Clearing things up

I feel compelled to post this forwarded message on my blog. Since it relates to my employer. Have fun commenting!

PETRONAS' STAFF SALARY & BONUS

1) The salaries paid to PETRONAS' employees are not as high as people think. At best, they are just industry average. And these are not attractive enough for some who left PETRONAS to find work at other companies (mainly from the Middle East) which are willing to pay more. Why do they pay more? The oil and gas industry worldwide has been facing acute shortage of qualified or experienced personnel, so most companies are willing to pay lots of money to entice and pinch staff from their competitors.

Bonus? I have worked with PETRONAS for 12 years, and have NEVER received a bonus amounting to 6 months or 12 months. On average, it is 2 months. But don't ever think we don't deserve it. We more than deserve it. A lot of us work really hard, some in the most extreme of conditions. Those who have been to and worked in northern Sudan, for example, would testify that it's like working in a huge blower oven. Southern Sudan, on the other hand, is almost all swamps and mud. Imagine having to go through that kind of heat, or waddling in muddy swamps, day in and day out.

QUALITY OF CRUDE & REFINED PRODUCTS

2) Malaysia produces about 600,000 barrels of crude oil per day (and about 100,000 barrels condensate). Of this crude volume, 339,000 barrels are refined locally for local consumption. The rest is exported (and yes, because it has lower sulphur content it fetches higher prices).

Malaysia also imports about 230,000 barrels of crude oil per day, mainly from the Middle East, to be refined here. This crude oil contains higher sulphur and is less expensive (so the country gains more by exporting our crudes). In Malaysia, this crude is processed by PETRONAS at its second refinery in Melaka, and also by Shell at its Port Dickson refinery.

Different refineries are built and configurated to refine different types of crude. And each crude type yields different percentage of products (diesel, gasoline, kerosene, cooking gas etc) per barrel.

But most importantly, products that come out at the end of the refining process have the same good quality regardless of the crude types. That's why PETRONAS, Shell and Exxon Mobil share the same pipeline to transport the finished products from their refineries to a distribution centre in the Klang Valley. The three companies collect the products at this centre accordingly to be distributed to their respective distribution networks. What makes PETRONAS' petrol different from Shell's, for example, is the additive that each company adds.

PETRONAS' ROLE, FUNCTION & CONTRIBUTION

3) A lot of people also do not understand the role and function of PETRONAS, which is essentially a company, a business entity, which operates on a commercial manner, to mainly generate income and value for its shareholder. In this case, PETRONAS' shareholder is the Government.

In 1974, when PETRONAS was set up, the Government gave PETRONAS RM10 million (peanuts, right?) as seed capital. From 1974 to 2007, PETRONAS made RM570 billion in accumulated profits, and returned to the Government a total of RM335.7 billion. That is about 65% of the profits. That means for every RM1 that PETRONAS makes, 65 sen goes back to the Government.

Last year, PETRONAS made a pre-tax profit of RM86.8 billion. The amount given back to the Government (in royalty, dividends, corporate income tax, petroleum products income tax and export duty) was RM52.3 billion. The rest of the profit was used to pay off minority interests and taxes in foreign countries (about RM7.8 billion - PETRONAS now operates in more than 30 countries), and the remaining RM26.7 billion was reinvested. The amount reinvested seems a lot, but the oil and gas industry is technology- and capital-intensive. Costs have gone up exponentially in the last couple of years. Previously, to drill a well, it cost about US$3 million; now it costs US$7 million. The use of rigs was US$200,000 a day a couple of years ago; now it costs US$600,000 a day.

A lot of people also do not realise that the amount returned by PETRONAS to the Government makes up 35% of the Government's total annual income, to be used by the Government for expenditures, development, operations, and yes, for the various subsidies. That means for every RM1 the Government makes, 35 sen is contributed by PETRONAS.

So, instead of asking what happens to PETRIONAS' money or profits, people should be questioning how the money paid by PETRONAS to the Government is allocated.

CRUDE EXPORTS & FUEL PRICES

4) A lot of people also ask, why Malaysia exports its crude oil. Shouldn't we just stop exporting and sell at cheaper prices to local refiners? If Malaysia is an oil exporting country, why can't we sell petrol or diesel at cheaper prices like other oil producing countries in the Middle East?

