Latest news with #CCUS
Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
Petros looking to develop CCUS hubs in Sarawak
Petros plays a key role in transforming Sarawak into a low-carbon economic hub, said the company's senior vice-president of Sarawak resource management, Abang Arabi Abang Narudin. (Petros pic) PETALING JAYA : Petroleum Sarawak Bhd (Petros) is working on developing two carbon capture, utilisation and storage (CCUS) hubs in the Bornean state. Petros senior vice-president of Sarawak resource management, Abang Arabi Abang Narudin, said the two hubs would be part of efforts to prepare infrastructure to allow for low-cost CCUS. 'Sarawak is focused on developing infrastructure. The purpose of these hubs is to provide shared infrastructure so we can achieve economies of scale. 'That way, CCUS will become more affordable,' he said, according to state-owned broadcaster TVS. Abang Arabi said while CCUS technology had long existed, resources needed to be used and optimised to reduce costs and make it more affordable. 'Clarity in terms of policies and regulations is also very important because investors investing in CCUS need some certainty as to how business is done here. 'This includes whether they will need a licence and permit, because CCUS investments are long-term in nature,' he said. He added that Petros played a key role in transforming Sarawak into a low-carbon economic hub. Abang Jo eyes sovereign wealth fund role for Petros Several days ago, Nikkei Asia quoted Sarawak premier Abang Johari Openg as saying he envisioned Petros playing the role of a sovereign wealth fund with investments in sectors beyond oil and gas. The Gabungan Parti Sarawak chairman said he was taking a leaf out of Singapore and the city-state's funds, Temasek Holdings Pte Ltd and GIC Pte Ltd. 'If Petros (has) the strength, the muscle, why not invest in other areas?' he was quoted as saying. He also said this would be more of a business decision by the company than a state government decision. Abang Johari said portions of Petros's revenue from its ventures should naturally be channelled back to the state, since it was fully owned by the Sarawak government. The premier launched the Sarawak Sovereign Wealth Future Fund last year, with the state government to set aside RM400 million to RM600 million annually for the fund. In May, it was given the go-ahead from the relevant authorities to make global investments, which Abang Johari described as crucial for diversifying the fund's portfolio.
Daily Express
4 days ago
- Business
- Daily Express
Petros looking to develop CCUS hubs in Sarawak
Published on: Wednesday, July 16, 2025 Published on: Wed, Jul 16, 2025 By: FMT Reporters Text Size: Petros plays a key role in transforming Sarawak into a low-carbon economic hub, said the company's senior vice-president of Sarawak resource management, Abang Arabi Abang Narudin. (Petros pic) PETALING JAYA: Petroleum Sarawak Bhd (Petros) is working on developing two carbon capture, utilisation and storage (CCUS) hubs in the Bornean state. Petros senior vice-president of Sarawak resource management, Abang Arabi Abang Narudin, said the two hubs would be part of efforts to prepare infrastructure to allow for low-cost CCUS. Advertisement 'Sarawak is focused on developing infrastructure. The purpose of these hubs is to provide shared infrastructure so we can achieve economies of scale. 'That way, CCUS will become more affordable,' he said, according to state-owned broadcaster TVS. Abang Arabi said while CCUS technology had long existed, resources needed to be used and optimised to reduce costs and make it more affordable. 'Clarity in terms of policies and regulations is also very important because investors investing in CCUS need some certainty as to how business is done here. 'This includes whether they will need a licence and permit, because CCUS investments are long-term in nature,' he said. He added that Petros played a key role in transforming Sarawak into a low-carbon economic hub. Abang Jo eyes sovereign wealth fund role for Petros Several days ago, Nikkei Asia quoted Sarawak premier Abang Johari Openg as saying he envisioned Petros playing the role of a sovereign wealth fund with investments in sectors beyond oil and gas. The Gabungan Parti Sarawak chairman said he was taking a leaf out of Singapore and the city-state's funds, Temasek Holdings Pte Ltd and GIC Pte Ltd. 'If Petros (has) the strength, the muscle, why not invest in other areas?' he was quoted as saying. He also said this would be more of a business decision by the company than a state government decision. Abang Johari said portions of Petros's revenue from its ventures should naturally be channelled back to the state, since it was fully owned by the Sarawak government. The premier launched the Sarawak Sovereign Wealth Future Fund last year, with the state government to set aside RM400 million to RM600 million annually for the fund. In May, it was given the go-ahead from the relevant authorities to make global investments, which Abang Johari described as crucial for diversifying the fund's portfolio. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Free Malaysia Today
5 days ago
- Business
- Free Malaysia Today
O&G players worldwide cutting costs amid triple-threat
