Shamsul seen as frontrunner for Petronas CEO post

Shamsul seen as frontrunner for Petronas CEO post


By YAP LENG KUEN (lengkuen@thestar.com.my)

PETALING JAYA: Datuk Shamsul Azhar Abbas, the former managing director of Malaysian International Shipping Corp Bhd (MISC), is believed to be the frontrunner for the post of CEO of national oil corporation Petroliam Nasional Bhd (Petronas).

“He remains the frontrunner but the Prime Minister (who met all three internal candidates last week) has still to make a formal announcement,’’ a source told StarBiz yesterday.

In a report yesterday, the Singapore Business Times said the current president and CEO Tan Sri Hassan Marican’s replacement (should he not be reappointed) was likely to be Shamsul, 57, who retired in January last year from MISC, a Petronas subsidiary and one of the world’s largest oil and gas shippers.

Hassan’s contract ends next week and speculation is gathering steam on whether he would be reappointed to helm Petronas, Malaysia’s only Fortune 500 company that he has headed since 1995.

“For the sake of continuity and for planning purposes, the reappointment of a chief executive of an important Malaysian government-linked company is generally announced way before his contract expires,’’ BT noted.

It is believed, according to sources, that besides considering the post of CEO, Datuk Seri Najib Razak is also considering whether to fill the chairman’s position immediately or later.

Hassan is the acting chairman to the Petronas board, a position he has held since the sudden demise of former chairman Tan Sri Azizan Zainal Abidin in 2004.

Among the senior positions held in Petronas, Shamsul had been vice-president in the petrochemical, oil exploration and production, as well as logistics and maritime businesses.

Since he joined Petronas in 1975, Shamsul had served as executive assistant to Azizan.

The three potential successors that are currently being talked about are Shamsul, Datuk Anuar Ahmad (Petronas Dagangan Bhd chairman) and Datuk Wan Zulkiflee Wan Ariffin (former managing director/CEO of Petronas Gas Bhd from 2003-2007).

Both Anuar, currently vice-president of human resources management, and Wan Zulkiflee, currently vice-president of the gas business, are members of the Petronas board.

Anuar joined Petronas in 1977 and had been a member of the management committee since 1998, having served as head of its international marketing and corporate planning units. Wan Zulkiflee joined Petronas in 1983 as a process engineer and had served as executive assistant to the president.

The Singapore BT noted that under the late Azizan’s leadership, Petronas had transformed itself into a respected global energy player much “copied” by other national oil corporations.

It contributes 45% of government revenue. Last year, Petronas reported RM52.5bil in profit on revenue of RM264.2bil, making it Malaysia’s most profitable company.

“And it is something of an irony that Petronas’ international debt ratings are slightly higher than the Malaysian sovereign,’’ the report said.

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Mercedes Sponsorship A Business Decision - Petronas

Mercedes Sponsorship A Business Decision - Petronas

By: Ramjit

STUTTGART, 26 Jan (Bernama) -- The Mercedes Formula One team sponsorship by Petronas is purely a business decision, said Petronas corporate services vice-president Ahmad Nizam Salleh.He said the package was attractive with the cost much lower than sponsoring other racing teams.Ahmad Nizam said patriotism was not at issue in the sponsorship as the decision was prompted by a sound investment decision that could result in good returns to shareholders.

"The opportunity enable us to meet our business targets. But we will review the sponsorship from year to year for the next five years of the deal," he told reporters after launching a Mercedes GP Petronas' new racing machine here Tuesday.

The deal with Mercedes dealt a blow to Swiss-based Sauber, which is in urgent need of sponsors after the withdrawal of BMW at the end of the season, as well as the new Malaysian-backed Lotus team.Ahmad Nizam said unlike previous F1, the branding exercise now entailed long-term business prospects.He said Mercedes had chosen Mercedes over BMW Sauber, Williams and Lotus based on its vast experience in F1.

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Primax 97 for better engine performance

Primax 97 for better engine performance


PETRONAS recently introduced a newly enhanced RON 97 fuel, Petronas Primax 97, which it says offers motorists more power, better acceleration and fuel economy benefits.
Petronas Primax 97, which replaces the current RON 97 fuel Primax 3, is now available at more than 300 Petronas stations nationwide.

It is formulated with Sinar G07 additive to provide superior engine performance.
Similar to Petronas Primax 95, the new RON 97 fuel is further enhanced with three main active chemicals – friction modifier, combustion improver and fuel detergent.

The friction modifier protects the engine’s components while the combustion improver enhances overall engine efficiency. The fuel detergent cleans and keeps the engine clean to ensure optimum engine performance.

