Lecturers of Heriot-Watt University Malaysia will enjoy 50% discount on PetroEdge Training Courses
PUTRAJAYA, 27th September – Heriot-Watt University Malaysia is pleased to announce that it has embarked on a three-year partnership with PetroEdge Pte. Ltd. (AsiaEdge Pte. Ltd.) and NrgEdge Pte. Ltd. today. This collaboration is aimed at nurturing Heriot-Watt University Malaysia students to be industry-ready upon graduation.
A Memorandum of Understanding (MoU) was signed by key representatives from each organisation, i.e. Professor Mushtak Al-Atabi and Ms Janice Yew, Provost & Chief Executive Officer and Chief Operating Officer and Registrar of Heriot-Watt University Malaysia respectively; as well as Mohammad Khalid and Mohd Anas Asalem, Chief Technology Officer and Regional Strategic Partnerships Manager of NrgEdge Pte Ltd respectively.
With the MoU, Heriot-Watt University Malaysia lecturers will obtain a 50% discount on PetroEdge Training Courses. Various volunteer and networking opportunities with industry players will also be made available to students and lecturers, allowing them to gain a more in-depth understanding of the oil and gas industry and enhance their skills and knowledge in the field. The partnership also encourages dialogue between students and lecturers as NrgEdge provides a knowledge-sharing platform via online forums and discussions.
Additionally, the students and lecturers will have access to NrgEdge’s digital learning platform at www.nrgedge.net/learning, which include e-learning courses, webinars and virtual reality modules. This marks another step forward for the university in digital technical learning.
According to Professor Mushtak, the partnership with PetroEdge and NrgEdge would bring great value to students. “The 21st Century has brought its unprecedented challenges and opportunities and for our students and academics to succeed and thrive professionally and personally, they will need to adopt a continuously learning and growing mindset. Making world class courses available to our community electronically is a very important initiative that will go a long way in supporting the professional development of our people.”
Mohammad Khalid from NrgEdge adds, “It is our vision to help members in the energy, oil and gas industry excel at every point in their career journey, by providing them with the tools to succeed, whether it be by networking, or by helping them learn new skills. We want to be able to bridge the skills gap and to prepare the students for a brighter future in the industry.”
Aina Jais, a second year MEng Petroleum Engineering student at Heriot-Watt University Malaysia adds that PetroEdge would certainly assist in helping her to gain an edge in these uncertain economic climate. “I am looking forward to using the platform to learn more. I have a huge passion towards the petroleum industry, and hope that we can gain a deeper insight into the industry, and glimpse into the career that will shape our future.” Aina Jais is also a NrgEdge Student Ambassador.
The event was held at Heriot-Watt University Malaysia in Putrajaya. Besides the MoU signing ceremony, the day’s itinerary also included speeches by Professor Mushtak and Mr. Khalid, as well as a testimonial by NrgEdge Student Ambassador Aina Jais. The event concluded with a group photo session and light refreshments.
About PetroEdge and NrgEdge
AsiaEdge Pte. Ltd. is the holding company of PetroEdge, the leading provider of Energy, Oil & Gas training in Asia. NrgEdge is the professional networking platform for Energy, Oil & Gas professionals, focusing on the Asia Pacific region. The company aims to create a holistic environment that will empower members to excel at every point in their career journey and to assist companies grow their business more effectively.
About Heriot-Watt University
Founded in 1821 as the world’s first mechanics institute, Heriot-Watt has a rich heritage and an established reputation as a leading research-led university. Now, our communities of scholars come from across the world and for a purpose: leaders in ideas and solutions, they deliver innovation and educational excellence in business, engineering, design and the physical, social and life sciences.
Working with leading academics, our students learn and thrive in our friendly community of campuses, with our partners and online. Our graduates are specialist, creative, professional and globally minded. With their research-informed education underpinned by the Heriot-Watt values, they develop character, leadership skills and social mobility, becoming professionally educated, globally employable, citizens of the world.
