Saturday, March 29, 2008

"Petronas Is Subsidising The Whole World" - Politics in Petronas!

Latest:- Petrol Subsidy - The Ministry Proposal Will Not Solve THE MAIN PROBLEM!

The subsidy on petrol may be revised with the bulk going to the regular type so that prices will be kept down for the average motorists.

Under the plan, the existing classes of petrol at the pump — Octane 92 and Octane 97, commonly referred to as RON 92 and RON 97 — will be abolished and replaced by Octane 95 and Octane 99.

Octane 92 is used mainly by motorcycles while other vehicles normally use Octane 97.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad, who disclosed this yesterday, said Octane 95 could be used in most vehicles and would be the fuel of choice for low- and middle-income earners.

Under the proposed system, Shahrir said, subsidies would be mainly used to keep the price of Octane 95 low.

"The goal is to have subsidies targeted and more focused at those who need it, such as the lower- and middle-income group, and giving a choice to the rich on what petrol they want to fill in their tanks," Shahrir said.

"We are subsidising a form of petrol that is of a high quality, but I was informed by Proton that a majority of cars can use Octane 95.

"The Octane 97 that we use benefits luxury cars."

The new system is expected to benefit lower- and middle-income groups as the subsidies are targeted at a fuel that they would most likely use, Octane 95.

The rich can use Octane 95 in their Mercedes cars, BMWs and SUVs but it would not give them the performance that comes with the higher quality Octane 99(to be introduce soon)

The ministry should look in to ways of reducing petrol consumption. Malaysia export its oil and imported cheaper ones for domestic consumption. The only logical way to reduce imports is to maximise usage of NGV for vehicles. (as we have 3x more gas reserve than oil). The proposal are about to reduce oil additives but import levels of oil remains!

Wednesday, April 02, 2008


Petronas Adviser and former Malaysian prime minister Tun Dr.Mahathir Mohamad is urging successor Abdullah Ahmad Badawi to resign following disastrous election results.

Abdullah, also the president of the ruling United Malays National Organisation, is facing increasing calls to quit from party leaders.

"I ask [Abdullah] to resign," Mahathir, who ruled Malaysia for 22 years, told a gathering of at least 2,000 UMNO members.

The focus of the meeting was to analyze the March 8 election results but it turned out to be a platform to demand Abdullah's resignation.

"Anyone else would have already resigned but [Abdullah] has no shame," said Mahathir, who picked Abdullah to succeed him in October 2003.

At the same time, Malaysia's three opposition parties announced a strategic alliance.

"In today's meeting, we have proposed to consolidate the cooperation between the three parties under the name Pakatan Rakyat [People's Front]," former deputy premier Anwar Ibrahim said.


Main Story : Petronas Is Subsidising The Whole World

PETRONAS Vice President, Corporate Planning & Development Division Datuk Nasarudin Mohd Idris recently said,

did not finance buildings and bridges".

Malaysians was shocked with his statement (which sounded like an arrogant BN politician ) and we knew very well, he's not telling the TRUTH!

The truth is.."PETRONAS IS SUBSIDISING THE WHOLE WORLD"! (read Petronas CEO statement in this article)...maybe he should say...the BN politicians are running Petronas now!

Politics in PETRONAS

Maybe Datuk Nasarudin is dreaming to be the next Chief Executive Officer replacing Tan Sri Dato Sri Mohd. Hassan Marican.

"Petronas only contributes to the government's coffers in the form of dividends. It's up to the government on how it will be used," Nasarudin said at the Invest Malaysia 2008 Conference here yesterday.

Nasarudin also said the company had contributed more than RM330 billion to the government over the past 30 years in the form of taxes, dividends, export duties and royalties.

"We finance infrastructure as far as oil and gas projects are concerned, like Kertih, whereby we create a petrochemicals complex, but we don't finance buildings and bridges."

PETRONAS has four subsidiaries listed on the Bursa Malaysia and has ventured globally into more than 33 countries worldwide in its aspiration to become a leading oil and gas multinational of choice. As at end of October 2005, the Petroliam Nasional Berhad Group comprised 101 wholly-owned subsidiaries, 19 partly-owned outfits and 57 associated companies. PETRONAS currently has a workforce of over 30,000, supporting its various businesses and operations groupwide.

This statement by PETRONAS was in reponse to the...

Chief Minister Lim Guan Eng said Petronas had been actively involved in many infrastructure projects previously and had also invested heavily in the sector.

