etrobase oils inaugural merdeka award hse: at the centre

Petroliam Nasional Berhad, Malaysia
PP2986/01/2010 (023290)
ETRO BASE OILS
INAUGURAL
MERDEKA AWARD
HSE: AT THE CENTRE
OF E&P SUCCESS
CONTENTS
IN THIS ISSUE OF NADA
24
4
20 18
12
4
ETRO: Elixir of Lubes
lead story Our venture into Group III base
oils delivers another superior
quality product
7
Unity through Sport Basketball
community in Malaysia has grown to become
a promoter of cultural and racial
integration among youths
11
focus
12
Promoting Energy Security
for a sustainable future at the
International Petroleum Technology
Conference
Petronas Skybridge Learn
more about the Skybridge of the
PETRONAS Twin Towers
Lubricants
14 PETRONAS
International takes over from the
Lubricants Business Unit of the
Group’s Oil Business Division
15
at Carigali HSE’s focus is on
24 HSE
preventing and managing risks to
health, safety and the environment,
and has a tremendous impact on
E&P success
Universiti Teknologi PETRONAS
Corporate Roundup New
community Embracing innovation and creativity
from around the globe
corporate business developments for the
roundup Group
28
Court Medical Centre
18 Prince
Shaping the nation’s new healthcare
landscape
20 Merdeka Award 2008 We
focus
celebrate the winners of the
inaugural Award and detail their
achievements
to LNG By processing coal
31 CSG
seam gas into LNG, the gas can
now be exported to target markets
in the Far East
editorial note
INNOVATING FOR BREAKTHROUGH
PERFORMANCE
PETRONAS sees results from its progressive approach to
building business and community
The cover features a photo of workers arriving on the
helipad of an offshore platform, a regular activity in
the day-to-day operations of PETRONAS Carigali, the
exploration and production (E&P) arm of the Group.
Nada PETRONAS is the corporate newsletter of the
PETRONAS Group of Companies published quarterly
by the Corporate Communications Department of
the Legal and Corporate Affairs Division. Opinions
expressed in the newsletter do not necessarily reflect
the official views of PETRONAS and its Group of
Companies.
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© 2009 PETROLIAM NASIONAL BERHAD (PETRONAS)
All rights reserved. PETRONAS makes no representation or
warranty, whether express or implied, as to the accuracy or
completeness of the facts presented. PETRONAS disclaims
responsibility from any liability arising out of reliance on
the contents of this publication.
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We want your feedback on what you want to see in future
Nada issues. We also welcome your views on stories
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The Editor
Nada PETRONAS
Corporate Communications Department
Level 70, Tower 1, PETRONAS Twin Towers
Kuala Lumpur City Centre, 50088 Kuala Lumpur,
Malaysia
THIS issue of Nada introduces ETRO, PETRONAS’ Group III base
oils which made its market debut recently. Produced in PETRONAS’
new Melaka Group III (MG3) plant - one of only 10 such plants in the
world, ETRO marks the success of the corporation’s innovative drive
towards achieving breakthrough performance.
The Merdeka Award is also a new initiative in contributing to the
people of Malaysia. The creation of this premier award by ExxonMobil,
PETRONAS and Shell hopes to inspire excellence and encourage
both Malaysians and non Malaysians to play a part in the growth and
development of the nation.
The global economic and financial crisis and the volatility in crude
oil prices continue to test the mettle of the oil and gas industry. The
International Petroleum Technology Conference brings members of
the industry together in discussing a sustainable future. Nada also
takes a look at the importance of health, safety and environment
(HSE) in PETRONAS Carigali’s exploration and production activities,
highlighting the operational excellence at this thriving arm of the
Group.
On the community front, cultural exchange and social
inclusiveness take centre stage in our stories on Universiti Teknologi
PETRONAS (UTP) and the role of basketball as a platform for racial
integration.
There’s also a story on the popularity of the Skybridge and the
excitement it brings to the many visitors who flock to experience what
has become a must for those who visit Kuala Lumpur.
We trust you’ll enjoy this issue.
Nada Editorial Team
lead story
Superior Quality Group III Base Oils
ELIXIR OF LUBES
Stricter environmental legislation
demands that automotive engine
manufacturers construct more fuelefficient and environmentally-friendly
engines. These modern engines need
lubricants that have higher durability
and enhanced cleaning properties.
PETRONAS’ new venture into producing base oils has been
realised with the launch of ETRO superior quality Group
III base oils. It is targeted at manufacturers of high-end
lubricants where ETRO will be the most ideal ingredient
in low-viscosity engine oils. With PETRONAS’ strong
capabilities in both the technical as well as commercial
aspects of product quality, marketing and distribution,
ETRO is in a strong position to do well in markets globally.
Mr Joe Rousmaniere, MD/CEO of PETRONAS Base
Oil (Malaysia) Sdn Bhd (PBOM), explained,” There’s a great
shortage of high quality base oils currently and that has
made customers very anticipative of ETRO. PETRONAS
is producing some of the world’s best petroleum-derived
Group III base oils and we are committed to maintaining
the highest standard of specifications that meet customers’
stringent requirements.”
As lubricant manufacturers innovate better-designed
lubricants that cater to increasingly complex and
demanding Original Equipment Manufacturers’ (OEM)
specifications, ETRO’s unique properties can meet their
needs by requiring less costly additives to create new
lubricant formulations.
4
LEAD STORY
As lubricant manufacturers innovate better-designed lubricants
that cater to increasingly complex and demanding OEM
specifications, ETRO’s unique properties can meet their needs
by requiring less costly additives to create new lubricant
formulations.
Success of Synergy:
MG3 Base Oil Plant
PETRONAS has long integrated value-adding business
initiatives to maximise synergies and returns. The construction
of a dedicated base oil plant, MG3 (Melaka Group III),
complements and enhances existing facilities within the
Melaka Refinery Complex. The first of its kind in Southeast
Asia, the MG3 plant produces high quality Group III base
oils derived directly from specifically-allocated atmospheric
residue (which is the bottom product from crude distillation
conducted at atmospheric pressure, in contrast to vacuum
distillation or pressure distillation). PETRONAS atmospheric
residue has unique properties such as low sulphur and nitrogen
count and high wax content. These properties eliminate
the need for further pre-treatment before it can be used as
feedstock for high quality base oil production. Most Group
III base oils in the market are produced from hydrocracker
bottom or better known in the industry as unconverted oil
(UCO) as the standard feedstock.
ETRO is manufactured via a proprietary selective dewaxing
technology consisting of specialised processes such as vacuum
distillation, hydrotreating, selective catalytic dewaxing and
hydrofinishing. PETRONAS Research Sdn Bhd (PRSB), the
research & development arm of PETRONAS, provides process
and product support for ETRO.
Current production capacity of ETRO stands at 6,500
barrels per day.
Lubricants Business
“PETRONAS has had high ambitions in the global lubricants
business and has made no secret of its plans. And it became
clear that growth in the business had to be via acquisitions,” Joe
Rousmaniere explained.
This resulted in the purchase in 2007 of FL Selenia SpA
of Italy, Europe’s largest independent producer and marketer
of automotive lubricants and functional fluids (see story on
page 14).
“Selenia makes top-tier lubes and is expected to have a
healthy appetite for top-tier base oils like the ETRO base oils,”
said Rousmaniere, adding that 80 per cent of every finished
lubricant product is base oils.
In addition to Selenia, PBOM has signed the Heads of
Agreement for Global Collaboration and Heads of Agreement
Relating to Sales and Purchase of Base Oil in Thailand with
Idemitsu Kosan Company Ltd. Idemitsu is among the largest
Japanese lube companies and the 10th largest lube company in
the world.
The agreement signified the intentions of both parties to
collaborate globally for the supply and purchase of ETRO to be
used in the manufacturing of fuel-efficient engine oils.
LEAD STORY
5
An end-to-end supply chain network combined
with industry-leading technical and logistics
capabilities further assures customers and
prospective clients a trusted and reliable
supply source.
Marketing Approach
Sales and delivery to worldwide destinations are streamlined
by direct distribution through the end-to-end supply chain
network of PBOM. In addition, PETRONAS Marketing
Netherlands BV was established primarily to cater to the
European market. This, combined with the company’s
industry-leading technical and logistics capabilities, further
assures customers and prospective clients a trusted and reliable
supply source.
Group III base oils are vital in optimising the cost
and performance of today’s most demanding lubrication
formulations. As global demand for better, cleaner lubricants
increases, engine and equipment manufacturers can be
confident with the technical, economical and logistical
advantages ETRO provides to their businesses.