Our roots are in Scotland, our ambition and reach are truly international. A leader in transnational education, wherever we are, Heriot-Watt is a powerful driver and engine of the economy. Together with our alumni, civic community and industry partners, we transform people, society and the world we live in.
PetroEdge Pte. Ltd. (AsiaEdge Pte. Ltd.) & NrgEdge Pte. Ltd.
+65 6741 9927
Heriot-Watt University Malaysia
+6012 377 3945
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Headline crude prices for the week beginning 20 May 2019 – Brent: US$73/b; WTI: US$63/b
Headlines of the week
Midstream & Downstream
At first, it seemed like a done deal. Chevron made a US$33 billion offer to take over US-based upstream independent Anadarko Petroleum. It was a 39% premium to Anadarko’s last traded price at the time and would have been the largest industry deal since Shell’s US$61 billion takeover of the BG Group in 2015. The deal would have given Chevron significant and synergistic acreage in the Permian Basin along with new potential in US midstream, as well as Anadarko’s high potential projects in Africa. Then Occidental Petroleum swooped in at the eleventh hour, making the delicious new bid and pulling the carpet out from under Chevron.
We can thank Warren Buffet for this. Occidental Petroleum, or Oxy, had previously made several quiet approaches to purchase Anadarko. These were rebuffed in favour of Chevron’s. Then Oxy’s CEO Vicki Hollub took the company jet to meet with Buffet. Playing to his reported desire to buy into shale, Hollub returned with a US$10 billion cash infusion from Buffet’s Berkshire Hathaway – which was contingent on Oxy’s successful purchase of Anadarko. Hollub also secured a US$8.8 billion commitment from France’s Total to sell off Anadarko’s African assets. With these aces, she then re-approached Anadarko with a new deal – for US$38 billion.
This could have sparked off a price war. After all, the Chevron-Anadarko deal made a lot of sense – securing premium spots in the prolific Permian, creating a 120 sq.km corridor in the sweet spot of the shale basin, the Delaware. But the risk-adverse appetite of Chevron’s CEO Michael Wirth returned, and Chevron declined to increase its offer. By bowing out of the bid, Wirth said ‘Cost and capital discipline always matters…. winning in any environment doesn’t mean winning at any cost… for the sake for doing a deal.” Chevron walks away with a termination fee of US$1 billion and the scuppered dreams of matching ExxonMobil in size.
And so Oxy was victorious, capping off a two-year pursuit by Hollub for Anadarko – which only went public after the Chevron bid. This new ‘global energy leader’ has a combined 1.3 mmb/d boe production, but instead of leveraging Anadarko’s more international spread of operations, Oxy is looking for a future that is significantly more domestic.
The Oxy-Anadarko marriage will make Occidental the undisputed top producer in the Permian Basin, the hottest of all current oil and gas hotspots. Oxy was once a more international player, under former CEO Armand Hammer, who took Occidental to Libya, Peru, Venezuela, Bolivia, the Congo and other developing markets. A downturn in the 1990s led to a refocusing of operations on the US, with Oxy being one of the first companies to research extracting shale oil. And so, as the deal was done, Anadarko’s promising projects in Africa – Area 1 and the Mozambique LNG project, as well as interest in Ghana, Algeria and South Africa – go to Total, which has plenty of synergies to exploit. The retreat back to the US makes sense; Anadarko’s 600,000 acres in the Permian are reportedly the most ‘potentially profitable’ and it also has a major presence in Gulf of Mexico deepwater. Occidental has already identified 10,000 drilling locations in Anadarko areas that are near existing Oxy operations.
While Chevron licks its wounds, it can comfort itself with the fact that it is still the largest current supermajor presence in the Permian, with output there surging 70% in 2018 y-o-y. There could be other targets for acquisitions – Pioneer Natural Resources, Concho Resources or Diamondback Energy – but Chevron’s hunger for takeover seems to have diminished. And with it, the promises of an M&A bonanza in the Permian over 2019.