Citing Petronas' subsidiary companies KLCC Property Holdings Bhd and Putrajaya Holdings Bhd as examples, Lim said the companies were involved in many infrastructure projects.

"Petronas invested RM2.1 billion in KLCC Property and has a 51 per cent stake in it.

"KLCC in turn is involved in the Twin Towers project, Menara ExxonMobil and also Mandarin Oriental Hotel.

"Petronas was also the key funder of the Putrajaya township and has invested RM1.5 billion in Putrajaya Holdings," he said.

Politics in PETRONAS

Isn't it timely for Petronas to give the right of landing (of gas) to Kelantan in view of the high prices of gas.

It provides details of 13 trillion cubic feet of natural gas reserves in Kelantan waters that are ready to be exploited, listed as Block A 18, B17, C19, PM3, Sub-Block Ular, PM301, PM302, PM303, PM311 and PM312.

PAS claims that operations on these gas fields should directly and indirectly benefit the state in royalties, and auxiliary support developments like onshore receiving facilities and supply bases. PAS claims that the BN government has concealed this information from the Kelantanese and selected onshore receiving facilities, for instance, for the gas field Block A 18, to be based in Songkhla, Thailand even though it is further, and thus costlier, than Kota Bharu.

By the party’s own calculations, Block A 18 currently produces 6,000 barrels of natural gas. PAS claims that Petronas should pay Kelantan RM512,000 per day in royalties, amounting to RM186 million a year. Through this revenue, PAS promises to subsidise cooking gas by RM3 per barrel for the state, as well as fund welfare and poverty eradication programmes.

“[Another gas field], PM301, is within Kelantan waters, just off the coast of Bachok and Pengkalan Chepa,” said Husam. “At least six wells have been confirmed to be suitable for production. According to Petronas’ schedule, we predict we will get royalties starting from 2009.”

The Marine Department had already agreed with the state government on the rights for onshore receiving facilities, and that the state government would initially invest RM100 million to develop the facilities and build five open petroleum storage tanks.

“The distance from the Kemaman supply base in Terengganu [to the aforementioned gas fields] is about 230km,” said Husam. “The distance from Songkhla is about 230km to 260km. The nearest point is Kota Bharu, which is about 180km. So economically, operators prefer to save costs because this activity is on a long-term basis. So we strategically try to locate ourselves in this development.”

According to a past Business Times report, Block PM301 is operated by CS Mutiara Petroleum Sdn Bhd, a joint venture between Petronas Carigali Sdn Bhd and Shell Exploration and Production Malaysia BV. Drilling operations commenced in February 2005. Block A 18 is operated by Carigali Hess, a joint venture between Petronas Carigali and Amerada Hess Corporation.

Some of the gas fields mentioned, like Block A 18, lie in the Joint Development Area (JDA), an area in the lower part of the Gulf of Thailand claimed by both Malaysia and Thailand. In 1979, the Malaysian and Thai governments agreed to jointly explore the non-living natural resources of the JDA. As of 1990, the JDA has been supervised and administered by the Malaysia-Thailand Joint Authority. The JDA’s gas reserves are estimated to last for between 14 and 22 years.

In February 2000, the two governments jointly embarked on the Trans Thailand Malaysia gas pipeline and separation project, where natural gas from the JDA were to be transported to Thailand and processed there. The US$2.42 billion, 255km pipeline will link to the Malaysian Peninsular Gas Utilization pipeline in Changlun, Kedah.

Petronas Funds Putrajaya Development


Well, Datuk Nasarudin Mohd Idris, you are also a director of Putrajaya Holdings Bhd, the main developer of Putrajaya, a new administrative capital,so..why deny this?

FYI, there are many beautiful bridges that you have build in Putrajaya, have you forgotten that too!

Putrajaya Holdings Berhad Board of Directors.

Fact No. 2 Building THE KLCC SKYBRIDGE

The double decked skybridge stands at 170 metres from street level, connecting the Levels 41 and 42 of both towers. It symbolizes the gateway to the future. The engineering consultants of the skybridge are Ranhill Bersekutu Sdn Bhd and Thornton-Tomasetti Engineers. It is 58.4 metres in length and weighing 750 tonnes and was fabricated in South Korea by Samsung Heavy Industries.

