
Strait of Hormuz a concern, but oil industry remains stable
The Israel-Iran conflict will not necessarily hurt the oil industry or price mechanisms of the commodity, said Prime Minister Anwar Ibrahim.
He made the statement after holding discussions with Organisation of the Petroleum Exporting Countries (Opec) secretary-general Haitham Al Ghais and major oil industry players on the sidelines of the Energy Asia 2025 conference today.
'Of course, they are...
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The Sun
an hour ago
- The Sun
Petronas hedging 20-30% of oil price exposure to manage market volatility
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has begun hedging 20%–30% of its oil price exposure to manage market volatility, said CFO Liza Mustapha. She said the hedging is a limited but useful insurance policy during the current fluctuations in oil prices. 'It has proven to be quite useful over the last couple of months when oil prices fluctuate,' she said at a panel session in Energy Asia 2025 today. Liza explained the hedging is meant to ensure that the projects Petronas has taken to final investment decision are able to proceed without interruption. She said Petronas' strong balance sheet has also helped the national energy company to weather market volatility. 'We carry quite a lot of cash as opposed to liability. We're in a net cash position. So it makes sure that the project is able to continue, despite the big fluctuations.' However, Liza acknowledged that some structural changes in the market require more significant adjustments. 'Think back in 2016, we went through a huge capex cut. But hopefully, those are really, really periodic nuances of events.' On investment strategy, Liza said Petronas' plans are never based on the prevailing oil price as they are always anchored on the fundamental price. 'Going forward, as our portfolio changes, the oil price may or may not become a more prominent factor.' On carbon capture and storage (CCS), Liza said Petronas sees long-term potential but only if the technology is integrated within broader value chains. 'The Kasawari CCS project in Sarawak only makes sense economically if it's part of a full system from upstream through LNG to monetisation. CCS as a standalone won't fly.' Petronas is currently piloting CCS at the depleted Kasawari gas field, which holds an estimated 13,000 million tonnes of CO₂ storage capacity which is more than twice Malaysia's total annual emissions. 'If we can make Kasawari work with our LNG infrastructure, then CCS could become a topline business going forward,' Liza said. She added that there many fields in Malaysia which are tied to carbon dioxide content, which, without CCS, would have just been left untapped. 'What can you do with all these depleted fields? Actually bring CCS across to Malaysia as a business.' However, Liza pointed to a disconnect between capital availability and investment uptake despite growing interest in clean technologies. 'People say there's money out there, but those trying to secure funding often feel otherwise. We need clearer alignment between project risk, investor appetite and project ownership. Investors need to know exactly what they're buying into.'


Free Malaysia Today
an hour ago
- Free Malaysia Today
Global oil prices surging from supply shock, says Petronas CEO
Petronas president and group CEO Tengku Muhammad Taufik Aziz said investment and spending across both conventional and renewable energy systems will continue to be needed. (Bernama pic) KUALA LUMPUR : Global oil prices are surging in anticipation of a supply shock due to the escalating conflict around the Strait of Hormuz, according to Petronas. The Brent crude oil price rose 0.97% to US$74.95 per barrel today. Petronas president and group CEO Tengku Muhammad Taufik Aziz described the price rally as one of the most intense since the 2022 energy crisis. 'This is unfolding at a time when the world is still reeling from the spectre of reciprocal tariffs. 'Though we cannot yet precisely measure the true impact of all these events, the global energy system, which is already strained from the natural progression of our civilisation, is indeed at great risk,' he said in his welcoming speech at Energy Asia 2025 here today. On Asia's path to net-zero carbon emissions, Tengku Taufik said achieving the goal will require US$88.7 trillion (US$1 = RM4.24) in energy investments by 2050. He stressed that investment and spending across both conventional and renewable energy systems will continue to be required. 'As energy is the lifeblood of economies, investments will be critical to ensure energy availability and affordability,' he said. 'Governments, financial institutions and industries must work together to implement policies and frameworks that help unlock capital for energy projects, especially in emerging and developing economies where it is most needed'. Tengku Taufik said the world stands at the threshold of the fifth industrial revolution, as artificial intelligence (AI) is rapidly becoming an indispensable foundational technology across sectors. He noted that electricity demand from data centres would reach 945 terawatt hours (TWh) globally by 2030, more than double the 415 TWh in 2024 and accounting for over 20% of total demand growth in the period. 'Entire energy systems at our disposal are now working to serve this surge in demand. This is even as we still adapt to significant retracing of environmental, social, and governance policies, which threaten to dismantle the net-zero ambitions that the world has worked towards since the Paris Agreement. 'These seismic shifts of global conflicts, technological revelations and climate change have manifested in what Petronas describes as a 'polycrisis', which sets the tone and context for our gathering today,' he said. Energy Asia 2025 will feature more than 180 international speakers through strategic dialogues spanning seven sub-themes. The conference will examine the collaborative efforts across Asian nations that can enhance energy security, promote the adoption of renewable energy, deploy decarbonisation solutions, facilitate technology transfer, and catalyse economic and socio-economic development.

Barnama
2 hours ago
- Barnama
Govt Drafting Strategy To Develop Local Corn Grain Industry- PM Anwar
KUALA LUMPUR, June 16 (Bernama) -- The government will formulate an effective strategy to develop the local corn grain industry to reduce dependence on imported commodities, said Prime Minister Datuk Seri Anwar Ibrahim. Anwar said the move to develop the main ingredient ecosystem in the country's livestock sector was described as an important approach that could stimulate the development of the country's agro-food sector, increase rural economic opportunities and strengthen the resilience of the country's food system. "The Cabinet Committee Meeting on National Food Security Policy No. 1/2025 which I chaired today agreed for the Ministry of Agriculture and Food Security (KPKM) to formulate a strategy for the development of the local corn industry," he said in a Facebook post today.