Bila cakap pandang la belakang

I do not want to write about my industry today, rather talking about our fear about "terrorist". Few days ago one of the Airasia flight could not take off from KLIA because one of her cabin crew heard one of the passenger utter these words.." Ada bom ke?"...after she heard those words and reported to the Captain who decided to abort their plan. So, you see how scared we are these days.

So what is the lesson learnt from this event?...if you are kuih supplier you can forget about supplying "Kuih Bom" to Airasia or any other airlines.

Are we seeing more O&G Player "Gulung Tikar" (Winding Up)

Few days ago I came across news that Swiber is winding up...what a surprise. They are one of the service companies that was well respected in the services that they are in. Are we seeing more casualties soon, if the oil price stays like now.

Based on my observation, I am expecting few more companies are heading towards the same directions. Why? because I believe all reserved being used this year, so there will no more money to spend. I hope I am wrong because I want to see this industry flourish back to what it used to be.

Oil and Gas - where are you heading man?

Suddenly I remembered that I have this blog and was not attended to it for a very long time. Probably because I am busy on making end meets. Anyway, as normal I am talking about Oil and Gas, some people is asking me where is this industry is going man?, well to tll you the truth I am also not sure, but one thing for sure it is no longer a sexy industry that everynoe after. 

Diversified! is the new burst words! no more dependent on Oil and Gas business. But what I can say is that we are going through the stabalisation process. Before the oil price dipping to all time low, the cost of doing business for this industry is becoming too high as if nothing can control it. But after the effect we can see suddenly cost of doing business becoming so cheap (compered to the standard prior price tumble), in a way it is good because in my opinion the cost reaching so high not because of demand but mainly speculation. 

It is no doubt along the way so many will suffered or got killed, but somehow it is good because only those with experience and true blue oil players can survive this wave leaving the rest out of the game. I foresee we are not seeing huge suffering as yet, the real situation is yet to come which I am expecting going to happen next year because most of the company has used up their reserve to survive this year. 

I hope I have better luck to survive thi difficult period.

Talisman new PSC

Talisman getting new PSC at Kinabalu field. The signing of this PSC is under the new Progressive volume base (PVB) contract, this term sounds very new to most of the people but I believe this new formula will make extracting oil from existing field will be more attractive. It was quoted that around USD 1 billion willl be spent for this new venture.

So let expect more job for  local contractors from Talisman.

O&G Malaysia -Petrofac

Looks like Petrofac really going big and active in Malaysia. I really hope that more job are online for Malaysian companies to take the opportunity, which we should. Today The Star announced that Petrofac was awarded with big contract from Petronas for a rejunevation job, I should also seriously looking at making more friends in Petrofac. 

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LONDON – Petrofac has started modification and upgrade works to the FPF5 mobile operating production unit (ex-Ocean Legend).

This is in preparation for deployment on the West Desaru fault block, the third phase of development on block PM304 offshore Peninsular Malaysia. First oil is expected in late 2012.

On the Berantai risk service contract for Petronas, again in Malaysia, Petrofac is drilling ahead. Modification and upgrade of the FPSO Berantai should be completed by mid-year, followed by first gas in 3Q 2012.

Green In Shipping

I am not being active writing for the last couple of month...eventhough in my previous post I have promised myself to write more especially in the subject related to my day to day work/business. Let see how many post that I can clock this year.

Green is the way forward now in all industry including shipping, it is seem sexy that everyone now are so concern about our environment..that is really good. Shipping as consider one of the culprit that added up to polluted air of the world. Steps have been taken by the maritime organisation by focusing to make ship float on the world ocean are now produce less nox and sox to the air. Frankly, the truth is polluted air generate from shipping only contribute about 6% of the no and sox, compare to aviation industry that release probably around 30% of polluted air. The percentage is by comparing mode of transportation.

One new effort that I saw today in one of the maritime bulletin is that those ship that comply to reduce air pollution from ship up and above the index set by IMO will be benefited from some rebate by the port, one of it is the port of Los Angeles. In a short while I presumed other major ports such as Singapore and Malaysia major ports will follow suit.

AJ- Putra Heights

 Port Works with International Association of Ports & Harbors, Plans to Launch Environmental Ship Index on July 1

The Port of Los Angeles became the first seaport in North America and the Pacific Rim to adopt an international clean air program that rewards ocean carriers for bringing their newest and cleanest vessels to the Port. The Los Angeles Board of Harbor Commissioners formally approved an Environmental Ship Index (ESI) program to take effect July 1.

The ESI is a web-based tool developed by the World Ports Climate Initiative (WPCI), a project of the International Association of Ports and Harbors (IAPH). TheESI program, already underway at several major European ports, offers immediate and significant clean air benefits by rewarding vessel operators for voluntary engine, fuel and technology enhancements that reduce emissions from ships beyond the regulatory environmental standards set by the International Maritime Organization (IMO).