KLCC is sited on a piece of land that was formerly the Selangor Turf Club race course. This real-estate development is an area of 40 hectares, with the estimated value at RM4 billion. It is a self-contained, city-within-a-city. The integrated mixed-use development provides more than 1.67 million sq. meters (18 million sq. feet) of commercial, retail, hotel, residential and entertainment facilities. The winning Masterplan submitted by Klages, Carter, Vail & Partners delineated the site into 22 freehold lots located around a 20 hectare (50 acre) park. 7,000 people worked on the site at its peak of construction.

"Petronas invested RM2.1 billion in KLCC Property and has a 51 per cent stake in it". The KLCC CEO is also a Putrajaya Holdings director.

Hashim Bin Wahir Chief Executive Officer, Executive Director. KLCC Property Holdings Berhad (KLCCP) is a Malaysia-based investment holding company.Its wholly owned subsidiaries include Arena Johan Sdn Bhd, KLCC Parking Management Sdn Bhd, KLCC Urusharta Sdn Bhd, Kompleks Dayabumi Sdn Bhd, Impian Cemerlang Sdn Bhd and Arena Merdu Sdn Bhd. Its subsidiaries also include Suria KLCC Sdn Bhd (60%-owned), Asas Klasik Sdn Bhd (75%-owned), Midciti Resources Sdn Bhd (50.5%-owned) and Impian Klasik Sdn Bhd (33%-owned).

Pusat Komersial Rantau Petronas, Kertih

Pusat komersil itu dibangunkan KLCC Holdings Bhd (KLCCH) di sebahagian kawasan 11.2 hektar membabitkan kos pembinaan kira-kira RM25 juta dan dijangka menjadi pemacu aktiviti komersial khususnya pasaran runcit di Terengganu.Pusat komersial itu yang dimajukan Metro Kemasik Sdn Bhd, syarikat milik penuh KLCCH, akan berkonsepkan ‘Serambi Atap Bertingkat’.

EAST COAST ECONOMIC REGIONIsn't Petronas funding ECER? either direct or indirectly!

Well Petronas may say, they sponsored the master plan for ECER with some 227 projects costing a massive RM 112 billion and funding will be:-

About 27% of funding will come from the private sector, 26% via private finance initiatives, while the rest of the investments will come from the Ninth Malaysia Plan, 10th Malaysia Plan and 11th Malaysia Plan covered by the master plan.

Guess what..40% are for infrastructure and highways (includes numerous bridges).The dark side of this arithmetic is that 53 per cent of the ECER budget or RM59.36 billion will have to be borne by the government which is close to RM5 billion a year for the next 12 years.

Well, you don't have to guess where the government get's the bulk of it's money!

Remember in 1999....

During the economic crisis in 1997,rumours at that time was that Petronas had been used to bail out several corporations and failed financial institutions, including banks, Bank Bumiputra, Proton (bailed out DRB-Hicom), Perwaja, Mirzan’s KPB ( using MISC) etc, etc...

In the wake of the Asian financial crisis of the mid-1990s, Petronas was called on to bail out a shipping operation controlled by the prime minister's son. Petronas also bought control of the Malaysian automaker, Proton, and the possibility was raised of the company's buying Malaysia Airlines. With its considerable cash reserves, Petronas was asked by the government to serve as a property developer, taking over ownership, for example, of the Petronas Towers in Kuala Lumpur.

Analysts raised concerns about the fact that Petronas was asked to serve as a kind of treasury for the Malaysian government that might be called upon to rescue state-owned or politically sensitive corporations whenever necessary.

Observers worried that the more involved Petronas became in activities not related to its core petroleum business, the more its resources would be stretched and the more uncertain the company's long-term outlook would become. Since Petronas reported directly to the prime minister's office, its full financial reports were not made public, thus depriving the company of the total fiscal transparency of which Marican was an advocate. Yet Marican defended Petronas's involvement in these non-core activities, stating that national necessity required the company to act

Politics in PETRONAS

PETRONAS should have embarked a nation-wide NGV gas stations development in anticipation of fuel price increase. Petronas should also built dedicated NGV station and provide subsidised NGV kits too. With the availibilty of NGV stations everywhere (hardly 10% out of a total of 6,500 stations in Malaysia have NGV facilities), Petronas will gain appreciation by everyone as being Rakyat friendly, caring and gain repect with their pro-active actions. (Petronas give away gas stoves when they enter LPG market in Campbodia, Philipines etc.) Please stay away from giving "political" like statement!

