MELAKA REFINERY
Transcription
MELAKA REFINERY
Petroliam Nasional Berhad, Malaysia PP 2986/01/2010(023290) 2/2009 MELAKA REFINERY ADDING VALUE TO THE NATION’S PETROLEUM RESOURCE ENHANCED OIL RECOVERY Racing ahead with MOTORSPORTS CONTENTS In this issue of NADA PETRONAS 15 4 10 16 20 4 Melaka Refinery cover story Adding value to the nation’s petroleum resource 10 A Week in Sudan pictorial Getting to know Sudan with PETRONAS Carigali 12 Enhanced Oil Recovery technology Taking EOR offshore 16 Racing Ahead with Motorsports focus PETRONAS’ beneficial involvement in motorsports examined. 20 A Commitment to Care community PETRONAS staff find fulfillment in helping others. 24 Corporate Roundup Important milestones and events in the world of PETRONAS. editorial note Petroliam Nasional Berhad, Malaysia PP 2986/01/2010(023290) MELAKA REFINERY LAUNCH RIDING THE PERFECT STORM PETRONAS’ response to the global financial crisis ENHANCED OIL RECOVERY Extending the life of Malaysia’s oil fields MUCH ADO ABOUT MOTORSPORTS Cover: An aerial view of PETRONAS’ Melaka Refinery Complex by the Straits of Melaka, with the storage tank area in the foreground. 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. LAYOUT DESIGN BY Identity Matters Sdn Bhd PRINTED BY Cetakrapi Sdn Bhd © 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. YOUR SAY... Give us your feedback on what you want to see in future issues. We also welcome your views on stories featured in the current issue. To share your opinions or contribute articles, please write to: The Editor Nada PETRONAS Corporate Communications Department Level 70, Tower 1, Petronas Twin Towers Kuala Lumpur City Centre, 50080 Kuala Lumpur, Malaysia ADDING VALUE TO THE BUSINESS On the cover of this issue is the PETRONAS Melaka Refinery, which is one of the corporation’s three refineries. The Melaka Refinery’s operational excellence will continue to enable PETRONAS to add higher value to the crude oil chain. We also discuss how the Group is developing the remaining domestic oil resources using Enhanced Oil Recovery (EOR) techniques and how PETRONAS is aiming to develop a competitive advantage in offshore EOR. The history and value behind PETRONAS’ involvement in motorsports are also examined. A heart-warming pictorial on PETRONAS Carigali Sdn Bhd’s involvement with the Sudanese community and our story on volunteerism seek to inspire readers to see the good we all can do to bring hope in these challenging times. Nada Editorial Team cover story melaka refinery The Melaka Refinery is an integral component of PETRONAS’ strategy of integration and adding value through its downstream operations in crude oil refining, base oil production, lubricant blending and marketing, increasing the value of each barrel of crude oil to the nation. THE 926-acre Melaka Refinery Complex was constructed to meet Malaysia’s growing needs for refined petroleum products and began operations in 1994 as PETRONAS’ second refinery, the first being the Kertih refinery in Terengganu. The Melaka Refinery’s maximum demonstrated production rate of 265,000 barrels per day (bpd) is larger than that of PETRONAS’ Kertih refinery and larger than the Shell and Esso refineries in Port Dickson. With this production capacity, the Melaka Refinery supplies about 30 per cent of Malaysia’s petroleum product needs, exemplifying the importance of the Melaka Refinery to the nation. As a complex refinery able to ‘crack’ heavier oil, the operations of the PETRONAS Second Refinery 2 (PSR-2) enables the Melaka Refinery to refine heavier imported crude. This provides PETRONAS with greater flexibility in sourcing crude oil. The Melaka Group III base oil plant (MG3) is the newest addition to the Melaka Refinery. Coming onstream in 2008 4 MELAKA REFINERY PETRONAS SECOND REFINERY 1 (PSR-1) The Melaka Refinery began operations with the PSR-1 train, a sweet hydroskimming refinery producing liquefied petroleum gas, motor gasoline, diesel, jet fuel, low sulphur waxy residue, and fuel gas for both domestic and export markets. PSR-1 has a design capacity of 100,000 bpd but a maximum demonstrated production rate of 125,000 bpd. PSR-1 is owned by PETRONAS and is operated by PETRONAS Penapisan (Melaka) Sdn Bhd (PP(M)SB), a wholly owned subsidiary of PETRONAS . PETRONAS SECOND REFINERY 2 (PSR-2) The Melaka Refinery sprawls over 926 acres on the Melaka coastline. The complex includes two refinery trains, the newly-constructed MG3 base oil plant, storage tanks storing crude, refined products and fire water, a jetty complex that juts out into the Straits of Melaka, a cogeneration plant that provides electricity, and several other processing facilities nestled amongst the buildings. with a production capacity of 6,500 bpd, the MG3 plant is one of only 10 such plants in the world. Built to produce toptier Group III base oils, the MG3 was the final building block to make the Melaka Refinery a fully-integrated refinery complex. PETRONAS Group III base oils are marketed by PETRONAS Base Oil (M) Sdn Bhd under the brand name ETRO to leading lube makers worldwide. Adding value for the nation The Melaka Refinery is an indispensable link in the Malaysian oil and gas industry. By supplying 30 per cent of the nation’s petroleum product needs, and with the capacity to supply up to 42 per cent should the occasion arise, the Melaka Refinery is the primary refinery in Malaysia. As such, it stands at the forefront of energy security for the nation. The Melaka Refinery also plays an integral role in adding value to the nation’s oil resources. Through its refining activities, lube blending and now base oil production, each barrel of oil that passes through the Melaka Refinery is substantially increased in value. When considering that a single barrel of crude oil can be increased in value several hundred per cent when it is refined into fully synthetic lubricant, the value-add of the Melaka Refinery becomes apparent. The revenue to the nation has increased significantly through the value-add from crude oil processing activities. PETRONAS expanded the Melaka Refinery with the addition of PSR-2 in 1998 to meet rising requirements. PSR-2 is owned by the Malaysian Refining Company Sdn Bhd (MRCSB), a joint venture company between PETRONAS (53%) and ConocoPhillips (47%), and is also operated by PP(M)SB. PSR-2 is designed to process sour crude with higher sulphur content. The feedstock for PSR-2 is sourced globally, with the main sources being the Middle East. PSR-2 has a design capacity of 100,000 bpd but a maximum demonstrated production rate of 140,000 bpd, with units ranging from major crude and vacuum distillation units, a catalytic reformer unit, a hydrocracker, naphta and diesel hydrotreater units, and a sulphur recovery and delayed coker unit. In addition to the product range produced by PSR-1, PSR-2 produces ultra low sulphur diesel, fuel oil, asphalt and coke, and a range of gas oils. MELAKA REFINERY 5 Being the best refinery in the Asia Pacific Region would entail a level of operational excellence that surpasses that of the competitors. To be the Best Refinery in the Asia Pacific Region PP(M)SB operators checking equipment in the plant. Maintenance is a core competency of PP(M)SB and is carried out regularly. 