Petronas Primax 97’s performance has been tested and proven at accredited and independent testing facilities.

The vehicle power output and acceleration performance tested at the Proton vehicle testing facility in Shah Alam resulted in up to 3% more power.
Fuel economy performance tested at the Millbrook Testing Centre in the United Kingdom recorded up to 4.9% better fuel economy.


The fuel economy test was based on a Public Road Simulation cycle that represented various driving patterns including highway, urban and extra urban.
Customers can choose to fuel-up according to their vehicle’s minimum RON requirement – Primax 97 for RON 97 or Primax 95 for RON 95 – at Petronas stations nationwide.
Petronas Dagangan Berhad also plans to offer Primax 97 at more service stations in the country, in line with its business expansion plan.


For details, call 1300-88-8181 or log on to http://www.mymesra.com.my/

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World's tallest building set to open in Dubai

By Malcolm Borthwick Editor, Middle East Business Report, BBC World, Dubai   In recent years Dubai has grabbed the headlines with audacious offshore islands, rotating buildings and a seven star hotel. On Monday it opens the world's tallest building, Burj Dubai. It's about twice the height of the Empire State Building, you can see its spire from 95km away and the exterior is covered in about 26,000 glass panels, which glisten in the midday desert sun. The design of the building posed unprecedented technical and logistical challenges, not just because of its height, but also because Dubai is susceptible to high winds and is close to a geological fault line. "You have the solutions for it but you always wonder how it will really work," Mohamed Ali Alabbar, chairman of Emaar, the developer behind Burj Dubai told the BBC. "We have been hit with lightning twice, there was a big earthquake last year that came across from Iran, and we have had all types of wind which has hit us when we were building. The results have been good and I salute the designers and professionals who helped build it." West to East shift One of the companies behind the Burj was the Canadian-based wind engineering firm RWDI. Extreme wind speeds on the ground in Dubai can reach 50km an hour. At the top of the building it can be three times as fast. Wayne Boulton, general manager of RWDI's wind engineering team in the Middle East, explains how they tested the building for wind resistance. "We constructed a scale model and put it in a wind tunnel," he says. "In the wind tunnel we are able to test a number of different wind speeds and directions. We can test the pressure you would get on the surface of the building under normal conditions and also under more extreme events." Standing at over 800 metres, Burj Dubai has easily smashed the previous world record, Taiwan's Taipei 101, which is 508 metres high. The last couple of decades have seen a shift in the building of skyscrapers from the West to the East. Four out of five of the world's tallest buildings are in Asia and the Middle East. "It comes down to confidence," says Andrew Charlesworth from property consultants Jones Lang LaSalle. "A lot of these emerging economies see themselves as important players in the world and want to show they can deliver these sort of projects. "The wealth of the world is shifting from the West to the East and emerging economies want to highlight their future expectations in terms of where they are gong to be positioning themselves globally." White elephant? Dubai is a city of superlatives, where everything has to be the biggest and the boldest. But like many of the world's past tallest buildings, Burj Dubai was planned and built during the boom years, and finished during a property crash. The Empire State Building was completed during the Great Depression in the 1930s and the Petronas Towers in Malaysia during the 1990s Asian financial crisis. This has led many to question whether this latest record breaker is a white elephant. Though Mohamed Ali Alabbar argues it is anything but. "As of today we have sold 90% of the building and we expect it to be 90%-occupied," he says. "We were lucky to make more than a 10% return. Originally we thought we'd be lucky to break even, because we can make so much money from the land around Burj Dubai which is a 500-acre site." The fact that the developer has made a profit on its $1.5bn (£928m) investment has been helped by the fact that it bought the land with equity and not cash, and that it pre-sold most of the apartments and offices before the property crash. Investors have already handed over 80% of the value of the apartments and offices, and will pay the remaining 20% on moving in. And in contrast to many unfinished developments in Dubai, the default rate among investors has been low. But for investors, it has been a mixed picture. Fortunes have been won and lost on the Dubai property market, which has collapsed in spectacular fashion. Like many properties here, Burj Dubai was sold "off-plan" or before the building was completed. Offices and apartments went on sale in 2004 and most were snapped up by both local and international investors in just two days. Mohamed Abdul Hadi is one local investor who made millions out of Burj Dubai long before the building was completed. "In 2007 we bought three floors on Burj Dubai," he told the BBC. "The first investor paid 2,500 UAE dirhams ($680; £420) per square foot. We bought at AED 3,500 and one year later we sold at around AED 5,000. Look at the profit, where else can you have this but Dubai? And with no taxes." Oversupply But those who invested late will be nursing large losses, according to Saud Masud, a real estate analyst at Swiss investment bank UBS. "Late stage investors may find this a lot more challenging because property prices in Dubai have come down by 50% and we think prices are likely to go down another 30%," he says. "We have an oversupply in the property market today. We think it will reach 25% to 30% vacancy rates for residential property in a year's time, and for commercial property it's already 40%. Burj Dubai is not immune to that." During the peak of construction, there were 12,000 workers on site   The landscape of Dubai has changed dramatically over the last two decades. Sheikh Zayed Road is the 12-lane super-highway which runs through the city and is named after the UAE's founding father. Twenty years ago there were just a few tall buildings here, now there are hundreds, all jostling for space. But in the three years that I've been here, the frenzied pace of construction has slowed down and many cranes now stand idle. Developers are holding back on new multi-billion dollar flagship projects and focusing on finishing existing projects instead. About $190bn worth of Dubai real estate projects are currently on hold, according to Middle East Economic Digest. As in many parts of the world, banks are reluctant to lend and investors are reluctant to spend. Burj Dubai could mark the end of an era for skyscrapers in the Gulf - at least in the short term.

