
deemed inefficient to do so, thus helping to
sustainable growth. This decision is in line
moored in Malaysia’s Kanowit gas field
meet the growing demand for gas.
with our commitment to capital discipline,
Due for completion in the last quarter
and with the Board’s approval we look
which lies approximately 180km offshore of Sarawak and is expected to produce 1.2
KEY PLAYERS
forward to progressing the development of
million tonnes of LNG per year. As further
April 2014 also saw a Final Investment
the project as planned.”
demonstration of its success, Petronas has
Decision (FID) being reached on a world
reached an investment decision on a second
scale refinery and petrochemical integrated
over to Petronas from the state government,
FLNG facility known as PFLNG 2 that is set
development known as the Pengerang
construction will begin with start-up
to be located off the coast of Sabah at the
Integrated Development Complex. The
expected by early 2019.
Rotan gas field. PFLNG 2 is designed to
complex and its associated facilities are to
produce 1.5 million tonnes a year of LNG
be built in Southern Johor, Malaysia and
expected to produce up to 300,000 barrels
and is scheduled for completion in early
is estimated to cost US$16 billion for the
per day with the production of 7.7 tonnes
2018.
complex itself with US$11 billion on its
per year of various grades of products
associated facilities.
including differentiated and specialty
The commencement of these projects is a ground-breaking development that is set to
The facility is set to be the next regional
Once the 6242 acre site has been handed
The Pengerang Integrated Complex is
chemical products. The complex also
change the face of the LNG business. Until
downstream oil and gas industrial hub
requires a whole host of associated facilities
now, the liquefaction, production, storage
with its strategic location along one of the
to be developed such as a raw water supply
and offloading processes of LNG have
world’s busiest shipping lanes and its close
facility, a power co-generation plant and a
only been possible at onshore plants. The
proximity to an international trading hub.
LNG regasification terminal amongst others.
completion of the PFLNG 1 and PFLNG 2
Petronas President & Group CEO, Tan Sri
The entire project is a vast enterprise and
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one that will strengthen Petronas’ position as
changing the way the oil and gas game is
offshore of Kimanis. The Sabah-Sarawak
a key player in the Asian chemicals market.
played in Malaysia. In 2005 the proposal
Gas Pipeline is a 36 inch diameter, 500km
It will give the company the opportunity to
was put forward for the Sabah – Sarawak
pipeline that will transport the gas from
focus on key growth areas of differentiated
Integrated Oil and Gas Project and ground-
SOGT in Kimanis to Bintulu for processing
and specialty chemicals as well as to capture
breaking commenced early 2007. The
into LNG for export at the Petronas LNG
the growing automotive, pharmaceutical
project, which is currently still in development
Complex.
and consumer products sectors. It will
and due to complete this year, was put
also enable them to make significant
forward as a solution to harnessing oil and
EXPLORING THE FUTURE
contributions toward meeting the increasing
gas resources in the offshore areas of Sabah
According to the Executive Vice President of
demand for petroleum products and Euro
and Sarawak, namely Gumusut/Kakap,
Exploration and Production, Dato’ Wee Yiaw
4M and Euro 5 specification fuels.
Kinabalu Deep and East, Kebabangan
Hin, exploration will be Petronas’ focus going
and Malikai. The existing crude oil terminal
into the future. This goes hand in hand with
Federal and Johor State governments to
Labuan and the KG Gayang natural gas
the continued harnessing and development
ensure the project’s smooth implementation.
terminal do not have the capacity to handle
of new technologies that will maximise
In a relatively condensed period of time,
oil and gas production from the new fields
their capabilities and be part of their goal of
we have accomplished a lot of work in
and so the decision was made to build the
becoming Global Energy and Power players.
establishing an excellent base to move
two onshore developments: the Sabah Oil
“Technology will be a key enabler as we
forward with confidence to implement our
and Gas Terminal (SOGT) and the Sabah-
explore in more challenging environments,
plans,” Tan Sri Dato’ Shamsul Azhar Abbas
Sarawak Gas Pipeline (SSGP).
both in terms of subsurface imaging, as well
“We will continue to work closely with the
assured. On top of that, the construction of
The Sabah Oil and Gas Terminal is
as operational and development efficiency.
this complex will have a positive effect on
based at Kimanis and will receive, store and
Accordingly, cost, technology application and
job creation in the local region - at the height
export crude oil as well as receive, process,
basin knowledge will also be instrumental
of construction, the workforce is expected
compress and transport the gas from the
to successful exploration,” Dato’ Wee Yiaw
to reach up to 70,000 people and at its
fields offshore Sabah. The SOGT is covering
Hin explains. With gas and oil making up
operational stage it will need up to 4000
250 acres and is expected to have the
20% of the national GDP, Petronas is a major
employees.
capacity to handle up to 300,000 barrels of
contributor to the Malaysian national income.
crude oil per day and one billion cubic feet of
Dato’ Wee Yiaw Hin says, “We will always
gas per day.
work closely with the government to ensure
PAST PROJECT SUCCESS The PFLNG 1, PFLNG 2 and the Pengerang
The crude oil and condensate received
Integrated Complex are recent examples
and stored at the SOGT will be exported
of Petronas’ innovative projects that are
through single point moorings ten kilometres
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that the oil and gas industry sector remains vital to the growth of the nation’s economy.”
Petronas
Š Shell
Answers for energy. PAGE 5
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