PETRONAS has all the pieces in place to market ETRO
successfully - from the reliability of supply from its upstream
operations to its world-class fully integrated refining complex,
to a global marketing and distribution network supported by
logistics and technology capability. ETRO is well on its way to
become the preferred global supplier of high quality base oils.
ETRO: Superior Offering
The ETRO range comprises ETRO 4 and 6. These base oils are
manufactured from a proprietary wax isomerisation process
and hydrofinished to a colourless liquid. Highly isoparaffinic
with equally high viscosity index values, ETRO 4 and 6 exhibit
superior low temperature performances. Both have excellent
viscosity-volatility relationship; a prerequisite for excellent
lubricant formulation with numerous high grade additives of
different characteristics.
ETRO 4 and 6 are superb choices for the formulation of high
performance engine oil as well as for compressor and hydraulic
oil formulations. Their specifications comply with the API Group
III standard and PETRONAS continuously provides formulation
support for the American Petroleum Institute (API), Association
des Constructeurs Européens d’Automobiles (ACEA) and OEMs.
ETRO’s superior quality is highlighted by its extremely
desirable VI and Noack properties.
High Viscosity Index (VI)
The stability of Group III base oils are indicated by its VI.
VI value is an indication of the highly stable paraffinic and
saturated structures fraction in the hydrotreating process.
Aromatic components will be converted into paraffinic
elements; resulting in Very High Viscosity Index, excellent
thermal and oxidative stability through cracking both
condensed aromatics and impurities.
Low Volatility (Noack)
When operating today’s vehicles at high speed, engines and
lubricants inevitably heat up. Consequently, lubricants become
volatile. Base oils are important to the make up of lubricants as
they affect fuel consumption and exhaust emissions. Because
the chemical composition of Group III base oils contain less
volatile components by nature, fuel consumption is lower
when formulating lubricants with Group III base oils compared
to Group II grades. In this respect, ETRO is comparable to the
more expensive polyalphaolefins.
6
LEAD STORY
community
unity
through
sport:
BRINGING MALAYSIA
TOGETHER THROUGH
BASKETBALL
7
community
THROUGHOUT THE WORLD, SPORTING ABILITY HAS BEEN
EQUATED WITH NATIONAL PRIDE, BRINGING TOGETHER
SPORTSMEN AND SPORTSWOMEN AND THEIR FANS IN
COLOURFUL EVENTS THAT EMBODY THE HUMAN SPIRIT
OF TOGETHERNESS
The PETRONAS Cup,
an inter-state annual
championship, has been
one avenue to increase
participation from
diverse ethnic groups.
8
BASKETBALL has been largely popularised by the US’
National Basketball Association (NBA) through legendary
athletes such as Michael Jordan, Shaquille O’Neal and Kobe
Bryant, and has been a rapidly growing sport in Asia over the
last decade. Inspired by the soaring reputation
of Yao Ming, the Chinese basketball player
who has carved out a stellar career in the NBA’s
Houston Rockets, youths in the inner and outer
cities of Asia remain transfixed on basketball
players’ varied skills and abilities.
All around Malaysia, youths are now
emulating the gravity-defying moves of their
sporting icons, scoring three point shots from
acute angles and making the quickest of moves
all over the court - a subtle reminder of the
growth of the sport in the country.
Basketball is not just a physically demanding
sport, but also one that demands team work.
Beyond these, however, basketball has also
proven to be a promoter of cultural and racial
integration among youths in multicultural Malaysia. By
taking warmly to basketball over the last few years, youths
have broken barriers of ethnicity to pursue their passion for
the game, in what has traditionally been a sport more popular
among the Chinese. The PETRONAS Cup, an inter-state
annual championship, has been one avenue to increase
participation from diverse ethnic groups.
PETRONAS’ involvement with basketball began almost
15 years ago when it signed a sponsorship agreement with the
Malaysian Basketball Association (MABA) under the national
‘Rakan Sukan’ programme, initiated in 1995 by Malaysia’s
Ministry of Youth and Sports. Since then, the partnership has
become stronger and even more successful under the initiative,
and continues to give Malaysia’s young basketball talents a
chance to succeed.
The success of this partnership has contributed to multiethnic interaction among Malaysian youths, as showcased in
the PETRONAS 3-ON-3 Grand Finals 2009 at the Kuala
Lumpur Convention Centre for the fourth year running.
The one-day grand event showcased 1,500 players from
different ethnicities come together for the games. The
drive to enrich, educate and see active participation in
sports remains a focus years after the creation of the
annual event.
When the PETRONAS 3-ON-3 competition was
launched, its goal was to promote the game at a multiracial grassroots level. Remarkably, the first games in
Kepong saw a turnout of over 100 teams and since then,
the competition has attracted hundreds of participants
from a cross section of cultures.
Today, the event is a testimony to basketball’s steady
rise among Malaysia’s youths, attracting multi-racial
participation all over the country. These talents continue
to be discovered at schools and district-level competitions
nationwide by MABA.
To take these players forward into a competitive arena,
the PETRONAS-MABA Basketball Academy was set up
to identify and train potential national players between
16-20 years old and provide them with systematic
training. Students from the academy also receive financial
aid to continue their studies up to tertiary
level, while undergoing intensive training
with national coaches. Several of the players
have gone on to earn university degrees
while excelling in the sport they love.
The PETRONAS-MABA Basketball Academy
was set up to identify and train potential
national players between 16-20 years old
and provide them with systematic training
The Spirit of Competition…and Humanity
With the increasing popularity of the sport, talented
youths have emerged to be part of the sport’s driving force,
contributing to the National Women’s Basketball Team’s
emergence as South East Asia (SEA) champions. The
team, with 10 of its players from the PETRONAS-MABA
Academy, has won four gold medals in the SEA Games
consecutively, with the latest being the 2007 SEA Games
in Thailand. It also won gold at the last SEA Basketball
Association’s Championship in 1999.
But while youths with sporting talent and academic
ambition remain key participants in the tournament,
there’s a greater spirit at play in the various communities
where the events are held – the spirit of humanity and
unity among cultures, race and backgrounds.
The PETRONAS Cup has been held annually
since 1995, with state basketball associations
taking turns to host the tournament. To
sustain the levels of motivation created by the
championship, PETRONAS has begun selecting
12 players from the tournament to be part of a
community tour, playing friendly matches and
organising coaching clinics. Last year’s team
had a rewarding time visiting Aceh and Medan,
sharing their experiences and love for the game
with their new Indonesian friends.
The PETRONAS 3-on-3 Basketball series,
open to boys and girls under 18, criss-crosses
the nation stopping at major cities from April
until the latter half of the year. Players who
succeed in the regional tournaments go on
to the Grand Finals, usually held at the Kuala
Lumpur Convention Centre.
Please visit www.mymesra.com.my for more
details.
9
Promoting Energy Security
for a Sustainable Future
Tremendous challenges posed by the current economic meltdown
that has plunged the world into one of its worst crises since
the Great Depression in the 1930s took centre stage in the recent
deliberations of the oil and gas fraternity during the third
International Petroleum Technology Conference (IPTC) hosted by
PETRONAS at the Kuala Lumpur Convention Centre last December.
With the aftermaths of the collapse of several of the
world’s key financial institutions and credit markets still
fresh and undermining the already shaky global economic
system, it was no wonder that the conference focus was on
the daunting challenges in securing the sustainable future
of the oil and gas industry.
Amidst this highly volatile environment which has
impacted global energy demand and subsequently led to
the plummeting oil price from an all-time high of US$147
last July to about US$40 per barrel in just six months, the
critical areas that must be emphasised for the industry to
successfully secure a sustainable future include: promoting
energy security through new models of cooperation,
10
investing in technology & innovation and human capital
development. These key success factors were highlighted
by Malaysia’s Prime Minister Dato’ Seri Abdullah bin
Haji Ahmad Badawi in his keynote address at the official
opening of the IPTC on 3 December 2008.
“Time is of the essence. The oil and gas industry must
ensure that these important initiatives are put in place
now, so that the challenges of the next few decades can
be met with confidence. If we succeed in doing so, I am
certain that we can reach the future we seek: one where our
economies are more competitive, our nations more secure,
and our world more prosperous,” said the Prime Minister.
