Analysts positive with Dialog’s latest LOI from ROC Oil

Posted on June 3, 2014, Tuesday

KUCHING: News of a Letter of Intent (LOI) contract award on Friday lifted buying for Dialog Group Bhd’s (Dialog Group) shares yesterday, rising four sen to RM3.70 per share with 3.2 million lots transacted.

The contract, secured via its wholly-owned subsidiary Dialog Resources Sdn Bhd from ROC Oil (Sarawak) Sdn Bhd (ROC Oil), is for a farm-out of 20 per cent of the latter’s participating interest in the Production Sharing Contract (PSC) for three fields – D35, D21 and J4 – located offshore Sarawak.

Analysts were generally positive on this move. Kenanga Investment Bank Bhd’s (Kenanga Research) research wing was pleasantly surprised by this as it had expected Dialog to remain focused on the group’s delivering their ongoing upstream projects before getting another one.

“Nonetheless, working on a PSC will be another positive leg for the company moving ahead,” the research arm opined.

Kenanga Research noted that in  the first quarter of 2014 (1Q14), ROC Oil had farmed into 50 per cent-stake in these fields via a combination of cash payments (US$25 million) and minimum work commitments (US$120 million for two phases of work on the fields.)

It furhter noted that the PSC terms for the block are designed for field redevelopment and enhanced oil recovery (EOR) and ROC Oil’s net working interest 2P reserves stand at 8.7 million barrels of oil equivalent (mmboe).

The fields have a production with a combined gross daily oil rate of about 10,000 barrels of oil per day (bopd) and gas sales of an estimated 17 million standard cubic feet per day (mmscf/d).

“No purchase  value was announced but assuming we use SapuraKencana Petroleum Bhd’s price tag of US$25 per barrel (bbl) for its Newfield acquisition; Dialog could be forking out US$43.5 million for the 1.74 million reserves,” it estimated.

However, Kenanga Research cautioned that this is highly arbitrary.

In terms of the outlook for Dialog, the research arm pointed out that construction works for Phase 1A Pengerang CTF has already been completed in 1Q of current year 2014 (CY14).

It added that Phase 1B and Phase 1C are expected to be completed in mid-2014 and end-2014.

“Phase 2 should be ‘good-to-go’ given that the Final Investment Decision (FID) for Petroliam Nasional Bhd’s (Petronas) Refinery And Petrochemicals Integrated Development (Rapid) project has been approved.

“For now, the finalised tank terminal capacity and equity stake is pending,” Kenanga Research said, adding that it has already included an additional 0.72 million cbm of storage capacity into its sum-of-parts forecasts from financial year 2017 (FY17) onwards

It further noted that the Balai risk service contract (RSC) has apparently hit first-oil and is due for Extended Well Testing (EWT) program by 1QCY14.

“We have only expected earnings contributions from FY17, and as such, any project acceleration would be further earnings catalyst for Dialog,” the research arm projected.

With that, Kenanga Research maintained its earnings forecasts for now pending the completion of the acquisition.

The research arm has also maintained its ‘market perform’ rating and CY15 sum of parts-based valuation target price of RM3.92 per share.

Read more: http://www.theborneopost.com/2014/06/03/an.../#ixzz34CFDpNTb

A portion of Bergading CPP may be awarded to local players

Posted on June 9, 2014, Monday

KUCHING: The smaller portion of the contract to build over US$1 billion Bergading central processing platform (CPP) in the North Malay basin gas and condensate development may be awarded to a local player.

Quoting Upstream, AmResearch Sdn Bhd (AmResearch) noted that the turnkey contract to build the Bergading CPP in the North Malay basin gas and condensate development has been awarded by US independent Hess to Hyundai Heavy Industries (Hyundai) and its engineering partner Aker Solutions (Aker).

AmResearch highlighted that a smaller portion of this contract may be awarded to Malaysia Marine & Heavy Engineering Holdings Bhd (MMHE), in order to meet local content requirements.

“Also, a multi-wellhead platform contract related to this development has also been awarded to SapuraKencana Petroleum Bhd (SapuraKencana) following the approval from Malaysia’s Petroleum Management unit,” it added.

AmResearch noted that Hyundai and Aker had already started work earlier this week on the contracted engineering, procurement, construction, installation and commissioning work on this CPP as well as a wellhead structure.

“The CPP involves a topside weighing over 20,000 tonnes which will be installed via a float-over loading procedure onto an 8,000-tonne jacket.

“Hyundai and Aker are said to have been in talks with Dockwise and Cosco Shipping for the float-over installation, which is scheduled to take place in early 2016,” it observed.

The research house added that the CPP jacket and the wellhead platform jackets, potentially worth up to RM600 million, will be sub-contracted to a yard in Malaysia.

