By Jose Barrock
Coastal Energy Co and its local partner Petra Energy Bhd are close to first oil production at the Kapal, Berantai and Meranti oil fields the two are developing, industry sources say.
The two companies were awarded a risk service contract for the fields off the shores of Peninsula Malaysia on a 70:30 basis, in June last year.
Officials from Petra Energy however declined to comment when contacted.
Industry sources however said that first oil was targeted either end this month or early next month.
“It’s basically on schedule, things are looking good at the KBM (Kapal, Berantai and Meranti) fields, we hear…it’s a good thing for them (Petra Energy),” the industry source said.
This could be a boost for Petra Energy. For its nine months ended September, Petra Energy raked in a mere RM12.81 million in net profits from RM333.3 million in revenue.
The low profits however were attributed to jobs secured being at an interim period, before kicking in. Petra Energy said in its notes which accompany its financials, “Works for Petronas Carigali Sdn Bhd’s Pan Malaysia hook up construction and commissioning (HUCC), awarded in May 2013 are at early stage of development thus low revenue was recorded for the current quarter.”
Petra Energy had bagged RM2.5 billion HUCC job from Petronas Carigali in May this year.
While Petra Energy will be under the spotlight, changes in shareholding at Coastal Energy could place it in the limelight as well.
Coastal Energy is now linked to Jho Low
Low Taek Jho
It was reported last week, Spanish energy company Compañía Española de Petróleos, S.A.U. or Cepsa, partnering Strategic Resources (Global), a private investment holding group, was paying C$19 a share, a 28% premium for Coastal Energy’s shares on the Toronto stock exchange on November 18, forking out C$2.3 billion or US$2.2 billion in the process.
Cepsa which has activities in oil production and refining as well as petrochemical and power generation in Spain, Brazil and Colombia among others, was acquired by International Petroleum Investment Company, an entity formed by the Abu Dhabi government in 1984.
Strategic Resources (Global) meanwhile is controlled by Larry Low Hock Peng, the father of jet setting young businessman, Low Taek Jho, more popularly known as Jho Low.
Jho Low is known to have close ties with the current premier Najib Tun Razak and his family, and advised the premier on many deals involving 1 Malaysia Development Bhd, a strategic development company, wholly-owned by the Government of Malaysia.
With Jho Low now with Coastal Energy, will the duo, partnering Petra Energy get more marginal oil fields from oil major Petronas to develop?
While it is noteworthy that Petronas does have Vestigo Petroleum Sdn Bhd, which it set up for the development of marginal oil fields, it is unlikely that Jho Low and Coastal Energy will be left by the wayside when more contracts are awarded.
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