Petronas-Aramco
deal imminent
Hot Stocks Today for BURSA KLSE:
KUALA LUMPUR, February 24, 2017 – Petronas intends to sign a deal
with Saudi Aramco for the Refinery and Petrochemicals Complex in Pengerang this
weekend during a visit from Saudi Arabia's king, Salman Abdulaziz Al-Saud,
Malaysian Prime Minister Datuk Seri Najib Razak said on Friday.
That same day, industry watchers said
Petronas had sent out a prequalification letter to regional shipyards for the
construction of a mobile offshore production unit (MOPU) for the K5 Sour
Gasfield Development.
The MOPU will transport a hull weight
of 11,000 tonnes as well as a topside of 9,000 tonnes. The Malaysian NOC has
given companies two years for construction, with work expected to start in
2018.
Rafizi:
Is Petronas buying more expensive crude oil from Aramco?
Pandan lawmaker
Rafizi Ramli wants to know whether Minister in the Prime Minister's Department
Abdul Rahman Dahlan's intervention in the US$7 billion deal between Petronas
and Saudi Aramco had led to the former paying for more expensive crude oil from
the latter.
The Pandan lawmaker
cited media reports on Saudi Aramco purportedly giving up plans to ink the deal
due to the belief that the project would not generate sufficient revenues.
“This means that one
of the main reasons why there was no agreement between Petronas and Saudi
Aramco before the intervention of (prime minister) Najib (Abdul Razak) and
Abdul Rahman was due to investment returns rate determined by Saudi Aramco
which Petronas did not agree with," he said.
The deal, Rafizi
pointed out, involved Saudi Aramco's agreement to supply crude oil which is the
main substance to be processed at Petronas’ Refinery and Petrochemical
Integrated Development (Rapid) complex in Pengerang, Johor.
This means that
Petronas had agreed to purchase crude oil from Saudi Aramco in the long run for
a price whose formula was determined earlier according to the fluctuation rate
of global crude oil, added Rafizi.
“Usually crude oil
that is purchased from long-term agreements like this involves discounts on
certain rates reduced from the reference rate of Brent crude oil.
“When Abdul Rahman
claimed that he had saved the deal, there's a possibility that Saudi Aramco
managed to obtain Petronas agreement to buy crude oil according to the price
insisted upon by Saudi Aramco."
Such a large-scale
project like Rapid's would mean that Petronas would have to pay billions of
ringgit every year even if it involves the difference of US$1 per barrel.
DRBHCOM
IWCITY
DNEX
AIRASIA
Hot Stocks Today for SGX:
Genting Sing
SingTel
SingPost
OCBC Bank
To get More Updates:
Stock signals, Stock tips, stock Picks, Stocktips Malaysia, bursa malaysia stock signals, klse daily stock signals, KLSE stock picks, KLSE Stock Recommendations, KLSE stock signals, stock market news, stock market update, Stock Picks Malaysia, Stock trading picks,& Stock trading strategy
For More Visit Us: http://www.mmfsolutions.sg Tel- +65-3158-2180 Email- info@mmfsolution.sg
No comments:
Post a Comment