6 MELAKA REFINERY The Melaka Refinery’s aspiration is to be ‘The Best Refinery in the Asia Pacific Region’. In that regard, the staff of the Melaka Refinery have been working diligently towards achieving the objective of becoming a centre of excellence in 2011/2012. Being the best refinery in the Asia Pacific Region would entail a level of operational excellence that surpasses that of the competitors. For that reason, the Melaka Refinery’s two refinery trains, PSR-1 and PSR-2, undergo a biennial benchmarking exercise conducted by Solomon Associates. The Solomon Benchmark is an industry standard in benchmarking exercises. Solomon Associates collates its benchmarks by taking into account performance in various sectors for a given industry. In the most recent benchmarking exercise, PSR-1 achieved 99.7 and PSR-2 achieved 97.3 on the Solomon Benchmark for refinery utilisation, which were higher than the benchmark positions of 95.9 and 92.9 respectively. There have been other milestones on this quest. The earliest came when the Chemical Industries Council of Malaysia recognised five PETRONAS subsidiary companies including PP(M)SB for excellence in various categories during the 2005 Responsible Care Awards held in August 2006. Another milestone was achieved in February 2007, when PP(M)SB took home the “2006 Excellence Award for Occupational Safety and Health (Gold Award) for Large Industry – Petroleum/Gas/Chemical Category”, which was awarded by the National Council for Occupational Safety and Health. In November 2007, when PP(M)SB won the Prime Minister’s Hibiscus Award for exceptional achievement and best overall performance for 2006/2007. PP(M)SB earned the award due to its energy and waste management policies and facilities, including the cogeneration plant, which produces energy efficiently, and the Energy and Loss Management System, Carbon Footprint Management System and Waste Management Programme. The real effect of the award, however, was the raising of Melaka Refinery’s profile in the environmental arena and it marked yet another milestone in its quest to be the best refinery in the Asia Pacific region. Superior-quality product development Technological development provides the necessary edge to gain an advantage in the marketplace, and the Melaka Refinery has been active in developing higher quality products for the Malaysian and international marketplace. Apart from the capability to produce base oils, the development of sulphur-free diesel (SFD), which is a type of diesel that contains less than 10 parts per million of sulphur and fetches a high premium, has added to Melaka Refinery’s track record. This milestone was followed by the inaugural shipment of SFD in June 2007 from the PSR-2, an affirmation that the Melaka Refinery has the technical capability to produce high-quality diesel and market it effectively. The development of SFD also enables PETRONAS to meet California Air Resource Board regulations, thereby facilitating its penetration into the lucrative European and American markets. The Multi-Product Pipeline: Malaysia’s petroleum products distribution backbone The Multi-Product Pipeline, or MPP, is a petroleum products distribution pipeline that runs 130 km from the Melaka Refinery through the Shell and Esso refineries in Port Dickson, and on to the Kuala Lumpur International Airport before its final destination – the Klang Valley Distribution Terminal (KVDT) in Putrajaya. From there, road tankers distribute the petroleum products to the various retail stations. The MPP pushes through 300 million litres of gasoline and 130 million litres of diesel per month. The MPP has greatly reduced the need for road tankers to run up and down Peninsular Malaysia to distribute petroleum products, contributing to safer distribution operations. The MPP is operated by PETRONAS Dagangan Berhad (PDB), while the KVDT is operated by PS Pipeline Sdn Bhd, a joint venture between PDB and Shell (M) Trading Sdn Bhd. For export of petroleum products, the Melaka Refinery is also equipped with its own 1.5 km long jetty, which has seven berths, and a Single Point Mooring facility that can also handle up to 2.3 million barrels of imported crude at a time. Energy Efficiency Initiatives Beginning in 2004, Melaka Refinery took the necessary steps to improve on energy efficiency in order to surpass the benchmark industrial standard for energy consumption (the Solomon Benchmarking Energy Intensity Index). The refinery undertook a broad range of projects to improve efficiency as part of the Energy Loss Management System initiative. The initiative was designed to reduce the refinery’s fuel consumption and reduce energy losses throughout the refining process. Improvements were made to the refinery’s furnaces and heat exchangers, which reduced the quantity of fuel required to operate a plant. Energy was also saved through the installation of a co-generation plant to supply the refinery with electricity and steam. Compared to a conventional plant, a co-generation plant requires less fuel to produce the same amount of power and steam. Energy loss reduction was also achieved by modifying the flaring control system to minimise the need for flaring. In addition, improvements to the insulation of steam pipelines and optimisation of steam generation and usage resulted in less energy wastage. As a result of these efforts, Melaka Refinery’s PSR-1 is now ranked within the First Quartile of the Solomon Benchmarking Energy Intensity Index. MELAKA REFINERY 7 Refinery types & the Nelson Complexity Factor Basically, there are three types of refineries. They are: • Topping Refineries: These are the smallest and least complex, and are limited in the products they can produce due to their lack of sophistication. Usually, they comprise only an atmospheric distillation tower and vacuum distillation tower, and are dependant on the quality of feedstock. • Hydroskimming Refineries: These are more complex than topping refineries and can modify gasoline octane levels and lower sulpher levels in diesel. PSR-1 is a hydroskimming refinery. • Complex Refineries: These are the ‘big boys’ of the refinery industry. Able to process heavier crude, these refineries are capable of producing more valuable, lighter petroleum products, such as automobile gasoline. Not dependent on quality of feedstock, PSR-2 is a complex refinery. The Nelson Complexity Index was developed by Wilbur L Nelson in the 1960s and measures secondary conversion capacity in comparison to the primary distillation capacity of any refinery. Basically, the higher the number, the more complex is the refinery. PSR-1 has a rating of 3.9, with PSR-2 rated at 9.7. PETRONAS has always emphasised the importance of capability-building and invests substantially in programmes to sustain the industry’s human capital needs. Nurturing