This call was indeed apt for the time as there are
“The opportunity for the oil and gas industry to collectively confront and
overcome the challenges ahead through new forms and dimensions of
strategic collaboration will bring far-reaching advantages to the sustainable
future of the industry and the world at large”
opportunities to be found alongside the threats in
any crisis. In the case of the present global crisis, the
opportunity for the oil and gas industry to collectively
confront and overcome the challenges ahead through
new forms and dimensions of strategic collaboration will
bring far-reaching advantages to the sustainable future of
the industry and the world at large. New and innovative
approaches to cooperation will undoubtedly be the order
of industry players’ business conduct in the coming days,
as alluded to earlier by PETRONAS President & CEO and
Executive Co-Chairman of IPTC 2008, Tan Sri Mohd
Hassan Marican in his welcoming address.
“While our conference theme remains ‘Meeting the
Energy Needs of a Growing World Economy’, it is hard not
to let recent events prompt us into rethinking our approach
to the business to match the present, volatile environment,”
he said.
In a later reference to the theme again, he further said
“I realise that the challenge before us may be daunting. But
this is a role that we [the industry players] together must
play, and that our successors in the industry must continue
to fulfil if we are to indeed resolve the most compelling
issues of our generation.” He viewed this as “both a
tremendous opportunity and a unique privilege”, while
expressing optimism in “our collective capability of taking
on the challenge.”
Emphasising on the essential need for more
sophisticated technology to ensure the success of the
industry to unlock the value of available hydrocarbon
resources, to increase efficiency and reduce emissions and
waste in petroleum operations, Tan Sri Hassan stressed
that the next generation of technical tools and applications
required to develop new technology to be ready for
deployment will come from R&D programmes based on
specific strategic objectives and targets. Some key strategic
priorities in the near term will include: improving the
discovery and recovery of hydrocarbon; conversion of
primary energy, in whatever form, into useful products
such as biofuel; and ultimately, developing low-carbon
energy.
In all these, the industry needs the brightest and the
best people who will be the main source of competitive
advantage for those that will lead in the future. Hence,
closing the capability gap is another major strategic
priority for the industry. “In this context, the IPTC,
with its extensive technical programme and its outreach
programme for the next generation of oil and gas engineers
and scientists, certainly presents an important platform to
attract and inspire potential young upstream professionals,”
said Tan Sri Hassan.
The IPTC is an annual conference, hosted in locations
in the Middle East alternately with Asia. The first two
conferences were held in Doha and Dubai respectively.
Held for the first time in the Asia Pacific region, this third
IPTC had drawn over 4,000 participants from 35 countries.
It was indeed an honour and privilege for Malaysia
and in particular, PETRONAS as the co-organiser with
ExxonMobil to host this prestigious three-day conference
that had brought together eminent industry experts,
professionals and leaders to discuss current critical issues
affecting the oil and gas industry. The fourth IPTC will be
held in Doha, Qatar on 7-9 December 2009.
The IPTC is a collaborative effort among
the leading industry societies, namely the
American Association of Petroleum Geologists,
the European Association of Geoscientists
& Engineers, the Society of Exploration
Geophysicists and the Society of Petroleum
Engineers. Focusing on oil and gas exploration, development and production as well
as the over-arching industry issues related to health, safety & environment, security,
human resources, business and social challenges, this unique conference brings together
the perspectives of the industry’s multiple disciplines including petroleum engineering,
geology and geophysics.
The third IPTC held in Kuala Lumpur on 3-5 December 2008 focused on building
awareness and consensus around the critical energy challenges ahead especially in light of
the current global economic turmoil. The conference programme included plenary and
panel sessions and an exhibition covering a wide range of topics in the areas of climate
change & environment, cost, meeting future demand, complex relationships and E&P
technologies. A total of 350 technical papers were presented in more than 50 sessions.
These papers were selected from more than 1,000 abstracts received from around the
world.
The first day of the conference concluded with the presentation of the IPTC
‘Excellence in Project Integration’ Awards, followed by an Awards Banquet (see Corporate
Roundup on page 30).
The Young Professionals Workshop held on 2 December 2008 brought together the
next generation of leaders, those aged 35 years and below, to discuss their perspectives of
the way forward to energise the industry.
The Education Week held on 1-5 December 2008 was organised to give 100 of the
best final-year undergraduate students in science, geoscience and engineering from
international institutions a clear insight into the petroleum industry, to provide an
opportunity for students to meet with their peers and industry leaders, to engage in
discussion about the future direction for them in the oil and gas industry. The students
were selected from 54 institutions in 29 countries.
The Education Days programme was organised on 2-4 December 2008 specially to
introduce high school students in Malaysia to the petroleum engineering discipline as
well as the oil and gas industry in general. A total of 110 students and 44 teachers from 22
schools nationwide selected in collaboration with the Ministry of Education participated
in this programme.
FOCUS
11
focus
SKYBRIDGE -
OVER TWO MILLION
VISITORS AND COUNTING
12
VISITING Malaysia, you cannot return to your homeland without a
photo, memento or visit to the world’s tallest twin buildings. Standing at
452 metres high, the PETRONAS Twin Towers, a global icon and one
of the world’s most recognised structures, is synonymous with Kuala
Lumpur’s status as a tourist destination.
Throughout the year, tourists flock to the Towers for the
opportunity to have a picturesque view of Kuala Lumpur from the
Towers’ Skybridge. Connecting the two super structures at the 41st and
42nd floors, the Skybridge is more than just a convenient access from one
tower to the other. As the main viewing deck for visitors, the Skybridge
is a super structure in itself that provides an enthralling experience
for eager tourists. Firmly fitted 170m from the ground, the Skybridge
offers visitors a striking view of the heart of the city. Further, the tour
offers visitors an insight into the Twin Towers, the vision, design and
construction work behind one of the tallest buildings on the planet.
Initially designed as an escape route, the Skybridge was opened to
the public to address the overwhelming interest to be allowed to visit the
Twin Towers. Only staff, tenants and official visitors are allowed into the
main areas of the buildings.
Because each elevator ride up to the Skybridge can only take a
maximum of 20 visitors, tickets are limited and given out on a ‘first comefirst served’ basis. Since 1 April 2002, the Twin Towers’ Skybridge has
received more than 2 million visitors. Underlining its popularity, visitors
from more than 112 nations have been to the Skybridge, including from
countries as diverse as Bosnia-Herzegovina, Estonia, Nicaragua, Slovenia
and Swaziland.
The Skybridge is also a reminder that a memorable experience is
not the easiest of tasks for the team facilitating the tours. The snaking
queue for tickets starts forming as early as 7.00 in the morning although
counters only open at 8.30am. On a daily basis, the operations team
handles a maximum of 1,640 visitors, with 82 trips up each day. The
Skybridge is closed to visitors on Mondays.
13
petronas
lubricants
international
commences
business
PLI’s well-known
brands include
Syntium, Selenia,
Urania and Ambra
14
SINCE April 2008, PETRONAS Lubricants International
Sdn Bhd (PLI) has assumed the management of all
lubricants business within the PETRONAS Group,
taking over from the Lubricants Business Unit of the
Group’s Oil Business Division. PLI’s portfolio includes
the management of all activities across the entire
lubricant value chain, from research & development,
manufacturing & blending, supply chain management to
sales & marketing and brand management. This transfer
of PETRONAS’ lubricants business to PLI is another key
milestone in the integration of PETRONAS’ lubricants
business with the newly acquired business under the
FL Selenia Group (FL Selenia). In 2007, PETRONAS
had acquired FL Selenia, Europe’s largest independent
producer and marketer of automotive lubricants and
functional fluids for 1 billion euros (USD1.4 billion).
The world lubricant industry is worth a staggering
USD35.7 billion, and global demand for this vital product,
especially for the auto and manufacturing industries, is
expected to increase by 2.3 per cent to 41.8 million metric
tons in 2010, according to a 2007 world market study.
With this high growth potential, PLI is gearing up to
become a best-in-class global lubricants company.
Through its subsidiaries and related companies,
PLI is represented in more than 20 countries and has
manufacturing sites in Malaysia, Italy, Spain, Belgium
and Brazil. Its product range includes lubricants,
transmission fluids, anti-freeze fluids and functional
fluids for automobiles, motorcycles, trucks, agricultural
tractors and earth moving machinery as well as for other
industrial equipment. PLI’s well-known brands include
Syntium, Selenia, Mach5, Urania, Sprinta, Ambra, Akcela,
Akros, Paraflu, Tutela and Arexons. Most of its products
are positioned in the high value-added segment with the
majority of its sales derived from its innovative semisynthetic and synthetic lubricants.
PLI’s research & development (R&D) and testing
facilities are among the largest in Europe. Its premium
products such as Syntium have been specially engineered
using race-proven Formula One technology developed
through PETRONAS’ longstanding involvement in the
high-end motor sport. Syntium has penetrated into
markets including China, India, Indonesia, Japan, South
Africa, Switzerland and Thailand.
