DOCSLIB.ORG

Malaysia Marine Heavy

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Malaysia Marine Heavy BIMB Securities Research 19 October, 2020 A Member of BIMB Holdings Group Share Price RM0.32 (MMHE MK) MALAYSIA MARINE HEAVY ENG. BUY▲ Target Price RM0.42 +31.3% Reducing risk exposure towards cyclical oil projects Price Chart (RM) We think MMHE’s expansion in marine business will reduce its 1.00 risk exposure towards cyclical oil development projects; and we Update Company believe this has been largely overlooked. 0.80 MMHE’s orderbook could be boosted by potential roll-out of 0.60 fabrication jobs, but we remain cautious that it may face further 0.40 delay amidst uncertainties in oil price. We are optimistic that MMHE will return to profitability from 0.20 FY21F onwards driven by structural income growth from new dry Jul-20 Jan-20 Jun-20 Oct-19 Apr-20 Feb-20 Sep-20 Dec-19 Aug-20 Nov-19 Mar-20 dock DD3 beginning 1Q21. May-20 MMHE MK KLCI Index We upgrade MMHE to BUY (from HOLD) with unchanged SOP- Share Performance (%) 1m 3m 12m derived TP of RM0.42, implies FY21F P/B of 0.3x. We see upside Absolute (4.5) (17.9) (64.4) catalysts outweighing downside risk at current price levels vs FBM KLCI (17.9) (14.6) (62.8) Marine segment to drive earnings FY21F onwards Stock Data We reiterate our view that MMHE’s marine business will be the key Mkt Cap (RM) 512.0 Free float (%) 18.4 earnings driver moving forward leveraging on new contribution from Issued shares (m) 1,600.00 its DD3 which is expected to begin commercial operation in 1Q21F. 52w H/L (RM) 0.97 / 0.255 Oil & Oil Gas & 3m avg daily volume (m) 1,277,027 Oil and Gas Oil and With DD3, we think MMHE’s fundamental will be stronger as it will be less dependent on cyclical development projects. Major Shareholders (%) MISC 66.5 Potential roll-out of fabrication works Technip 8.5 Upstream recently reported that Petronas may soon open a tender Urusharta Jamaah 6.6 for fabrication works of about 20 minimum facility platforms under FYE Dec (RM m) FY18 FY19 FY20F FY21F FY22F “Design One, Build Many” initiatives. While this could benefit MMHE Turnover 974 1,010 1,248 1,795 2,120 in near term, we remain cautious as there is no guarantee that EBITDA -47 24 56 92 111 Pretax Profit -112 -40 -26 13 36 Petronas will commit for the project amidst uncertainties in oil price. Core Profit -111 -34 -26 13 36 Notwithstanding, we remain sanguine with MMHE as its orderbook Consensus NP -80.2 16.1 34.2 EPS (sen) -6.9 -2.1 -1.6 0.8 2.3 remains strong at RM2.6bn (as at June 2020) which provides revenue PER (x) -4.6 -15.0 -20.0 38.4 14.0 visibility until 2023. Its tenderbook currently stands at RM12.5bn DPS (sen) 0.0 0.0 0.0 0.0 0.0 which are made up mainly from foreign projects. D. Yield (%) 0.0 0.0 0.0 0.0 0.0 P/B (x) 0.2 0.2 0.2 0.2 0.2 Keep earnings forecast unchanged We maintain our FY20-22F earnings forecast. We expect MMHE to Key Ratios (%) record core loss of RM25m in FY20 before turning to profit of ROE -4.6 -1.4 -1.1 0.6 1.5 RM13m/RM37m in FY21/FY22. This is driven by (i) earnings growth EBITDA margin -4.8 2.4 4.5 5.1 5.2 Pretax margin -11.5 -3.9 -2.1 0.7 1.7 from DD3 and (ii) strong orderbook of RM2.6bn and potential new Net margin -11.4 -3.4 -2.1 0.7 1.7 order from Aramco/windfarm project. To recap, we have assumed Source: Bloomberg, BIMB Securities an annual orderbook replenishment of RM600m/RM1bn in Equity Equity Oil & Oil Gas & FY21F/FY22F. Upgrade to TRADING BUY Upgrade MMHE to BUY (from HOLD) with unchanged TP of RM0.42. Azim Faris Ab Rahim, CFA We like the stock due to (i) its market leadership in local offshore [email protected] (603) 2613 1734 development projects backed by Petronas’ stewardship; (ii) sizable orderbook of RM2.6bn; and (iii) strong balance sheet with net cash position of RM432m or RM0.27/share (as at June 2020). PP16795/03/2013(031743) 1 BIMB Securities Research Company update : MMHE MBU to drive earnings FY21F onwards MMHE’s marine business unit (MBU) segment which undertakes marine repair and FPSO conversion projects has consistently been making profits over FY13-17. Recall that 2018 is an exceptionally weak year as it fell into losses due to cost provision made