Gas And Oil Service

Oil rallies for third day after OPEC sees greater crude demand

2015-02-09T19:30:00.001-08:00

(Reuters) - Oil jumped for a third straight session on Monday as OPEC forecast greater demand for crude this year than previously thought and projected less supply from countries outside the producer group.

The Organization of the Petroleum Exporting Countries forecast that demand for OPEC oil will average 29.21 million barrels per day (bpd) in 2015, up 430,000 bpd from its previous forecast. The group also slashed its outlook for crude supply growth in non-OPEC countries.

Oil prices have been trying to find a floor after a brutal selloff that wiped out over half of the market's value since June. The rebound came after weeks of decline in the U.S. oil rig count, which hit three-year lows last week.

While most traders cited short-covering as prices continued to advance on Monday from near six-year lows, some noted options expiry in Brent's front-month contract and a weaker dollar .DXY as other supportive factors.

Standard & Poors' negative outlook for Saudi Arabia due to the decline in oil prices also led to speculation that the No. 1 crude exporter might want the market to recover after its freefall in recent months.

Benchmark Brent oil futures LCOc1 settled up 54 cents, or nearly 1 percent, at $58.34 a barrel, after rallying to $59.61 at one point.

U.S. crude futures CLc1 finished up $1.17, or 2.3 percent, at $52.86 after a session high at $53.99.

Brent's premium to U.S. crude CL-LCO1=R narrowed for the first time in five sessions as U.S. futures outperformed on expectations that the oversupply might be resolved sooner than thought due to the falling rig count.

Both benchmarks have risen nearly 20 percent since Jan. 29. But some traders remain pessimistic about the rally.

"It was mainly hedge fund, speculator driven and smacks of price-overshooting," said Anuraag Shah, portfolio manager at the Los Angeles-based Tusker Investment Fund, which manages nearly $100 million across commodities.

Tariz Zahir, managing member at New York's Tyche Capital Advisors, said his fund was "not turning long in any way" on oil, and continues to bet that gains of the past week or so "will all be sold into".

Citigroup said in a note that U.S. crude could fall well below $40, "perhaps as low as the $20 range for a while".

(Additional reporting by Jack Stubbs in London, Manolo Serapio Jr and Henning Gloysteinin Singapore; Editing by David Clarke, Bernadette Baum and Marguerita Choy)

Reuters.com - Amid mobile slump, Samsung needs more outside customers for its chips and panels

2015-02-09T19:11:00.001-08:00

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Amid mobile slump, Samsung needs more outside customers for its chips and panels
Mon Feb 09 21:04:06 UTC 2015

By Se Young Lee

SEOUL (Reuters) - As Samsung Electronics Co Ltd sells fewer of its own smartphones, the South Korean group's components businesses are under pressure to pick up the slack and secure external customers for chips and display panels, including putting these in rival mobile devices.

Samsung Display has begun supplying organic light-emitting diode (OLED) panels to Chinese smartphone makers Lenovo, Coolpad, Oppo Electronics and Vivo Electronics. And the subsidiary says it's on the lookout for more clients, aiming to have half its total revenue by 2017 from sales to outside customers, up from just over a third in 2013.

Industry officials estimate that external clients account for around a fifth of Samsung Display's sales of smaller smartphone and tablet panels compared to about 50 percent for large panels for TVs, underscoring a need for more mobile clients.

"Samsung Display's desire to grow overseas sales wasn't as strong when Samsung Electronics' Galaxy S devices were selling well, but now it's trying to avoid being too over-reliant on a single client," a person with direct knowledge of the matter told Reuters.

Samsung's systems chips business is also trying to grow its customer base following a weak 2014. Some analysts say the business lost more than $1 billion last year on declining sales of Galaxy smartphones and the loss of a contract to supply the processor for Apple Inc's iPhone 6.

Samsung's next Galaxy S smartphone is widely expected to be powered by its own Exynos processor chips after Qualcomm Inc acknowledged that a key customer won't use its Snapdragon mobile chip in a flagship device.

Samsung has declined to comment on that, but another individual familiar with the matter said the proportion of next-generation Galaxy S phones powered by Exynos chips will likely increase from previous versions.

A successful launch of the new device could help win more external orders, and bolster profits. Samsung said late last month it was in talks with third-party customers about supplying its Exynos mobile processors.

"Some of Samsung's components businesses and other affiliates were too dependent on the captive (in-house) market," said IM Investment analyst Lee Min-hee. "There's been a general shift in direction, with the businesses looking to make external sales and diversify the customer base."

WEAK MOBILE BUSINESS

Samsung's mobile profits for October-December dropped 64 percent from a year earlier, as Galaxy S5 sales disappointed and rivals like China's Xiaomi Inc [XTC.UL] became increasingly competitive. Analysts don't expect any smartphone turnaround as margins remain squeezed.

Nomura and other brokerages, though, have raised their 2015 earnings forecasts for Samsung, betting on improved contributions from component sales. As smartphone competition heats up, Samsung should benefit from better demand for components such as chips and panels.

The system chip business in particular is expected to be a catalyst. Local media reports and analysts say Samsung is likely to win back the Apple contract and supply the majority of mobile processors for the next iPhone.

Display sales, too, should provide an additional boost this year as the business expands its external customer base. Daewoo Securities tips 2015 operating profit to more than double to 1.7 trillion won ($1.55 billion) from last year.

"We're starting to hear talk that Samsung's annual profit could actually increase this year, contrary to the market consensus before the fourth-quarter results were announced, and I think that will be the case as well," said Park Jung-hoon, a fund manager at HDC Asset Management, which holds Samsung shares.

($1 = 1,087.7000 won)

(Editing by Tony Munroe and Ian Geoghegan)

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Bahrain's MEOS event rescheduled to September

2011-04-07T03:30:00.000-07:00

by Daniel Canty on Apr 6, 2011

The Society of Petroleum Engineers, together with Arabian Exhibition Management met with the MEOS Executive Committee on 21 March to discuss new dates for the Middle East Oil & Gas Show and Conference (MEOS 2011).

The decision to reschedule the event, originally due to be held from 20-23 March 2011, was made at the beginning of March in light of the current situation in the Kingdom of Bahrain.

It has been confirmed to ArabianOilandGas.com that MEOS will now take place from 25-28 September 2011 at the Bahrain International Exhibition and Convention Centre.

MEOS 2011 has been rescheduled to September 25 - 28.

The MEOS Executive Committee and the event organisers will meet again on 27 April in Bahrain and will continue to meet on a regular basis to ensure the success of MEOS 2011
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Mott MacDonald wins US$15m ADMA contract

2011-04-04T15:12:00.000-07:00

Engineering firm Mott MacDonald has recently won a US$15 million project from ADMA for its offshore production complexes off Abu Dhabi according to a senior Mott MacDonald employee.

The project is for the replacement of halon gas for the fire-suppression systems at ADMA's offshore production platforms of Zakum Central Super Complex, Zakum West Super Complex and Umm Shaif.

"Halon is an environmentally unsafe gas that they want to replace with new technology which we have to study and implement for this project," said Alex Jacob, commercial manager, Oil, Gas & Petrochemicals, Mott MacDonald.

Mott MacDonald will carry out work for the replacement of halon gas for ADMA's three major offshore facilities.

"As a company we are committed to safety and environment also, so we are very keen on doing this type of job. When there is a fire, Halon is pumped in to extinguish the fire but environmentally it is not very good," he said.
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U.S. could tap oil reserves as gasoline price surges

2011-03-07T07:50:00.000-08:00

By Jackie Frank and Lewis Krauskopf

WASHINGTON/SINGAPORE (Reuters) - The U.S. government reiterated that it could tap its strategic oil reserves in order to safeguard economic growth as surging gasoline prices increase pressure for action.