Technical and commercial partnerships with several
major original equipment manufacturers (OEM) such
as the FIAT Group (which includes Fiat, Alfa Romeo,
Lancia and Iveco), Case and New Holland, have allowed
PLI to enhance the value of its brands and presence in the
European and international markets.
PLI is represented in more
than 20 countries and has
manufacturing sites in
Malaysia, Italy, Spain, Belgium
and Brazil.
community
UNIVERSITI TEKNOLOGI PETRONAS:
embracing innovation &
creativity from
around the globe
THE ‘global village’ allows people to interact and live
in an environment where borders and cultures are
increasingly seamless. One driving force of multicultural integration has been university education.
With education’s goal to impart knowledge and
culture from one generation to the next, the role of the
university becomes even more significant in achieving
this and in keeping abreast with a changing world.
A hotspot for cultures, interaction and
world-class education
Malaysia has long been a destination for students
from all over the world. At the centre of the country’s
high standards for education is Universiti Teknologi
PETRONAS (UTP), which strives for excellence as
an engineering and geoscience institution of higher
learning.
Established in 1997, UTP is home to students
of 30 nationalities and fast emerging as a multicultural centre of excellence. Through its attraction
of international students, UTP has become a hotspot
for cultural exchange and interaction. Students from
all over the world add to the rich environment of the
centre and continue to encounter new experiences.
While it can be a challenge for anyone to leave home for
another country to pursue studies, UTP has been able
to make it as enriching and exciting as possible for all
students.
UTP maintains a progressive approach to ensuring
its quality of education addresses industry needs.
Constantly striving to achieve this, it has introduced
the Bachelor of Technology (Honours) Petroleum
Geoscience programme in 2009. The programme
was initiated partly to address the current shortage
of geologists and geophysicists produced by local
universities. UTP is focused on its future graduates
under this programme, assisting the Group, local
operators and service companies fulfill their manpower
requirements in the area of Petroleum Geoscience for
the sustainable growth of the industry.
COMMUNITY
15
New Beginnings for New Students at UTP
Each year brings with it the excitement of new beginnings
and refreshed energy. Every year the University welcomes
around 500 new students at the beginning of the year.
The intake includes international students from Chad,
Egypt, India, Indonesia, Iraq, Pakistan, Saudi Arabia,
Sudan, Uzbekistan and Yemen who registered for both
Foundation and Undergraduate studies.
Mohammed Amer Qais Abro, who hails from Pakistan
says, at first, everything was a challenge.
“From settling in, to the food, and the communication
gap. But the staff are helpful and sensitive to our needs,” he
adds.
Saad Hafiane, an Electrical and Electronic Engineering
student from Morocco relates his experience on the
benefits of pursuing studies at UTP.
“We are living in a culture-rich environment with
people of other nationalities and religions. At first, the
habits of the Malaysian people were strange to me, but it
was interesting to find out how other cultures live their
everyday lives.
“Being from an African country, I find being in
Malaysia a huge opportunity to learn more about Asia
which is the fastest developing region economically and
politically,” notes Saad.
Gurbandurdy Arbadov of Turkmenistan, who
is studying Chemical Engineering, adds that UTP
offers better communication and language skills and
acknowledges that the campus, being away from the city,
helps students concentrate better.
“In UTP, laboratories are well-equipped and good,
where I gain good practical skills,” says Gurbandurdy.
Cultural exchanges and interaction at the University
certainly mirrors a ‘global village’, where nationalities, races
and cultures are shared and contribute to the excitement of
university life for these students.
One of Gurbandurdy’s fondest memories was spending
the night at a Malay ‘kampung’ during the Muslim festival
of Hari Raya Qurban, meeting new people and eating
traditional food. The visit was organised by the University
for its international students to experience a different
aspect of Malaysian life.
With UTP’s offering of education sponsorships to
deserving students from countries in which PETRONAS
operates, the corporation carries out its capability-building
efforts to enable the growth of the industry to further
benefit the local citizens.
16
COMMUNITY
greenphylic
water solubl
degradable plast
BEYOND THE
LECTURE THEATRE:
UTP has established an internship programme that is a
compulsory core course offered to all undergraduates.
Students undergo practical work for 32 weeks prior to the
completion of their studies.
“Not everyone spoke English, but I managed
to get my supervisor to translate for me and
I learned many new things from my colleagues.”
UTP Rector Datuk Dr Zainal Abidin Haji Kasim noted
that UTP’s role is to ensure that all its students achieve
their goals as well as excel in their studies. He added that
UTP’s main aim is to produce students with excellent
technical knowledge and skills, strong leadership qualities,
good behavioral and communication skills, analytical
thinking ability as well as managerial, business and social
competencies.
As such, the University sees industrial attachments
during an undergraduate programme, which run for a
period of approximately eight months, as vital for acquiring
invaluable hands-on experience.
Amir Farid Azman, a third year chemical engineering
student, completed his internship at BasF in Ludwigshafen,
Germany, made possible through BasF PETRONAS
Chemical.
In Germany, Amir soon gained a reputation for hard
work and dedication.
“It was difficult at first,” says Amir. “Not everyone spoke
English, but I managed to get my supervisor to translate for
me and I learned many new things from my colleagues.”
Under the industrial internship programme, UTP
students are exposed to the working world where they can
apply theoretical knowledge to industry needs, develop
work ethics, communication and management skills. In
addition, it cultivates a close relationship between the
industry and UTP.
le
tics
AWARD-WINNING
PERFORMANCE:
UTP scales greater heights with multiple wins
Other awards won at the event:
• ITEX 2008 Best Invention for
the Universities & Research Institutes Category
• World Intellectual Property Organisation (WIPO) Best
Invention
• KASS International Award for Best Invention
UTP marked a key milestone when its project entitled “Greenphylic Water Soluble
Degradable Plastics” was awarded a gold medal at the 18th International Invention,
Innovation and Technology Exhibition 2008 (ITEX ’08).
The award-winning project by Prof Dr Ramiah Jegatheesan, features an environmentfriendly and degradable polymer to substitute the use of plastic bags which are harmful and
costly to be recycled. Plastic bags could take hundreds of years to degrade into toxic molecular
materials which contaminate the soil and water tables.
Meanwhile, at the 24th Invention and New Product Exposition 2008 (INPEX 2008)
in Pittsburgh, USA, UTP won five golds, three silvers and a bronze. In addition, UTP
Professor Dr P A Venkatachalam was awarded a special Lifetime Achievement Award by the
professional jury based on the attractive and creative ideas embedded in his work. He also won
two gold and silver medals for two inventions in three categories - health and fitness, computer
software and specialised technology:
• STETH-ECG (Stethoscope-Electrocardiogram) uses low cost technology to stimulate ECG
using auscultation data with diagnosis capability of ECG.
• Fuzzy DSS (Decision Support System) is used to diagnose coronary artery disease without
the assistance of angiograms or medical experts.
A project entitled Synthesis and Characterisation of Modified Polymer for Enhanced Oil
Recovery led by Assoc Prof Dr Isa Mohd Tan also won gold for the industrial equipment
category. UTP’s medal bag also included a gold from Associate Prof Dr Suzana Yusup’s project
entitled Direct Route of Synthesising Graphitic Nanofiber under the manufacturing and
chemicals categories.
MAJOR MILESTONES AT UTP
1999
1999 2000
2004
2004 2005 2007
2007
Accreditation from the National Accreditation Board for Chemical Engineering, Electrical and
Electronics Engineering, Mechanical Engineering, Information Technology and Information
Systems Programmes
Introduction of Postgraduate Degree Programmes
2005
Commencement of MSc in Petroleum Engineering and MSc in Process Integration
2000
Establishment of Halliburton Research Centre at UTP
Named one of the nine winners of the prestigious Aga Khan Award for Architecture
for its ultra-modern structure rich in subtle traditional textile designs
While the campus continues to offer a wide range of engineering and technology programmes at
undergraduate and postgraduate levels, it also maintains a strong focus on Research and Development.
Programmes are designed with high industry relevance to provide a dynamic learning environment.
With its beautiful location and landscaped setting boasting a peaceful environment, wide open spaces
and abundant lakes, this serene campus offers an ideal place to study and experience the true meaning
of being at an international university.
COMMUNITY
17
prince
court
medical centre
SHAPING THE NATION’S NEW
HEALTHCARE LANDSCAPE
PRINCE Court Medical Centre
(PCMC) has been built with the aim
of helping Malaysians receive superior
healthcare services without having to
travel abroad. It is among the best options
for Malaysians who view international
standards of healthcare and services
as fundamental in choosing the right
medical centre.
