Petronas’ big bet in the Americas

[Tom Kirkman + 8,860]

And here is a refreshing changeup from the usual rollercoaster oil news.  A view of longer term approach, rather than the short term ups and downs of a crazy and fickle oil market.

Petronas, the National Oil Company of Malaysia, was featured in the weekly cover story of The Edge Markets, one of the more independent newspapers here in Malaysia.

For those of you in Canada and the U.S., this feature article may be a much different viewpoint than the typical American-centric news.  Worth reading the whole article, as an antidote to the wild gesticulations of short term thinking in the media.

Cover Story: Petronas’ big bet in the Americas

Petronas, says president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin, is in a position to develop upstream assets secured over the last few years.

The Americas — Canada, Mexico and Argentina — could be Petronas’ new frontier, on top of other upcoming upstream oil and gas (O&G) projects in Oman and Gabon.

“It so happens that the reserves are there, the market is there, so we took the long-term view that those are the areas that we should be in,” Wan Zulkiflee says in an interview with The Edge.

In light of this, Petronas’ overseas capex over the next five years may increase slightly in the medium term, from its traditional 60:40 ratio for domestic and overseas capex allocation. 

... It is embarking on a three-pronged strategy: maximising cash generation; extending its value chain; and stepping out into new ventures such as renewables and specialty chemicals, as well as building new capabilities, among which is monetising “unconventional” hydrocarbon resources.

[DanilKa + 443]

understand drivers (failure to find reserves at home) but does Petronas have experience to work in deepwater pre-salt?

[Tom Kirkman + 8,860]

5 minutes ago, DanilKa said:

understand drivers (failure to find reserves at home) but does Petronas have experience to work in deepwater pre-salt?

We have deepwater platforms here in Malaysia.  I've done some work on Kikeh platform, which is around 1 km deep ocean.

[DanilKa + 443]

well, you may enjoy beaches and lifestyle in Latin America:)

[Illurion + 894]

On 12/27/2018 at 8:36 PM, Tom Kirkman said:

The Americas — Canada, Mexico and Argentina — could be Petronas’ new frontier, on top of other upcoming upstream oil and gas (O&G) projects in Oman and Gabon.

“It so happens that the reserves are there, the market is there, so we took the long-term view that those are the areas that we should be in,” Wan Zulkiflee says in an interview with The Edge.

Smart people.

To me,  this is a sign that Trump is succeeding in his goal to reverse the situation of  "jobs and investment money" being drained from the USA,  to a situation where "jobs and investment money" are being returned toward the USA.

Hopefully, some of this AMERICAS work will work its way back to the USA.

All of the stupid trade agreements of the 90's and 2000's were an incentive for jobs and money to be drawn overseas.

The situation now is that the USA is returning to being a magnet for jobs and cash investment.

But there is still a long way to go.

Car manufacturing is still moving overseas.

Something must be done to stop that.

In addition,  it has recently become clear that all of the overseas outsourcing of DATABASES of American customer data is unsafe from a data-security standpoint, ,  and these outsourcing deals need to be cancelled,  and those databases brought back to the States.

ps:   I do not read very often about oil projects in Argentina.   Why is that ?

Edited December 29, 2018 by Illurion