Outlook for oil and gas industry challenging, says Petronas

KUALA LUMPUR, Dec 13 — The outlook for the oil and gas industry remains challenging amid geopolitical upheavals, prolonged trade tensions, and a global economic slowdown resulting in demand disruptions, Petronas vice president for group procurement Liza Mustapha said.

“The challenging landscape would require Petronas and all its partners to continue to be conscious in managing costs, implement activity levelling to sustain offshore activities and pursue innovative solutions to unlock value in our supply chain,” she said in the Petronas Activity Outlook (PAO) 2020-2022 report today.

She said while managing costs may have its limits, Petronas must focus its efforts on, among others, technological advancements and digitalisation of processes which will bring bigger benefits over a longer horizon in enhancing competitiveness and ultimately resiliency to weather any storm that comes its way.

Petronas foresees a steady outlook for drilling, production support, marine vessels and decommissioning activities. “Steady outlook can be expected for decommissioning projects as 44 per cent of facilities in Malaysian waters are operating beyond design life,” PAO said.

The abundance of investment opportunities in Malaysian waters with a portfolio of projects coming onstream in the future depicts a healthy outlook, it said.

For downstream, there is a positive outlook for turnaround and maintenance activities.

This year, it said, Petronas is sharing contracts covering a broader spectrum of jobs with sizeable values for large players as well as small and medium enterprises (SMEs).

As many of these contracts are due for re-tendering in the period of 2020-2022, this would be an opportune time for players to strategise on resources, new technology offerings, and strategic partnerships.

On other developments, PAO noted that the oil price in 2019 has fluctuated from a daily low of US$53 per barrel (US$1 = RM4.15) to a high of US$75 per barrel (as at November 2019) yielding an average of US$64 per barrel compared with the average of US$71 per barrel in 2018.

It said robust supply coming from non-Opec (Organisation of the Petroleum Exporting Countries) producers, predominantly from the United States (US), has caused a build-up in oil inventory.

The US, currently the largest producer of crude oil, is targeting to be a net energy exporter by 2020.

In addition, there are other projects being ramped up in Canada, Brazil, Guyana, and Norway.

The International Energy Agency (IEA), in its November 2019 report, indicated that non-Opec production is expected to continue to grow, adding 2.3 million barrels per day of oil supply in 2020. — Bernama

Edgedaily, MMail, Star, And Other IBs might have their interpretations

BUT CALVIN STUDY THE NUMBERS

And these are the numbers

 “Steady outlook can be expected for decommissioning projects as 44 per cent of facilities in Malaysian waters are operating beyond design life,” PAO said.

 

44% OF PETRONAS OIL & GAS WELLS ARE OPERATING BEYOND DESIGN LIFE

 

PETRANAS HAS ABOUT 350 OIL WELLS & GAS WELLS

44% MEANS 154 OIL WELLS OR GAS WELLS

EACH ONE IS AS BIG AS A SELF CONTAINED CITY

AND BOTH T7 GLOBAL & VELESTO WERE APPOINTED FOR WELL INTERVENTION, WORKOVER AND DECOMMISSIONING WORKS FOR 5 LONG YEARS

2019

2020

2021

2022

2023 (ONLY T7 GLOBAL & DESTINI WON 5 YEAR LONG JOB AWARDS)

See

 OTHERS T7 Global Berhad ("the Company" or "T7 Global") - Letter of Award for the provision of integrated well services for intervention, workover and abandonment for petroleum arrangement contractors from PETRONAS Carigali Sdn Bhd.

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/233896.jsp

The workover begins by killing the well then removing the wellhead and possibly the flow line, then installing a B.O.P commonly known as a blowout preventer, then lifting the tubing hanger from the casing head, thus beginning to pull the completion out of the well. The string will almost always be fixed in place by at least one production packer. If the packer is retrievable it can be released easily enough and pulled out with the completion string. If it is permanent, then it is common to cut the tubing just above it and pull out the upper portion of the string. If necessary, the packer and the tubing left in hole can be milled out, though more commonly, the new completion will make use of it by setting a new packer just above it and running new tubing down to the top of the old.

Workovers on casing
Although less exposed to wellbore fluids, casing strings too have been known to lose integrity. On occasion, it may be deemed economical to pull and replace it. Because casing strings are cemented in place, this is significantly more difficult and expensive than replacing the completion string. If in some instances the casing cannot be removed from the well, it may be necessary to sidetrack the offending area and recomplete, also an expensive process. For all but the most productive well, replacing casing would never be economical.


Read again

Workovers rank among the most complex, difficult and expensive types of wellwork

. If in some instances the casing cannot be removed from the well, it may be necessary to sidetrack the offending area and recomplete, also an expensive process


FOR THE NEXT 5 YEARS T7 GLOBAL IS GIVEN UMBRELLA PROJECTS OVER MORE THAN 350 PETRONAS OIL AND GAS WELLS WORKOVER SERVICES WHICH COMMAND HIGH PROFITS JUST LIKE PENERGY, VELESTO & DAYANG

 

See this 
https://www.youtube.com/watch?v=0IsAq_tf0mU

 

DIRECTORS KNOWING FULL WELL GREAT PROSPECTS ARE BUYING

TAN SRI DATUK SERI TAN KEAN SOON	12-Dec-2019	Acquired	115,000	0.460
TAN SRI DATUK SERI TAN KEAN SOON	11-Dec-2019	Acquired	58,000	0.460
TAN SRI DATUK SERI TAN KEAN SOON	10-Dec-2019	Acquired	140,000	0.460
TAN SRI DATUK SERI TAN KEAN SOON	20-Sep-2019	Acquired	55,000	0.455
TAN SRI DATUK SERI TAN KEAN SOON	19-Sep-2019	Acquired	25,000	0.460
TAN SRI DATUK SERI TAN KEAN SOON	18-Sep-2019	Acquired	78,000	0.460
TAN SRI DATUK SERI TAN KEAN SOON	17-Sep-2019	Acquired	153,000	0.470
TAN SRI DATUK SERI TAN KEAN SOON	13-Sep-2019	Acquired	79,000	0.455
TAN SRI DATUK SERI TAN KEAN SOON	10-Sep-2019	Acquired	204,000	0.460
TAN SRI DATUK SERI TAN KEAN SOON	06-Sep-2019	Acquired	47,000	0.460
TAN SRI DATUK SERI TAN KEAN SOON	05-Sep-2019	Acquired	144,000	0.460
DATUK SERI DR. NIK NORZRUL THANI BIN N. HASSAN THANI	29-Aug-2019	Acquired	5,000	0.465
TAN SRI DATUK SERI TAN KEAN SOON	29-Aug-2019	Acquired	119,000	0.464
TAN SRI DATUK SERI TAN KEAN SOON	22-Jul-2019	Acquired	14,000	0.500

 

 

YES!

 

T7 Global is now 47 sen

Calvin has a one year target price for T7 Global at Rm1.00 and for Destini 50 sen

 

Kindest regards

 

Calvin Tan Research

Singapore

 

Pls buy or sell after doing your own due diligence