Politics in PETRONAS

Dr Mahathir said during his time, the highest profit by Petronas, the national oil corporation, was RM56 billion but this had increased to RM86 billion in the last financial year, bigger than the total collection of corporate tax at around RM60 billion.

Dr Mahathir said Abdullah told him that they had done a survey that as a result of his criticisms, he (Dr Mahathir) had become very unpopular and their differences had only benefited opposition leaders like Datuk Seri Anwar Ibrahim and Datuk Nik Aziz Nik Mat.

"I told him that I don't care whether I'm popular or not, but if anybody does anything that is damaging to the country, and to the Malays in particular, I reserve the right to criticise".

"It is not the internal problem of Umno or unity within Umno. Umno cannot win election without public support and today the public is very critical of the economy, system of administration, involvement of family members. These concern the public. If the public does not support, even if 100 per cent of Umno supports our candidates, they will kill you".

THE signs are all there and the Government has even said so – fuel subsidies cannot go on the way it is at the moment. Different formulas are being proposed and studied by the Treasury, and these would be submitted to the Cabinet Committee on Fuel Prices for a decision.

In a nutshell, the Government has decided to recoup some of the RM billions spent on fuel subsidies, but the way it would go about it has yet to be finalised.

At present, the favourite formula is to tax those who can afford it and for those who use more to pay more.

Mentor Gemilang advise:- As a fellow's sinful to lie, and it is best for you (Datuk Nasarudin) to just keep quiet and stop behaving like a politician. The federal government is the sole shareholder of Petronas and with the current political situation, anything can happen.

Politics in PETRONAS

Feb. 27, 2008- Second Finance Minister, Tan Sri Nor Mohamed Yakcop was recently reported by the media as saying that the government is expected to spend RM81 billion on all forms of subsidies this year "to help Malaysians cope with the rising prices."The sum includes subsidies on petrol, diesel, education, healthcare and textbooks. The yearly subsidies on education and healthcare totalled RM29 billion and RM9 billion, respectively.

The Government To Spend RM 81 billion in subsidies? Lies..isn't Petronas forced to foot the majority of it (that's excludes the billions Petronas paid on taxes and royalties to the government) to pay for these subsidies that actually benefitted the rich families and companies rather than the needy!

He also said Petronas has to explore overseas markets for its survival, and to provide financing to the government for development and various subsidies to the rakyat.(you mean the poor or the rich businessmen and politicians?) Petronas has to look for new resources, as our natural oil and gas reserves are expected to run out by 2011.(so, why milked Petronas dry and Bulls..t on the other facts Outdated 'Politik Kampung'?

The proven oil and gas reserve todate will last for 20 years if...Petronas do make new discoveries. This may happen if Petronas has no money left since greedy politicians has misused their funds. (remember, Malaysia is bless with bountiful of oil and gas reserve and maybe the greed of BN politicians will destroy Petronas and everything else in this country!

Politics in PETRONAS

Read this report by Petronas 'no-nonsense' CEO, "Tan Sri Hassan Marican."Petronas Is Subsidising The Whole World" (On Fuel & Gas Subsidies)- at least he dare to tell the truth!

KUALA LUMPUR, Sept 18, 2007-- Petronas president and chief executive officer Tan Sri Mohd Hassan Marican warned today that paying out fuel subsidies is unsustainable over the long term as the skyrocketing global oil prices have made it inefficient to correct the economic imbalances they are meant to address.

He also hit out at some companies which exploit the gas price subsidised by Petronas to achieve cost savings and consequently their financial targets.

"Who are we subsidising? Can we continue to afford that? There will come a time when our country cannot subsidise so many things," he stressed.

Petronas is pushing for a hike in gas charges, as it is only charging RM6.40 per mmBtu (million British Thermal Units) to local industries since 1997 although the subsidised gas costs about RM40 per mmBtu.

"Indirectly, we are subsidising the world," he told an editors' briefing on the East Coast Economic Region (ECER) here.

Hassan also said the amount of total subsidies, even excluding oil and gas, paid out by the government is already "horrendous."

Subsidised gas so far this year has cost Petronas some RM15 billion. Since 1997, the national oil corporation has provided close to RM50 billion in gas subsidy.Subsidies given by the government to gas and petroleum should cost Petronas more than RM35 billion for the whole of this year.

Despite the high oil prices, he said, the margin has been squeezed due to escalating costs in extracting the commodity.