A private medical facility located
in the heart of Kuala Lumpur, PCMC
is supported by an international
management team and senior clinical
specialists from the Medical University of
Vienna, Austria.
As such, PCMC is committed to
delivering the best clinical outcomes to
its patients via highly skilled personnel
and state-of-the-art equipment. It places
a high importance on patient safety,
as benchmarked against international
standards.
Another goal of PCMC is to become
the premier centre of medical tourism in
the region, rivaling Thailand, India and
Singapore as the place of choice.
In that regard, PCMC provides
medical suites that come with separate
bedrooms for the family, each equipped
with televisions and bathroom. These
are plus factors for foreign patients who
require close family presence.
The medical centre even provides
other hotel-like services, including valet
parking, in-room check-in and check-out
facilities, and 24-hour ala-carte dining
service.
With landscaped gardens, water
features, charming ambience and
soothing therapeutic artworks, PCMC
strives to create a comfortable and
conducive environment for its patients
and their families. Furthermore, its
futuristic architecture, incorporating
abundant natural light and wide spaces,
is recognised as a unique, positive and
modern approach to healthcare.
The medical centre has
already started treating a number
of medical tourists from as far
as Australia, New Zealand and
the United Kingdom, which
surprisingly represent thirty per
cent of its patients.
Furthermore, PCMC has
received requests from countries in
the Middle East and other parts of
Asia to emulate the medical centre
abroad. This demonstrates that the
PCMC is very much a model for
the future of healthcare, helping to
establish Malaysia as the leading
healthcare provider of choice in
Asia.
Information and photos courtesy of Corporate Communications
Department, Prince Court Medical Centre Sdn Bhd.
Prince Court Medical Centre is located on Jalan Kia Peng, within a
convenient distance from the PETRONAS Twin Towers.
For enquiries, call the Centre’s hotline at +603 2160 0000 or visit
www.princecourt.com
18
A WINDOW
INTO THE FUTURE
OF HEALTH CARE
IN MALAYSIA
Among the advanced medical
equipment or technology that PCMC
has invested in include a surgical robot
for treatment in men’s health, and later
for gynaecology and cardiac surgery.
In the near future, PCMC will use
a bladeless excimer/laser for lasik (eye)
surgery.
In collaboration with the Medical
University of Vienna, PCMC aims to
be at the forefront of telepathology,
teleradiology and telecytogenetics
services in Malaysia.
PCMC puts great emphasis on
infection control. It has an infections
control programme in place, headed by
a full time professor of microbiology.
Its operating theatres are among
the cleanest in the world, thanks to
the Laminar Flow ventilation system,
which produces almost particle-free air,
thus reducing the risk of infection at a
significant rate. Plus, PCMC has some
3,730 hand basins and 3,900 hands-free
hygiene automatic dispensers, among
others.
PCMC boasts a comprehensive range of healthcare services
anchored by its five centres of excellence, namely Heart and Lung;
Oncology; Plastic Surgery, Cosmetology, Dermatology and Burns;
Urology, Nephrology and Men’s Health; and Women and Children’s
Health. Plans are being made to develop each dedicated centre of
excellence with state-of-the-art technology.
19
focus
Merdeka Award 2008:
Recognising
and Celebrating
Excellence
In conjunction with the nation’s Golden Jubilee, Exxonmobil,
PETRONAS AND SHELL established the Merdeka Award to give due
recognition to Malaysians as well as non-Malaysians who have
made outstanding and lasting contributions in their respective
fields, towards the betterment of Malaysian society. After
a rigorous nomination and selection process, the inaugural
recipients of the Merdeka Award were announced on 21 August
2008. In this issue of NADA, we salute the Award winners and
celebrate their achievements.
20
through journals and a book helped to raise awareness of
the expedition and to the irreplaceable wonders of BelumTemenggor.
Together with a coalition of like-minded non-governmental
organisations and concerned citizens, MNS raised public
awareness of how logging and development activities
would damage Belum-Temenggor irreversibly, and how the
development of its ecotourism and pharmaceutical potential
would far offset any loss in revenue. MNS lobbied the Malaysian
Government extensively, resulting in Sultan Azlan Shah of Perak
proclaiming the rainforests as Royal Belum in 2003.
ROYAL PROFESSOR UNGKU ABDUL AZIZ
BIN UNGKU ABDUL HAMID
Education and Community Category
Ungku Aziz’s passion and diligence has resulted in
highlighting and addressing issues affecting the common
people. His extensive research work in the identification
and eradication of poverty was instrumental in spurring the
creation of governmental rural development programmes
aimed at benefiting peasants and fisherfolk.
As a means of encouraging rural cooperation and
development, Ungku Aziz strongly backed the Malaysian
cooperative movement. He served as the President of
ANGKASA, the National Co-Operative Organisation of
Malaysia, an organisation which acts as the apex body for
Malaysian cooperatives and which also aims to educate the
Malaysian public on the benefits of cooperatives.
His work also led to the establishment of Lembaga
Urusan dan Tabung Haji (the Pilgrims’ Fund and
Management Board), an investment vehicle governed by
Islamic principles to provide an avenue for Muslims to save
money in order to perform the Haj.
As Vice Chancellor, Ungku Aziz did much to streamline
the administration of the University of Malaya. While
believing that mastery of English was essential for academic
excellence, Ungku Aziz was a vigorous proponent of the use
of the national language in education as a unifying factor.
He was also known for his concern for student welfare, and
always remained humble and approachable to students.
THE MALAYSIAN NATURE SOCIETY (MNS)
Environment Category
Arguably, MNS’ tour de force is its ongoing effort to
conserve the Belum-Temenggor virgin rainforests in
northern Perak state. More than 130 million years old,
its biodiversity surpasses that of the Amazon and Congo
rainforests. In spite of this, the continued existence of
this vital green lung was under threat from logging and
development.
MNS therefore embarked on two landmark scientific
expeditions to Belum-Temenggor in order to catalogue
the biological wonders of the region. Its findings published
In spite of the royal proclamation,
Belum-Temenggor remained
legally unprotected. MNS
subsequently launched the
‘Belum Temenggor Postcard
Campaign’, calling upon the
Perak State Government to
gazette Belum-Temenggor. The
campaign was a success, attracting
over 80,000 signatures. On the 10th of May 2007, the Perak
Government officially gazetted 117,500 hectares of the forest as
the Royal Belum State Park, with logging in Belum-Temenggor to
cease by 2008.
21
PROFESSOR DATO’ DR KHALID KADIR
(Joint Recipient) Health, Science and
Technology Category
Professor Khalid received the Merdeka Award for his
contributions to two areas of endocrinology, namely his
work on the study and understanding of diabetes, and the
relationship between hormones and stresses in various tissues.
Professor Khalid sought to understand why diabetes was
becoming more widespread over the last two decades He
became actively involved in diabetes epidemiology research,
leading to work on clinical drug trials on diabetes, obesity and
dyslipidaemia, as well as methods of managing the disease in
patients. In addition to his laboratory work, Professor Khalid
NIPAH VIRUS ENCEPHALITIS
INVESTIGATION TEAM FROM THE FACULTY
OF MEDICINE, UNIVERSITI OF MALAYA
(Joint Recipient) Health, Science and
Technology Category
In 1998, an outbreak of what was thought to be Japanese
Encephalitis (JE) led to several deaths across the country.
Measures taken to combat JE, such as the vaccination or culling
of pigs, and insecticide fogging of pig farms, failed to halt the
spread of the virus.
A team of intrepid doctors and scientists from the
University of Malaya’s Faculty of Medicine came to the rescue.
While the symptoms were superficially similar to JE, the
team’s investigations concluded that the virus was of a strain
unknown to medicine at the time. It was dubbed the Nipah
virus.
The team conducted further studies to discover the origins
of the virus, modes of transmission and most importantly, a
cure. It was discovered that Pteropus bats carrying the virus
had nibbled on fruits which were fed to pigs, where the virus
multiplied and spread subsequently to humans.
Neurology, radiology, pathogenesis, pathology, serology
and EEG units worked together to treat patients and identify
a cure. Ribavarin, an expensive antiviral medication, proved
to be successful, with mortality rates decreasing by 36 per cent
compared to patients who had not been treated with the drug.
Thanks to the dedication and hard work of the Team,
the epidemic was finally contained. Their discoveries and
achievements were disseminated throughout the international
community through papers published in the most eminent
peer reviewed medical journals.
22
has also set about educating the Malaysian public on the
dangers of the disease through articles in the media.
Professor Khalid also studied how stress affects the
human body through the actions of endocrinal hormones.