for an FPSO conversion project (Chart 1). Recovery was then hampered in subsequent years by the delay in LNG drydocking works due to uncertainties with regards to the implementation of IMO2020 clean fuel rule. Chart 1: MBU segment result RM m % 600 40 495 464 500 445 431 30 365 400 323 285 289 20 300 253 10 200 106 84 99 75 0 100 41 23 17 40 0 -10 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20F FY21F -100 -20 -62 Revenue EBITDA EBITDA margin Source: Rystad Energy, BIMB Securities The recurring income from MBU segment provides MMHE with a cushion against the cyclicality of Heavy Engineering Unit (HEU) segment which relies heavily on oil and gas development projects. This leads to the expansion of MBU segment via the construction of new Dry Dock 3 (DD3) which costs c.RM520m. As at 2Q20, the construction of DD3 reached 94% completion. After slight delay in construction works due to restrained movement order amidst the Covid-19 pandemic, DD3 is poised for commercial operation beginning 1Q20. We expect MMHE to secure more work orders moving forward, especially from third-party clients as DD3 will help to reduce bottlenecks at existing drydocks. Currently, DD1 is reserved for MISC drydocking activities hence this virtually leaves DD2 as the sole dry dock for third party jobs. As such, we expect DD3 to provide structural earnings growth to its recurring income from FY21F onwards. We expect this, coupled with normalisation of the drydocking activities following the IMO2020 rule which already came into effect, to underpin MBU as the main driver of MMHE’s earnings moving forward. The roll-out of ‘Design One, Build Many’ to kickstart local projects We think Petronas may sanction low-cost development projects in near-term via the roll-out of ’Design One, Build Many’ (D1BM) initiatives. D1BM is an integrated approach on design standardisation and volume consolidation which targets to reduce the overall development costs, thereby making marginal fields development viable in a low oil price environment. Upstream, an oil and gas news magazine, in May 2020 reported that Petronas has awarded Aker Solutions a contract to provide front-end engineering and design (FEED) service for D1BM initiatives while the tender for construction jobs may be out for bidding in 4Q20. The tender will involve the construction of 20 minimum facility platforms that are required for marginal field development within next 4-5 years. To recap, based on Petronas Activity Outlook 2020-2022, Petronas expects to build 16-29 lightweight wellhead platform (WHP) weighing less than 1,000 tonnes over 2020-2022. A WHP is typically used to house wellheads and equipment and serve as a conduit for a jack- up drilling rig to perform its production drilling activities. We estimate the total contract value for 20 WHPs under D1BM project to be worth at least c.RM1bn based on average cost of RM50m per unit. For comparison, 2 lightweight WHPs (BEDP-A and BEDP-B) and linking bridge that are under construction for Bekok field are worth c.RM150m. PP16795/03/2013(031743) | Page 2 BIMB Securities Research Company update : MMHE Focus remains on projects abroad While there is scarcity in local projects, MMHE continues its effort to reduce its dependency on Petronas’ jobs by pursuing foreign projects. Assuming MMHE can maintain its EBITDA margin of 4-5%, we estimate that it needs a minimum annual revenue of RM1.2-1.5bn to achieve breakeven in HEU segment. Currently, it has a huge chunk of its tenderbook coming from foreign projects. We estimate that bids for foreign projects currently stand at RM10bn, representing 80% of its tenderbook (Chart 2). It is mainly comprised of Saudi Aramco’s contract release purchase order (CRPO) tender bids for projects offshore Saudi as well as offshore windfarm projects in Taiwan. We also expect MMHE to participate in Shell’s Crux gas field development project as a subcontractor to TechnipFMC. Chart 3: Breakdown of MMHE tenderbook (RM bn) 2.5 10.0 Local projects Foreign projects Source: Rystad Energy, BIMB Securities To re-cap, MMHE has signed with Aramco for a 6+6 years long-term offshore agreement which covers the engineering, procurement, fabrication, transportation