While longstanding U.S. policy is to release reserves only in the event of a significant and immediate supply shortage, some analysts say the Obama administration may feel compelled to try to tamp down prices that are being fueled both by outages in Libya and concern unrest could spread in the Middle East.

Reflecting market worries over unrest, crude futures prices were trading in Asia on Monday around their highest levels in more than two years.

Echoing comments made by a number of Obama officials over the past week, White House Chief of Staff William Daley told NBC television's "Meet the Press" on Sunday: "We are looking at the options. The issue of the reserves is one we are considering."

"It is something that only is done -- has been done -- in very rare occasions. There's a bunch of factors that have to be looked at and it is just not the price," he added. "All matters have to be on the table when you go through -- when you see the difficulty coming out of this economic crisis we're in and the fragility of it."

He spoke just before a survey showed the second-largest two-week rise in gasoline pump prices ever. The national average for a gallon of self-serve, regular gas was $3.50 on March 4, according to the influential Lundberg Survey of about 2,500 gas stations, up 32.7 cents from the February 18.

Congress has pressured the Obama administration to look to the emergency oil supplies as an option to ease consumers' fears over rising U.S. gasoline prices, which are nearing the all-time high of $4.1124 per gallon hit on July 11, 2008, according to the Lundberg Survey.

Higher oil prices could undermine the fragile U.S. economic recovery and damage President Barack Obama politically as he moves toward a 2012 re-election bid.

NOT 2008

The U.S. Strategic Petroleum Reserve holds 727 million barrels of oil, or about 38 days of consumption, and has only been tapped a handful of times since it was created in the mid-1970s after the Arab oil embargo. It was last used in 2005 following Hurricane Katrina.

Thus far the International Energy Agency (IEA) -- which coordinates reserves policy among the world's major energy consuming countries -- has made clear it will rely first on OPEC to fill the void left by the violence in Libya, which has cut off an estimated 1 million barrels per day (bpd) of output.

IEA members South Korea and Japan, among the world's top 5 crude oil importers, have no immediate plans to tap into strategic reserves, sources said.

"There is no concern at all over supply shortages," said an official with Japan's Trade Ministry, which is in charge of the country's strategic oil reserves.

The official declined to be identified because he is not authorized to be quoted by the media.

OPEC powerhouse Saudi Arabia has stepped up production significantly, but oil prices remain high. The risk for markets is that the wave of North African and Middle East protests could spread to major Gulf oil producers, cutting off supplies that would be impossible to make up from other producers.

Despite longstanding U.S. policy on the SPR, there are reasons to believe the reserves could be used more liberally now.

Unlike in 2008, when oil prices shot to nearly $150 a barrel in a demand-led rally, the rise this year is driven by a loss of supply -- a distinction that could give Obama more latitude to tap the reserves, even though Libya ships only a fraction of its oil to the United States.

In addition, the global economy is in a more precarious state than was generally believed at the start of 2008, prior to the financial crisis.

"Sovereign debt issues need time and growth to resolve. High oil prices threaten that outcome. No leader will want to preside over a recession that they had the tools to avert," said Lawrence Eagles, head of oil research at JP Morgan.

His outlook calls for a possible SPR release if Brent crude pushes materially above $120 a barrel.

It traded above $117 a barrel on Monday, up more than 14 percent in the last two weeks. Last week, the price hit its highest level since 2008. U.S. crude futures rose to more than $106 a barrel on Monday, also their highest level since 2008.

U.S. federal law allows the government to tap the reserve during a national energy supply shortage that raises petroleum prices and could damage the economy. The president has the authority to determine such an emergency.

While the reserves could help make up for lost supplies, it is unclear how effective they would be in tempering fears that unrest could spread to other, bigger producers including Saudi Arabia, where security forces have detained at least 22 minority Shi'ites following protests last week.

GROWING SUPPORT AMONG DEMOCRATS

U.S. Treasury Secretary Timothy Geithner last week played down risks to oil supply, but also reminded lawmakers of the emergency stockpile.

"If necessary, those reserves could be mobilized to help mitigate the effect of a severe, sustained supply disruption," Geithner told the U.S. Senate Foreign Relations Committee.

But there has been growing support among Senate Democrats for tapping America's emergency oil supply.

U.S. Energy Secretary Steven Chu on Wednesday had ruled out releasing oil from the reserve, saying ramped-up oil production in Saudi Arabia should lower the crude price.

"We're hoping market forces will take care of this," he added.

(Additional reporting by Glen Somerville, Matt Spetalnick, Thomas Ferraro in Washington, Cho Mee-young in Seoul and Risa Maeda in Tokyo; Editing by Eric Beech, Paul Simao, Gary Crosse and Alex Richardson)
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Oil prices climb as Libya unrest stokes concern

2011-02-23T07:19:00.000-08:00

By Zaida Espana

LONDON (Reuters) - Oil prices climbed on Wednesday as turmoil in Libya fueled fears that unrest could spread to other oil-producing nations and choke supplies.

Brent crude futures climbed $2.91 to $108.68 a barrel by 1415 GMT (9:15 a.m. EST).

Futures on U.S. light crude, also known as WTI, were $1.06 firmer at $96.48 a barrel at the same time, the highest level since October 2008.

Prices gained support as Austria's OMV said on Wednesday it might be heading for a full production shutdown in Libya; adding to earlier comments by Total, Repsol, Eni and BASF that they were either slowing or stopping output.

"If we lose Libyan production, then you will have to replace around 1.6 million barrels per day of very good quality crude, which would introduce logistical implications and have a cost," Credit Agricole CIB analyst Christophe Barret said.

The disruption in Libya, which pumps 1.6 million barrels per day (bpd) or nearly 2 percent of global supply, marks the first cut in oil supplies related to the recent wave of protests in North Africa and the Middle East.

"People are scared to lose a producer that pumps very good quality crude. Companies are cutting production at the fields and there are difficulties at the port, so products trade is also disrupted," he added.

The disruption could push up Brent to a greater extent because of its tighter availability and geographical proximity to the unrest, Commerzbank analysts said.

Governments across the world moved to send planes and ships to evacuate citizens from Libya, whose leader Muammar Gaddafi has vowed to crush a revolt against his 41-year rule.

Between 300,000-400,000 barrels per day (bpd) of Libyan output has been shut down, according to Reuters calculations, while Barclays analyst Amrita Sen said in a note that around 1 million bpd of Libyan crude oil production is likely to have been shut in.

Focus was also on top exporter Saudi Arabia, where ruling King Abdullah unveiled a package of benefits worth billions of riyals to mark his return on Wednesday after months of medical treatment abroad.

Jittery investors are worried about further supply disruption if protests spread in the country, which supplies around 10 percent of the world's oil and holds most of the world's spare capacity. On Tuesday, Saudi stopped short of pumping more oil to calm markets, saying prices were driven by fear.

OIL SUPPLIES EYED, U.S. STOCKS AWAITED

While protests in Saudi Arabia have so far been low key, Shi'ites in neighboring Bahrain are demonstrating against the Sunni-led government, fanning worries this could spill over to the Shi'ite minority in Saudi's oil-producing eastern province.

"The importance of Bahrain is perhaps being underplayed currently. While not a major oil producer, Bahrain's impact on the oil market reverberates through its importance in Saudi Arabia," Barclays Capital analysts Helima Croft and Amrita Sen said in a note.

The International Energy Agency's (IEA) executive director Nobuo Tanaka said prices above $100 per barrel for the rest of the year could drag the global economy back into a repeat of the 2008 economic crisis.

Analysts said U.S. light crude futures remained well supported following the roll of the contract, although a potential build-up of weekly U.S. crude oil stockpile data due later could pressure prices.