I guess I don't have to answer the first couple of questions. It's simple economics, and crude oil is a global commodity.

Why can't we sell petrol and diesel at lower prices like in the Middle East? Well, comparing Saudi Arabia and other big producers to Malaysia is like comparing kurma to durian, because tese Middle Eastern countries have much, much, much bigger oil and gas reserves.

Malaysia has only 5.4 billion barrels of oil reserves, and about 89 trillion cubic feet of gas. Compare that to Saudi Arabia's 260 billion barrels of oil and 240 trillion cubic feet of gas.

Malaysia only produces 600,000 barrels per day of oil. Saudi Arabia produces 9 million barrels per day. At this rate, Saudi Arabia's crude oil sales revenue could amount to US$1.2 billion per day! At this rate, it can practically afford almost everything -- free education, healthcare, etc, and subsidies -- for its people.

But if we look at these countries closely, they have in the past few years started to come up with policies and strategies designed to prolong their reserves and diversify their income bases. In this sense, Malaysia (and PETRONAS) has had a good head start, as we have been doing this a long time.

Fuel prices in Malaysia is controlled by the Government based on a formula under the Automatic Pricing Mechanism introduced more than a couple of decades ago. It is under this mechanism that the complex calculation of prices is made, based on the actual cost of petrol or diesel, the operating costs, margin for dealers, margin for retail oil companies (including PETRONAS Dagangan Bhd) and the balancing number of duty or subsidy. No retail oil companies or dealers actually make money from the hike of the fuel prices. Oil companies pay for the products at market prices, but have to sell low, so the Government reimburses the difference -- thus subsidy.

Subsidy as a concept is OK as long as it benefits the really deserving segment of the population. But there has to be a limit to how much and how long the Government should bear and sustain subsidy. An environment where prices are kept artificially low indefinitely will not do anyone any good. That's why countries like Indonesia are more pro-active in removing subsidies. Even Vietnam (which is a socialist country, by the way) is selling fuel at market prices.

PETRONAS & TRANSPARENCY

5) I feel I also need to say something on the allegation that PETRONAS is not transparent in terms of its accounts, business transactions etc.

PETRONAS is first and foremost a company, operating under the rules and regulations of the authorities including the Registrar of Companies, and the Securities Commission and Bursa Malaysia for its listed four subsidiaries (PETRONAS Dagangan Bhd, PETRONAS Gas Bhd, MISC Bhd and KLCC Property Holdings Bhd.

PETRONAS the holding company produces annual reports which are made to whomever wants them, and are distributed to many parties and places; including to the library at the Parliament House for perusal and reading pleasure of all Yang Berhormat MPs (if they care to read). PETRONAS also makes the annual report available on its website, for those who bother to look. The accounts are duly audited.

The website also contains a lot of useful information, if people really care to find out. Although PETRONAS is not listed on Bursa Malaysia, for all intents and purposes, it could be considered a listed entity as its bonds and financial papers are traded overseas. This requires scrutiny from investors, and from rating agencies such as Standard & Poor and Moody's.

Running out of petrol in Ong's car

This is story recollection # 2. Well this happened way before my previous posting. During my first year, when i went back to Klang a lot. Might have been my way of trying to manage my feelings towards Tomi. Or might have been that i have not found my place in church yet.

Ways to get back to UTP:

1. Follow someone who's driving back - most environment friendly. Risk of driver cancelling or postponing their journey back till odd hours. Might involve long waiting hours. Highly unrecommended when you have a deadline to meet - this my era where laptop computers cost significantly higher than desktops so we're not so mobile in that case.
2. Take the bus - most economical and convenient. Involves drop off at the main gate - 30 minute walk back to the hostel. Limited number of buses that pass the gate from KL. There's also the option to take the bus to Ipoh - i had to erase the iPod i typed - and take another bus to UTP where the last bus is at 6pm and the conductor still goes around punching holes on tickets and it was quite an experience first time getting on it. felt like i went back in time. where everything was black and white. nevermind the diversion.
3. Fly to Ipoh - and get someone to pick you up or take a cab from the airport. i am not joking. i personally went to send someone off who bought her tickets there and then, got on the next flight out and arrived at KLIA 30 minutes later. speaking of short flights. i was Kuantan bound, on air and i thought of un-fastening my seatbelts (can't say remove coz its not the word for it) when the pilot announced that we were landing soon. heck i only drank 2 glasses of juice! then followed by the sound of the cabin crew scurrying to finish cleaning up and collecting plastic cups before having to sit and strap themselves safe. sounds like im describing rats working really hard.