Beginning with corticoid hormones, Professor Khalid
went on to explore the effects of endorphins and other
enzymes in regulating bodily functions and metabolism
during periods of stress. He has also researched methods
to counter the potentially deleterious reactions of stressderived hormones in the human body.
In addition to his vast contributions to the corpus of
work in this field, Professor Khalid continues to encourage
and supervise much postgraduate endocrinology research,
and to this day continues to conduct research on the
subject.
DATUK LESLIE DAVIDSON
Outstanding Contribution to the
People of Malaysia Category.
In the early years of the palm oil industry in Malaysia, primitive
processeses and equipment resulted in a very labour intensive
and inefficient effort. One of these processes was the manual
pollination of oil palms.
Datuk Davidson had noticed that in West Africa,
pollination of oil palms was extremely efficient. Convinced
that the oil palm’s pollinating agent was an insect, Datuk
Davidson started lobbying for studies to be conducted on the
subject. Obtaining backing from Unilever, he approached the
Commonwealth Institute for Biological Control to investigate
pollination patterns, leading to the identification of a weevil
known as Elaeidobius kamerunicus.
Datuk Davidson imported a batch of weevils from
Cameroon and released them in Unilever’s Mamor Estate in
Kluang, Johor, on 21 February 1981, to great effect. Yields
increased tremendously, with a reported increase of 400,000
tonnes of palm oil and 300,000 tonnes of palm kernels in the
1981-1982 period alone.
The simplification of pollination was one of the key factors
enabling the phenomenal growth of the palm oil industry in
Malaysia, which is now a key contributor to the Malaysian
economy. The weevils also made smallholder plantations
viable, resulting in increased competitiveness and productivity
in all sectors of the palm oil industry.
Elaeidobius kamerunicus has subsequently been
introduced to other countries in the region, including
Indonesia, Thailand, Papua New Guinea and the Solomon
Islands.
To create awareness of the works of the award recipients and
their impact ON the continued development of thE country, the
Merdeka Award Secretariat in collaboration with Universiti
Teknologi PETRONAS is organising the Merdeka Award Lecture
Series. the lecture series also intends to provide a platform to
encourage more research and innovation among the younger
generation.
Running for a six-month period beginning January 2009, the
lectures given by the Award winners will be held at various
universities around the country.
Please visit www.merdekaaward.com for further details.
23
THE SUCCESS OF AN HSE PROGRAMME REQUIRES EFFECTIVE MANAGEMENT
SYSTEMS, GOOD COMMUNICATION, AND EMPLOYEE COMPETENCIES
THROUGH COMPREHENSIVE AND FOCUSED TRAINING PROGRAMMES TO
CONTRIBUTE TO AN OVERALL HSE CULTURE, WHILE STAYING ALERT ON
ENVIRONMENTAL ISSUES.
24
hse
at the centre
of e&p success
The focus of Health, Safety and Environment (HSE) is on
protecting people against risks to health or safety arising
out of work activities. Companies implementing HSE take
steps towards eliminating or preventing the risk of personal
injury, occupational illnesses and damage to properties.
These steps are also taken with the aim to protect and
conserve the environment in which companies operate.
The oil and gas industry demands greater HSE
commitment for the protection of health and safety of
employees, contractors and society at large. In addition,
productivity and consistency rely on adherence to stringent
safety measures.
Hence, commitment to HSE remains central to the
performance and growth of a company.
However, safety for workers in risky environments
means more than just compliance with standards and
guidelines. The success of an HSE programme requires
effective management systems, good communication,
and employee competencies through comprehensive and
focused training programmes to contribute to an overall
HSE culture, while staying alert on environmental issues.
Therefore, the industry needs to increase and expand
its attitudes on human safety and gain a more global view
of the environment, which includes a healthy respect for
biodiversity and ecosystems.
Through stringent HSE
policies, PETRONAS Carigali
continues to be capabilitydriven in its aspiration of
establishing itself as an E&P
global champion
Safety First
As it strives to attain world-class HSE performance,
PETRONAS Carigali Sdn Bhd (PETRONAS Carigali)
focuses on implementing effective risk control measures in
all its activities, with safety of its employees continuously
on its radar. In its last Financial Year (FY), PETRONAS
Carigali carried out regular interventions and continuous
improvement activities that were complemented by HSE
engagements and best practices, resulting in an improved
HSE management systems and services.
Key gains in PETRONAS Carigali’s HSE performance
were recorded – the Total Recordable Case Frequency
(TRCF) achieved a reduction of more than 50%, from
1.74 in FY2006/7 to 0.67 in FY2007/8*. This was also
an improvement from the same period last year within
all Divisions, mainly due to effective supervision by
permanent HSE health officers and enhanced awareness
among staff and contractors at project sites.
“We continue to develop HSE competency through
the implementation of skill group training as well as
mandatory, compulsory and development training. Over
the last year, we have stepped up unannounced HSE
visits by the management to the worksites. Certainly,
HSE management is not merely the function of the HSE
fraternity but that of the line as well,” said General Manager
of PETRONAS Carigali’s Corporate HSE, Mohd Radzuan
Yusof.
Since FY2005/6, the number of serious injuries has
reduced, underlining PETRONAS Carigali’s commitment
to rigorous safety procedures in its operations. And
in keeping with the challenging business landscape,
PETRONAS Carigali has ensured HSE excellence through
enhanced efforts in HSE risk assessments, process safety
and asset integrity, as well as reviews of its existing systems
and processes.
Through stringent HSE policies, PETRONAS Carigali
continues to be capability-driven in its aspiration of
establishing itself as an exploration and production (E&P)
global champion.
*TRCF for PETRONAS Carigali is calculated at 0.67 for
financial year 2007/2008 and 0.81 for calendar year 2007.
25
HSE ON THE
GLOBAL AGENDA
Safety for workers in risky
environments means more
than just compliance with
standards and guidelines
Beyond E&P operations, challenges in
environmental conservation and global
warming are issues within the purview
of HSE that have intensified worldwide,
sparking an increased interest within the
oil and gas fraternity. Responding to a
changing world, PETRONAS Carigali
has undertaken necessary efforts towards
contributing to global initiatives, such as
feasibility studies on Clean Development
Mechanism and reduction of green house
gas emission from its operations.
PETRONAS Vice President and
PETRONAS Carigali’s Managing
Director & Chief Executive Officer, Datuk
Abdullah Karim, notes that the E&P arm
remains focused on delivering operational
excellence and takes the appropriate
actions in HSE.
“We have intensified engagements
with our key stakeholders towards
improving our health management
and environment protection whilst
contributing to the well-being of the
surrounding community,” he says.
As part of efforts to enhance education and
awareness, well-known local cartoonist
Lat was commissioned to create a series
of HSE cartoons appearing on posters,
calendars, the staff Intranet and various
other media of communication to reach
out to employees.
26
Capability-Driven Performance
The positive results from the HSE policies are but one aspect of
PETRONAS Carigali’s commitment to enhancing operational
excellence. Its productivity and efficiency is also a result of
PETRONAS Carigali’s ability to adapt to changing business
environments and leveraging of niche technologies in E&P.
PETRONAS Carigali has ventures in 23 countries
worldwide and continues to build a robust business portfolio
by intensifying exploration efforts and developing discovered
resources. It has continuously invested in proprietary
technology that enables its team of geoscientists and reservoir
engineers to interpret the viability of further drilling, leading to
better investment decisions. It has also undertaken aggressive
Full Field Review and Enhanced Oil Recovery to maximise
recovery and continues to strive towards achieving world-class
production, operations and maintenance.
Instilling HSE
into Work Culture
PETRONAS Carigali continues
to ensure that good HSE practices
are not only in place but become a
way of life. As part of its efforts to
enhance education and awareness,
cartoon characters by well-known
local cartoonist Lat, launched a
few years ago as part of PETRONAS’ HSE communication
programme, are used to inculcate a HSE culture that challenges
and corrects unsafe behaviour.
HSE topics, such as safe driving and fire safety, are
addressed in posters of these cartoon using various languages,
conveying key messages on benefits of compliance and the
consequences of non-compliance.
In addition, a quiz on HSE was launched in 2007 to raise
further awareness among staff about safety and health in their
working environment. The inaugural competition was opened
to all PETRONAS Carigali employees. In the final stage,
respective regions battled it out for the top four positions to
qualify for the finals.
In the finals, Peninsular Malaysia Operations emerged
champions, edging out 10 regions/divisions which participated
in the competition themed “HSE Excellence – Making it Our
Way of Life”.
