Page 6 - AsianOil Week 03

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change, which saw Pertamina buy 147mn bar- rels (around 403,000 barrels per day) of crude oil from 43 local producers in 2019, helped to shrink the company’s oil imports from 339,000 bpd in 2018 to 212,000 bpd in 2019.
Indonesian President Joko Widodo then overhauled Pertamina’s management struc- ture in November, appointing former Jakarta governor Basuki Tjahaja Purnama as president commissioner of the oil and gas company. State- Owned Enterprises Minister Erick Thohir said at the time that Purnama could help the company’s board reduce oil and gas imports.
Despite the push for greater reliance on domestic supplies, the reality is that Indonesian
oil production is in steady decline. The chairman of upstream regulator SKK Migas, Dwi Soetjipto, told reporters on January 9 that production might only reach 705,000 bpd in 2020, down from the 746,000 bpd and 772,000 bpd produced in 2019 and 2018 respectively.
While its import volumes have been limited this year, Pertamina revealed in December that it intended to more than triple its deliveries of US oil in order to capitalise on competitive pric- ing. Pertamina’s senior vice-president of supply chain, Hasto Wibowo, said at the time that the company would import 4.75mn barrels of US oil between February and June, up from the 1.3mn barrels purchased in 2019.™
Petronas permits THHE to bid for some service contracts
PROJECTS & COMPANIES
MALAYSIA’S state-owned Petronas has allowed locally owned service provider TH Heavy Engi- neering (THHE) to resume bidding for some contracts following a nearly four-year ban on participation.
THHE said on January 14 that its wholly owned unit THHE Fabricators Sdn Bhd (TFSB) had won a three-year licence to bid for topside piping and structural maintenance work, major fabrication of offshore facilities as well as work relating to tanks and tank farms.
The state major’s upstream unit, Petronas Carigali, barred TFSB from participating in ten- ders for two years in April 2016, following a per- formance review of the service provider. THHE said in a stock exchange filing at the time that the suspension related to TFSB’s handling of the procurement, construction and commission- ing (PCC) of the KNPG-B Topside PH II at the Kinabalu non-associated gas (NAG) project. It said it would appeal against the decision owing to the fact that 91% of the project’s onshore con- struction had been completed.
THHE revealed in October 2017, how- ever, that it had received another letter from Petronas four months earlier that once again excluded TFSB from bidding on contracts across a swathe of segments that included main contractor, major fabrication as well as PCC work.
The partial removal of the ban is good news for THHE, which has seen its share value tum- ble in recent years in response to its precarious financial position.
THHE was due to submit a restructuring plan to Bursa Malaysia on October 26, which would have allowed it to exit Practice Note 17 (PN17) status. THHE had racked up MYR697.07mn ($131.4mn) in losses as of June 30, 2019. It is not clear, however, whether the company submit- ted its plan to Bursa Malaysia or if the market extended the deadline.
Morning trading on January 15 saw the com- pany’s share price rise 25% on the back of the Pet- ronas award, lifting the service provider’s market capitalisation to MYR140.17mn ($26.4mn).™
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w w w. N E W S B A S E . c o m Week 03 22•January•2020