Generally, it opined that this award highlights the increasing level of completion between local and foreign yards, which have a much stronger established track record, as well as Petroliam Nasional Bhd’s (Petronas) efforts to contain escalating cost pressures.

“Currently, only MMHE together with a foreign joint-venture partner has been awarded a CPP contract and more complex engineering projects for deepwater and enhanced oil recovery developments.

“The other two local integrated engineering, procurement, construction, installation and commissioning (EPCIC) providers – SapuraKencana and TH Heavy Engineering, have only secured smaller wellhead platform projects or jackets/parts of more complex designs,” the research house pointed out.

Besides this (North Malay basin) project and the scaling down of the Semarang field development, the research house opined that there are still multiple EOR projects in the pipeline.

Other CPP projects that remain on the cards are the Bardegg2-Baronia, Sepat, Kasawari and Guntong fields.

Quoting industry publication Upstream, the research arm of CIMB Investment Bank Bhd (CIMB Research) noted that SapuraKencana and Italy-based Saipem were among the bidders in Petronas’ tender call for a CPP under the integrated Bardegg 2 and Baronia enhanced oil recovery project off the coast of Malaysia.

It further pointed out that the companies are bidding against five others including Abu Dhabi-based National Petroleum Construction Company, a joint venture (JV) between MMHE and France-based Technip, a JV between China’s Offshore Oil Engineering Company and UK-based Petrofac, US-based McDermott, and South Korea’s Hyundai.

“The contract could be awarded in the third quarter of 2014 (3Q14) at the latest, with the delivery of the CPP targeted for early 2017,” it projected.

All in, together with the construction of the Refinery and Petrochemical Integrated Development (RAPID) in Pengerang, Johor, AmResearch expects the upward re-rating cycle for the sector to remain intact, as the flow of new orders for Malaysian players have risen by 37 per cent year-on-year (y-o-y) in 1Q14.

Hence, the research house maintained its ‘overweight’ call on the oil and gas (O&G) sector with our ‘buy’ calls for SapuraKencana, MMHE, Bumi Armada Bhd, Yinson Holdings Bhd and Alam Maritim Resources Bhd.

“Our ‘hold’ recommendations are for Petronas Gas Bhd and Dialog Group Bhd,” it added.

As for CIMB Research, it looks forward to the announcement of the contract winner given the slowdown in sizeable fabrication contract awards over the past one year.

Overall, it advised that investors should stay invested and watch out for positive news flow, adding that Petronas’s capital expenditure (capex) is expected to keep the excitement going for the local service providers.

“The sector remains an ‘overweight’, with the strong contract pipeline arising from Petronas’s capex as the main potential catalyst.

“Our top picks are SapuraKencana among the big caps and Perisai Petroleum Teknologi Bhd among the small caps,” the research arm said.

Read more: http://www.theborneopost.com/2014/06/09/a-.../#ixzz34CFJvl3D

This Bergading prject is the hottest nowadays..

which block is this bergading?

I dont care any stupid remark from those who claim they are expert but we Sarawakian deserve to request 20% O&G royalty from Federal Govt else anarchy liao lulz

Drilled by Mighty 106   ...next Bakong 1..

hello all oil and gas otais

i just received a call regarding an interview by SapuraKencana at Lumut for next monday 16th June
the position is Production Engineer

1.)just wanna ask here since the interview is being held at Lumut, does it mean that I will be working there as well ? I was thinking maybe i can change the location to KL since im from PJ myself

2.) What does a production engineer do at SapuraKencana Lumut ? I am a fresh grad in Mechanical with zero exp

hello all oil and gas otais

i just received a call regarding an interview by SapuraKencana at Lumut for next monday 16th June
the position is Production Engineer

1.)just wanna ask here since the interview is being held at Lumut, does it mean that I will be working there as well ? I was thinking maybe i can change the location to KL since im from PJ myself

2.) What does a production engineer do at SapuraKencana Lumut ? I am a fresh grad in Mechanical with zero exp

You will be based in lumut.

Production engineer in which dept?

im not sure which department I will be placed in, the caller just said that i am offerred the position production engineer and that my interview is on next monday
do you have any experience to share ?
im sure i have come across your name when searching, haha

anyone here got any vacancies from oil and gas companies or other companies? I just completed my study. Can contact me at 013-2372110 or pm here also ok. I am willing to be interviewed. Seriously looking for a job. thanks

i'm almost give up looking for oil & gas job... huhuhu i ve lost count of how many resume i already sent... maybe my rezeki bukan dekat sini @ lmbat lg hmmm

i'm almost give up looking for oil & gas job... huhuhu i ve lost count of how many resume i already sent... maybe my rezeki bukan dekat sini @ lmbat lg hmmm