and installation (EPCI) of offshore facilities offshore Saudi. Amidst oil market turmoil, Aramco is seen to focus on brownfield and offshore maintenance while delay its large-scale capacity expansion and greenfield developments such as for Zuluf, Marjan and Berry fields. Initially the expansion projects are touted to be worth c.USD18bn which could add incremental production of c.1.2m bpd (Marjan: 300,000 bpd, Berri: 250,000 bpd, Zuluf: 600,000 bpd). According to Upstream, Aramco has been spending between USD1.5-2bn per year of offshore maintenance projects as part of LTA agreement. PP16795/03/2013(031743) | Page 3 BIMB Securities Research Company update : MMHE Values re-emerging, BUY Despite poor sentiment over the stock due to low oil price, we opine that the company’s fundamental remains solid with the upcoming DD3 to further enhance its earnings prospect and financial position.
Load more

Recommended publications
  • Offshore References
    Past, Ongoing and Future Projects OFFSHORE Date Contractor Project Number of Welding Stations (vessel if offshore) Country Pipelines welded Operator 2020 COOEC Lingshui 17-2-SCR 6 Saturnax stations (HYS201) China 404 welds 6.625" (18.3 mm) for CNOOC - 2.93 km of SRC lines - 2.00 km of flowline 2020 TechnipFMC Nam Con Son 2 & SVDN 4 Saturnax stations (G1200) Vietnam Nam Con Son 2: for PetroVietnam (PV GAS) 89 km 26" (1.1 mm) SVDN: 22 km 26" (19.1 mm) 1 km 26" (23.8 mm) 22 km 18" (15.9 mm) 1 km 18" (17.5 mm) Total : 11,053 welds 2020 Sapura Offshore Pegaga Dev. Project 2 Saturnax stations (S3000) Malaysia 324 welds 38" (22.2 mm, X65) - 4 km for Sarawak Shell Berhad 2020 Thien Nam Offshore Services Nam Con Son 2 3 Saturnax stations (Tos Ha Long) Vietnam Total of 2,542 welds: for PetroVietnam 29.7 km 26" (19.1 mm) 0.8 km 26" (23.8 mm) 2020 Sapura Offshore Merakes 4 Saturnax stations (S1200) Indonesia Deepwater lines : for ENI Sepinggan 2,685 welds 18" (26.7 mm, X65) - 32.74 km 2,688 welds 18" (26.7 mm, X65) - 32.78 km Shallow water lines : 1,083 welds 18" (26.7 mm, X65) - 13.22 km 1,074 welds 18" (26.7 mm, X65) - 13.11 km 2020 Sapura Energy ENI Amoca 2 4 Saturnax stations (Sapura 3500) Mexico Total of 3,377 welds: for ENI 10.75" (14.33 mm, X60) 12.75" (20.6 mm, X60) 14" (15.9 mm, X60) Sweet service 2020 GSP Offshore Midia 1 Saturnax stations (Bigfoot 1) Romania 9,970 welds 16" (11.9/12.7/14.3 mm, X52) for Black Sea Oil & Gas 1,463 welds 8.625" (12.7 mm, X52) 2020 Sapura Energy Kirinskoye 1 Saturnax + 2 manual stations (Sapura 1200) Russie
    [Show full text]
  • NOVA SCOTIA DEPARTMENTN=== of ENERGY Nova Scotia EXPORT MARKET ANALYSIS
    NOVA SCOTIA DEPARTMENTN=== OF ENERGY Nova Scotia EXPORT MARKET ANALYSIS MARCH 2017 Contents Executive Summary……………………………………………………………………………………………………………………………………….3 Best Prospects Charts…….………………………………………………………………………………….…...……………………………………..6 Angola Country Profile .................................................................................................................................................................... 10 Australia Country Profile ................................................................................................................................................................. 19 Brazil Country Profile ....................................................................................................................................................................... 30 Canada Country Profile ................................................................................................................................................................... 39 China Country Profile ....................................................................................................................................................................... 57 Denmark Country Profile ................................................................................................................................................................ 67 Kazakhstan Country Profile ..........................................................................................................................................................