The communication efforts by PETRONAS Carigali’s HSE
department has played a key role in enhancing awareness of
HSE management systems and best practices among all staff,
promoting HSE excellence as a way of life and enhancing team
spirit.
LESSON TO LEARN
Piper Alpha Disaster, 1988
Where safety has not been taken as seriously
as it should, there have been costly disasters in
the industry. Some of them have cost millions
of dollars while others, regrettably, have seen
the loss of lives.
The Piper Alpha disaster claimed the lives
of 167 workers. According to the Cullen
Inquiry, on 6 July 1988, valve maintenance for
a pump was undertaken on the Piper Alpha
platform in the North Sea. Unable to complete
the works, the engineer temporarily sealed off
the valve and cautioned that the pump was
not to be started up.
However, due to lack of communications,
the staff in the following shift were unaware
that the pump was inoperable and switched it
on. A steady release of gas into the air resulted
in a series of explosions that destroyed the
platform. The Cullen Inquiry established the
causes of the tragedy to be the result of the
operator’s inadequate maintenance and safety
procedures, and made recommendations for
future safety regimes offshore. One hundred
and six recommendations were made which
were subsequently accepted and implemented
by the offshore operators.
PETRONAS Carigali Ranks
No. 1 in TRCF among OGP
Members
PETRONAS Carigali recorded the lowest
Total Recordable Case Frequency (TRCF),
topping the list of 36 members of the
International Association of Oil and Gas
Producers (OGP) in 2007 for the company
with contractors category.
• Lowest TRCF of 0.81 while other OGP
members’ average TRCF stood at 2.68.
These results were based on the
performance of the respective
companies and their contractors.
• PETRONAS Carigali and its contractors
moved up
to the top position from fourth place in
2006.
• Ranked 11th in 2007 Lost Time Incident
Frequency (LTIF) standings, from its
number 15 position in 2006. The highest
LTI-free man hours achieved was 10.4
million recorded from 5 September to
17 November 2007.
• These achievements were recorded
through increasing activities in
exploration, development and
production, clocking a total of
36,538,516 man hours compared to 34,490,684 in 2006.
TRCF is referred to as Total Recordable
Injury Rate or TRIR in OGP.
TRCF = No. of (Fatality + PPD and /
or PTD + LWC + RWC + MTC) Total
Manhours (in millions) where:
PPD = Permanent Partial Disability
PTD = Permanent Total Disability
LWC = Lost Workday Case
RWC = Restricted Workday Case
MTC = Medical Treatment Case
Q&A:
Test Your HSE Knowledge
Among the misconceptions of HSE is that it is only related to the workplace and that it
is a matter of common sense. But HSE is an international concern, governed by various
authorities in a wide cross section of industries, and covering many aspects of everyday
life. Test yourself in this quiz, designed to create awareness of the seriousness and
importance of HSE.
1. During what period in history did HSE policies
and laws first come about?
2. What is the name of the governing body
for Occupational Safety and Health here in
Malaysia?
3. Which of the following is related to HSE?
A) Road safety
B) Stress management
C) Healthy eating habits
D) All of the above
4. If a fire has occurred in the building, what
should you do before opening doors?
A) Put your ear to the door and listen for
sounds of fire
B) Crouch down
C) Let the tallest person open the door
D) Test the door surface for heat with the back
of your hand
5. Which of the following is INCORRECT when
using a stepladder?
A) Carry your tools in a toolbox
B) Do not allow another person on the
stepladder
C) You may only set up a ladder on a level and
stable surface
D) Do not use an aluminium stepladder near
live electrical sources
6. In performing Cardiac Pulmonary
Resuscitation (CPR), you should do the
following:
A) Blow air into the victim’s nostrils
B) Push down on the left chest to encourage
breathing
C) Call the emergency services before
starting CPR
D) Remove the victim’s jewellery
7. What is the best option if you are caught in
the open in a lightning storm?
A) Shelter under a tree
B) Shelter in a car
C) Lie flat on the ground
D) Move to higher ground
8. If a company were interested in exploring
sites that may potentially have oil and gas
reserves, what kind of environmental study
would need to be conducted first?
9. Under PETRONAS Carigali’s Drug &
Alcohol Policy, can the company conduct
random drug and alcohol testing as well as
searches?
10. In PETRONAS Carigali, if employees believe
that there is an immediate threat that can
endanger themselves or others, or cause
adverse impact to the environment, what can
they do?
Answers: 1. The Industrial Revolution in the late 18th and early 19th centuries, when horrific work environments
caused widespread illness and death. 2. National Institute of Occupational Safety and Health (NIOSH). 3. D)
4. D) 5. A) - You should always have both hands free when climbing a stepladder 6. C) 7. B) - A fully-enclosed
space is always your best option, also remember to wind up the car windows. 8. An Environmental Impact
Assessment (EIA). 9. Yes. 10. They can invoke the Stop-Work policy to cease operations until the threat is
brought under control.
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corporate
roundup
ENGEN EXPANDS PRESENCE
ACROSS SUB-SAHARAN AFRICA
Petroleum products group Engen has made great
strides with its 10-year EPIC 2016 growth plan, in which
the company aims to be among Africa’s downstream
petroleum product leaders by 2016. It is committed to
sustainable, profitable growth on the continent, while
defending Engen Petroleum Limited’s leadership in its
market of origin, South Africa.
Engen’s International Business Development Division
recorded a 62 per cent increase in profits for the 2007/8
financial year, and the division remains a pivotal growth
engine for the company. By 2016, the company aims to
derive 30-35 per cent of group sales volumes from its
African operations.
“This is part of our strategy. Our focus is on subSaharan Africa. Africa is where our growth is.”
At the end of 2008, Engen had included Total’s
downstream operations in Guinea Bissau, Rwanda and
Burundi in its ever-expanding portfolio. Earlier in July, it
had concluded a Sale and Purchase Agreement to buy Shell’s
downstream business interests in Lesotho and Zimbabwe
and another in Gabon, where Engen bought Shell’s interest
in petroleum products and distribution company Pizo. The
Company had also acquired Shell’s 60 per cent interest in
Shell DRC (Democratic Republic of Congo).
Engen spokeswoman Tania Landsberg said the recent
acquisitions were in support of the Company’s foray into
the rest of Africa. “This is part of our strategy. Our focus is
on sub- Saharan Africa. Africa is where our growth is,” she
said.
Engen focuses on the broader energy sector in the
region. Owned 80 per cent by PETRONAS and the
remainder by South Africa’s Worldwide Africa Investment
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Holdings, Engen is an African firm committed to growing
its business in Sub-Saharan Africa, to the mutual benefit of
the Company and its stakeholders, including the countries
and communities in which it operates. PETRONAS’ interest
in Engen encompasses a refinery in Durban and more than
1,300 service stations across Africa.
Malaysian exploration blocks
awarded
Since the start of its financial year on 1 April 2008,
PETRONAS has awarded six offshore exploration blocks
to various exploration and production (E&P) companies,
bringing the number of production sharing contracts (PSC)
to 71 in Malaysia as at end of August. In April alone, three
blocks (PM308A, PM308B and SB303) were awarded
to contractors led by Lundin Malaysia BV, who will be
operator of all three blocks. Lundin Malaysia is a subsidiary
of Sweden-based Lundin Petroleum AB.
Blocks PM308A and PM308B, in water depths of
between 20 and 80 metres, were identified with fractured
basement play and contain several leads and prospects.
Block PM308A had one oil discovery as a result of
previous exploration campaigns. Meanwhile, SB303 had an
undeveloped gas discovery and has been known to contain
a number of leads and prospects with potential for both oil
and gas.
In May, PSCs for Blocks PM303 and PM324 offshore
Peninsular Malaysia were awarded to Total E&P Malaysia
and PETRONAS Carigali. Total E&P Malaysia, with 70 per
cent interest, will operate both blocks while PETRONAS
Carigali will own the remaining 30 per cent. The partners
Since the start of the financial year, PETRONAS has
awarded six offshore exploration blocks to various
exploration and production (E&P) companies.
TANZANIA
ZAMBIA
MALAWI
are committed to drilling two high pressure/temperature
wells to a minimum aggregate depth of 6,500 metres.
In June, PETRONAS awarded a PSC for Block SK310
offshore Sarawak to Newfield Sarawak Malaysia Inc (30%),
Mitsubishi Corporation (30%) and PETRONAS Carigali
(40%). Block SK310 is located in water depths of between
50 and 100 metres in the Central Luconia Province.
Newfield will be the operator of the block.
ZIMBABWE
MOZAMBIQUE
SWAZ.