"The fact that WTI has risen further is mainly related to the contractual rollover, as the new front month contract was $2 higher than the expiring contract," Commerzbank analyst Carsten Fritsch said.

On the data front, investors await the January reading of existing U.S. home sales at 1500 GMT (10:00 a.m. EST), while U.S. inventory data from both American Petroleum Institute and EIA will be delayed a day after Monday's Presidents Day holiday.

Analysts polled by Reuters expect crude inventories in the U.S. rose for the sixth consecutive time last week, ahead of the API report due at 2130 GMT (4:30 p.m. EST) and the EIA on Thursday. (Additional reporting by Francis Kan in Singapore; editing by Jane Baird)
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Garuda, You're Never Walk Alone

2010-12-28T15:34:00.001-08:00

Di Istanbul tahun 2005 sebuah tim bernama Liverpool tertinggal 3-0
pada 45 menit pertama, tetapi mereka tidak menyerah. Diseberang ruang ganti, para Italiano Milan berpesta seolah Gelar Liga Champion sudah ditangan mereka.

Tetapi ketika masuk kelapangan, seorang. Paolo Maldini pernah bersaksi bahwa dia merinding mendengar lagu "U're Never Walk Alone" membahana di stadion. Kakinya seakan kaku dan bergetar.

Sementara para pemain Liverpool tampil kesetanan di 45 menit kedua,
score akhir 3-3 dan Liverpool menang adu penalti, menyisakan tangis di
mata Paolo Maldini dan Kiper Dida.

Hari ini, tanggal 29 Desember, Safee dan Idlan akan bergetar kakinya,
menciut nyalinya ketika mendengar lagu "Garuda di Dadaku" membahana di Gelora Bung Karno (GBK).

Timnas Indonesia akan mencetak 3 gol seperti yang dilakukan Gerrard dkk dalam kurun 45 menit, sementara kita diberi waktu lebih panjang 90 menit untuk membalas.

Mari kita sisakan tangis air mata di mata Safee dan Idlan, juga para
pemain Malaysia lainnya.
"Garuda, U're Never Walk Alone!"
De Ja Vu Istanbul Mei 2005 at GBK !!!

Bismillah, ALLOH bersama kita, #indonesiapastibisa
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Market looking up for Malaysia

2010-10-28T00:38:00.000-07:00

Market looking up for Malaysia
26 October 2010

Malaysia is well placed to become a global leader in biodiesel production. Ambitious plans were announced in 2008 but in the last couple of years the market has virtually ground to a halt.

The government has so far approved 56 licenses for biodiesel production, which would create an annual production capacity of 6.8 million tonnes. However about 60% of the approved capacity has still to be built.

This is mainly due to mandate delays, high feedstock prices and existing diesel subsidies which distort the price of biodiesel.

Malaysia Palm Oil Board (MPOB) figures show that the production of biodiesel, a mixture of diesel and 5% processed palm oil, dropped 99% from 12,640 tonnes in March to just 137 tonnes in July.

But now things seem to be changing. Malaysia's Plantations and Commodities Minister Bernard Dompok has just announced that the government is looking at cutting the subsidy for diesel, which currently costs 1.75 ringgit (€0.4) per litre, to encourage the use of the biofuel. These cuts would begin next year.

The government has also started making concrete plans regarding the long awaited B5 blend.

The plan was originally due to take effect in 2007 but will now not come into force until June 2011.

To help prepare for this the government has given five petroleum companies a total of 5 million ringgit to help build the necessary infrastructure.

Petronas, Shell, Chevron, Exxon and BHP will each receive 1 million ringgit.

The five petroleum companies need to install pipes, tanks and automation systems to blend B5 biodiesel at the designated depots, starting with central region – Port Klang and Putrajaya (Selangor) – as well as Dengkil (Negri Sembilan) and Tangga Batu (Malacca).

Despite this, the industry is not over the worst of it yet. The next challenge the market faces is how to meet the EU's strict sustainability criteria for biofuels, which state that biofuels must reduce greenhouse gas emissions by 35%.

Malaysian-produced palm oil-based biodiesel which is found not to meet this criteria will not receive the incentives and subsidies necessary to make the fuels cost competitive with fossil fuels. Malaysia has now threatened to file a formal complaint with the World Trade Organisation over this issue.

As an ongoing concern sustainability standards forms one of the key focuses at the upcoming Bioenergy International Asia expo & conference, being held in Kuala Lumpur on 10-11th November.

Vincent Piket, Ambassador and head of the delegation of the European Union to Malaysia, will speak on how Malaysia can open up trade opportunities to Europe.

This will be followed by presentations from two different sustainability certification bodies. These will look at what the criteria entails, the challenges faced by the industry and the Commission's communication requirements.

The conference programme also includes presentations from successful producers across Asia such as Alpha Biofuels, Pacific Bio-Fields Holdings, Indo Biofuels Energy and Inbicon to name a few.

Other key themes at the event include how to secure plant finance and investment, new feedstock possibilities, managing price risk exposure and a global overview of the biofuels market across Asia.

This conference is unique in that it is twinned with Tank Storage Asia expo & conference, a consecutive two day conference exploring the bulk liquid storage market in Asia. Conference delegates can attend both events for the same price, and ensures it will be of interest to oil companies, traders and terminal operators, as well as biofuel producers, regulatory and technology suppliers.

Full details of the event can be found at www.biofuelsinternationalexpo.com/asia and www.tankstorageevents.com/tsasia
The conference delegate fee is only RM2,900 or RM 1,500 for one day. There is also a 10% discount for the second delegate from the same company registered and 25% for each subsequent registration
Since the market is still growing with many fledgling companies there is a 50% discount for certified biofuels, biomass and biopower producers.

Korean Grand Prix in Yeongam

2010-10-24T10:07:00.001-07:00

Michael Schumacher came home in fourth place today at the end of a thrilling inaugural Korean Grand Prix in Yeongam.

The dramatic race started under the safety car due to the wet conditions and was red-flagged for 50 minutes on lap three before restarting, again under the safety car, and finishing just on the two-hour limit.

Nico Rosberg was in an excellent position in fourth place, having just overtaken Lewis Hamilton, when he was hit by the spinning car of Mark Webber and forced into retirement on lap 19.

MICHAEL SCHUMACHER

"I am pretty happy with today's race and I have to say thank you to my team who guided me perfectly through the afternoon. I am sure that the spectators had a lot of fun here today at this first Korean race. The FIA did very well to start the race behind the safety car as it absolutely would not have been possible to have a racing start. The only shame for us today was that Nico was put out of the race otherwise we would have seen a very good weekend for our team."

NICO ROSBERG

"We had a near perfect weekend with the car that we have until the collision in the race today. Qualifying in fifth place was great yesterday and the car has felt good all weekend. The team has done a great job here and the straightline speed that we had enabled me to overtake Hamilton early in the race. So it's a big shame that my race was ended early. It was really difficult to judge which way Mark's car would go and I took the decision to go left but he spun more and more that way and I just couldn't avoid him. It's a real shame as we could have had a great result today."

ROSS BRAWN

"The team did an excellent job this weekend and have been rewarded with a very good result for Michael today. It could have been even better as Nico was in a strong position and obviously we are disappointed that he was taken out of the race. Nico had made a great overtaking move on Hamilton, he was very happy with the car and everything was going well up that point. Michael had an extremely good race. He took all of his opportunities and drove sensibly in the tricky conditions. We spent the latter part of the race looking after the tyres and making sure that we got through to the end as we didn't think that we could challenge the leaders. Overall a very positive weekend and we hope to finish the season with equally strong performances."