READ MORE - World's tallest building set to open in Dubai

Michael Schumacher says he intends to crown his Formula 1 comeback by challenging for the 2010 title.

Michael Schumacher says he intends to crown his Formula 1 comeback by challenging for the 2010 title.

 

 

The seven-time champion announced his return for 2010 on Wednesday with Mercedes, the renamed Brawn GP team.

Despite three years out of the sport, he insists he can threaten the likes of Lewis Hamilton and Jenson Button - the 2008 and 2009 world champions.

"I have won the title seven times and the team won both titles last year, so what do you expect," said the German.

Schumacher, 41 on 3 January, added: "Now Mercedes are team owners you cannot expect anything else other than the world title. That is what we aim for but we have to deliver and that is our job.

"Honestly, I can't wait until 1 February, when we will officially run the car."

Schumacher retired in 2006 after competing in 250 grands prix, 180 of them for Ferrari. He won 91 races, 71 for Ferrari, on his way to his multiple world titles.

F1 supremo Bernie Ecclestone has welcomed Schumacher's return and believes he can even win the title at the age of 41.

"Forget about winning races - I have him on my bill for winning the championship," Ecclestone told F1's official website.

"It's fantastic for Formula 1 that he turned into a 'comeback kid' but at the same time it's good for Michael.

"Now he has all his strength together and has 100% motivation that will give us many exciting races in 2010."

Schumacher almost returned to F1 last summer.

He was going to act as a stand-in for injured Ferrari driver Felipe Massa but pulled out because of a neck injury sustained in a motorcycle accident last February.

Recent medical checks have been positive, though, and he is confident he is back to full fitness.

Schumacher will reportedly earn £6.2m after reuniting with Mercedes team principal Ross Brawn, who masterminded all seven of his titles, the first two with Benetton in 1994-5 and the subsequent five with Ferrari from 2000-4.

Lucas di Grassi, who will make his debut with Virgin Racing next season, believes Schumacher still possesses the will to win after losing to him in a recent karting event in Brazil.

"He's the most competitive guy that I know," Di Grassi said recently. "Everybody I know goes there [to the karting event] to have a good time and enjoy it and have fun. Michael goes there and spends two hours making a seat one millimetre higher."

Report - Schumacher returns to F1

Williams driver Rubens Barrichello, who drove with Schumacher at Ferrari, suggested the German driver's track record was the key to Mercedes' decision to lure him out of retirement.

"Experience is all that matters in F1 now," former Brawn driver Barrichello wrote on his Twitter feed. "The team needed me last year and needs Schumi now. I hope for a great fight, but a clean one as well."

BBC analyst Martin Brundle believes his former team-mate from his Benetton days will have to work hard on his return to the sport.

"Michael says he has charged his batteries on his break, but I think he will need a couple of extra long life ones in his pocket," he said.

"The last two championships he contested, Fernando Alonso won both and hasn't slowed down since then.

"There are drivers like Button, Hamilton and Sebastian Vettel on the scene now, and Michael is going to have to pedal very hard to beat those guys.

"I wouldn't bet against him winning some races, or even the championship, but he will have his work cut out."

Classic F1 - Schumacher's first win

Mercedes chief executive Nick Fry believes Schumacher's return has captured the imagination of their team rivals and the sport's fans.

"The thing that has been very interesting is that all of F1 wants Michael back," Fry told BBC Radio 5 live.

