Page 8 - AsianOil Week 41 2021

AsianOil SOUTHEAST ASIA AsianOil

Petronas’ Sudanese woes grow

POLICY MALAYSIAN state major Petronas’ legal woes
in Sudan grew this week following the issue of an
arrest warrant for some of its former executives.
The major said on October 13 that Petro-
Dar Operating Co. (PDOC), a joint venture
in which it holds a 40% stake, had hired exter-
nal counsel to pursue the cancellation of a
“wrongful warrant of arrest” issued against its
“former officers” relating to trade union claims
made against PDOC.
Petronas did not provide any further details,
but its comments came after the Daily Sabah
quoted anonymous sources on October 11 as
saying an arrest warrant had been issued against
the company’s country manager.
The arrest warrant comes amid escalating
tensions between the Malaysian and Sudanese
governments after the latter moved to seize land
and assets connected to the Petronas Complex in concerned by the issue. It said: “To date, the
Khartoum. Petronas, however, has stressed that ministry has exerted multiple diplomatic
the two cases are unrelated. efforts to address the issue, including sum-
Sudan’s transitional government seized the moning the Sudanese Charge d’ Affaires to
assets over allegations that Petronas illegally Wisma Putra this morning to convey our
acquired the land during the era of former pres- concern. We will continue to closely monitor
ident Omar Al-Bashir. The former Sudanese developments on the issue in safeguarding
leader was deposed in a 2019 coup, before being Malaysian interests in Sudan.”
subsequently tried and convicted on multiple The ministry also urges the Sudanese govern-
corruption charges. ment to “honour the Bilateral Investment Pro-
Petronas said on October 7 that its rights motion and Protection Treaty in force between
over the land and the Petronas Complex were Malaysia and Sudan”. It also urged Sudan to
obtained in accordance with “rightful applicable observe the “sanctity of diplomatic premises”,
laws”. It added that it had filed a request for arbi- given that the complex houses the Malaysian
tration on the matter at the International Centre Embassy. The ministry added that despite Pet-
for Settlement of Dispute (ICSID). ronas’ decision to initiate arbitration it remained
The Malaysian Foreign Ministry, mean- hopeful for a “timely and amicable resolution of
while, said on October 14 that it was extremely the issue”.™

EAST ASIA

China’s gas imports soar

amid oil delivery slump

POLICY CHINA’S imports of natural gas climbed in tonnes, while oil imports slumped 6.8% y/y to
September to their highest point since the 387.4mn tonnes (10.4mn bpd)
start of the year even as shipments of crude China’s oil imports have slowed this year for a
oil plummeted. mixture of reasons, including mounting invento-
The country imported 10.62mn tonnes of ries, rising international oil prices and the central
piped gas and liquefied natural gas (LNG) last government’s crackdown in April on the illicit
month, 22.6% year on year, according to General trading of crude imports.
Administration of Customs (GAC) data pub- Companies are understood to have drawn
lished on October 13. Oil imports, meanwhile, down their crude inventories in the face of strong
contracted by 15.3% on the year to 41.05mn international oil prices, with the Brent bench-
tonnes (10.03mn barrels per day). mark currently trading at $80-85 per barrel.
In the first nine months of the year, the coun- “China’s ambitions to cool commodity
try’s gas imports climbed 22.2% y/y to 89.85mn prices by drawing on commercial and strategic

P8 www. NEWSBASE .com Week 41 14•October•2021