NORBERT HAUG

"A good race from Michael today finishing in fourth place behind the World Championship contenders as 'best of the rest' after a great manoeuvre to overtake Jenson Button. A shame for Nico who certainly had the possibility of finishing on the podium, given that he was ahead of Lewis who ultimately finished second, when he was caught up in Mark Webber's incident. A good job from our team here in treacherous conditions with no mistakes made which was very difficult today."

Mercedes GP/Petronas Race Report - Singapore - Sept 27, 2010

2010-09-27T20:28:00.001-07:00

Mercedes GP/Petronas Race Report - Singapore - Sept 27, 2010

Nico Rosberg continued his run of points-scoring finishes today with a strong drive to take fifth place at the Singapore Grand Prix from seventh position on the grid. Team-mate Michael Schumacher had a more eventful race with two out-of-sync pit stops compromising his track position and he finished the 61-lap race in 13th place.

NICO ROSBERG "It was extremely tough out there but we achieved the best possible result for us today. Our aim for the last few races is to finish as the best behind the top three teams and today we were able to profit as two of them had issues with Felipe in qualifying yesterday and Lewis in the race today. So fifth place is good for us and it's very satisfying for the team. I could push Jenson a little at some points which was good to see. We will be aiming to finish the rest of the season as strongly."

MICHAEL SCHUMACHER "I am not particularly happy about my first experience of racing in Singapore this evening. I had two encounters with other cars which were racing incidents and meant that I had to make my stops at times which were not ideal and consequently my race was heavily compromised. I suffered with the rear tyres on my first set of options which made me slide rather than drive through corners which was tough, so I would probably say that I only enjoyed the second part of the race."

ROSS BRAWN "We had a small grid advantage starting from the clean side and Nico was able to make up a place which was good. We then stayed out under the first safety car when almost every car behind us came in which made us a little vulnerable but I was very pleased with our pace which enabled us to control the situation. Nico drove an excellent race today with a competitive performance that saw him pushing the McLaren-Mercedes at various stages. Michael had a more eventful race and whilst it didn't quite go his way today, he persevered to the end of the race. It was a very good team effort to improve the car over the course of the weekend and another well-deserved points finish."

NORBERT HAUG "Nico drove a very clever race and brought home the best result we could have achieved under our existing circumstances. Michael had an action-packed first night race in Singapore but he kept going which speaks for him and his car, posting some competitive lap times after his second stop for a new nose. Thank you to everybody in the team for the hard work that was done here in difficult conditions when working in the garage was like being in a sauna at times. Singapore is one of the very best places to stage a race and on behalf of Mercedes-Benz, I would like to give our compliments to the organisers who have built up a benchmark race in a very short period of time. Our learning process is taking our team in the right direction and I am sure that we will have a better car and results next season. We are looking forward to the last four races and everyone will work very hard so that our team and drivers can compete with the leaders in the seasons to come."

Nico Rosberg and Michael Schumacher express readiness for the Monaco GP

2010-05-12T02:01:00.001-07:00

Rosberg and Schumacher in Barcelona last weekend. Photo courtesy of Mercedes GP

The short turn around between the Spanish Grand Prix last weekend and this weekend's Monaco race doesn't give Mercedes GP Petronas drivers, Nico Rosberg and Michael Schumacher, much chance to reflect on the highs and lows from Spain.

For Nico Rosberg, the Spanish GP was one to forget as he found himself catapulted out of point scoring opportunities for the fist time this year. Monaco is a home race for the German who'll be looking to reverse last week's hiccup. His early races have caught the attention of many due to his ability to plonk the under performing Mercedes car high on the points table and out perform the sport's most successful driver, Michael Schumacher. But Monaco is a tough place to reverse disappointing form and things will really have to click this weekend given the presence of McLaren, Renault, Ferrari and of course the confident Red Bull Racing team.

"The Monaco Grand Prix is my home race and it's always an enjoyable weekend. Formula One brings a real atmosphere to my home town and it's very special to have all of my family and friends there to support me over the weekend." said Rosberg. "Living so close to the track is helpful too! After a rewarding first four races, Barcelona was disappointing, so we will hope to see an improvement for Monaco and we will work hard to understand our issues from last weekend. Monaco is a completely different circuit with its own unique challenges and characteristics so it will be interesting to see how the car goes there. I had a good race last year, qualifying and finishing in sixth place, so it would be nice to go a few places better this time."

It will be crucial for Mercedes to place their cars as high in the order as possible during qualifying if they're to have a chance of scoring decent points, something Schumacher finally achieved last weekend. His revitalized performance on Sunday has encouraged the seven-time World Champion considerably and he brings renewed confidence into this weekend's event. "I have always liked to drive in Monaco and that's why I am really looking forward to competing there this weekend. " said Schumacher. "The Monaco Grand Prix certainly adds something very special to the Formula One calendar and driving through the streets of Monte Carlo is undoubtedly unique.

We go there and hope that the characteristics of the street circuit suit our car better than in Spain last weekend. On the other hand, we should be careful to expect too much this time as we have seen in Barcelona that there is still a lot of work ahead of us. So, other than having achieved my best result so far this season, I have taken with me a lot of motivation to work even harder with our engineers to improve the car further."

Last week BBC commentator Jonathan Legard reported that Schumacher had an extra spring in his step ahead of the Barcelona race. According to Legard, that usually means Schumacher has something up his sleeve, and sure enough he did. It'll be interesting to see if Schumacher carries the same spring in his step in Monaco on Thursday where the first free practice gets underway.

Mercedes GP CEO Nick Fry seems to think so, and told Autosport yesterday that Schumacher had recaptured his "sparkle". www.autosport.com/news/report.php/id/83514. He also admitted however, that the Red Bull team has at least half a second on them and that therefore there was a lot of work to do if Mercedes hope to catch them.

(The Mercedes GP Petronas team's ability to improve has a lot to do with the "brains trust" of team principal Ross Brawn, left, and CEO Nick Fry, right. Fry admitted early this week that they were half a second off the pace of Red Bull Racing. Photo courtesy of Mercedes GP Petronas)

Fortunately the slower Monaco circuit is a bit of leveler in terms of advantage, since the outright pace of the front runners and more powerful cars is negated a little by the twisty circuit. Monaco has a propensity for throwing in far more variables than a standard sweeping track. Overtaking is very difficult, back markers are hard to dodge and the slightest loss of concentration could spell disaster, since the street circuit's barriers are notoriously unforgiving on race cars built on the edge of their design limits.

Accidents mean yellow flag incidents and suddenly a driver's comfortable lead is whittled down to nothing and he/she has to fend off the pack again. If you throw rain, and more cars on the circuit this year, with Virgin, Lotus and HRT struggling for pace with entirely new cars, it's going to provide more than the usual challenge for the leading teams.

Michael Schumacher has the lap record at the circuit, a 1:14.439, which he captured in 2004 with of course, Ferrari.

Nathan can be contacted at pricklyhedgehog@yahoo.com and welcomes your comments and suggestions, or you may post below.

Source : http://www.examiner.com/x-37065-Mercedes-GP-Examiner~y2010m5d11-Nico-Rosberg-and-Michael-Schumacher-express-readiness-for-the-Monaco-GP

Mercedes-Benz GP Petronas F1 Chinese Grand Prix Race Facts

2010-04-15T19:35:00.001-07:00

In anticipation of the Chinese Grand Prix on April 18th, we've got a detailed look at the track and a variety of other F1 facts

15 April 2010 | CDanielson

International motor racing came to China (i.e. the People's Republic of China) first in the mid nineties with races of the BPR Series, a sports car championship. They staged races on a temporary street circuit in down- town Zhouhai south of Hong Kong. In 1996, the race moved to a new track outside the city and the organisers hoped for a Formula One Grand Prix in China already at that time, however, the track didn't match the requirements of the FIA.