"So many team principals have told us in the last few weeks that they really hoped he would come back.

"Its good for the sport and will help us build more and more fans around the world and that's important for all of us."

READ MORE - Michael Schumacher says he intends to crown his Formula 1 comeback by challenging for the 2010 title.

Malaysian firms may gain from Petronas' venture in Iraq

By SHARIDAN M. ALI

 

PETALING JAYA: Petroliam Nasional Bhd's (Petronas) recent oilfield development contracts in Iraq are expected to benefit local oil and gas (O&G) companies in one to two years' time.

Petronas won four of five bids it entered for the Iraq second petroleum licensing round last week.

It will be an operator in one oilfield and a consortium member of the other three.

Iraq was reported to have the world's largest onshore oil reserves and Petronas' involvement would increase the national oil company's international crude oil reserves to exceed its domestic reserves of 5.5 billion barrels.

TA Securities analyst Kaladher Govindan said the Petronas venture in Iraq could augur well for local O&G companies, particularly those that had wide international exposure such as Scomi Group Bhd and KNM Group Bhd.

"Scomi is likely to be involved in the earlier part of the oilfield development there while KNM will probably be involved in the later stage.

"Scomi has vast O&G experience in various countries such as Europe and the US for many years, especially with its drilling fluids solutions," he told StarBiz.

Scomi Oiltools, a subsidiary of Scomi Group, is one of the leading providers of drilling fluids solutions and drilling waste management services.

KNM manufactures process equipment and processing units for the oil and gas, petrochemicals, minerals processing, desalination, renewable energy, chemicals, steam generation, power and environment industries.

"But it would take a while – about one to two years – for Petronas to actually commence the development of oilfields there," Kaladher added.

Meanwhile, ECMLibra Investment Research said Petronas and Japan Petroleum Exploration Co would jointly invest US$7bil in an oilfield there.

(Reuters yesterday reported that the two parties had signed an initial agreement to develop Iraq's Gharaf oilfield with estimated oil reserves of 900 million barrels.)

"However, ratings agency Moody's viewed the venture a risky one and downgraded the outlook on Petronas A1 senior unsecured ratings to negative from stable.

"The win for Petronas, nonetheless, gives a much-needed boost to oil reserves which have been dwindling," ECMLibra said in its industry's weekly review yesterday.

AmResearch Sdn Bhd analyst Alex Goh said the Petronas venture could be risky in terms of security but Malaysian companies could still benefit from it.

"Local O&G support services companies likely to be involved such as KNM, Dialog Group Bhd and Kencana Petroleum Bhd may do the fabrication here and ship it there," he said.

READ MORE - Malaysian firms may gain from Petronas’ venture in Iraq

Petronas to Sponsor Mercedes F1 Team

Published: December 21, 2009

KUALA LUMPUR (Reuters) - Malaysian state oil and gas company Petronas will be title sponsor of the Mercedes Formula One team next season, Mercedes announced on Monday.

The team, formerly champions Brawn GP, will become Mercedes GP Petronas with the oil company's branding across the car and team liveries in what they said was a long-term agreement.

"The new title partnership also paves the way for future collaborations between the two companies," Mercedes added in a statement.

It said Petronas would be able to "generate sustainable business growth, particularly in their downstream lubricants market, through the strategic partnership and business alliance with Mercedes-Benz."

Mercedes said their 2010 car would be presented in its new livery for the first test of the new season at the Valencia circuit in Spain on February 1.

Petronas, who previously sponsored the BMW-Sauber team, will continue to be the title backer of the Malaysian Grand Prix -- the third round of the season at Sepang on April 4.

"Petronas's home base in Kuala Lumpur is located in the middle of a fast-growing region for the automotive industry which makes this new partnership even more valuable," said Mercedes motorsport vice-president Norbert Haug.

The deal with Mercedes will be a blow to both Swiss-based Sauber, in urgent need of sponsors after the withdrawal of BMW at the end of the season, as well as the new Malaysian-backed Lotus team.

Lotus F1 boss Tony Fernandes, who also runs AirAsia, had hoped to bring Petronas on board given that his team have government support and his airline is a major purchaser of aviation fuel.

The Lotus car company is also owned by Malaysian state car company Proton.

Mercedes have signed Germany's Nico Rosberg as one driver and are widely expected to have seven-times world champion Michael Schumacher as the other if he makes a comeback at the age of 41.

(Reporting by Alan Baldwin in London and David Chance; Editing by Peter Rutherford; To query or comment on this story emailsportsfeedback@thomsonreuters.com)

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