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Petronas set to raise up to $4.8bn in chemical unit's IPO.
20 December 2010 03:27
article thumbnaiPetronas the state-owned oil and gas group, is on course to raise as much as $4.8 billion from an initial public offering (IPO (Initial Public Offering) The first time a company offers shares of...


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MMHE Awarded Kinabalu Contracts to FO PDF Print E-mail
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Monday, 20 September 2010 05:46

First Oil Engineering win a MMHE Sub Contracts of Kinabalu Non Associated Gas (NAG) Development Project (Phase 1) for Kinabalu Gas Processing Platform B (KNPG-B) MSF and Living Quater Topsides.

The topsides modular deck and jacket of KNPG-B which accommodate main support frame (MSF) includes utility system, potable water system, firewater system, seawater system, cooling water system, nitrogen generation system, metering system, diesel system, hypochlorinator, launcher/receiver, flare system, MSF drilling (wellhead), living quarters and helideck, power generation, production 1 until production 3, Kikeh compression and SOGT compression.

Last Updated on Monday, 20 December 2010 03:15
Petronas set to raise up to $4.8bn in chemical unit's IPO. PDF Print E-mail
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Monday, 20 December 2010 03:27

Petronas the state-owned oil and gas group, is on course to raise as much as $4.8 billion from an initial public offering (IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ) of shares in its newly formed chemicals subsidiary, well over twice the initial market estimate. The prospectus for Petronas Chemicals Group (PCG PCG phonocardiogram. ) confirms that the shares will be priced at between M$4.50 and M$5.20. However, the group has increased the maximum proportion of stock to be sold from 30 per cent to 35.6 per cent. Selling the maximum allotment would raise $4.78 billion, compared with initial estimates for the sale of about $2 billion, although a person with knowledge of the transaction said Petronas might decide to cap the offering at about $4.5 billion. Even the lower figure would make the IPO Malaysia's biggest capital raising, dwarfing the listing of Maxis, the telecommunications group, which raised $3.3 billion in 2009.

Petronas has seen an enthusiastic institutional response to the chemicals offering, which follows closely on the heels of the IPO of a sister company, Malaysia Marine and Heavy Engineering Holdings.

Malaysia Marine raised M$2.03 billion ($656.4 million) in October, with the institutional portion 27 times oversubscribed, partly reflecting a shortage of stock on Bursa Malaysia, which the Petronas offerings are intended to help rectify. Several other Petronas subsidiaries are already listed on Bursa Malaysia, the Kuala Lumpur stock market, including Petronas Gas and KLCC Kuala Lumpur City Centre (Malaysia) Property Holdings.

People close to the company have speculated that the main Petronas group may come to the market eventually, although there are no concrete proposals.

Yusli Mohamed Yusoff, chief executive of Bursa Malaysia, said in an interview in April that an offering of all or part of the main Petronas group was a long term aim. "On my wish list has always been the listing of the whole Petronas group, which I think would transform the capital market landscape of the country, if not the region," Yusli says.

Najib Razak, the Malaysian prime minister, has called for more depth on Bursa Malaysia, although there would be political opposition to a significant dilution of state ownership in the main Petronas group.

Petronas has merged 22 chemicals companies to form the chemicals group.
According to reports, the deals are part of a government initiative to transfer some of the state's strategic assets to the private sector while it is also likely to become one of the biggest IPOs in Malaysia's history.

The 2011 budget, announced on October 15, saw efforts to reinvigorate private investment, intensify human capital development, enhance quality of life and strengthen public service delivery. In effect it was a rallying call for the private sector aimed at keeping up the momentum in the government's current shake-up of the economy, as outlined in the five-year Tenth Malaysia Plan (10MP) unveiled in 2010.

For Petronas, the focus has been on the sales. A term sheet obtained by Reuters in late October showed the IPO will offer a maximum of 2.5 billion shares at a price range of M$4.50 ($1.44) to M$5.20 ($1.68) per share.