talent for continuous excellence PETRONAS has always emphasised the importance of capability-building and invests substantially in programmes to sustain the industry’s human capital needs. PP(M)SB follows in the footsteps of parent company PETRONAS’ commitment to develop human talent through the creation of Technical Professionals (TPs) and Technical Trade Specialists (TTS). The programme allows talented and highly-skilled engineers and plant operators to focus on growing in their fields of expertise and to become content specialists of the knowledge and skills required within the organisation. PP(M)SB has trained TPs and TTS in various engineering and laboratory disciplines. To date, about 50 TPs and TTS have been developed in the space of two years, and have displaced the need to hire external contractors for certain tasks, in addition to the obvious advantages of keeping such expertise in-house. Through PETRONAS’ Accelerated Capability Development Programme, junior engineers are coached by the TPs and given hands-on opportunities to develop and fine-tune their technical capabilities. This structured approach will ensure that all engineers have a thorough grounding in all areas of their work, allowing them to continuously deliver operational excellence. The TPs are currently researching the potential for the Melaka Refinery to process a wider variety of crudes. PP(M)SB staff busy at work - a maintenance worker (top) and control room staff (below) ensure the smooth operation of the Melaka Refinery The future for the Melaka Refinery The PSR-2 Revamp Project is scheduled for completion at the end of 2009. When completed, PSR-2 will have a capacity of 170,000 bpd. The Melaka Refinery looks set to remain as the primary refinery in Malaysia and continue to work towards being the Best Refinery in the Asia Pacific Region. MELAKA REFINERY 9 pictorial 1 6 7 A Week in Sudan Working in the Sudanese oil and gas industry has its share of challenges, brought about by the difficult terrain and remote locations of the oil fields. But with these challenges come opportunities as well. These include experiencing firsthand the sights, sounds and smells of rural Sudan with its unspoilt natural beauty, making new friends from a different culture, as well as the privilege to help a country develop and grow. PETRONAS teams may travel miles across the Sudan in pursuit of their tasks, but they are also creating smiles in their wake, as shown by the pictures in this spread. 8 1 A woman expresses joy the way only mothers can upon seeing her son’s graduation from Universiti Teknologi PETRONAS. 6 PETRONAS staff engaging with a group of Sudanese villagers. 11 Our Office Complex in Khartoum. 10 A WEEK IN SUDAN 2 3 4 5 9 10 11 2 Flags tell a tale of partnership 3 Children quenching their thirst 4 A team of PETRONAS Carigali 5 From across the land came these between Sudan and Malaysia. at a water pump installed by one of PETRONAS’ joint ventures in Sudan. personnel stuck in a flash flood on the access road to an operations site. All in a day’s work in Sudan… secondary school students, participants of the annual PETRONAS Debate and Quiz Trophy 2008 in Khartoum. For many of them, it was their first time on a plane or out of their village. 7 Sudanese and Malaysian staff 8 Graduates from the Khartoum 9 Not a common sight elsewhere 10 Villagers waiting to see the at a Hari Raya Aidilfitri open house held at the PETRONAS Sudan Office Complex in Khartoum. Vocational Training Centre (KVTC) proudly clutching their certificates before embarking on careers with PETRONAS. … a road blocked by wildlife, in this case, a flock of Marabou Stork in Southern Sudan. doctor at the community clinic provided by PETRONAS’ joint venture operations in collaboration with the Ministry of Health. A WEEK IN SUDAN 11 technology enhanced OIL RECOVERY The Dulang oil rig is located approximately 130 km off the coast of Peninsular Malaysia. The Dulang oil field currently utilises water-alternate-gas EOR processes. With more oil reservoirs around the world entering into advanced stages of depletion amid a heightened level of awareness of the importance of energy security, the scramble is now on for nonconventional extraction techniques to sustain the world’s supply of crude oil. 12 EOR THe discovery rate for new oilfields has dropped significantly, and with it, the likelihood of discovering another superfield, such as those in the Middle East or Central America. In Malaysia, the search for oil is now moving farther into deepwater areas, while existing oil fields are in an advanced stage of depletion. Recovery factors average around 35 per cent, which is lower in comparison with some other countries that have been more aggressive in producing resources from their fields. Contingency plans to extend the life of Malaysia’s reserves include prospecting overseas, which PETRONAS continues to undertake through its subsidiary PETRONAS Carigali Sdn Bhd. However, Malaysia’s oil fields are not entirely drained of their reserves yet. There are still sizable reserves left to extract. The question is how this is to be done. One of the answers lies in Enhanced Oil Recovery (EOR) techniques. PETRONAS conducts EOR projects, which are currently in 11 offshore fields, including the Baram, Baronia, Bokor, Dulang, Guntong and Tapis fields. Based on initial screening studies, 80 per cent of Malaysia’s oil fields are technically suitable for EOR. The EOR processes commonly used by PETRONAS are gas flooding, specifically water-alternate-gas (immiscible or miscible) and chemical flooding. Gas flooding - utilising hydrocarbon gas or CO2 as the injection fluid - has been found to be most suitable for Malaysia’s fields. PETRONAS is looking to extract CO2 from high CO2 gas fields, estimated at more than 10 trillion cubic feet, for use as injection fluid. It is also conducting research into an EOR technique that utilises microbes, called Microbial Enhanced Oil Recovery or MEOR. Many of the EOR projects undertaken by PETRONAS are conducted in conjunction with its Production Sharing EOR 13 technology PETRONAS is confident that the operational and process knowledge gained through the adaptation of land-based technology to a marine environment has provided it with the option to consider positioning itself as a leading EOR player in the industry, with expertise in offshore EOR processes, as opposed to other players who are mainly onshore 14 14 EOR EOR Contract (PSC) partners. For instance, to further develop the Tapis field offshore Terengganu through EOR techniques, PETRONAS and ExxonMobil Exploration and Production (M) Inc, will jointly implement a water-alternate-gas scheme in the Tapis field. The estimated additional oil recovery for that particular field alone is over 100 million barrels, extending the field’s life for at least another 25 years, providing added impetus to the importance of developing EOR. Embarking on an EOR project requires a series of evaluations to understand a field’s behaviour. A reservoir model is