The Shanghai International Circuit is located in the countryside to the Northeast of Anting Town, Jiading District, Shanghai City. The whole site covers an area of 2.5 square kilometres with the grandstands offering seats for about 200,000 spectators. More than 2 million cubic meters of earth material were filled into the area of the auto racetrack and nearly 40,000 batches of pile foundation were laid into the racetrack area for consolidating ground foundation. The steel used in the top of the primary stand reached over 5,000 tons of a total 12,000 tons used for the entire project. The track which has the shape of the Chinese symbol 'Shang', which translates as 'high' or 'above' was completed within 18 months.

The Shanghai International Circuit is the biggest race track in Asia with a grand stand capacity for about 200,000 spectators. It cost 240 million US dollars and matches the latest standards. The track was designed by the leading architect Hermann Tike.

Two years ago, McLaren Mercedes driver Lewis Hamilton started from pole position, posted the fastest race lap and won – an important step towards his World Championship title which he clinched two weeks later in Brazil.

Track Records:

Lap Record – Michael Schumacher (Ferrari) 1m32.28sec (2004)

Fastest Lap 2009 – Rubens Barrichello (Brawn Mercedes) 1m52.592sec

Pole Position 2009 – Sebastian Vettel (Red Bull Renault) 1m36.184sec

To learn more about the Chinese Grand Prix, the Shanghai International Circuit, and a variety of other interesting F1 information, we invite you to view the full gallery packed with digital racefacts below (don't forget you can click the images in the gallery to make them easier to read).

Petronas ‘Keen to Expand’ in Indonesia: Hatta

2010-04-08T20:54:00.000-07:00

Malaysian state oil and gas company Petronas plans to expand its investments in Indonesia, including in the upstream sector, Coordinating Minister for the Economy Hatta Rajasa said on Wednesday.

“They expressed a commitment to expand investment in the upstream and downstream sectors of the oil and gas industry,” he told reporters following a meeting with the president of PT Petronas Niaga Indonesia, M. Ibrahimnuddin M. Yunus, and Malaysian Ambassador Zainal Abidin M. Zain.

“When the Energy Ministry opens tenders for new oil and gas areas, we’ll push [Petronas] to participate,” Hatta said.

He explained that the government wants to encourage firms like Petronas to look for new oil reserves in remote areas because of declining production in the country’s existing, mature fields.

He did not provide details. Yunus could not be immediately reached for comment.

The Energy Ministry announced on Monday plans to open tenders for 35 oil and gas blocks this year, most of them in eastern Indonesia.

Minister of Finance Sri Mulyani Indrawati warned earlier this month of a likely shortfall in the country’s oil production this year due to aging wells.

Efforts to lure investors into new oil and gas areas have been relatively unsuccessful. A tender for new oil and gas working areas last year was widely shunned because of uncertainty over cost recovery for oil and gas projects. Only five of the 16 blocks offered by the government in December attracted successful offers.

The government is planning to issue a new regulation on cost recovery in the oil and gas sector, which some said would put a cap on the expenses that can be claimed back by oil and gas contractors from the government.

In December last year, Petronas won the rights to distribute subsidized fuel in Medan, North Sumatra, ending the monopoly of state-owned PT Pertamina. The Malaysian company began distributing non-subsidized products here in December of 2005 and now operates 19 gas stations in Greater Jakarta, Bandung and Medan. The company reportedly expects to have up to three more gas stations by 2011.

However Petronas is less aggressive in the Indonesian upstream oil and gas sector. Out of the six oil and gas blocks it owns, two will reportedly be relinquished to the government because they lack prospects. They are the Karapan block in East Java and the Northeast Madura offshore block.

The remaining four blocks are still in the exploration stage with the Ketapang offshore block in East Java likely to start production in the near future.

(Sources : http://www.thejakartaglobe.com/business/petronas-keen-to-expand-in-indonesia-hatta/368155)

Mercedes confident Michael Schumacher will shine

2010-04-07T01:03:00.000-07:00

Rosberg has out-qualified and beaten Schumacher in each of the first three races

Michael Schumacher's Formula 1 rivals would be "foolish" to write off the seven-time world champion, Mercedes GP chief Nick Fry has warned.

Fry is convinced Mercedes can build on Nico Rosberg's third-place finish in Malaysia and expects the German team-mates to challenge for more podiums.

"We've got an extremely strong team and anyone who underestimates us is fairly foolish," Fry told autosport.com.

"Every race Michael is learning a bit more and it is all coming together."

Schumacher returned to F1 this season after a three-year break but has only collected nine points from the opening three grands prix and is trailing leader Felipe Massa by 30 points.

And 41-year-old Schumacher, who suffered the team's first retirement in Malaysia after losing a wheel nut, has also been out-qualified and beaten in each of the three races by Rosberg.

But despite being slightly off the pace in the early grands prix, Fry hailed the impact his veteran driver has had on the team.

"Michael is, for me, quite remarkable," said Fry.

The level of feedback he gives is something that I have never seen before, and is just not in the debriefs.

"When you have the headphones on you hear amazing things. In qualifying he was driving around almost giving a commentary.

"He has taken the disappointment of what happened in Malaysia very well.

Schumacher has no doubts over F1 return

"He has taken away the positives again. I would not underestimate him."

The Mercedes team has so far struggled for pace in comparison to Red Bull, McLaren and Ferrari, each of whom has a win under their belt.

However, Rosberg's finish in Malaysia was the team's first podium after three races in 2010.

And Fry is adamant the team, which won six of the first seven races in its guise as Brawn GP last season, will be competitive.

"We've got excellent people. I would say we still have the best technical leader in Ross [Brawn], we have the best manufacturer and engine provider in F1, and we have two phenomenal drivers," explained Fry.

"All of that means that we are going to be strong, and we have the tools in terms of the money to do a very good job.

"I am very optimistic. We will be strong this year. Whether we can win it, who knows, but I think we will be there or thereabout."

Rosberg: It's a great feeling to return to podium

2010-04-05T01:22:00.000-07:00

By Adam Leveridge.

Having secured third place in Sunday's Malaysian grand prix, Nico Rosberg said it is a great feeling to be back on the podium again, after a 22-races without success.

In the home race for Mercedes' title sponsor, oil firm Petronas, Rosberg drove cleanly and consistently to finish behind the Red Bull pairing, who secured their first one-two of the 2010 season.

Swift work from the Mercedes pit-crew got the young German out ahead of Robert Kubica in the Renault, who pulled off another surprising performance to finish fourth.

After the race, Rosberg indicated that third place was Mercedes' limit in Malaysia, as he said it was just a case of managing his pace throughout the grand prix, knowing the Red Bulls had a quicker package.

"Its a fantastic result today to achieve our teams first podium," said Rosberg.

"It's a great feeling to be back up on the podium again and to have so much support from the Malaysian fans here.

"My start didn't go that well today as I had a bit too much wheelspin and once I was in third place, I knew it would be difficult to follow the leading cars.

"I struggled a little with the options in the first stint which allowed Robert [Kubica] to stay quite close but once we switched to the primes, I felt really comfortable and we could manage the race home to third place.

"This is a great end to a strong weekend for us.
"We're not quite where we want to be yet so we need to push on but I'm confident that well get there soon."

The result means Rosberg finished ahead of his vastly more experienced team-mate Michael Schumacher, who retired from the Malaysian grand prix when he suffered a problem with his left-rear wheel.

Mercedes GP team principal Ross Brawn praised Rosberg's effort in Malaysia, but was disappointed Schumacher missed out on a points again, this time, because of an unprecedented and unpreventable fault.