At the high end of M$5.20 ($1.68), the IPO will raise $4.2 billion. Meanwhile, MMHE MMHE Malaysia Marine and Heavy Engineering Sdn Bhd
MMHE Munitions Materiel Handling Equipment
, a unit of Malaysia International Shipping Corporation (MISC) made a strong debut on the main market of Bursa Malaysia, opening at M$4.12 per share ($1.32). It later surged to M$4.50 ($1.44), or 70 sen above its institutional offer price of M$3.80 ($1.22). The retail price was M$3.61 ($1.16).

Some 262 million shares were on offer, though MISC had already agreed to sell 128 million to the oil and gas engineering firm Technip for a total price of M$496.6 million ($148.5 million). Around M$2 billion ($598 million) could be raised and it is anticipated that a large slice of these proceeds have been earmarked for a number of projects.

Malaysian newspapers reported in early October that some M$798.8 million ($238.8 million) would go toward the company's yard optimisation programme. This involves improving the capacities of existing yards in order to undertake marine conversions, while also enabling larger vessels to be worked on. Some M$110 million ($39.9 million) is also going to be spent to upgrade the company's Kiyanly shipyard in Turkmenistan.

The IPOs are also good news for the government and its ambitious plans to restructure the economy more generally. Such goals were first outlined in the Government Transformation Programme and the New Economic Model, set out by Prime Minister Najib Tun Razak Dato' Sri Mohd Najib bin Tun Haji Abdul Razak (born July 23, 1953, in Kuala Lipis, Pahang) is a Malaysian politician and has been the country's Deputy Prime Minister since January 7, 2004. earlier this year.

Petronas ... raising $4.8 billion

A more entrepreneurial culture is the aim, with a high tech, knowledge-based economy increasingly the basis of Malaysian business. This is seen as vital to moving the country to the next income level and escaping the 'middle-income trap', which tends to lead to loss of competitiveness and foreign direct investment.

The 2011 budget has also given more clarity to the 10MP's policies. In September, the government announced that it had identified some $444 billion of private sector-led projects that could act as magnates to boost investment.

See: Foreign direct investment
) into Malaysia fell from $7.3 billion in 2008 to $1.4 billion in 2009, illustrating the need to regain lost ground, with the budget regarded a useful tool for this. The budget placed an emphasis on efforts to improve business conditions and spur sustained growth rather than on fiscal consolidation.

The government wishes to move fast on these targets so they will have a positive medium- to long-term impact on the fiscal deficit. In the short term, infrastructure projects outlined in the 10MP will likely keep government spending high.

As the plan unfolds, government spending is set to decline, particularly on operational costs. Subsidies have already been trimmed and are likely to be cut back further, while the introduction of a goods and services tax The Goods and Services Tax is a Value-added tax that exists in a number of countries.

In tandem with this fiscal deficit trimming there will be a surge in private investment, the plan's advocates argue, with the goal of becoming a high-income nation, requiring five to six per cent annual GDP growth over the next decade. According to Najib, this effort will require some M$2.2 trillion ($657.8 billion) of new funds by 2020, with 92 per cent of that expected to come from the private sector.

The budget is a clear attempt to send the right signals to entrepreneurs -- that investing in Malaysia will bring good rewards, but much still rests on Prime Minister Najib's shoulders. PCG may invest $1bn in facility, to decide on ammonia project in FY 2012.

In a related development, PCG may invest up to $1 billion in a greenfield ammonia and urea production facility in Sabah to enhance its profile as a key ammonia and urea producer in South-East Asia, says its top executive. PCG chairman Datuk Wan Zulkiflee Wan Ariffin says the project was currently at a pre-feasibility study phase and PCG would make a final investment decision in financial year 2012.

"We have not sanctioned the project yet and hope to do it by the next financial year, with a targeted commissioning date in 2015 /2016. The investment for the facility will be between $900million and $1billion," he told reporters after PCG's prospectus launch.

Proceeds from the IPO may be used for this facility as well as a greenfield project to develop an integrated refinery and petrochemicals complex in Peninsular Malaysia.