built around data collected during a developed field’s first few years of operation, collating information on the field’s behaviour and characteristics. From an analysis of this model, PETRONAS engineers evaluate when EOR techniques should be implemented. The potential of EOR extends beyond lengthening the lives of Malaysia’s oil fields. The EOR techniques utilised by PETRONAS are existing technologies and processes used by other EOR players. While the technology is not new, the application has mostly been onshore. As Malaysia’s oil fields are located mostly offshore, the know-how of operating an EOR project offshore needed to be developed. In that regard, PETRONAS has taken the adaptation of onshore EOR techniques for offshore use to the next level. PETRONAS is confident that the operational and process knowledge gained through the adaptation of land-based technology to a marine environment has provided it with the option to consider positioning itself as a leading EOR player in the industry, with expertise in offshore EOR processes, as opposed to other players who are mainly onshore. PETRONAS is now going at full speed in pursuing the implementation of EOR projects. The Angsi field located offshore Terengganu, for instance, yielded encouraging results from pilot tests. Subjected to chemical EOR, the Angsi field showed a potential increase of up to 24 per cent of recoverable oil. The Angsi pilot project also created history by being the world’s first offshore application of chemical EOR in a high temperature reservoir. The oil and gas industry is competitive, and with dwindling yields around the world, EOR will prove to be a vital technology in the near future. PETRONAS is excited about EOR, as it will maximise the yield of Malaysia’s fields and position PETRONAS as a leading EOR player. This development is opening up new opportunities for business expansion overseas and adding a new dimension to the oil and gas industry in Malaysia. Recovery stages of an oil field The average oil field will go through three recovery stages during its lifetime. Primary Recovery Stage: In this stage, underground pressure generated naturally forces the oil to the surface. Recovery factor during the primary recovery stage is typically five to 15 per cent. Secondary Recovery Stage: The secondary recovery stage involves the application of external energy to generate pressure in the reservoir. These include water injection and natural gas re-injection, or a combination of both. Pumps and gas lifts may also be applied to help improve recovery efficiency. On average, the recovery factor after primary and secondary oil recovery operations is between 30 and 50 per cent. Tertiary Recovery Stage: When secondary recovery techniques are no longer sufficient to extract oil, EOR techniques, such as those utilised by PETRONAS, can be applied to extract an additional five to 15 per cent more crude from a field. EOR 15 RACING AHEAD WITH MOTORSPORTS Motorsports in the Malaysian context has become synonymous with PETRONAS. Over the past 20 years, Malaysians have gotten used to seeing the PETRONAS name and logo emblazoned on race and rally cars, motorbikes, and on sponsorship banners worldwide. The PETRONAS name is a visible symbol of corporate Malaysia carried into the racing world, the PETRONAS logo standing tall among the global brands that comprise the big boys of motorsports. 16 MUCH ADO ABOUT MOTORSPORTS focus Technological innovation is the lifeblood of any oil and gas company, just as engine oil is the lifeblood of the internal combustion engine. Lubricants in general play pivotal roles in modern forms of transportation, from automobiles to trains, to aircraft. Similarly, technological innovation plays a pivotal role in keeping an oil and gas company ahead of the curve and to remain cost-competitive. Technological innovation is one of the reasons why PETRONAS decided to venture into motorsports. However, PETRONAS’ involvement in motorsports has its roots in marketing and branding objectives, and this is where the company has reaped its biggest benefits. It was motorsports – Formula One (F1) in particular - that popularised the PETRONAS name overseas. PETRONAS is committed to continuing its involvement in motorsports and is looking ahead to greater achievements in this area. PETRONAS in motorsports – a brief history The success of PETRONAS in motorsports is a source of pride for many Malaysians, but not many are familiar with PETRONAS’ journey in this area. PETRONAS’ motorsports story began in the late 1980s when the search for an appropriate way to market its growing lubricants business was underway. The pairing of PETRONAS with motorsports checked all the necessary boxes and the decision was made to sponsor a Malaysian rally team in 1988. The rest, as people say, is history. When PETRONAS expanded overseas in the 1990s, the company’s brand and logo were carried into the general public’s consciousness through motorsports. The concept worked on every level. The international exposure enjoyed by PETRONAS brought the corporate logo and brand into the homes of spectators and the general public the world over. It was in the mid-1990s that PETRONAS got involved in F1 racing, the most visible the company had ever been at the time. PETRONAS partnered with the then Red Bull-Sauber-Ford F1 Team in 1995 and received Grand Prix rights in 1999, propelling Malaysia into the league of F1 host nations as a destination for international motorsports, as well as boosting PETRONAS’ corporate image. In 2006, PETRONAS partnered with the BMWSauber F1 Team, a collaboration that has taken PETRONAS to the next level. MUCH ADO ABOUT MOTORSPORTS 17 The technology of motorsports PETRONAS’ involvement in motorsports provided the impetus for further development of its oil business products – fuels and lubricants – to a level higher than if the company had continued its research and development (R&D) efforts within the confines of a laboratory. The real world application of its products in high-output race engines, which are able to hit redlines far higher than passenger cars while generating extreme heat, has provided PETRONAS with the best test-bed for its products. In addition, the development of capabilities in the area of automotive, fuel and lubricant development has formed the core of PETRONAS R&D, resulting in the recognised PETRONAS range of products used in vehicles throughout Malaysia. When PETRONAS entered into a partnership with the Sauber F1 team in 1995, the company’s involvement in motorsports stepped up to the next level. Through the signing of an eight-year technology transfer programme with the Sauber team, F1 proved to be the ultimate laboratory, providing real world application of PETRONAS’ products in an even more extreme environment than conventional motorsports. Utilising this opportunity, PETRONAS engineers were able to successfully develop, formulate, test and apply the technology that went into the development of the fully synthetic PETRONAS SYNTIUM engine lubricant