    [Show full text]
  • Methodology and Specifications Guide Crude Oil Latest Update: January 2019
    Methodology and specifications guide Crude oil Latest update: January 2019 Introduction 2 Part V: Corrections 12 How this methodology statement is organized 2 Part VI: Requests for clarifications of data and Part I: Input data 2 complaints 12 Reporting data to Platts 3 What to report 3 Part VII: Definitions of the trading locations for which How to report 3 Platts publishes daily indexes or assessments 13 MOC data publishing principles 3 North Sea 16 West Africa 23 Part II: Security and confidentiality 7 Urals and Mediterranean 27 Persian Gulf 35 Part III: Determining assessments 8 Asia Pacific 42 MOC price assessment principles 8 United States 52 Normalization price adjustment techniques 8 Canada 57 Prioritizing data 9 Latin America 59 Assessment Calculations 9 Futures Assessments 62 Part IV: Platts editorial standards 12 Revision History 64 www.spglobal.com/platts Methodology and specifications guide Crude oil: January 2019 INTRODUCTION market acceptance for any proposed introduction or changes to where one or more reporting entities submit market data methodology. For more information on the review and approval that constitute a significant proportion of the total data upon Platts methodologies are designed to produce price procedures, please visit: https://www.spglobal.com/platts/en/ which the assessment is based. assessments that are representative of market value, and of the our-methodology/methodology-review-change particular markets to which they relate. Methodology documents ■■ Part IV explains the process for verifying that published prices describe the specifications for various products reflected All Platts methodologies reflect Platts commitment to comply with Platts standards. by Platts assessments, the processes and standards Platts maintaining best practices in price reporting.
    [Show full text]
  • Argus Crude Crude Market Prices and Analysis Issue 10H - 189 Friday 24 September 2010
    www.argusmedia.com Argus Crude Crude market prices and analysis Issue 10H - 189 Friday 24 September 2010 North Sea $/bl Mideast Gulf $/bl Basis Diff Bid Ask +/- Month Basis Diff Bid Ask +/- Dated Nov -0.22 78.70 78.76 +1.18 Dubai Nov 75.18 75.28 +0.40 Brent Dated +0.75 79.45 79.51 +1.18 Oman Nov Dubai swaps -0.59 75.50 75.60 +0.35 Forties Dated +0.13 78.83 78.89 +1.19 Murban Nov Adnoc +0.35 76.95 77.05 +0.39 Oseberg Dated +1.45 80.15 80.21 +1.18 See p10 for all other Mideast Gulf assessments Ekofisk Dated +1.25 79.95 80.01 +1.18 Asia-Pacific $/bl See p4 for all other North Sea assessments Basis Diff Bid Ask +/- Russia-Caspian $/bl Minas ICP +0.90 79.74 79.84 +0.59 Urals NWE Dated -0.65 78.05 78.11 +1.23 Tapis Tapis APPI +5.05 83.46 83.56 +0.62 Urals Med (80kt) Dated -0.55 78.15 78.21 +1.18 Northwest Shelf Dated -2.00 76.68 76.78 +1.18 Azeri Light Dated +2.05 80.75 80.81 +1.18 ESPO Blend Dubai +0.48 75.66 75.76 +0.40 CPC Blend Dated +0.70 79.40 79.46 +1.18 Sokol Dubai swaps +3.60 79.69 79.79 +0.39 See p6 for all other Russia-Caspian assessments See p11 for all other Asia-Pacific assessments US pipeline $/bl Russia-Caspian fob netbacks $/bl Month Basis Diff Price +/- Urals fob Primorsk Dated -1.51 77.19 77.25 +1.23 LLS Oct Oct +5.05 79.88 +0.48 Urals Fob Novo (80kt) Dated -1.52 77.18 77.24 +1.18 Mars Oct Oct +1.24 76.07 +1.41 CPC fob terminal Dated +0.12 78.82 78.88 +1.18 Argus Sour Crude Index (ASCITM) $/bl Azeri fob Supsa Dated +1.21 79.91 79.97 +1.18 Month Basis Diff Price +/- See p6 for all other Russia-Caspian assessments ASCI Oct
