Business in Oil and Gas...Good or Bad decision?

I read with interest two interesting news about two conglomerate in Malaysia. Two of which making totally opposite decision of their business venture. Sime Darby without further introduction have decided to move out from oil and gas business which they think too risky for them. I concur with that if they compare between fabrication and plantation. When people ask me this question which one they should buy if they have money, an offshore vessel or land for plantation? my answer is land because it is easy to manage, I admit you need knowledge but you really don't require someone with degree or doctorate to cut the fruit,unlike in o&g, and in plantation you are paying peanut compared to those working in o&g. I really like the quotes made by the current CEO of Sime Darby " we don't want to be in business where we are not in control". In reality o&g contractor always need to kaw tow with oil majors this is what he don't like, I cannot agree more. With the sale of its two fabrication yard in Johor, looks like Sime Darby now have more cash in hand. Good for Sime..it maybe a sad day for o&g industry in Malaysia because another GLC have decided to march out from the industry, they got potential actually but because of the blunder and shoddy work of few bad employer they got no choice but to move out.

The other news that catch my eyes today is the announcement made by Puncak Niaga to enter into o&g business by acquiring shares in Global Offshore Malaysia. It is a good move because I will do the same if I have plenty of money. Further to that potentially they will acquire 100% share from Global Offshore in the near future.That I think not that smart, why? because service like that require years of experience to be developed. Global Offshore are known worldwide brand, why Puncak want to take full control if they can be benefited from technical relationship with Global Offshore globally besides locally we have seasoned players like Sapura/TLO, Alam/Swiber, PBJV etc to challenge them. Buying of DLB 264 from Global is another not so smart move, that pipelay barge is 40 years old...she still can perform no doubt about it ...but you know well enough the oil majors are not so keen to charter old barge, that is the criteria in their technical evaluation, why on earth they choose DLB 264 if they can have brand new barge from TLO, Alam and PBJV why take risk.. cheap..maybe, but safety and delay is important point when they charter a pipe lay barge. I hope I am making wrong observation, otherwise we will hear another public company move out from o&g business in few years time. O&G looks attractive but not so when you are in it. It is no doubt TS Rozali well connected, but that is not justify for this business, how to execute it without fail is the paramount point to be considered. Frankly, this is not concession business, GOOD LUCK Puncak O&G!