and the Primax F1 fuel, which was also used to power the Sauber PETRONAS F1 cars. The SYNTIUM range of lubricants has also benefited from R&D programmes for the touring car and endurance teams, as well as the PETRONAS Adventure Team, known for its longdistance expeditions through extreme weather and terrain, as well as high altitudes. Additionally, the Sauber PETRONAS Engineering programme has provided PETRONAS engineers the perfect platform to test and further develop the SPRINTA range of engine oils, designed for two and four-stroke motorcycle engines. The technologically intensive nature of motorsports has contributed significantly to the nurturing and enhancement of technological capabilities within the PETRONAS Group. PETRONAS engineers have gained extensive knowledge and experience from their involvement in motorsports and have ploughed the same back into the company, which has proven useful in the advancement of technology for the Malaysian oil and gas industry. Through PETRONAS’ motorsports experience, PETRONAS has gained a reputation as a company at the forefront of technological advancement. 18 MUCH ADO ABOUT MOTORSPORTS Brand PETRONAS Brand Malaysia. This is a concept introduced by the Malaysian government as a means of giving Malaysian products an identity of their own, much like how Japanese, German and American products are identified with their own unique values stemming from their commitment to reliability, quality and design. Complementing the Brand Malaysia initiative are Malaysian companies that have made their names synonymous with certain qualities. PETRONAS is such a company. Through its involvement with motorsports, perhaps the biggest benefit the company has gained is its brand recognition, which now extends overseas. This vindicates the idea behind the venture into motorsports to brand and market PETRONAS’ lubricants in the international market. Through its involvement in F1, PETRONAS’ reputation has grown in stature, in that PETRONAS earned a level of recognition and respect from the international motorsports community, which no amount of advertising could have achieved on its own. In 2006, PETRONAS extended its 11-year association with Sauber and took on a premium partnership role with the BMW Sauber F1 team. Due to the stature of BMW – a global powerhouse of a brand – PETRONAS has risen further in visibility and worldwide positioning. BMW’s inclusion in the partnership has been estimated to have increased media value fivefold. This increase in international visibility and reputation has moved PETRONAS closer to realising its aims of exploring other markets. For example, PETRONAS launched the SYNTIUM brand lubricants in the Japanese market, parallel with its use for the BMW Z4M Coupe in the 2007 Super Taikyu Endurance Series in Japan. However, the ultimate result of PETRONAS’ success in the motorsports arena is the promotion of Malaysia itself as a brand. At a time when the country is quickly developing but remains generally on the periphery of global awareness, PETRONAS, together with a handful of other Malaysian companies, continues to bring Brand Malaysia to the world’s attention. 1 2 3 4 1Malaysia has generated substantial tourism revenue from hosting F1 races. 2 Street Smarts: The F1 experience is brought to Malaysians who are unable to attend F1 races. This outreach programme is held as a way of broadening the reach and impact of F1 in Malaysia. 3PETRONAS and Sauber engineers working together in a laboratory in Switzerland during the eight-year Technical Transfer Programme 4Fariqe Hairuman (2nd from right), triumphantly lifts his trophy upon winning the Asian Touring Car Championship in 2007. For the latest news on PETRONAS’ racing teams, visit www.petmos.com.my Nurturing local motorsports talent Racing ahead Karamjit Singh, Hairol Azmi, Shahrul Nizam, Kuan Meng Heng, Shahrol Yuzy – these are names familiar to every Malaysian motorsports enthusiast. At the same time, they would draw an association with PETRONAS, as these talents have been nurtured with assistance from PETRONAS. Through partnerships with Malaysian motorsports teams – whether two or four-wheel, on or off-road, racing or touring – PETRONAS has helped nurture local talents and elevated Malaysian motorsports to an international level. New talents continue to emerge: Ahmad Fuad Baharudin, Md Zamri Baba and Azlan Shah Kamaruzaman in the Asian Grand Prix; and Fariqe Hairuman, the first Malaysian to win the Asian Touring Car Championship. The partnerships that PETRONAS has established with the world of motorsports over the years are bearing fruit in terms of the company’s lubricants business. PETRONAS is working closely together with manufacturers in supplying Syntium lubricants to Original Equipment Manufacturers (OEM) and is already doing so with BMW in Malaysia. Its support of twowheel racing has also seen the company formalise a tie-up to supply PETRONAS Sprinta motorcycle lubricants to Yamaha’s distributors in Indonesia, Malaysia and Thailand. In April 2009, PETRONAS went on to sign a three-year agreement with Yamaha Motor to become official sponsors and premium partners of Fiat Yamaha. PETRONAS branding will be seen on the liveries and bike of reigning MotoGP world champion Valentino Rossi! MUCH ADO ABOUT MOTORSPORTS 19 community a commitment to care There is a great need nowadays for volunteers to dedicate their time to help others. The advent of the new century has brought its share of natural disasters, from tsunamis to earthquakes, from floods to landslides. We are also witness to manmade disasters, including the endless conflicts and wars that mar our history. Both nature and man seem to enjoy throwing temper tantrums from time to time, with devastating consequences for those caught in the crossfire. THE devastation to the environment and loss of life caused by these natural and unexpected occurrences have been widespread and painful, but as the saying goes, when the chips are down, people are at their best. Among the stories of heroism and selflessness that have emerged from the ruins of these disaster sites are stories of those who gave of themselves by way of lending their time, sometimes even at the cost of risking their lives. In today’s fast-paced modern society, the typical executive does not have much time for volunteerism. With the additional demands of family and other obligations, it is hardly surprising that volunteerism often finds itself on the backburner for so many working professionals nationwide. Additionally, the challenges posed by logistics and resources tend to prevent most from volunteering to do some good for society in their free time. Fortunately, PETRONAS has programmes in place that make it possible for employees to volunteer their time while still maintaining their jobs. We feature in these pages the PETRONAS Volunteer Opportunity Programme (PVOP) and the Young Professionals Club (YPC) of PETRONAS Carigali Sdn Bhd. 20 A COMMITMENT TO CARE The PVOP: One route to volunteerism The PVOP was officially