    [Show full text]
  • WTI Crude Oil Factsheet
    WTI Crude Oil Factsheet Introduction Crude oil trading Crude oil, also known as petroleum, is the most actively traded commodity in the world. Leading marketplaces are Geneva, London, New York, Chicago and Singapore. Because crude oil serves various production needs as the primary raw material and energy source, it is often referred to as “the black gold”. There are several grades of crude oil with respect to the gravity/density and sulphur content. These are the three primary benchmark grades: . West Texas Intermediate (hereafter “WTI”), also known as “Texas Light Sweet”; . Brent Crude, which is sourced from the North Sea; and . Dubai Crude, extracted from the United Arab Emirates. Other well known blends/grades include the OPEC basket (weight average made up of many blends), Malaysian Crude (known as “Tapis Crude”) and Nigerian Crude (known as “Bonny light”). WTI is recognised as a high grade crude oil and is used primarily in the United States of America, it is also considered worldwide (alongside with Brent) as a benchmark for oil pricing. WTI is a light (low density) and sweet (low sulphur) crude oil thus making it ideal for producing products such as low-sulphur gasoline and low-sulphur diesel. WTI crude oil is refined mostly in the Midwest and Gulf Coast regions of the USA. WTI crude oil is lighter and sweeter than other grades of crude oil (such as Brent for example). This difference in grade quality compared with others, results in WTI being traded with a premium over the others. Oil price is usually quoted per barrel (around 160 litres).
    [Show full text]
  • Download the PDF File
    DWCS RECORD (April 2020) Key data Summary Projects 1004 ROV assisted 423 Diver assisted 398 Surface 183 Platform removals 134 Platform Removals Back-up 6 Pipeline Removals 210 Pipeline Repairs 67 Contingency Projects 87 Number of Cuts 6929 Platforms 2124 Pipelines 1694 Multistrings/Casings 705 Chains/Shackles 238 Flexible and Special Pipelines 637 Drill strings 64 Risers/Guide posts 655 Wrecks & Various items 1453 Fat/Demo Tests 323 Cuts Offshore 6606 Cuts deeper than 1000m water depth 256 Cut surfaces and Time Steel (sqdm) 91066 Coating/Concrete (sqdm) 417693 Total cutting time (hours) 15633 Deepest EPRS Shell USA - 1,600m Deepest CUT Production Scorpion Subsea 6,5” Jumper GOM - 2,745m Deepest CUT Exploration Chevron Texaco 8" Drill pipe Nigeria - 2,434 m DWCS RECORD (April 2020) Projects details Year Assisted Water Customer Project by Depth m Location Details Petronas/Franklin 2020 ROV 68 Offshore/Kemaman/MMA Vigilant Mooring Chain Cutting 2020 ROV 300 Allseas/Norway Cutting of Stud Bolt and Clamp Body Contingency Vattenfall/Global Marine/Dan Tysk 2020 ROV 25 Germany/Global Symphony Dan Tysk Inter Array Cable Replacement Reliance Industries Ltd/McDermott SA/Krishna Godavari Basin, East 2020 ROV 2150 Coast India/DLV2000 and Audacia Reliance KG D6 Project - Contingency Dubai Petroleum- UAE/Boskalis/Offshore Dubai/DSV- 2020 Diver 30 Constructor Riser Cutting Project 2019 Surface --- Shell/PD&MS/North Sea/Brent Alpha Conductors Cuts in air Spirit Energy/Heerema/53FA 2019 ROV 38 Platform North Sea/SSCV THIALF Cutting Truss Frame - F3FA THIALF
    [Show full text]
  • Downstream Petroleum