PCG could potentially raise gross proceeds of M$3.54billion from the issuance of 700 million new shares at a retail price of M$5.05. From the M$3.54billion, 63.3 per cent would be used to expand PCG's business and synergistic growth acquisitions within five years.

The company would issue a total of 2.48 billion shares under its IPO, of which 1.78 billion would be existing shares and 700 million would be new. The retail price is M$5.05 while the institutional price would be determined through a bookbuilding exercise.

The gross proceeds of M$8.99 billion from the existing 1.78 billion shares would go back into Petronas' coffers and be utilised by the group for capital expenditure, says Petronas executive vice-president for finance Datuk George Ratilal. PCG's two cornerstone investors, the Employees Providnt Fund and Kumpulan Wang Persaraan, would take up 445 million shares, or 18 per cent, of the 2.48 billion shares offered under its IPO. Wan Zulkiflee said the company was on the start of an up-cycle that would continue until 2015 and that PCG was more focus on captive markets and pushing towards differentiated and specialised products.

PCG has a total of 22 companies producing a wide range of petrochemical products such as olefins, polymers, fertilisers and methanol. The petrochemical industry has generated some $3 trillion in revenue globally last year and is expected to grow at an average of 4.9 per cent from 2010 to 2015.

Deputy Prime Minister Tan Sri Muhyiddin Yassin said in a speech at the prospectus launch that the Petronas group could collectively account for over 10 per cent of Bursa Malaysia's total market capitalisation and over 16 per cent of the Malaysia's total market capitalisation and over 16 per cent of the FTSE Bursa Malaysia KL Composite Index.

A company that specializes in index calculation. Although not part of a stock exchange, co-owners include the London Stock Exchange and the Financial Times.

"The listing (by PCG) is expected to be one of the largest ever undertaken in South-East Asia and will contribute significantly to the expansion of Malaysia's capital markets by increasing the liquidity needed to fuel economic growth," he says.

Muhyiddin said that government-linked investment companies were to divest their shareholdings in major companies listed on the stock exchange as a way to increase liquidity and trading velocity in the market.

Last Updated on Monday, 20 December 2010 03:41
Gemusut HSE Award PDF Print E-mail
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Sunday, 11 April 2010 05:43

First Oil Engineering Sdn Bhd achieved an excellent "BEST CONTRACTOR SAFETY PERFORMANCE 2009" for Gemusut Kakap Management Award from Malaysia Marine and Heavy Engineering (MMHE) Sdn Bhd. This is one of the best safety performance for First Oil Enginneering.

Last Updated on Sunday, 11 April 2010 05:50
Asia's Biggest Oil and Gas Show PDF Print E-mail
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Monday, 20 September 2010 05:21


OGA, Asia's biggest oil and gas event will return for another record breaking edition from 1-3 June 2011.

OGA 2011 will provide an unrivalled opportunity for the global oil and gas community to converge in Kuala Lumpur for 3 days to exchange ideas, network and discuss business opportunities.

With the 2009 event attracting 1,337 exhibitors from 49 countries and 21, 787 visitors from 57 countries, OGA represents the most international platform in the region for companies looking to do business in this dynamic industry sector. National Governments also recognise the importance of OGA as a business platform and in 2009 we enjoyed hosting pavilions from Australia, Austria, Belgium, Denmark, Germany, Italy, Norway, The Netherlands, United Kingdom and United States of America.
Last Updated on Monday, 20 September 2010 05:25
SHELL 12 life-saving rules PDF Print E-mail
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Sunday, 11 April 2010 05:19

. Work with a valid work permit when required
. Conduct gas tests when required
. Verify isolation before work begins and use the specified life protecting equipment
. Obtain authorisation before entering a confined space
. Obtain authorisation before overriding or disabling safety critical equipment
. Protect yourself against a fall when working at height
. Do not walk under a suspended load
. Do not smoke outside designated smoking areas
. No alcohol or drugs while working or driving
. While driving, do not use your phone and do not exceed speed limits
. Wear your seat belt
. Follow prescribed Journey Management Plan

12 rules

Last Updated on Tuesday, 13 April 2010 01:09
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