launched on 1 April 2005 as a platform to develop a pool of employee-volunteers who are keen on contributing their time, skills and experience in meaningful ways through community relations activities. Through the PVOP, employees are sponsored and trained, so that they may volunteer their services in disaster zones. The sponsorship extends to the cost of transportation and the necessary funds to support the volunteer, and the training encompasses preparing the volunteer for what he or she would face at the disaster zone, and what would be required to make a difference. The PVOP also fosters long-term relationships and enhances mutually-beneficial partnerships with communities wherever PETRONAS operates. “When you volunteer, it’s not important what your status is or from which family you come from. What’s important is that you’re able to contribute.” Ramli ” B Mohamad Since the PVOP programme was inaugurated, PVOP volunteers have seen action in disaster zones in Bangladesh, Indonesia, Pakistan, Philippines, Sudan and Vietnam. PVOP volunteers do what they do because they believe that helping others is reward in itself. According to them, their lives have been enriched from their experiences, making them more humble and appreciative of what they have at home. Khalid B Dato Haji Akil, a project coordinator with KLCC Projeks Sdn Bhd and a PVOP volunteer, signed up with the PVOP after he heard of the devastating tsunami that hit Aceh, Indonesia. However, he was not chosen “When I first saw the for Aceh but ended up being chosen to go to the island of Nias level of destruction, for two weeks after the 2006 earthquake. He was tasked with I cried.” building a hospital there. Khalid B Dato Haji Akil “When I first saw the level of destruction, I cried,” said Khalid. The people there were so poor. It made me grateful for everything I have back home. It also made me more determined to complete my mission.” Khalid’s task of building a hospital turned out to be a bigger task than originally expected. “When I got there, I realised just how much needed to be done. Two weeks were not enough. When I returned, I talked to management and explained the situation, and I was allowed stay for three months! I was lucky that PETRONAS’ management was so supportive.” “The people were so appreciative of what we’ve done. It made me proud to be a Malaysian and an employee of PETRONAS. God has given me good health, wealth, knowledge and skills. It’s time I shared what I have with others,” Khalid proclaimed, adding, “I want to thank the company for giving me the opportunities to help others.” Khalid’s belief that resources and talents are God-given and, hence, must be shared or given back to the community with the same energy that is used in searching and drilling for oil, is shared by other PVOP volunteers. Ramli B Mohamad, from Corporate Security Division, also signed up for the PVOP programme. Ramli was chosen for the earthquake relief mission in Pakistan in 2005 to help out with the logistics of aid, including the distribution of tents and blankets to victims of the tragedy. His team comprised seven members, all from PETRONAS. Reflecting on the experience, Ramli said, “Sometimes we are so caught up in our own selfish pursuits that we forget about being humble. Being humble is important. By helping others and being involved in humanitarian work, a person can learn humility.” He added, “When you volunteer, it’s not important what your status is or which family you come from. What is important is that you are able to contribute.” Being surrounded by so much poverty and devastation made Ramli much more appreciative of his family and his home. “I realised how well taken care of my family is. We live in a comfortable and peaceful environment. I have a good job where I can support them. I’m grateful for everything that I have.” Ramli also believes that by joining a programme like PVOP, one gets the chance to network. “Many of us sit behind our computers all day. Some of us hardly know the people in our own department! But through a programme like PVOP, we can network, get to know other people and expand our circle of friends.” A COMMITMENT TO CARE 21 Lee Pei Lee, now the Head Nurse with the Emergency and Primary Care Department at Prince Court Medical Centre, says that volunteering during an emergency can change one’s perspective on life. She remembers being assigned to Legaspi in the Philippines after the tragic landslide in December 2006. Lee was attached to a MERCY medical team made up of four people - a doctor, a medical assistant, a nurse and a logistics person. Their mission was to help contain the spread of infectious disease. Lee believes that the psycho-social training she received under the PVOP scheme helped her deal with the stress of being at the heart of the scene of tragedy. Looking back, despite the trauma, the experience has made her a stronger person and appreciative of the good life at home in Malaysia. “God has given me good health and I live in a peaceful country. This is the time for us to come out from our comfort zones and help others who are less fortunate than we are. This is how we can show our appreciation for what we have been given.” Her advice to volunteers is that they should prepare themselves fully before going on a humanitarian mission. “It’s Jogjakarta Sarawak 22 A COMMITMENT TO CARE a tough job. Expect the worst. If you’re well prepared, you’ll come out of it, unscathed. Always remember that when we come home, we become better persons.” Lee notes that PVOP is successful because it facilitates greater participation in volunteer activities. “If I were registered with an external volunteer programme, it “God has given me good health would be harder for me to get and I live in a peaceful country. time off from work. But with PVOP, since it’s an initiative by This is the time for us to come out PETRONAS, I can continue my from our comfort zones and help interest in volunteer activities others who are less fortunate than without too much difficulty.” W i t h t h e o n g o i n g we are. This is how we can show commitment by PETRONAS’ our appreciation for what we have management, PVOP wi l l been given.” continue to thrive and give more employees like Khalid, Ramli Lee Pei Lee and Lee the chance to find their calling in volunteerism. One objective of the scheme is to encourage leadership qualities that are key to PETRONAS’ growth and future. This aspiration becomes even more meaningful when staff can develop themselves while bringing about positive change at various levels in society. Aceh Johor Pakistan petronas volunteers in action around the world AND ANOTHER WAY – the young professionals club The Young Professionals Club, or YPC, found its seeds in the young PETRONAS executives’ desire to help others and do something positive for the community, whether locally or abroad. The YPC also hopeS to break down barriers between the general public and its members, to show to the world that an executive’s career is ALL THE MORE MEANINGFUL WHEN