The Occidental-Anadarko deal:
Source: U.S. Energy Information Administration, Short-Term Energy Outlook
In April 2019, Venezuela's crude oil production averaged 830,000 barrels per day (b/d), down from 1.2 million b/d at the beginning of the year, according to EIA’s May 2019 Short-Term Energy Outlook. This average is the lowest level since January 2003, when a nationwide strike and civil unrest largely brought the operations of Venezuela's state oil company, Petróleos de Venezuela, S.A. (PdVSA), to a halt. Widespread power outages, mismanagement of the country's oil industry, and U.S. sanctions directed at Venezuela's energy sector and PdVSA have all contributed to the recent declines.
Source: U.S. Energy Information Administration, based on Baker Hughes
Venezuela’s oil production has decreased significantly over the last three years. Production declines accelerated in 2018, decreasing by an average of 33,000 b/d each month in 2018, and the rate of decline increased to an average of over 135,000 b/d per month in the first quarter of 2019. The number of active oil rigs—an indicator of future oil production—also fell from nearly 70 rigs in the first quarter of 2016 to 24 rigs in the first quarter of 2019. The declines in Venezuelan crude oil production will have limited effects on the United States, as U.S. imports of Venezuelan crude oil have decreased over the last several years. EIA estimates that U.S. crude oil imports from Venezuela in 2018 averaged 505,000 b/d and were the lowest since 1989.
EIA expects Venezuela's crude oil production to continue decreasing in 2019, and declines may accelerate as sanctions-related deadlines pass. These deadlines include provisions that third-party entities using the U.S. financial system stop transactions with PdVSA by April 28 and that U.S. companies, including oil service companies, involved in the oil sector must cease operations in Venezuela by July 27. Venezuela's chronic shortage of workers across the industry and the departure of U.S. oilfield service companies, among other factors, will contribute to a further decrease in production.
Additionally, U.S. sanctions, as outlined in the January 25, 2019 Executive Order 13857, immediately banned U.S. exports of petroleum products—including unfinished oils that are blended with Venezuela's heavy crude oil for processing—to Venezuela. The Executive Order also required payments for PdVSA-owned petroleum and petroleum products to be placed into an escrow account inaccessible by the company. Preliminary weekly estimates indicate a significant decline in U.S. crude oil imports from Venezuela in February and March, as without direct access to cash payments, PdVSA had little reason to export crude oil to the United States.
India, China, and some European countries continued to receive Venezuela's crude oil, according to data published by ClipperData Inc. Venezuela is likely keeping some crude oil cargoes intended for exports in floating storageuntil it finds buyers for the cargoes.
Source: U.S. Energy Information Administration, Short-Term Energy Outlook, and Clipper Data Inc.
A series of ongoing nationwide power outages in Venezuela that began on March 7 cut electricity to the country's oil-producing areas, likely damaging the reservoirs and associated infrastructure. In the Orinoco Oil Belt area, Venezuela produces extra-heavy crude oil that requires dilution with condensate or other light oils before the oil is sent by pipeline to domestic refineries or export terminals. Venezuela’s upgraders, complex processing units that upgrade the extra-heavy crude oil to help facilitate transport, were shut down in March during the power outages.
If Venezuelan crude or upgraded oil cannot flow as a result of a lack of power to the pumping infrastructure, heavier molecules sink and form a tar-like layer in the pipelines that can hinder the flow from resuming even after the power outages are resolved. However, according to tanker tracking data, Venezuela's main export terminal at Puerto José was apparently able to load crude oil onto vessels between power outages, possibly indicating that the loaded crude oil was taken from onshore storage. For this reason, EIA estimates that Venezuela's production fell at a faster rate than its exports.
EIA forecasts that Venezuela's crude oil production will continue to fall through at least the end of 2020, reflecting further declines in crude oil production capacity. Although EIA does not publish forecasts for individual OPEC countries, it does publish total OPEC crude oil and other liquids production. Further disruptions to Venezuela's production beyond what EIA currently assumes would change this forecast.