"That was an excellent drive from Nico today and a first-class performance to secure his third career podium and the first podium for the Mercedes GP team," said Brawn.

"We are delighted to have achieved the first podium for the Silver Arrows here in Malaysia and to be able to share the rewards of our hard work with our title partner Petronas at their home grand prix.

"My compliments to Nico for an assured performance today and over the weekend.

"Michael was in a good position after the start and we were looking forward to having a good race on his side but unfortunately it wasn't to be.

"The car lost a wheel nut which is a problem that we haven't experienced before.

"The wheel nuts are double-checked on the grid so we will investigate and put in place the necessary solutions."

Petronas Lubricants to boost market share

2010-03-16T19:30:00.000-07:00

More products and marketing campaigns in the pipeline

KUALA LUMPUR: Petronas Lubricants International Sdn Bhd aims to be the lubricant market leader in Malaysia in five to 10 years by introducing more high standard lubricant products and having aggressive marketing campaigns, said Petronas Dagangan Bhd lube business division general manager Mohd Shobri A. Bakar.

“Currently, we control about 21% to 22% of the local lubricants market. There are about 30 players in the market and we have to compete with all of them, which will take some time,” he told reporters yesterday after the launch of Petronas Syntium Moto, a synthetic motorcycle engine oil marketed by Petronas Dagangan.

Shobri said there were still growth opportunities in this industry such as in the motorcycle sector and the introduction of the new product would further boost the company’s market share. He was confident Petronas Syntium Moto would be well received by motorcycle enthusiasts locally and internationally.

“With growing demand for the synthetic range and being distinctive from any other lubricant brands, Petronas Lubricants will be well-poised to play a bigger role as a leading producer, manufacturer and distributor of engine oils, both in Malaysia and overseas,” he said.

Petronas Syntium Moto would be marketed to several countries including Indonesia, Thailand, China, Japan, Singapore and India soon.

Petronas Lubricants International marketing strategy and business development general manager Domenico Ciaglia said Petronas Syntium Moto was the result of two years’ hard work in research and development (R&D) and Malaysia was the first country to introduce the new product.

“Our continuous long-term lubricant development programme that produced Petronas Syntium Moto further proves our R&D ingenuity in developing world-class lubricant products,” he said.

Petronas Syntium Moto is currently available at all Petronas service stations and Kedai Mesra outlets nationwide at prices ranging from RM23 to RM88.

Assembly Approves Motion To Take Oil Royalty Issue To Court

2010-03-02T18:46:00.000-08:00

Assembly Approves Motion To Take Oil Royalty Issue To Court

KOTA BAHARU, March 1 (Bernama) -- The state legislative assembly Monday approved the motion to take the oil royalty issue to the court.

The motion, proposed by Abdullah Ya'akub (PAS-Air Lanas) and seconded by backbenchers and several opposition members, was unanimously approved after being debated by five members including Opposition Leader Datuk Mohd Alwi Che Ahmad (BN-Kok Lanas).

State economic development, finance and welfare committee chairman Datuk Husam Musa said the state government would file an injunction against Petronas to stop its operations in Kelantan waters "even if only for two days."

"We know that the two-day (halt in operations) would give a huge impact to the country's economy but this is something that we have to do to claim what is ours," he said.

Meanwhile, the state government called on Petronas to carry out arbitration as a means to resolve the issue apart from going to court.

Husam said the process would give Petronas the opportunity to listen to the basis for the claim and for the national oil corporation to reply to the claim.

"The arbitration should only involve the state government and Petronas, to be presided by an independent chairman, without the presence of representatives from the federal government, Umno or other political parties," he said when winding up the debate on the motion today.

Husam said the state government would not want the federal government or Umno to get involve in the process.

He added that the arbitration process and the court process could be carried out simultaneously.

Kelantan had been demanding the oil royalty and not compassionate payment as proposed by the government.

Kelantan would get RM20 million in compassionate payment for two oil wells found 150 nautical miles from its coast.

-- BERNAMA

MICHAEL CONCLUDES TESTNG ACTION IN JEREZ

2010-02-14T18:23:00.000-08:00

MICHAEL CONCLUDES TESTNG ACTION IN JEREZ
Source : http://www.mercedes-gp.com

The final day of this week’s test in Jerez saw Michael Schumacher back at the wheel of the MGP W01.

The day started slowly with early morning rain leaving the track still very wet for the start of the session. Michael completed a few exploratory laps before returning to the garage to wait for a dry line to emerge.

Michael went back out once the track had dried sufficiently to run on slick tyres and made full use of the remaining track time to further develop the set-up of the car. Michael completed 84 laps over the course of the day setting a quickest time of 1:20.613.

The next test for MERCEDES GP PETRONAS will start in Jerez on Wednesday 17 February.

Michael Schumacher: “We had a good day today to end this week’s test programme. The weather affected us a little in the early part of the day but we were able to use our time very effectively once we could run on dry tyres. We completed everything that we wanted and were able to increase our understanding of the car a step further so overall it’s been positive. It’s very tough to understand the order of the teams just yet as everyone can play so much with the fuel loads. So there is a lot of speculation going on but it’s very interesting!”

Ross Brawn: “It’s been a difficult week weather-wise for all of the teams out in Jerez however we have achieved a significant amount of mileage in both the wet and dry conditions and completed some important test items on our pre-season testing programme. This week has enabled us to increase our understanding of both the car and the tyres and our focus for the final two tests will be to continue to develop the performance of the MGP W01 and ensure the team and our drivers are fully prepared for the first race.”

Concerns for Malaysia’s Petronas after Marican

2010-02-10T18:38:00.000-08:00

Concerns for Malaysia’s Petronas after Marican

By Carola Hoyos in London and Kevin Brown in Singapore
Source : http://www.ft.com/cms/s/0/b5f8625c-15a1-11df-ad7e-00144feab49a.html?nclick_check=1

Malaysia on Tuesday ended the 15-year tenure of the executive who transformed its state-owned energy company from a natural gas exporter into one of the very few sophisticated state-owned oil and gas companies with a broad international presence.

Uncertain circumstances surrounding the replacement of Hassan Marican as chief executive of Petronas have intensified concern that one of the world’s only successful state-owned energy groups – or national oil companies (NOCs) – will suffer at the hands of its own government.

Mr Marican, who was fiercely protective of Petronas’s autonomy, had opposed the board appointment of an important ally of Najib Razak, Malaysia’s prime minister. Mr Marican’s internationalisation of Petronas has resulted in the company sourcing more than a third of its oil and gas from outside Malaysia, whose own production is falling.

Christophe de Margerie, chief executive of Total, which has several partnerships with Petronas, called Mr Marican “an excellent leader,” while Alexander Medvedev, deputy chief executive of Russia’s Gazprom, said he was sad to see such a “high-level executive” leave.

In the dysfunctional world of state-owned oil companies there are very few “excellent” or “high-level” leaders. That lack of leadership has prompted the International Energy Agency, the rich countries’ watchdog, to warn of another possible supply crunch by mid-decade.

Mr Marican contributed to reduce the risk of such a shortage by his relentless search for oil development deals overseas until the final weeks of his tenure.

Late last year Mr Marican struck three deals to tap some of Iraq’s biggest oil fields, adding up to 800,000 barrels of potential production to Petronas’s portfolio.

Petronas has also done well in trickier places – such as Iran and Sudan – where international oil companies fear to tread.

He persuaded Tiaa-Cref, the large US asset manager, to keep its stake in Petronas in spite of misgivings about the company’s impact in Sudan, where the government has been condemned for human rights abuses. Three Chinese companies and an Indian company also involved in Sudan were unwilling or unable to assuage Tiaa-Cref’s concerns and lost its investments.