COMBINED WITH SOCIAL WORK. THE YPC was initiated and driven by members feel the same. That is what drives us. That PETRONAS executives themselves, arising from fuels our passion. It adds value to our lives. We are a suggestion by management that they form a reaching out and making a difference,” Suhana says. networking club that contributes their skills to Similar to the PVOP, the YPC also serves as society without expecting reward. a networking platform. The YPC has organised Thanks to the combined efforts of management and family day events and sport activities for its members, the founding members, the YPC has been involved for instance, as a means for bringing people with community work around the country, together. “I think it’s funny that some people reaching out to the people through activities such can work in the same company and, yet, hardly as blood donation drives, helping out orphanages know each other. Through YPC activities, they and giving career talks at schools, among others. can network, meet new people and forge new PETRONAS Carigali Sdn Bhd’s YPC pioneer friendships,” Suhana explains. Suhana Sidik, a planning engineer and former “In addition, we have invited young leaders in President of PETRONAS our company to give talks Carigali’s Development “Our members are very supportive about how they get where they Division’s YPC are now. They give tips and and very motivated. All of them (DDYPC), says there share the insights that they are so many young have gathered in their careers. would take the initiative in doing professionals around All of that is important and things. It’s with their support and useful for our members,” her who are passionate about doing community dedication that YPC has been able Suhana adds. work. The YPC has also to grow to what it is now.” “The people in organised talks on values to Farid Wahid` YPC are passionate reinforce the PETRONAS individuals who believe Shared Values of Loyalty, in giving back to society. Integrity, Professionalism and They are willing to set Cohesiveness. aside their time to reach out to those who are less There are now several YPCs in PETRONAS’ fortunate,” she says. “When you do community regional offices and some subsidiaries, all run by work, it makes you feel humble. You become more young executives with a passion for what they do. appreciative of what you have. Sometimes, we may Meanwhile, echoing Suhana is Farid Wahid, take things for granted and we forget that there are President of DDYPC, who says, “Our members are many others out there who have less.” very supportive and very motivated. All of them It is also through volunteering in community would take the initiative in doing things. It’s with work that many members are able to meet and their support and dedication that YPC has been support other like-minded colleagues. “I feel happy able to grow to what it is now.” when I’m out there giving back to society. Our Suhana Sidik YPC pioneer A COMMITMENT TO CSR 23 corporate roundup OPEN FOR BUSINESS: PETRONAS hits milestone with opening of MegaMethanol Plant per day (mtpd) or 1.7 million metric tons per year of 99.85 per cent Grade AA commercial methanol. It consumes 120 million standard cubic feet per day (mmscfd) of associated gas from the Kikeh field as feed gas and an additional 30 mmscfd of associated gas as fuel gas from the Erb West and Samarang fields. Combined with the 2,000 mtpd production from PMLSB Plant 1, PMLSB is the largest methanol producer in South East Asia and one of the largest in the world. Kertih Plastic Park attracts RM145 million in investmentS PETRONAS Methanol (Labuan) Sdn Bhd (PMLSB)’s MegaMethanol Plant achieved a significant milestone on the attainment of 100 per cent nameplate capacity on 4 May 2009. The first drop of methanol was produced on 31 December 2008, followed by the production of US Federal Spec Grade AA commercial methanol on 19 January 2009. The MegaMethanol Plant, also called PMLSB Plant 2, celebrated its maiden methanol cargo delivery on 1 April 2009. The product will be marketed domestically as well as to the growing markets in South East Asia, North East Asia and India. Construction of the PMLSB Plant 2 started in May 2006 and achieved Ready for Start-Up status in November 2008. The plant is capable of producing 5,000 metric tons 24 CORPORATE ROUNDUP Three plastic product manufacturers have invested a total of RM145 million in the Kertih Plastics Park (KPP), launched on 2 December 2008 by then Prime Minister Datuk Seri Abdullah Ahmad Badawi. The three manufacturers are: (i) Hi-Essence Cable Sdn Bhd, a wire and cable manufacturer, which is investing RM85 million; (ii) Latenfield Pipe Industries Sdn Bhd, with investments of RM40 million; and (iii) FMD Polypipes Industry Sdn Bhd, a plastic pipe manufacturer, with investments of RM20 million. KPP is located in the East Coast Economic Region and is being developed with the objective of promoting downstream investments in the plastics and plastic-related industries in synergy with the nearby Kertih Integrated Petrochemical Complex. KPP targets RM2 billion in investments and the creation of approximately 7,000 jobs. MLNG marks important milestone PETRONAS subsidiary Malaysia LNG Sdn Bhd (MLNG) marked an important milestone in its operating history when it successfully delivered its 6,000th cargo of Liquefied Natural Gas (LNG) to Korea Gas Corporation. The historic cargo, carried onboard the Puteri Delima Satu tanker, left Bintulu port on 28 January 2008 and arrived at its destination, the Tong Yeong Terminal, South Korea, six days later on 3 February 2009. MLNG achieved two other significant milestones last year when it celebrated the 25th anniversary of its first LNG shipment in January 2008, followed by MLNG’s 30th anniversary of incorporation in June 2008. PETRONAS subsidiary acquires Marathon Oil IRELAND LTD PETRONAS’ subsidiary, Star Energy Group, has acquired Marathon Oil Ireland Ltd, the Irish unit of Marathon Oil Corporation, in a deal worth USD180 million (RM628 million), on 17 December 2008. Among the assets of Marathon Oil Ireland Ltd are a 100 per cent operated interest in the Kinsale Head Area, a 86.5 per cent interest in the Seven Heads field and a 100 per cent interest in the company’s gas storage business. Star Energy Group will retain all 61 of Marathon Oil Ireland Ltd’s employees as part of the deal. Turkmen students graduate from utp Eight Turkmen students of Universiti Teknologi Petronas (UTP) graduated at a ceremony held at the President Hotel in Ashgabat, Turkmenistan, on 18 January 2009. The Turkmen students were studying at UTP as part of PETRONAS’ philosophy of developing human capital throughout the various countries in which it operates. The Turkmen students were conferred with their degrees by Datuk Dr Zainal Abidin Haji Kasim, Rector of UTP, accompanied by His Excellency Yagshygeldy Kakayev, Director of the State Agency for Management and Use of Hydrocarbon Resources, and Mr Guvanch Agajanov, Chairman of Block 1 Turkmenistan Management