SOUTH
AFRICA
PETRONAS awarded two blocks in Mozambique
Santos, represented by its CEO David Knox, and PETRONAS,
represented by Vice-President of the Group’s Gas Business Wan
Zulkiflee Wan Ariffin, concluding the transaction
PETRONAS enters coal seam
gas (CSG)-to-LNG project
In July 2008, PETRONAS completed its acquisition of 40
per cent of Santos’ interest in the integrated LNG project
in Gladstone, Queensland, Australia, marking its first
investment in CSG assets and in an Australian LNG project.
Under the agreement, a new 60:40 joint venture company
will be formed to develop and operate a gas liquefaction
facility at Gladstone with an initial one-train capacity of
three million tonnes per annum.
The new entity will also build and operate a 450km
pipeline from jointly-owned upstream CSG assets to the
project site. This partnership will see cooperation in the
exploration and production of selected upstream CSG
assets in Queensland, with Santos as the operator.
PETRONAS views the acquisition as a highly attractive
opportunity, paving its entry into the Australian CSG gas
industry and at the same time further strengthening its
position as a global LNG player. The project’s first LNG
cargoes are planned for 2014.
PETRONAS, together with Empresa Nacional de
Hidrocarbonetos de Moçambique (ENH), the national
oil company of Mozambique, has been awarded the
exploration and production concession contract (EPCC)
for two exploration blocks by the Government of
Mozambique.
The EPCC for offshore Blocks 3 and 6 was signed by
PETRONAS’ wholly-owned subsidiary PC Mozambique
(Rovuma Basin) Ltd (PCMRB) with ENH and the
Government of Mozambique in October 2008.
Under the terms of the EPCC, PCMRB will hold a 90
per cent interest in both Blocks, which are located in the
Rovuma Basin, while ENH will own the remaining 10 per
cent interest. PCMRB has been designated the operator for
the Blocks.
The signing of the latest EPCC marks yet another
milestone for PETRONAS in Mozambique and its
expanding exploration activities in Africa.
The EPCC was signed in Pemba, Mozambique.
PETRONAS was represented by its Vice President Datuk
Abdullah Karim, who is also the Managing Director and
Chief Executive Officer of PETRONAS Carigali Sdn. Bhd.
The Mozambique government was represented by its
Minister of Mineral and Resources, Mme. Esperanca Bias,
while ENH was represented by its President, Mr. Nelson
Ocuane.
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PETRONAS Carigali awards
RM2.8 billion worth
of contracts to local
fabricators
PETRONAS Carigali Sdn Bhd, the exploration and
production arm of PETRONAS awarded 15 contracts for
four of its upstream projects to five local fabricators in
October 2008. The contracts, valued at more than RM2.8
billion, were awarded to Malaysia Marine and Heavy
Engineering Sdn Bhd (MMHE), Sime Darby Engineering
Sdn Bhd, Kencana HL Sdn Bhd, Ramunia Fabricators Sdn
Bhd and Oilfab Sdn Bhd.
Under the terms of the respective contracts, the five
contractors will procure and construct various components
of the facilities for the development of the Kumang Cluster
Fields offshore Sarawak, the Tangga Barat Cluster Fields
offshore Peninsular Malaysia, the Kinabalu Non-Associated
Gas Fields offshore Sabah, and the enhancement of gas
compression capacity at the producing Dulang Field
offshore Terengganu. When completed, the offshore
facilities will boost Malaysia’s gas production by 950 million
standard cubic feet per day (mmscfd), which will enhance
the security of supply to the domestic and export markets.
At the signing ceremony, PETRONAS Carigali was
represented by its Managing Director/CEO Datuk
Abdullah Karim, MMHE by its Managing Director/CEO
Wan Yusoff Wan Hamat, Sime Darby Engineering by its
Head of Oil & Gas Business Encik Abdul Kadir Alias,
and Kencana HL by its Managing Director Ir Haron Ali.
Ramunia Fabricators was represented by its CEO Dr. Daniel
CS Ahn while Oilfab by its Managing Director/CEO Dato’
Mohamed Hazali Abu Hassan.
The signing ceremony was witnessed by PETRONAS
Vice President for Corporate Services, Encik Ahmad Nizam
Salleh.
IPTC 2008 makes debut in
Kuala Lumpur
The first International Petroleum Technology Conference
(IPTC) held in Asia Pacific took place at the Kuala Lumpur
Convention Centre in December 2008. The event, in its
third edition, was hosted by PETRONAS. The theme for
the conference was Meeting the Energy Needs of a Growing
World Economy, and the multidisciplinary event drew
about 4,000 participants from around the world. There were
350 papers presented, covering exploration, production,
reservoir, gas matters and over-arching industry issues.
30
Tan Sri Mohd Hassan Marican, President & CEO,
PETRONAS and Executive Co-Chairman of IPTC 2008,
gave the welcoming address. The event was officiated by
Prime Minister Dato’ Seri Abdullah Haji Ahmad Badawi
who also gave a keynote address. Mark W. Albers, Senior
Vice President, ExxonMobil Corporation and Executive
Co-Chairman of IPTC 2008 also spoke at the opening of
the event.
Prime Minister Dato’ Seri Abdullah at the opening of
IPTC 2008
Kikeh Development Project wins
1st runner-up at the International
Petroleum Technology Conference
(IPTC) “Excellence in Project
Integration” awards
L-R: Albers, Botner, Ikhlas and Tan Sri Hassan Marican
PETRONAS Carigali Sdn Bhd/Murphy Sabah Oil Co.
Ltd won first runner up at the IPTC “Excellence in Project
Integration” Awards.
The award was given in recognition of project teams
that have made significant and unique achievements in
managing and directing an integrated oil or gas project
from discovery to delivery.
Kikeh is Malaysia’s first deepwater field, and the complex
deepwater development project is a major milestone
for PETRONAS and its production sharing contractors
Murphy Oil Corporation, the operator of the field.
Ikhlas Abdul Rahman, Senior General Manager, Joint
Venture Division of PETRONAS Carigali Sdn Bhd and Ted
Botner, General Manager of Murphy Sarawak Oil received
the award on behalf of the companies.
The IPTC “Excellence in Project Integration” Awards
winner was Exxon Neftgas Ltd for its Sakhalin-1 Project.
RasGas Company Limited was the 2nd Runner Up for its
RasGas Train 5 LNG Project.
Clean Fuel:
CSG to LNG
Natural gas has conventionally been mined from
sandstone or limestone reservoirs underground,
where careful drilling aims at reaching the gas
accumulated in pockets. But in Australia, in
particular Queensland, energy suppliers have
been piping coal seam gas, or CSG, to industries
and houses since the 1960s . It is estimated that
approximately 20% of natural gas currently being
used in Australia is CSG.
CSG, or coalbed methane, is gas which lines the
pores and fractures within coal deposits. Historically,
CSG was a safety hazard to coalminers who risked
breathing in large concentrations of methane
unleashed by mining activities. The methane is
also highly combustible and several tragic mine
explosions have caused tremendous loss of life.
With advances in technology, these negative
effects of coal mining have been converted into
positives. Miners began to extract vast quantities
of CSG instead of coal, which is a far more cleanburning fuel than coal itself. Another happy
coincidence with the advent of CSG is the reduction
in the amount of greenhouse gas that is released into
the environment.
The CSG is piped just like any other conventional
form of gas to householders and commercial plants,
providing much of eastern Australia with heat and
power, and supplying industries with feedstock gas.
Today, CSG is outreaching its value as a domestic
source of energy and is set to be marketed globally.
By processing CSG into Liquefied Natural Gas
(LNG), the gas can now be exported to target markets
in the Far East, where growth in demand in countries
like China, Japan and South Korea is making CSGto-LNG ventures very lucrative.
There are currently five similar ventures
being developed in Queensland undertaken by
established oil and gas majors in partnership with
CSG asset holders in Australia. Joint ventures like
ConocoPhillips and Origin, Royal Dutch Shell
and Arrow Energy, PETRONAS and Santos, bring
together corporations with excellent track records
in LNG plant construction and operations with
Australian-based CSG exploration and production
companies.
Of the five, the PETRONAS-Santos venture
named Gladstone LNG, is reputed to be the largest
with an investment value of AUD$7.7 billion.
PETRONAS beat off stiff competition eager to work
with Santos, which is Australia’s largest producer and
marketer of domestic natural gas and a leading CSG
player in the region.
The value of CSG to the Australian economy,
and indeed to the ordinary Australian, has been
enormous. With the completion of CSG to LNG
projects, CSG will also benefit the fast-growing
countries requiring clean energy. All from what was
once a nuisance to the coal miner.
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