Page 5 - AsianOil Week 44 2020

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cubic metres) per day from the field when it bid can maintain development activity and
for the licence two years ago. As such, the gov- production,” Wood Mackenzie’s Asia-Pa-
ernment had been counting on a smooth transi- cific research director, Andrew Harwood,
tion of operatorship. told Japanese financial daily the Nikkei in
PTTEP, however, is confident that the mid-October. “Any interruption in drilling
disputed site will not affect its gas produc- or investment can lead to a drop in output,
tion target for 2022, The Bangkok Post cited which can be especially challenging to turn
senior vice-president Chanamas Sasnanand around for mature developments.”
as saying on November 3. Observers are IHS Markit analyst Jacqueline Tao, mean-
not as upbeat: “Reaching agreement on the while, warned that the dispute could result in
transition plan is crucial to allow PTTEP “steeper-than-expected” production declines at
to begin investing in the project so they the field once PTTEP takes over operations.™

Petronas boosts government dividend

POLICY MALAYSIA’S state-owned Petronas has Mohamed said in a written parliamentary
increased its 2020 dividend payment to the gov- reply on November 3 that Petronas had orig-
ernment by almost a third as the coronavirus inally intended to pay $24bn this year, but the
(COVID-19) pandemic puts mounting strain company’s finances had been squeezed by the
on the national budget. economic downturn. Petronas posted MYR21bn
The national oil company (NOC) said on ($5.04bn) net loss in the March-June period, its
November 4 that it had approved an additional first quarterly loss in nearly five years.
payment of MYR10bn ($2.4bn), just a day Mohamed said the government expected reve-
after Minister for Economic Affairs Mustapa nue from the oil and gas sector to fall by MYR6bn
Mohamed said the company would pay ($1.44bn) on account of the retreat in international
MYR34bn ($8.16bn). crude prices. The government is due to present its
Petronas said the dividend increase was budget for 2021 on November 6.
in response to “the unprecedented challenges While Petronas moved to shore up the coun-
brought about by the COVID-19 pandemic”. It try’s battered finances it also announced a major
added that it had paid the amount outlined at the shift in operational focus, pledging to achieve
start of the week and that it intended to pay the net-zero emissions by 2050.
remainder before the end of the month. “We are making this commitment to make
“In determining whether this additional a positive change – not only to ride the energy
dividend was affordable, the Petronas board transition – but because a fundamental shift is
first satisfied itself that the company could needed and the organisation wants to be part of
comfortably continue to fund its operations, the solution, for the world that yearns for a path
service its debts and meet its obligations as towards a more sustainable future,” CEO Tengku
well as invest in its future growth,” the com- Muhammad Taufik said on November 3.
pany told Reuters. “Petronas remains resolute The company intends to optimise its hydro-
in its efforts to preserve cash and strengthen carbon efficiency, employ more low-carbon and
our financial resilience during this unprece- renewables-based solutions and advance emission
dented time.” reduction technologies to achieve its 2050 target.™

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