While the oil and gas sector may be experiencing job losses now, industry experts anticipate a resurgence of opportunities, particularly in greener sectors such as Carbon Capture, Utilisation and Storage (CCUS), within the next two to three years. (Evanto Elements pic) PETALING JAYA : The oil and gas industry, once stable and resistant to change, is now under intense pressure to rethink how it operates. Shifting global demand, ongoing political conflicts and volatile commodity markets are forcing the sector to adapt like never before. Recently, major international corporations such as Shell, BP and Chevron have undertaken comprehensive operational restructuring, including significant workforce reductions. Investment strategies are being reshaped by the triple-threat of rising operational expenses, tougher environmental regulations, and the substantial cost of adopting advanced technologies—resulting in significant adjustments to workforce size and structure. Out-of-commission oil fields Operating costs have risen, especially in upstream exploration and production. With the easier- to-reach resources fast depleting, oil companies must now tap into the more difficult reserves like sour gas and deepwater projects, which require higher investment. As a result, oil companies have begun re-evaluating their corporate investment plans, with a projected 6% decline in upstream oil investment projected in 2025—the first year-on-year reduction since 2020. Oil companies are struggling as drilling costs rise and price forecasts weaken. Active rigs are drilling at significantly lower levels slowing upstream activity. With oil prices hovering around US$63 per barrel, shrinking profit margins are forcing firms to delay or cancel projects. Earlier this year, ConocoPhillips exited its joint-venture with Petronas in the US$3.3 billion (RM13.7 billion) Salam-Patawali deepwater oil and gas project, first discovered in 2018. The company has also announced plans to shrink its global workforce by end-2025. They are also reportedly eyeing the sale of assets in the Permian Basin worth over US$1 billion (RM4.2 billion). They are not the only ones. US-based Chevron plans to cut 15% to 20% of its global workforce, potentially impacting 6,000 to 8,000 employees, over the next year. Meanwhile, ExxonMobil will release nearly 400 workers in 2026 following its merger with Pioneer Natural Resources. BP, based in the UK, is in the midst of plans to eliminate 4,700 jobs and 3,000 contractor positions by 2026 as part of a US$2 billion cost-cutting drive. In the UK's North Sea, Spain's Repsol is also looking to shrink its workforce through field decommissioning, potentially impacting 2,000 jobs. These layoffs reflect a broader industry trend of adapting to economic uncertainties, declining output from maturing fields, and the increasing focus on cost optimisation and energy transition. Impact of green regulations Adherence to environmental compliance is also becoming increasingly capital-intensive. More stringent global regulations concerning carbon emissions, flaring and methane management are obliging companies to allocate significant investment toward monitoring systems, equipment upgrades and cleaner processes. This includes a growing focus on Carbon Capture, Utilisation and Storage (CCUS) projects, which are projected to experience a tenfold increase in investment by 2027. Non-compliance with these evolving environmental, social and governance (ESG) criteria pose significant business risks, such as limited access to funding and reputational damage. To manage these rising obligations, many entities are streamlining their workforces in high-carbon divisions. Heavy upfront costs Companies are investing more in advanced technologies like automation, artificial intelligence (AI) for data analysis and compliance, and monitoring systems powered by the Internet of Things (IoT) to improve efficiency and meet regulatory demands. While these technological upgrades may yield long-term cost reductions, their implementation necessitates substantial upfront capital expenditure, such as modernising rigs with automation capabilities or deploying sophisticated AI-driven monitoring systems. Widespread adoption of AI alone could potentially lead to cost savings ranging from 10% to 20% by 2025. This shift toward technology-driven models is streamlining operations, replacing traditional roles with automated solutions, and consolidating functions to boost productivity and financial stability—rather than simply expanding existing setups. Prominent industry participants such as Exxon and Chevron are focussing production growth in more efficient regions like the Permian basin, leveraging consolidation and technology-driven improvements to manage costs amid declining upstream investment. Petronas, for its part, is focusing on innovation, sustainability and human capital development to support Malaysia's net-zero commitment involves not only accelerating investments in renewable energy and advanced low-carbon technologies, but also cultivating a forward-thinking workforce equipped to tackle the dynamic challenges of the global energy landscape. By nurturing talent, fostering a collaborative culture, and prioritising digital transformation, Petronas aims to drive meaningful progress towards environmental goals while securing long-term business growth. Enhanced partnerships, research initiatives, and community engagement will be central to this strategy, positioning the company as a leader in sustainable energy and responsible corporate stewardship for Malaysia's future. Where do we go from here? The overarching imperative is clear: oil and gas companies are re-conceptualising business practices to better navigate current cost pressures and align with future energy demands. Strategic actions are already evident at major international corporations like BP, Shell and Chevron. These are not merely reactive measures to short-term market changes, but critical strategic decisions made to ensure that the energy industry remains future-ready. This trajectory implies a reduction in traditional employment opportunities within the short term. However, that is on account of the evolution of industry operations, not a disappearance of energy demand. Industry experts expect jobs to re-emerge in greener fields, including CCUS-management projects, within the next two to three years, once cost savings are realised.