Ship emissions are the single-largest source of air pollution from port-related operations. While diesel particulate matter (DPM) and sulfur oxide (SOx) emissions from ships calling at the Port of Los Angeles decreased 68 percent and 74 percent, respectively, between 2005 and 2010, Los Angeles sees the ESI as another strong step to encourage the building and deployment of cleaner-burning ships in the TransPacific trade lane.

“We are proud to introduce this win-win strategy to North America and the Pacific Rim,” said Los Angeles Mayor Antonio Villaraigosa. “Today’s action shows our city continues to build on its commitment to think globally, act locally.”

“The ESI sets the gold standard for green shipping and we encourage other ports to follow suit,” said Port Executive Director Geraldine Knatz Ph.D. “The larger success of this program lies in its adoption by as many ports as possible to increase the rewards for operators willing to invest in clean air and maximize the health benefits for everyone.”

Under Knatz, who chairs the WPCI and is the current president of IAPH, the Port of Los Angeles has been instrumental in developing the global index. Like other WPCI programs aimed at reducing vessel pollution and greenhouse gases and promoting sustainable practices, the ESI can be tailored to fit a port’s operational and regional requirements. Fourteen European ports have adopted the program.

The Port of Los Angeles developed its ESI with input from the Pacific Merchant Shipping Association and other stakeholders. Its program also conforms to the San Pedro Bay Clean Ports Air Action Plan, which sets specific bay-wide targets for near-term pollution reduction through 2014 and long-term objectives through 2023.

Specifically, operators whose vessels call at the Port can earn an incentive ranging from $250 to $5,250 per ship call by meeting one or all of the following three requirements:

• Scoring 30 or more ESI points based on a vessel’s engine specifications and emissions certification; use of low sulfur fuel, plug-in ready on-board shore power technology, and a Ship Energy Efficiency Management Plan (SEEMP).
• Deploying ships with a Tier II or Tier III engine to the Port of Los Angeles.
• Participating in a demonstration program to test and improve vessel emission reduction technology.

USGS Satellite picture of a portion of the Port of Los Angeles, including Pier 400, Reservation Point, and port facilities in San Pedro

Incentives will be paid on a quarterly basis, with the first distribution scheduled for October 2012. For the first sixth months of the program, ships can qualify for the first incentive with a score of 25 points. The lower introductory threshold is intended to encourage early participation and help operators familiarize themselves with the ESI website and reporting requirements.
              
CLICK HERE FOR ESI FACT SHEET

To participate, operators must enroll their companies and vessels in the ESI program through the IAPH/WPCI website here. Registration prior to July 1 is encouraged. To receive the incentive payment, operators must also register with the Port of Los Angeles here.  Registration is free.

Initially, up to 30 percent of the ships calling at the Port are expected to qualify for the ESI incentives. Thirty percent participation would cut diesel particulate matter (DPM) emissions by 16 tons within the first year and reduce emissions of other primary pollutants, namely nitrogen oxides (NOx), sulfur oxides (SOx) and carbon dioxide (CO2). The Port has committed $450,000 to jumpstart the program.

The Port of Los Angeles’ ESI program is also an opportunity for vessel operators to get ahead of more stringent environmental requirements before they become mandatory. On Jan. 1, 2014, statewide clean air regulations will require ships operating within 24 nautical miles of the California coastline to use fuel with a reduced sulfur content limited to 0.1 percent or less.

Under an Emissions Control Area established by international agreement, the same standard will take effect throughout North America on Jan. 1, 2015. As these requirements take effect, the Port will encourage ocean carriers to continue to reduce vessel emissions by raising the bar to qualify for its ESI incentives.

The Port will hold an informational ESI workshop for shipping lines in June. The new program follows the Port’s highly successful Vessel Speed Reduction Program, whose voluntary compliance today exceeds 92 percent within 20 miles of the Port and 70 percent within 40 miles of the Port.

Source: The Port of Los Angeles

Lundin begins drilling Batu Hitam offshore Malaysia

Looks like Lundin is coming back very seriously in Malaysia. Below articles from Penn Energy.

August 19, 2011

Source: Lundin

Lundin Petroleum (TSX:LUP) has commenced the drilling of the Batu Hitam prospect located in Block PM308A, offshore the east coast of Peninsular Malaysia.

The Batu Hitam-1 well will test the hydrocarbon potential of a large basement high structure located in the east of the PM308A block. The objectives of the well are Oligocene sandstones in a four-way dip closure and fractured pre-Tertiary basement in the underlying horst block.

The planned total depth is 2,450 meters subsea, and the well will be drilled using the jack-up drilling rig Offshore Courageous. The well is expected to take approximately 40 days.

Lundin Petroleum operates and holds 35 percent interest in PM308A through its subsidiary Lundin Malaysia BV. Partners in PM308A are JX Nippon with 40 percent interest and Petronas with 25 percent.

Lundin Malaysia BV operates six Blocks in Malaysia, namely PM308A, PM308B, PM307, SB303, SB307 and SB308.