Petronas’s ability to invest in oil and gas could be curtailed if the Malaysian government were to decide to take a more hands -on approach, analysts and government officials said.

Tony Pua, an MP for the opposition Democratic Action party, said: “The fear is that the wealth of Petronas is now at risk of further plunder by the government.” Petronas amassed a $30bn cash pile in the past decade.

The balance sheet of Malaysia’s finance ministry is not so healthy. The country’s budget deficit reached a 20-year high of 7.4 per cent of gross domestic product in 2009 after the government introduced two fiscal stimulus programmes.

There was no direct government reply to Mr Pua but many Malaysians saw the appointment of Shamsul Azhar Abbas to succeed Mr Marican as chief as a sign that Petronas would remain relatively free of government interference.

Mr Shamsul was previously chief executive of Misc, Petronas’s shipping subsidiary. Robin West, an industry consultant, said changing the policy of allowing Petronas to make decisions with minimal interference would be a disaster. Mr West, chairman of PFC Energy, said Mr Shamsul was capable and experienced. But much of his success will depend on whether he is forced to compete with Malaysia’s prime minister for control of Petronas.

Copyright The Financial Times Limited 2010. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

Petronas must pay royalties: Ku Li

2010-02-07T20:13:00.000-08:00

Petronas must pay royalties: Ku Li

KUALA LUMPUR: Former Petronas chairman Tengku Razaleigh Hamzah continues to insist that the national oil corporation must pay oil royalties to the relevant state governments.

He called on the new Petronas CEO to conduct business according to the law, not the directive of politicians.

Petronas recently announced the appointment of Datuk Shamsul Azhar Abbas as its president and chief executive officer.

“In my opinion, I don’t think they (Petronas) should follow the directions of politicians. They must work in accordance with the law.

“If they find the direction is ill-advised, then they should advise the politicians accordingly so that they will not be forced to do things which are contrary to the provisions of the law and the agreement,” he told reporters at his house here Friday.

He suggested an advisory council be established to advise the Prime Minister and monitor Petronas’ performance.

The Gua Musang MP maintained his stand that state governments were entitled to a 5% royalty for petroleum extracted off their waters -– as there was no provision in law for the disbursement of wang ehsan, a goodwill payment that the Federal Government insisted states such as Kelantan was only qualified for.

Waving a copy of the Petroleum Development Act 1974, he quoted Section 4 of the Act: “In return for the ownership and the rights, powers, liberties and privileges vested in it by virtue of this Act, the Corporation shall make to the Government of the Federation and the Government of any relevant State such cash payment as may be agreed between the parties concerned.”

On calls by certain quarters in Umno for him to step down as MP, the Umno veteran leader said the party might not be able to retain the seat if he did so, and there was the possibility others might follow in stepping down.

On allegations that he had recently given a speech at a gathering organised by the Opposition in Kelantan, Tengku Razaleigh clarified that he had spoken at an event initiated only by non-governmental organisations (NGOs).

“I was invited by a group of NGOs from Kelantan and Terengganu – about 52 of them. I went on the condition of speaking alone,” he said.

He added that everyone was invited to the gathering regardless of their political affiliation.

Shamsul Azhar is new Petronas president and CEO

2010-02-03T19:39:00.000-08:00

Shamsul Azhar is new Petronas president and CEO

PUTRAJAYA: Datuk Shamsul Azhar Abbas has been appointed president and chief executive officer of Petronas effective February 10 2010, Prime Minister Datuk Seri Najib Razak announced today.

He has also been appointed Acting Chairman of the Petronas Board of Directors.

Shamsul Azhar, 57, who served as MISC President and Chief Executive Officer between 2004 and 2009, will replace Tan Sri Mohd Hassan Merican whose contract ends on February 9.

Najib said Shamsul Azhar, who joined Petronas in 1974, has vast experience in the nation's petroleum industry having served in several senior positions, including that of Vice President of Oil Business, Vice President Petrochemicals, Vice President Exploration (Upstream) and Vice President Maritime and Logistics.

"I am confident he is qualified and experienced to bring continued suceess to Petronas," he said.

Najib also thanked Hassan for his invaluable contribution to the nation and petroleum industry having served as Acting Chairman, President and Chief Executive Officer of Petronas since 1995.

Datuk Shamsul Azhar Abbas, the new president and CEO of Petronas effective Feb 10 2010.

Hassan began his career with the national oil company in 1989 as Senior Vice President, Finance, before being appointed President and Chief Executive Officer in 1995 and later also assumed the position of Acting Chairman in 2004.

Najib said during Hassan's tenure at the national oil company, Petronas enjoyed good repute and excellent standing, internationally, and was the only Fortune 500 company in Malaysia.

"He was also instrumental in bringing Petronas to foreign shores, competing side-by-side with international oil giants," added the Prime Minister.

With vast experience behind him, Najib hoped Hassan would continue to contribute his knowledge and experiene to nation building especially in the energy sector.

Shamsul seen as frontrunner for Petronas CEO post

2010-02-02T23:00:00.000-08:00

Shamsul seen as frontrunner for Petronas CEO post

By YAP LENG KUEN (lengkuen@thestar.com.my)

PETALING JAYA: Datuk Shamsul Azhar Abbas, the former managing director of Malaysian International Shipping Corp Bhd (MISC), is believed to be the frontrunner for the post of CEO of national oil corporation Petroliam Nasional Bhd (Petronas).

“He remains the frontrunner but the Prime Minister (who met all three internal candidates last week) has still to make a formal announcement,’’ a source told StarBiz yesterday.

In a report yesterday, the Singapore Business Times said the current president and CEO Tan Sri Hassan Marican’s replacement (should he not be reappointed) was likely to be Shamsul, 57, who retired in January last year from MISC, a Petronas subsidiary and one of the world’s largest oil and gas shippers.

Hassan’s contract ends next week and speculation is gathering steam on whether he would be reappointed to helm Petronas, Malaysia’s only Fortune 500 company that he has headed since 1995.

“For the sake of continuity and for planning purposes, the reappointment of a chief executive of an important Malaysian government-linked company is generally announced way before his contract expires,’’ BT noted.

It is believed, according to sources, that besides considering the post of CEO, Datuk Seri Najib Razak is also considering whether to fill the chairman’s position immediately or later.

Hassan is the acting chairman to the Petronas board, a position he has held since the sudden demise of former chairman Tan Sri Azizan Zainal Abidin in 2004.

Among the senior positions held in Petronas, Shamsul had been vice-president in the petrochemical, oil exploration and production, as well as logistics and maritime businesses.

Since he joined Petronas in 1975, Shamsul had served as executive assistant to Azizan.

The three potential successors that are currently being talked about are Shamsul, Datuk Anuar Ahmad (Petronas Dagangan Bhd chairman) and Datuk Wan Zulkiflee Wan Ariffin (former managing director/CEO of Petronas Gas Bhd from 2003-2007).

Both Anuar, currently vice-president of human resources management, and Wan Zulkiflee, currently vice-president of the gas business, are members of the Petronas board.

Anuar joined Petronas in 1977 and had been a member of the management committee since 1998, having served as head of its international marketing and corporate planning units. Wan Zulkiflee joined Petronas in 1983 as a process engineer and had served as executive assistant to the president.

The Singapore BT noted that under the late Azizan’s leadership, Petronas had transformed itself into a respected global energy player much “copied” by other national oil corporations.

It contributes 45% of government revenue. Last year, Petronas reported RM52.5bil in profit on revenue of RM264.2bil, making it Malaysia’s most profitable company.

“And it is something of an irony that Petronas’ international debt ratings are slightly higher than the Malaysian sovereign,’’ the report said.