    DOWNSTREAM PETROLEUM DOWNSTREAM PETROLEUM CONTENTS } AIP mission and objectives } Message from the AIP Chairman } Australian liquid fuel supply and demand } International and Asian refining } Financial performance of AIP Members } Economic contribution of the Industry } Australian refinery competitiveness } National fuel quality standards } Biofuels and alternative fuel } Reducing greenhouse gas emissions } Maintaining supply security and reliability } The international crude oil and product markets } The Australian wholesale fuels market and prices } The Australian retail fuels market } Environment health and safety DOWNSTREAM PETROLEUM AIP MISSION AND OBJECTIVES AIP was formed in 1976 to promote effective dialogue between the oil industry, government and the community. It replaced a number of other organisations such as the Petroleum Information Bureau that had been operating in Australia since the early 1950s. AIP has gained national and worldwide recognition as a key representative body of Australia’s downstream petroleum industry. AIP’s mission is to promote and assist in As well as its policy development and the development of a strong, internationally advocacy role, AIP also runs the Australian competitive Australian downstream Marine Oil Spill Centre (AMOSC) in Geelong petroleum industry, operating safely, and Perth to support oil spill preparedness efficiently, economically, and in harmony with and response by the broader petroleum the environment and community expecations. industry. AIP also manages or sponsors important industry environmental and health Through the active involvement of its member programs, including CRC Care and Health companies, AIP provides responsible and Watch. The Cooperative Research Centre for principled representation of the industry Contamination Assessment and Remediation along with factual and informed discussion of the Environment (CRC CARE) undertakes of downstream petroleum sector issues.
    [Show full text]
  • Ensuring Canadian Access to Oil Markets in the Asia-Pacific Region by Gerry Angevine and Vanadis Oviedo
    Studies in ENERGY POLICY July 2012 Ensuring Canadian Access to Oil Markets in the Asia-Pacific Region by Gerry Angevine and Vanadis Oviedo Key findings Demand for oil products in countries in the Asia-Pacific region is rapidly increasing and crude oil can be sold in those markets at a premium. If Canadian oil producers had access to the US and the Asia-Pacific region, they could secure the best possible return on their investment. This would also reduce the risk that growth in Canadian oil production could be constrained by US opposition inhibiting the construction of new pipelines. Construction and operation of pipelines from Alberta to ports in British Columbia could contribute substantially to GDP, and to employment and income in Alberta, British Columbia, and the rest of Canada. Additionally, the possible price premiums on sales to markets in the Asia-Pacific region would benefit the shareholders of the oil production companies, including many public and private pension funds. Outdated regulatory processes and procedures, First Nations’ opposition, and unwieldy environmental review processes are impeding the timely development of the infrastructure required to transport oil to the west coast and beyond. For Canadians to prosper from environmentally responsible development of the oil sands, the Alberta and British Columbia governments must act quickly, using legal and regulatory reforms, to expedite development of the crude-oil transportation infrastructure needed for access to markets in the Asia-Pacific region. Summary This report provides a comprehensive overview of the outlook for Alberta crude oil and bitumen production and an assessment of the economic attractiveness and feasibility of exporting oil to countries in the Asia-Pacific region instead of solely to markets in the United States.
