Lucrative Oil & Gas Industry Presentation

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    LUCRATIVE OIL & GASINDUSTRY

    Principles Of Lecturer namStudent : Fathurrah Syahiir Id Keshvind Faten Na

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    INTRODUCTION Lucrative o

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    INTRODUCTION

    In Malaysia , national oil and gas industry fully owned by the governm

    One of a biggest oil & gas company in Malaysia is PETRONAS.

    PETRONAS a short form for Petroliam Nasional Berhad is a Malaysiaand gas company that was founded on August 17, 1974.

    Petronas is ranked among fortune global 500s largest corporations inworld.

    Fortune ranks Petronas as the 68th largest company in the world in 2

    It also ranks Petronas as the 12th most profitable company in the worthe most profitable in Asia.

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    INFORMATION Lucrative o

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    LUCRATIVE OIL & GASINDUSTRY (INFORMATION)Petronas has grown to be an integrated international oil and gas company with binterests in 35 countries.

    As of the end of March 2005, Petronas Group comprised 103 wholly owned subs19 partly owned outfits and 57 associated companies. Together, these companiethe Petronas group that is involved in various oil and gas based activities.

    Petronas engaged in a wide spectrum of petroleum activities, including upstreamexploration and production of oil and gas to downstream oil refining marketing an

    distribution of petroleum products, trading, gas processing and liquefaction gastransmission pipeline network operations, marketing of liquefied natural gas,petrochemical manufacturing and marketing, shipping, automotive engineering aproperty investment.

    Petronas provides a substantial source of income for the Malaysian government 45% of the government's budget dependent on Petronas' dividen.

    The company is headquartered at the Petronas Twin Tower that was officially opeMalaysia's 42nd National Day, August 31, 1998, in the Corporation's 24th Anniveyear.

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    HISTORY Lucrative o

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    LUCRATIVE OIL & GAS(HISTORY)Petronas was not the first company to extract oil or gas in Malaysia. ItRoyal Dutch Shell that began the oil exploration in Sarawak, then undwhite Rajahs at the end of the 19th century.

    In 1910, the first oil was drilled in Miri, Sarawak. This became the firstproducing well known as the Grand Old Lady.

    Shell was still the only oil company in the area in 1963, when the fedeof Malaya having achieved independence from Britain six years beforunited with Sarawak and Sabah, both on the island of Borneo, and beMalaysia.

    The authorities in the two new states retained their links with Royal DShell that brought Malaysia's first offshore oil field on-stream in 1968.

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    Meanwhile, the federal government turned to Esso, continental oil and Mobil, licensing ethe state of Terengganu in the Malay Peninsula the most populous region and the focuspower.

    By 1974, however, only Esso was still in the area. It made its first discoveries of natural and then rapidly made Terengganu a bigger producer of oil than either Sarawak or Sab

    To date, Malaysia has some 28.35 billion barrels of oil reserves and about 1.2 per cent

    natural gas reserves that is 2.35 trillion cubic meters of proven reserves. Malaysia has a current production rate of seven hundred and thirty thousand barrels pe

    products. The Government of Malaysia also contributes significantly towards policy and macro-ec

    to secure a sustainable and long-term success of the oil and gas industry. The Governments main objective is to increase aggregate production capacity by five p

    year up to 2020 to meet domestic demand growth while sustaining crude oil and LNG eoverseas markets.

    In the Asia Pacific region, Malaysia aims to be the number one oil and gas hub by 2017advantage of its strategic location at key shipping lanes as well as strong economic fundChina, India and within Southeast Asia.

    In Malaysia, energy policy for the upstream sector is determined by the Economic PlanImplementation and Coordination Unit, both of which report directly to the Prime Ministe

    The Government focuses on efforts to enhance output from existing oil and gas fields, nfields as well as exploration and development opportunities in deep-water areas.

    To this end, new tax and investment incentives under Petroleum Income Tax Act were in2010 to promote oil and gas exploration activities.

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    LUCRATIVE OIL & GAS(PRICE)Malaysia's fuel prices are among the lowest in the world.