Committee. Representatives from the State Agency, Ministry of Education, and proud parents and relatives of the UTP graduates, were also present. To date, 41 Turkmen students have graduated from UTP, with 44 Turkmen students currently studying there. Following the convocation ceremony, 45 Turkmen trainee technicians who had successfully completed PETRONAS Carigali (Turkmenistan) Sdn Bhd’s Technician Training Programme in December 2008 received their graduation certificates at a separate graduation ceremony. The technicians received their certificates from Datuk Dr Rosti Saruwono, then Vice President of Education Division, PETRONAS, accompanied by His Excellency Yagshygeldy Kakayev and En Mohamad Zazali Salim, General Manager of Institut Teknologi Petroleum PETRONAS (INSTEP). During his opening remarks, Datuk Dr Rosti noted that PETRONAS was still actively building capabilities and recruiting talent to support domestic and international operations and businesses despite the global financial crisis. The 45 technicians underwent a training programme that lasted for 27 months, with the first year conducted in Turkmenistan and the second year at INSTEP. The trainees then underwent a six-month on-the-job training at various PETRONAS Operating Units in Malaysia. Another activity that took place in Turkmenistan was the opening of PETRONAS’ new office premises on 17 January 2009. Marked by a simple ceremony, the opening was attended by PETRONAS staff and representatives from Malaysian companies in Turkmenistan. CORPORATE ROUNDUP 25 Vietnamese students discover the world with PETRONAS On 10 March 2009, PETRONAS, together with the Vietnamese newspaper Thieu Nien Tien Phong, launched the ‘Discovering Our World with PETRONAS’ contest for Vietnamese secondary school students at the To Hoang Secondary School in Hanoi. The competition, aimed at nurturing interest in natural science and promoting the spirit of teamwork among school children, runs from March to July 2009. The contest is part of a series inaugurated in 2006, in conjunction with the celebration of PETRONAS’ 15th anniversary in Vietnam. The number of participants has increased significantly to nearly 440,000 school children in 2008 - from both big cities like Hanoi and Ho Chi Minh City and remote areas such as Cao Bang and Dong Thap province. The Grand Prize winners in 2008 were awarded a study tour to Kuala Lumpur, which included a visit to the PETROSAINS Science Discovery Centre, the PETRONAS Twin Towers, and other historical and educational places of interest. The launch ceremony was attended by HE Mr Nguyen Vinh Hien, Deputy Minister of Education and Training, Vietnam; Prof Dr Nguyen Lan Dzung, Head of the Jury Board, Member of National Assembly; En Awang Othman Awang Jaya, Country Manager of PETRONAS Vietnam Representative Office; officials from the Ministry of Education and Training; members of the Ho Chi Minh Youth Union and the media; teachers and nearly 1,000 pupils from the To Hoang School. “The ‘Discovering Our World with PETRONAS’ contest will encourage creativity among the children and the discovery of their surrounding world” Speaking at the launch ceremony, HE Mr Nguyen Vinh Hien said that the ‘Discovering Our World with PETRONAS’ contest would encourage creativity among the children and the discovery of their surrounding world. It is in line with his Ministry’s slogan “Study well, teaching well”. “Students will learn about the natural environment from school and will have the curiosity to discover why the natural environment is such as it is,” he added. 26 CORPORATE ROUNDUP MOU FOR ACADEMIC CHAIR SPONSORSHIP IN DRILLING TECHNOLOGY Universiti Teknologi PETRONAS (UTP) marked an important milestone in its quest to attain academic and research and development (R&D) excellence with the signing of a Memorandum of Understanding (MoU) with Transocean International, a leading offshore drilling services provider with specialisation in deepwater drilling. The MoU will enable UTP to accelerate its capability in deepwater technology, which is an R&D focus area for UTP. The MoU, signed on 24 February 2009 at the Malaysian Petroleum Club, Kuala Lumpur, includes the establishment of a Drilling Technology Chair at UTP, assistance from Transocean in the provision of expertise to support UTP’s academic delivery through the adjunct lecturer programme, and industrial placements for UTP students and staff. The signing ceremony was attended by Dato’ Udani bin Dato’ Seri Mohamed Daud, Director of Transocean Drilling Sdn Bhd; Datuk Dr Rosti Saruwono, then Vice President of Education Division, PETRONAS; Datuk Dr Zainal Abidin Haji Kasim, Rector of UTP; Mr Robert Long, Chief Executive Officer of Transocean Ltd, USA; and senior officials from Transocean, PETRONAS and UTP. RETIREMENTS Announcements Mr Colin Wong Hee Huing Appointed as Vice President, effective from 1 January 2009, Mr Wong heads the Research & Technology Division and joined the Management Committee on the date of his appointment. Prior to this, Mr Wong was the Managing Director/ Chief Executive Officer (MD/CEO) of PETRONAS Penapisan (Melaka) Sdn Bhd. Pn Juniwati Rahmat Hussin Appointed as Vice President, effective from 1 March 2009, Pn Juniwati heads the Education Division. She is also a member of the Management Committee, as at the date of appointment. Prior to her appointment, Pn Juniwati was the CEO of Dewan Filharmonik PETRONAS. Datuk (Dr) Abdul Rahim Hj Hashim Having retired from PETRONAS on 31 December 2008 as Vice President of the Research & Technology Division, Datuk Rahim will be continuing his good work in advancing the nation’s oil and gas industry by taking up a full time position as President of the Malaysian Gas Association. Datuk Dr Rosti Saruwono En Md Arif Mahmood Appointed as Vice President, effective 1 March 2009, En Md Arif is responsible for the Oil Business effective from his date of appointment, and becomes a member of the Management Committee at the same time. He was formerly the MD/CEO of Asean Bintulu Fertilizer Sdn Bhd. En Amir Hamzah Azizan Appointed as President/CEO of MISC Berhad on 1 January 2009, En Amir joined MISC in 2000 and was MISC’s General Manager of Corporate Planning Services. In 2004, he was the Regional Business Director (Africa, Americas, Europe and Federated Soviet Union) of MISC before assuming his role as President and CEO of MISC’s subsidiary AET Ltd in 2005. Among his major contributions to PETRONAS, Datuk Dr Rosti led the team that spearheaded the development of Universiti Teknologi PETRONAS, eventually becoming its first Rector in 1997. He retired from PETRONAS on 28 February 2009 as Vice President of the Education Division. Datuk Ainon Marziah Wahi Datuk Ainon had been with PETRONAS’ Human Resource Management Division for over 20 years, retiring on 31 March 2009 as its Vice President. Datuk Anuar Ahmad assumes the role from his previous position as Vice President of Oil Business. Nada PETRONAS wishes PETRONAS’ cherished colleagues the best in their future undertakings. CORPORATE ROUNDUP 27