    [Show full text]
  • RIM Crude Reports Are Copyrighted Publications
    RIM INTELLIGENCE CRUDE 1-17-18,Shinkawa, Chuo-ku,Tokyo,Japan Tel (81)-3-3552-2411, Fax (81)-3-3552-2415 Singapore Tel (65)-6345-9894, Fax (65)-6345-9894 RIM CRUDE INTELLIGENCE DAILY NO.4023 May 06 2011 Copyright (C) 2011 RIM Intelligence Co. All rights reserved. --Tokyo, 16:00 May 06 2011 Notice --Added and dropped items in the RIM crude assessments RIM Intelligence will launch assessments for Qua Iboe, Agbami, Dalia and Zafiro as Physical Crude (Africa), effective from May 23. --Changes in RIM Crude assessments RIM Intelligence will change the benchmark for the following crude grades in Physical Crude (ASIA) to Dated Brent, instead of APPI Tapis, effective from May 16. These grades are Tapis, Labuan、Gippsland、Thevenard、Mutineer Exeter、Varanus、Le Gendre、Nanhai Light. If you have any inquiries, please contact RIM's crude oil team. (Tel: 03-3552-2411, E-Mail, [email protected]). For details, please refer to RIM Website's assessment methodology. (http://www.asia-energylinks.com/method/method.html). TOKYO SPOT CRUDE ASSESSMENTS (06May11) --Cash Crude May Jun Jul Aug Sep WTI - 100.33-100.38 100.87-100.92 101.17-101.22 101.37-101.42 BFO 111.97-112.02 111.86-111.91 111.66-111.71 111.42-111.47 111.08-111.13 Dubai - - 105.97-106.02 105.61-105.66 105.32-105.37 Spreads May Jun Jul Aug Sep WTI/BFO / -11.56/-11.51 -10.82/-10.77 -10.28/-10.23 -9.74/ -9.69 BFO/Dubai / / 5.66/ 5.71 5.78/ 5.83 5.73/ 5.78 Oman/Dubai / / 0.74/ 0.79 0.44/ 0.49 0.39/ 0.44 Intermonth Spreads May/Jun Jun/Jul Jul/Aug Aug/Sep Sep/Oct BFO 0.08/ 0.13 0.17/ 0.22 0.21/ 0.26 0.31/ 0.36 0.43/ 0.48 Dubai / / 0.33/ 0.38 0.26/ 0.31 0.24/ 0.29 Oman* / / -0.02/ 0.02 -0.02/ 0.02 -0.02/ 0.02 *Intermonth spreads of Oman is Premium/discounts to OSP(MOG) --Paper Crude May Jun Jul Aug Sep Dubai 105.97-106.01 105.61-105.65 105.32-105.36 105.05-105.09 104.81-104.85 DME/Dubai 0.73/ 0.81 0.43/ 0.51 0.38/ 0.46 0.38/ 0.46 0.38/ 0.46 Murban swp 4.70/ 4.90 4.75/ 4.95 4.80/ 5.00 / / DTD/Dubai 6.02/ 6.06 5.91/ 5.95 5.96/ 6.00 5.83/ 5.87 5.68/ 5.72 *DME/Dubai is the spread between DME Oman swap and Dubai swap.
    [Show full text]
  • Production and Processing of Sour Crude and Natural Gas - Challenges Due to Increasing Stringent Regulations
    Production and processing of sour crude and natural gas - challenges due to increasing stringent regulations Darkhan Duissenov Petroleum Engineering Submission date: June 2013 Supervisor: Jon Steinar Gudmundsson, IPT Norwegian University of Science and Technology Department of Petroleum Engineering and Applied Geophysics Production and processing of sour crude and natural gas – challenges due to increasing stringent regulations Darkhan Duissenov Petroleum engineering Submission date: June 2013 Supervisor: Jon Steinar Gudmundsson Norwegian University of Science and Technology Faculty of Engineering Science and Technology Department of Petroleum Engineering and Applied Geophysics Trondheim, Norway Abstract The worldwide demand for petroleum is growing tremendously. It is expected that the demand will have incremental capacity of 20 mb/d for crude oil, reaching 107.3 mb/d, and demand for natural gas will rise nearly 50% to 190 tcf in 2035, compared to 130 tcf now. According to the International Energy Agency 70% of crude oil reserves and 40% of natural gas reserves are defined as having high content of organosulfur compounds. Obviously, for decades to come, to satisfy the growing global needs for fossil fuels, reservoirs with sour contaminants will be developed intensively. The sulfur compounds in crude oils and natural gas generally exist in the form of free sulfur, hydrogen sulfide, thiols, sulfides, disulfides, and thiophenes. These compounds can cause considerable technical, environmental, economic, and safety challenges in all segments of petroleum industry, from upstream, through midstream to downstream. Currently, the sulfur level in on-road and off-road gasoline and diesel is limited to 10 and 15 ppm respectively by weight in developed countries of EU and USA, but this trend is now increasingly being adopted in the developing world too.