Mercedes Sponsorship A Business Decision - Petronas

2010-01-26T20:45:00.000-08:00

Mercedes Sponsorship A Business Decision - Petronas

By: Ramjit

STUTTGART, 26 Jan (Bernama) -- The Mercedes Formula One team sponsorship by Petronas is purely a business decision, said Petronas corporate services vice-president Ahmad Nizam Salleh.He said the package was attractive with the cost much lower than sponsoring other racing teams.Ahmad Nizam said patriotism was not at issue in the sponsorship as the decision was prompted by a sound investment decision that could result in good returns to shareholders.

"The opportunity enable us to meet our business targets. But we will review the sponsorship from year to year for the next five years of the deal," he told reporters after launching a Mercedes GP Petronas' new racing machine here Tuesday.

The deal with Mercedes dealt a blow to Swiss-based Sauber, which is in urgent need of sponsors after the withdrawal of BMW at the end of the season, as well as the new Malaysian-backed Lotus team.Ahmad Nizam said unlike previous F1, the branding exercise now entailed long-term business prospects.He said Mercedes had chosen Mercedes over BMW Sauber, Williams and Lotus based on its vast experience in F1.

Primax 97 for better engine performance

2010-01-21T18:33:00.000-08:00

Primax 97 for better engine performance

PETRONAS recently introduced a newly enhanced RON 97 fuel, Petronas Primax 97, which it says offers motorists more power, better acceleration and fuel economy benefits.
Petronas Primax 97, which replaces the current RON 97 fuel Primax 3, is now available at more than 300 Petronas stations nationwide.

It is formulated with Sinar G07 additive to provide superior engine performance.
Similar to Petronas Primax 95, the new RON 97 fuel is further enhanced with three main active chemicals – friction modifier, combustion improver and fuel detergent.

The friction modifier protects the engine’s components while the combustion improver enhances overall engine efficiency. The fuel detergent cleans and keeps the engine clean to ensure optimum engine performance.

Petronas Primax 97’s performance has been tested and proven at accredited and independent testing facilities.

The vehicle power output and acceleration performance tested at the Proton vehicle testing facility in Shah Alam resulted in up to 3% more power.
Fuel economy performance tested at the Millbrook Testing Centre in the United Kingdom recorded up to 4.9% better fuel economy.

The fuel economy test was based on a Public Road Simulation cycle that represented various driving patterns including highway, urban and extra urban.
Customers can choose to fuel-up according to their vehicle’s minimum RON requirement – Primax 97 for RON 97 or Primax 95 for RON 95 – at Petronas stations nationwide.
Petronas Dagangan Berhad also plans to offer Primax 97 at more service stations in the country, in line with its business expansion plan.

For details, call 1300-88-8181 or log on to http://www.mymesra.com.my/

World's tallest building set to open in Dubai

2010-01-04T00:54:00.001-08:00

World's tallest building set to open in Dubai

By Malcolm Borthwick
Editor, Middle East Business Report, BBC World, Dubai

In recent years Dubai has grabbed the headlines with audacious offshore islands, rotating buildings and a seven star hotel. On Monday it opens the world's tallest building, Burj Dubai.

It's about twice the height of the Empire State Building, you can see its spire from 95km away and the exterior is covered in about 26,000 glass panels, which glisten in the midday desert sun.

The design of the building posed unprecedented technical and logistical challenges, not just because of its height, but also because Dubai is susceptible to high winds and is close to a geological fault line.

"You have the solutions for it but you always wonder how it will really work," Mohamed Ali Alabbar, chairman of Emaar, the developer behind Burj Dubai told the BBC.

"We have been hit with lightning twice, there was a big earthquake last year that came across from Iran, and we have had all types of wind which has hit us when we were building. The results have been good and I salute the designers and professionals who helped build it."

West to East shift

One of the companies behind the Burj was the Canadian-based wind engineering firm RWDI. Extreme wind speeds on the ground in Dubai can reach 50km an hour. At the top of the building it can be three times as fast.

Wayne Boulton, general manager of RWDI's wind engineering team in the Middle East, explains how they tested the building for wind resistance.

"We constructed a scale model and put it in a wind tunnel," he says. "In the wind tunnel we are able to test a number of different wind speeds and directions. We can test the pressure you would get on the surface of the building under normal conditions and also under more extreme events."

Standing at over 800 metres, Burj Dubai has easily smashed the previous world record, Taiwan's Taipei 101, which is 508 metres high. The last couple of decades have seen a shift in the building of skyscrapers from the West to the East. Four out of five of the world's tallest buildings are in Asia and the Middle East.

"It comes down to confidence," says Andrew Charlesworth from property consultants Jones Lang LaSalle. "A lot of these emerging economies see themselves as important players in the world and want to show they can deliver these sort of projects.

"The wealth of the world is shifting from the West to the East and emerging economies want to highlight their future expectations in terms of where they are gong to be positioning themselves globally."

White elephant?

Dubai is a city of superlatives, where everything has to be the biggest and the boldest. But like many of the world's past tallest buildings, Burj Dubai was planned and built during the boom years, and finished during a property crash. The Empire State Building was completed during the Great Depression in the 1930s and the Petronas Towers in Malaysia during the 1990s Asian financial crisis.

This has led many to question whether this latest record breaker is a white elephant. Though Mohamed Ali Alabbar argues it is anything but.

"As of today we have sold 90% of the building and we expect it to be 90%-occupied," he says. "We were lucky to make more than a 10% return. Originally we thought we'd be lucky to break even, because we can make so much money from the land around Burj Dubai which is a 500-acre site."

The fact that the developer has made a profit on its $1.5bn (£928m) investment has been helped by the fact that it bought the land with equity and not cash, and that it pre-sold most of the apartments and offices before the property crash.

Investors have already handed over 80% of the value of the apartments and offices, and will pay the remaining 20% on moving in. And in contrast to many unfinished developments in Dubai, the default rate among investors has been low.

But for investors, it has been a mixed picture. Fortunes have been won and lost on the Dubai property market, which has collapsed in spectacular fashion. Like many properties here, Burj Dubai was sold "off-plan" or before the building was completed. Offices and apartments went on sale in 2004 and most were snapped up by both local and international investors in just two days.

Mohamed Abdul Hadi is one local investor who made millions out of Burj Dubai long before the building was completed. "In 2007 we bought three floors on Burj Dubai," he told the BBC. "The first investor paid 2,500 UAE dirhams ($680; £420) per square foot. We bought at AED 3,500 and one year later we sold at around AED 5,000. Look at the profit, where else can you have this but Dubai? And with no taxes."

Oversupply

But those who invested late will be nursing large losses, according to Saud Masud, a real estate analyst at Swiss investment bank UBS. "Late stage investors may find this a lot more challenging because property prices in Dubai have come down by 50% and we think prices are likely to go down another 30%," he says.

"We have an oversupply in the property market today. We think it will reach 25% to 30% vacancy rates for residential property in a year's time, and for commercial property it's already 40%. Burj Dubai is not immune to that."

During the peak of construction, there were 12,000 workers on site

The landscape of Dubai has changed dramatically over the last two decades. Sheikh Zayed Road is the 12-lane super-highway which runs through the city and is named after the UAE's founding father. Twenty years ago there were just a few tall buildings here, now there are hundreds, all jostling for space. But in the three years that I've been here, the frenzied pace of construction has slowed down and many cranes now stand idle.

Developers are holding back on new multi-billion dollar flagship projects and focusing on finishing existing projects instead. About $190bn worth of Dubai real estate projects are currently on hold, according to Middle East Economic Digest. As in many parts of the world, banks are reluctant to lend and investors are reluctant to spend. Burj Dubai could mark the end of an era for skyscrapers in the Gulf - at least in the short term.