Hassan reasoned that the subsidised gasoline and diesel had actually benefited the rich people - They have three BMWs each and leave their air-conditioners on in their mansions all the time.

For gasoline, he said, at the existing price RM1.92 per litre, the actual price should be RM3 per litre.-- BERNAMA

What Petronas CEO said is very true. Malaysian supported you on this. But the government has not take any action on the fuel and gas prices since 2007, saying they care for the rakyat...but that isn't true as more than 90% of this subsidies goes to the rich families, local companies and foreign companies in Malaysia, thus he is right in saying, "Petronas is subsidising the world". But it seems the BN government (or BN politicians)was not happy with his statement (which is the truth).

Politics in PETRONAS

The Sabah-Sarawak Gas Pipeline Project. The job involved of a 512-kilometre 36-inch diameter onshore natural gas pipeline and associated facilities from the proposed Sabah Oil and Gas Terminal in Kimanis, Sabah, to the Petronas Liquefied Natural Gas Complex in Bintulu, Sarawak. Why in Bintulu? Why not build a new MLNG complex in Sabah? Hassan did mentioned - "The decision to build the pipeline was decided by the government, he has no authority over it" - rumours was Petronas has limited fund to build a MLNG complex in Sabah (they would have the funds if not for the 'horrendous' subsidies)

Challenges for Asia's third largest crude oil producer and its largest net oil exporter

Today 80% of Petronas’ revenues are generated outside of Malaysia and 30% of its petroleum reserves are located overseas. According to Marican, “Foreign production should exceed the national one within two or three years.”

In Malaysia, the Bintulu gas complex is “the single largest and maybe most impressive LNG complex in the world,” recalls Marican, who also predicts that LNG could become the company’s second largest source of income in the years to come.

Malaysia held 75 trillion cubic feet (Tcf) of proven natural gas reserves as of January 2007. While much of the country’s oil reserves are found off Peninsular Malaysia, much of the country’s natural gas production comes from Eastern Malaysia, especially offshore Sarawak.

The national oil company recently made significant discoveries in the deepwater areas off Sabah and Sarawak, Mohd Hassan said the cost to find, develop and produce oil has increased by an average of 50 % over the last two years.

Malaysia will maintain crude oil production of between 600,000 and 650,000 barrels per day, even after the launch of major deep-water fields over the next five years, Hassan Marican, chief executive of state oil firm Petronas, said.

"It is the company policy to maintain production at around the same level."

Many people are confused why in the last 5 years till todate and in future the oil reserve will always be 20 years:- Petronas is very successful in making new oil and gas discoveries in deep water off Sabah. Malaysia's energy policy is geared toward limiting oil production in order to extend the life of its reservoirs.

With oil reserves last estimated at 5.25 billion barrels, it has enough to last about 20 years.With output of condensates output will range from between 700,000 and 750,000 bpd, Hassan added. And with recent discoveries clearly support the claim that the virgin waters off the coast of Sabah have very strong potential for reserves. So far the results are very optimistic - a 100% success rate in Sabah deep water exploration wells.

"The [production sharing] contractors are very aware when they come in that we will maintain our production level at 600,000 to 650,000 bpd. So whatever discovery they make, they will know that they will be part of that equation," he said.

At the same time, the CEO of Petronas, Tan Sri Hassan Marican, commented that the nation's gas subsidy was not sustainable. Petronas pays market prices for gas yet sells it to the domestic power market at subsidised prices that were fixed in 1997. Last year's gas subsidy cost RM15.6 billion, bringing the total subsidy since 1997 to a total of RM58.2 billion.

The Petronas Board of Directors better focus on presenting PETRONAS 2007 profits to the general public and be prepared to support BN wakil rakyat to answer 'tough questions' in parliment soon.

Note:- For the financial year ended March 31, 2007,(last year) Petronas’ net profit was RM46.4 billion on sales of RM184 billion. Total assets grew 8 per cent to RM285 billion and shareholders funds rose 17 per cent to RM171 billion.

For the year to March 2007, the national oil corporation paid over RM48 billion — through taxes, dividends, royalties and export duties — to the federal government.

Petronas extended almost RM16 billion in gas subsidies to power producers — Tenaga Nasional and Independent Powers Producers (IPPs) included — and other industries including industrial users reluctant to pay the market price for gas.

Rakyat support and salute you,Tan Sri Mohd Hassan Marican.
We don't support politician like attitude in Petronas...that's you, Datuk Nasarudin.