Arabian Business
12-07-2025
- Business
- Arabian Business
OPEC forecasts $10.6tn in oil investments by 2040 to secure global energy stability
The Organisation of the Petroleum Exporting Countries (OPEC) warns that the oil sector will need $10.6tn in new investments by 2040—and up to $18.2tn by 2050—to meet rising global demand and maintain market stability, according to its 2025 World Oil Outlook (WOO). OPEC Secretary-General Haitham Al Ghais stresses that while transitioning to cleaner energy remains essential, the world must also shore up oil and gas infrastructure. He said that safeguarding energy security and achieving climate objectives will depend on balanced policies that cover all energy sources and technologies. He highlights the need to strengthen efforts in low-carbon solutions and to expand carbon capture, utilisation and storage (CCUS) under a circular-economy framework. Opec oil demand forecasts Key drivers shaping the next two decades include: Rising demand in non-OECD Asia: Oil consumption outside the OECD—led by Asia, notably China—is projected to increase by 21.4 million barrels per day by 2040, driven largely by petrochemicals and aviation Carbon capture and low-carbon solutions: OPEC calls for accelerated investment in carbon capture, utilisation and storage (CCUS) as part of a circular-economy approach to minimize emissions. US shale plateau: Unconventional production is expected to peak by the mid-2020s before declining, creating new market space for traditional producers.
STV News
10-07-2025
- Business
- STV News
Building new gas-fired power plant is vital for energy security, according to firm
The boss of the firm behind a new power plant in the north of Scotland has said its development is vital for the country's energy security. Plans have been submitted to create a new gas-fired power plant to the northeast of Peterhead. The facility would be built next to the existing one and use carbon capture to reduce its emissions. Climate campaigners have questioned the need for a new fossil fuel-powered plant and argue that the focus should be on publicly owned renewable energy instead. The current owner of Peterhead Power Station, SSE Thermal, says it is coming to the end of its engineering life and needs to be replaced. Finlay McCutcheon, managing director of SSE Thermal, said: 'They do have an ultimate economic, technical life and they will need to be replaced. 'That's why we at SSE want to build new, replacement power stations that are either abated and decarbonised from day one, which is what we want to do at Peterhead or on a clear pathway to decarbonisation in the future.' The current power plant is one of the biggest polluters in Scotland but those behind plans for the new site say using carbon capture technology could reduce emissions by more than 90%. Carbon dioxide (CO2) created at the plant would be captured, transported to nearby St Fergus at the Acorn project, before the CO2 is pumped out to the North Sea by pipes and stored around 2.5km under the seabed, in a process known as CCUS. However, the delay in the advancement of CCUS means a closure date for the current plant has changed from 2030 until the middle of the next decade. The two sites could also operate side-by-side until 2040, in a 'worst case scenario', according to SSE Thermal. The plans are currently with the Scottish Government, and it will be for ministers to decide if they get the go-ahead. Climate campaigners have urged the Government to reject the proposals. Rosie Hampton, of Friends of the Earth Scotland, said: 'What gives us real energy security is publicly owned renewable energy that isn't tied to the volatile international prices of gas and can bring down bills for people whilst also making the necessary energy transition that we need. 'When we think about what delivers for people in the North East of Scotland and the rest of the country, we're looking at things like wind, solar, direct electrification, we're not looking at power stations.' However, SSE Thermal argues that gas-fired power stations will still be needed even during the transition, when the wind doesn't blow or the sun doesn't shine. The current plant has been in operation for more than 40 years. Although its role has changed, when it first started working in the early 1980s, it operated at near full capacity for most of the year. Now, because of the increased use of renewables there can be several days at a time when it isn't generating power. A recent updated environmental impact assessment (EIA) of the new power plant says estimated emissions over its lifespan have increased by around threefold from the original estimates. SSE Thermal said the direct pollution from the proposed plant hasn't increased. The firm's MD said: 'We've updated that to take into account the upstream emissions from the gas that we will use for the new power station. 'What hasn't changed is our assessment of the direct emissions from the power station, that remains exactly the same.' Friends of the Earth Scotland said more than 1,600 people and 30 organisations objected to the plans in a consultation on the updated EIA that closed this week. The current plant employs around 80 full-time staff, and it's estimated that the new site will employ around 240. Jennifer Hemmings has worked at the power plant for four years and believes a new station is vital for the area. 'I think it's very important for me in terms of things like job security and as well for myself moving into a more greener kind of job,' she told STV News. 'I think it would mean job growth, especially in the development phase, when it's getting built, lots of local work.' The Scottish Government said it would not be 'appropriate' to comment on a live application. 'A decision will be taken by ministers in due course, following consideration of the application information, consultation responses and representations made by members of the public,' a spokesperson said. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