    Only seven other nations, which are Venezuela, Saudi Arabia, KuwaiEgypt, United Emirates, Iran and Nigeria, sold fuel at prices lower thaMalaysia.

    Malaysia was able to sell cheaper fuel because of the significant subborne by the government. In fact our local oil can be sold at a lower prwe refined totally our oil.

    The reason for this is because of the subsidy that the government proto help ease the burden of the people.

    Malaysias oil can be last for another twenty years. This is the reason Petronas starts exploring oil overseas in country like Sudan, Vietnam LPG can still last for another 80years.

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    LUCRATIVE OIL & GAS(PRICE) Recently, in Sarawak there's a profit sharing contract with the American com

    named Murphy Oil.

    Diesel is priced at RM1.80, making the subsidy stand at 90.4 cent and PetrRM1.90 while the market price is RM2.80.

    The Liquefied Petroleum Gas (LPG) that is used for cooking formed the higsubsidy at RM20.86 due to the market price at RM 47.46 for a 14kg gas cy

    The high subsidy that the government is shouldering is part of the reason wthere is a request for supplementary budget.

    Due to the fuel price difference from USD110 to USD118.65 per barrel therebe a supplementary budget to cater for the difference between the projectethe actual price prices at that time.

    The last fuel price hike was in March this year - to RM2.90 from RM2.70 pr

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    PLACE Lucrative o

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    LUCRATIVE OIL & GAS(PLACE)Asia Pacific division stretches from India to New Zealand, so the Houston-baglobal oil and gas services giant with 58,000 employees and revenues in exc$20 billion had lots of options with respect to a regional headquarters location

    It chose Kuala Lumpur, Malaysia, in 2009 as the city in which to consolidate sregional operations such as Singapore, Australia and other locations.

    The reason the chose Malaysia because Malaysia delivers the right environmthe oil and gas industry and Malaysia has done a fantastic job in the last 10 y

    and has a great vision going forward to 2020 and beyond for becoming an oigas services hub.

    Many oil and gas companies like Baker Hughes' customers are already baseMalaysia, the points out more so than in Singapore.

    For example, which has logistical and transactional benefits but little actual ogas industry.

    Major foreign operating companies include ExxonMobil, Shell, Murphy Oil, HTalisman Energy. Small to medium sized operators in Malaysia include LundNippon and Newfield.

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    LUCRATIVE OIL & GAS(PLACE)Oil field service and equipment players besides Baker Hughes include Schluand Technip. Malaysia's national oil and Gas Company, Petronas has suppordevelopment of such local companies as Scomi, SapuraCrest, Kencana, PetPerdana and Wasco.

    Petronas holds exclusive rights to all oil and gas E&P projects and is responsall licensing procedures. Foreign and private companies must operate througproduction sharing contracts with PETRONAS.

    Malaysia is a significant location for the oil and gas business, both peninsulaMalaysia and in Sarawak and Sabah.

    Another benefit to a Malaysia regional headquarters is transactional transparMalaysia puts a big focus on fighting corruption and monitors closely its compwith global transparency standards.

    This policy is in keeping with Baker Hughes value system. It assures us that investment will be protected for the long term.

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    PROMOTION Lucrative o

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    LUCRATIVE OIL & GAS(PROMOTION)Malaysias Oil and Gas Industry progresses, the local companies have becomprominent service providers in the areas of exploration and production operaMalaysia and are also capable of providing their services and products globa

    Malaysian oil and gas companies are competent in providing multi-disciplinaservices which include among others, process design, mechanical and pipingdesign, structural and civil design, electrical and instrumentation, oil rigs engand fabrication, welding and pipe threading, environmental management suc

    total sludge management which involves sludge quantification, sludge removsludge treatment.

    A few promotion methods would be like for example, at one point Shell gave cars after you purchased a certain amount of fuel.

    As for Petronas they had lucky draw event that would award certain people wcar if they get lucky, not to forget shell also utilizes bonus link card so you capoints and redeem plenty of interesting rewards like electronic products, t-sh

    umbrellas and so on.

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    THE END Lucrative o