    [Show full text]
  • Platts Methodology and Specifications Guide
    METHODOLOGY AND SPECIFICATIONS GUIDE CRUDE OIL Latest update: May 2016 INTRODUCTION 2 PART V: CORRECTIONS 13 HOW THIS METHODOLOGY STATEMENT IS ORGANIZED 2 PART VI: REQUESTS FOR CLARIFICATIONS PART I: DATA QUALITY AND DATA SUBMISSION 2 OF DATA AND COMPLAINTS 13 WHAT TO REPORT 3 HOW TO REPORT 3 PART VII: DEFINITIONS OF THE TRADING LOCATIONS MOC DATA PUBLISHING PRINCIPLES 3 FOR WHICH PLATTS PUBLISHES DAILY INDEXES OR ASSESSMENTS 14 PART II: SECURITY AND CONFIDENTIALITY 6 NORTH SEA 16 WEST AFRICA 21 PART III: CALCULATING INDEXES AND URALS & MEDITERRANEAN 24 MAKING ASSESSMENTS 6 PERSIAN GULF 30 ASIA PACIFIC 37 MOC PRICE ASSESSMENT PRINCIPLES 6 UNITED STATES 43 NORMALIZATION PRICE ADJUSTMENT TECHNIQUES 7 CANADA 48 PRIORITIZING DATA 7 LATIN AMERICA 50 ASSESSMENT CALCULATIONS 8 FUTURES ASSESSMENTS 52 PART IV: PLATTS EDITORIAL STANDARDS 13 REVISION HISTORY 54 www.platts.com OIL METHODOLOGY AND SPECIFICATIONS GUIDE CRUDE OIL: MAY 2016 INTRODUCTION ■■ Part I describes what goes into Platts indexes and price values, ■■ Part VII is a list of detailed specifications for the trading locations Platts’ methodologies are designed to produce price assessments including details on what data market participants are expected to and products for which Platts publishes indexes or assessments that are representative of market value, and of the particular submit, the process for submitting data and criteria for timeliness in this commodity. This section describes why specific units of markets to which they relate. Methodology documents describe the of market data submissions. measurement are used, and what conversion factors are used to specifications for various products reflected by Platts’ assessments move between units of measurement, where relevant.
    [Show full text]
  • Malaysia Overview
    Malaysia International energy data and analysis Last Updated: September 29, 2014 (Notes) full report Overview Malaysia is the world's second-largest exporter of liquefied natural gas and the second-largest oil and natural gas producer in Southeast Asia, and is strategically located amid important routes for seaborne energy trade. Malaysia's energy industry is a critical sector of growth for the entire economy, and it makes up almost 20% of the total gross domestic product. New tax and investment incentives, starting in 2010, aim to promote oil and natural gas exploration and development in the country's deepwater and marginal fields as well as promote energy efficiency measures and use of alternative energy sources. These fiscal incentives are part of the country's economic transformation program to leverage its resources and geographic location to be one of Asia's top energy players by 2020. Another key pillar in Malaysia's energy strategy is to become a regional oil and natural gas storage, trading, and development hub that will attract technical expertise and downstream services that can compete in Asia. Malaysia, located within Southeast Asia, has two distinct parts. The western half contains the Peninsular Malaysia, and the eastern half includes the states of Sarawak and Sabah, which share the island of Borneo with Indonesia and Brunei. The country's western coast runs alongside the Strait of Malacca, an important route for the seaborne trade that links the Indian Ocean and the Pacific Ocean. Malaysia's position in the South China Sea exposes the country to various disputes among neighboring countries over competing claims to the sea's resources.
    [Show full text]