Petronas

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.

WORLD FIRST

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.

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