Petronas Strikes Back

[ARIFFX]

Dear all,

> After reading all the chain mails and blogs, I feel called
> to reply,
> because of the relentless attacks and allegations -- most
> of which are
> inaccurate or baseless -- against PETRONAS.

> PETRONAS' STAFF SALARY & BONUS
> 1) The salaries paid to PETRONAS' employees are not as
> high as people
> think. At best, they are just industry average. And these
> are not
> attractive enough for some who left PETRONAS to find work
> at other
> companies (mainly from the Middle East) which are willing
> to pay more.
> Why do they pay more? The oil and gas industry worldwide
> has been facing
> acute shortage of qualified or experienced personnel, so
> most companies
> are willing to pay lots of money to entice and pinch staff
> from their
> competitors.

> Bonus? There has NEVER been a bonus amounting to 6 months
> or 12 months
> throughout the 33 years. On average, it is 2 months. But
> don't ever
> think we don't deserve it. We more than deserve it. A
> lot of us work
> really hard, some in the most extreme of conditions. Those
> who have been
> to and worked in northern Sudan, for example, would testify
> that it's
> like working in a huge blower oven. Southern Sudan, on the
> other hand,
> is almost all swamps and mud. Imagine having to go through
> that kind of
> heat, or waddling in muddy swamps, day in and day out.

> QUALITY OF CRUDE & REFINED PRODUCTS
> 2) Malaysia produces about 600,000 barrels of crude oil per
> day (and
> about 100,000 barrels condensate). Of this crude volume,
> 339,000 barrels
> are refined locally for local consumption. The rest is
> exported (and
> yes, because it has lower sulphur content it fetches higher
> prices).

> Malaysia also imports about 230,000 barrels of crude oil
> per day, mainly
> from the Middle East, to be refined here. This crude oil
> contains higher
> sulphur and is less expensive (so the country gains more by
> exporting
> our crudes). In Malaysia, this crude is processed by
> PETRONAS at its
> second refinery in Melaka, and also by Shell at its Port
> Dickson
> refinery.

> Different refineries are built and configurated to refine
> different
> types of crude. And each crude type yields different
> percentage of
> products (diesel, gasoline, kerosene, cooking gas etc) per
> barrel.

> But most importantly, products that come out at the end of
> the refining
> process have the same good quality regardless of the crude
> types. That's
> why PETRONAS, Shell and Exxon Mobil share the same pipeline
> to transport
> the finished products from their refineries to a
> distribution centre in
> the Klang Valley. The three companies collect the products
> at this
> centre accordingly to be distributed to their respective
> distribution
> networks. What makes PETRONAS' petrol different from
> Shell's, for
> example, is the additive that each company adds.

> PETRONAS' ROLE, FUNCTION & CONTRIBUTION
> 3) A lot of people also do not understand the role and
> function of
> PETRONAS, which is essentially a company, a business
> entity, which
> operates on a commercial manner, to mainly generate income
> and value for
> its shareholder. In this case, PETRONAS' shareholder is
> the Government.

> In 1974, when PETRONAS was set up, the Government gave
> PETRONAS RM10
> million (peanuts, right?) as seed capital. From 1974 to
> 2007, PETRONAS
> made RM570 billion in accumulated profits, and returned to
> the
> Government a total of RM335.7 billion. That is about 65% of
> the profits.
> That means for every RM1 that PETRONAS makes, 65 sen goes
> back to the
> Government.

> Last year, PETRONAS made a pre-tax profit of RM86.8
> billion. The amount
> given back to the Government (in royalty, dividends,
> corporate income
> tax, petroleum products income tax and export duty) was
> RM52.3 billion.
> The rest of the profit was used to pay off minority
> interests and taxes
> in foreign countries (about RM7.8 billion - PETRONAS now
> operates in
> more than 30 countries), and the remaining RM26.7 billion
> was
> reinvested. The amount reinvested seems a lot, but the oil
> and gas
> industry is technology- and capital-intensive. Costs have
> gone up
> exponentially in the last couple of years. Previously, to
> drill a well,
> it cost about US$3 million; now it costs US$7 million. The
> use of rigs
> was US$200,000 a day a couple of years ago; now it costs
> US$600,000 a
> day.

> A lot of people also do not realise that the amount
> returned by PETRONAS
> to the Government makes up 35% of the Government's
> total annual income,
> to be used by the Government for expenditures, development,
> operations,
> and yes, for the various subsidies. That means for every
> RM1 the
> Government makes, 35 sen is contributed by PETRONAS.

> So, instead of asking what happens to PETRIONAS' money
> or profits,
> people should be questioning how the money paid by PETRONAS
> to the
> Government is allocated.


to be continue....

 

[ARIFFX]

> CRUDE EXPORTS & FUEL PRICES
> 4) A lot of people also ask, why Malaysia exports its crude
> oil.
> Shouldn't we just stop exporting and sell at cheaper
> prices to local
> refiners? If Malaysia is an oil exporting country, why
> can't we sell
> petrol or diesel at cheaper prices like other oil producing
> countries in
> the Middle East?

> I guess I don't have to answer the first couple of
> questions. It's
> simple economics, and crude oil is a global commodity.

> Why can't we sell petrol and diesel at lower prices
> like in the Middle
> East? Well, comparing Saudi Arabia and other big producers
> to Malaysia
> is like comparing kurma to durian, because these Middle
> Eastern
> countries have much, much, much bigger oil and gas
> reserves.

> Malaysia has only 5.4 billion barrels of oil reserves, and
> about 89
> trillion cubic feet of gas. Compare that to Saudi
> Arabia's 260 billion
> barrels of oil and 240 trillion cubic feet of gas.

> Malaysia only produces 600,000 barrels per day of oil.
> Saudi Arabia
> produces 9 million barrels per day. At this rate, Saudi
> Arabia's crude
> oil sales revenue could amount to US$1.2 billion per day!
> At this rate,
> it can practically afford almost everything -- free
> education,
> healthcare, etc, and subsidies -- for its people.

> But if we look at these countries closely, they have in the
> past few
> years started to come up with policies and strategies
> designed to
> prolong their reserves and diversify their income bases. In
> this sense,
> Malaysia (and PETRONAS) has had a good head start, as we
> have been doing
> this a long time.

> Fuel prices in Malaysia is controlled by the Government
> based on a
> formula under the Automatic Pricing Mechanism introduced
> more than a
> couple of decades ago. It is under this mechanism that the
> complex
> calculation of prices is made, based on the actual cost of
> petrol or
> diesel, the operating costs, margin for dealers, margin for
> retail oil
> companies (including PETRONAS Dagangan Bhd) and the
> balancing number of
> duty or subsidy. No retail oil companies or dealers
> actually make money
> from the hike of the fuel prices. Oil companies pay for the
> products at
> market prices, but have to sell low, so the Government
> reimburses the
> difference -- thus subsidy.

> Subsidy as a concept is OK as long as it benefits the
> really deserving
> segment of the population. But there has to be a limit to
> how much and
> how long the Government should bear and sustain subsidy. An
> environment
> where prices are kept artificially low indefinitely will
> not do anyone
> any good. That's why countries like Indonesia are more
> pro-active in
> removing subsidies. Even Vietnam (which is a socialist
> country, by the
> way) is selling fuel at market prices.

> PETRONAS & TRANSPARENCY
> 5) I feel I also need to say something on the allegation
> that PETRONAS
> is not transparent in terms of its accounts, business
> transactions etc.

> PETRONAS is first and foremost a company, operating under
> the rules and
> regulations of the authorities including the Registrar of
> Companies, and
> the Securities Commission and Bursa Malaysia for its listed
> four
> subsidiaries (PETRONAS Dagangan Bhd, PETRONAS Gas Bhd, MISC
> Bhd and KLCC
> Property Holdings Bhd.

> PETRONAS the holding company produces annual reports which
> are made to
> whomever wants them, and are distributed to many parties
> and places;
> including to the library at the Parliament House for
> perusal and reading
> pleasure of all Yang Berhormat MPs (if they care to read).
> PETRONAS also
> makes the annual report available on its website, for those
> who bother
> to look. The accounts are duly audited.

> The website also contains a lot of useful information, if
> people really
> care to find out. Although PETRONAS is not listed on Bursa
> Malaysia, for
> all intents and purposes, it could be considered a listed
> entity as its
> bonds and financial papers are traded overseas. This
> requires scrutiny
> from investors, and from rating agencies such as Standard
> & Poor and
> Moody's.

> BOYCOTT PETRONAS?
> 6) The last time I checked, this is still a democratic
> country, where
> people are free to spend their money wherever they like.

> For those who like to see more of the money that they spend
> go back to
> the local economy and benefiting their fellow Malaysians,
> perhaps they
> should consider sticking to local products or companies.

> For those who like to see that the money they spend go back
> to foreign
> shareholders of the foreign companies overseas, they should
> continue
> buying foreign products.

> FINAL WORD (FOR TODAY)
> I'm sorry this is rather long, but I just have to
> convey it. I hope this
> would help some of you out there understand something. The
> oil and gas
> industry, apart from being very capital intensive, is also
> very complex
> and volatile. I'm learning new things almost every
> single day.


to be continue..

 

[atlantis]

dah lama ni!

memang untungnya kat gomen....
tu pasal sumer maki dolah

tak maki petronas.

 

[ARIFFX]

> Appreciate if you could help to forward this response to as
> many
> contacts as possible to counter the subversive proposal out
> there.

> Thank you.

> Best regards,
> Nora
> Noraina Abdul Rahman
> Contract Services
> Corporate & Commercial Services Dept
> Crude Oil Group, PETRONAS
> Tel : 603 2331 2720
> Fax : 603 2331 3129
> email : [email protected]


1st time bukak tanah..
silakan bg pendapat anda.. copy paste dr emel je ni..

 

[atlantis]

yg tulis ni pun tak ada bukti petronas yg tulis !

ala2 wakil menteri ada )

 

[atlantis]

ada bau2 menyokong jual mahal.
apa untung pada dia ?
apsal dia susah2 tulis panjang2

ini sumer kerja tentera kerajaan lah !

 

[ARIFFX]

ada bau2 menyokong jual mahal.
apa untung pada dia ?
apsal dia susah2 tulis panjang2

ini sumer kerja tentera kerajaan lah !

entah le cikgu???

yg sane kate mcmni,
yg cni plak kate mcmtu..
~X( ~X( ~X( ~X( ~X( ~X(

xtau mane satu nk ikut

 

[kalau]

a long explanation.....pedih gak mata bace....

 

[atlantis]

entah le cikgu???

yg sane kate mcmni,
yg cni plak kate mcmtu..
~X( ~X( ~X( ~X( ~X( ~X(

xtau mane satu nk ikut

alaa... petronas tu jual barang free..
kalau nak kasi staff dia gaji berapa pun boleh.
nak kasi bonus berapa pun boleh.

tapi gomen kata toksah. kasi sikit2 cukup.
nak wat camna ? )

 

[kizuro]

at least sebahagian ape yg dia cerita tu adalah perkara yg betul....sape yg faham dengan industri oil & gas sure tahu pasal ni.