where was i? oh the trip. well it was option # 1, which involved me taking a nearly 2 hour KTM - Kesian Tambah Merana ride from Klang to Rawang - Transit at KL Sentral (15 minutes). where Ong - one of the few revered ones who owned a car during his first year. and passengers UTP-bound were Tuck Fai and me. Sounds like Bonnie and Clyde but trust me its nothing of that sort. I remember nicknaming him my babi. but it wore out after 2 years or so. so back to my story. Tuck Fai was early and getting comfortable bonding with Ong's younger siblings whom i've heard to be very fascinated by strangers. they were showing off their spanking new PS 2 - yeah, i'm THAT old to Tuck Fai while Ong was doing something but i didnt know what.

they came to pick me up from the train station. i remember. it was a nice day. not sunny - yeah i happen to live on this side of the world where occasionally cloudy weather is much appreciated. im speaking on behalf of those people who detest the sun. even to cross a small road would painstakingly open their cute little foldable umbrellas in attempts to shield themselves from the monster of the sun. i remember one really cute girl named Jia Hui i met in India who religiously wears a pair of rainbow coloured arm warmers that she claims can work both to shield her from the damaging sun rays or to keep her warm. she was initially known as just that. whenever people were trying to explain who Jia Hui was, they always impersonate that signature rolling up the sleeves and often the word "Colourful" pops up.

so anyways Ong mentioned that we would need to stop and get gas/minyak as soon as possible coz the tank was running low. He asked us to remind him of stopping at the nearest Petronas station - yup we are all loyal people just outside Rawang before we hit the highway. but being us, got into a talking frenzy and missed it. so we were on our way and the next stop was at Tanjung Malim, about 90 minutes or less away. Ong was driving a sleek white SLK - Small Little Kancil. so fuel consumption was quite efficient. but then again its a small car. but that's another story altogether.

then everyone started getting sleepy from the weekend's lack of sleep - from wanting to absorb KL as much as we could before heading back to that then-God forsaken place again. so Tuck Fai was assigned to remind Ong when they are nearing the petrol station. because the yellow warning sign was blinking just 30 minutes after we left Rawang. and Tanjung Malim was about another hour or so away. and being Tuck Fai we missed THAT stop again. and the next one was about 45 minutes away at least. Air condition was turned off and windows wound down in attempts to conserve resources.

Mid-way, we stopped at a rest stop to answer Nature's call and while waiting, Ong approached a nearby Fuel Tanker with a plastic bottle, hopeful that the driver would be willing to lend a hand by opening up the tank to give us a little petrol. of course he said no! and gave directions to the nearest petrol station known which was a diversion into Bidor town, and getting there involved us driving in the wrong direction up and down a few hills where lotsa prayers were muttered and Tuck Fai hoping that he doesnt need to push the car anytime soon.

We arrived at the petrol kiosk, not in time for the Petronas one but a Shell one - good enough. they are all the same anyways. one process engineer said that it was merely just a pump where any oil company drew their petrol from. probably some difference in its additives and that's it. We took the next exit into the highway and made our way back, thankful that everything went well despite the adventure. - this ending really sounds like im attempting to write for SPM. look at what Malaysian Education has done to me. for all essays there has to be an introduction, body and conclusion. hehe.

Grace's and Max's Car Hijack

I thought of writing a collection of short stories. just a recollection of what happened throughout these years that i had a good time retelling to others whenever i thought about it. great conversation pieces i tell you! well this one's about Grace and Max. here goes.

it was one weekday during our final year - i am checking Grace's blog as i write to see if she has written anything on it so as not to replicate and waste precious cyberspace.

it was one weekday during our final year. not sure if it was the second last or the last semester at UTP, when Max wanted to go to Ipoh - quaint little town with nothing much to do after 10 pm unless you're watching movies or going to the nearby pub area where the music attempts to tear your eardrums. that's not the story.

well it was one weekday again. when we managed to compress our classes into a 3 day work week and we have thursdays and fridays free to concentrate on our final year projects, go home or go on the usual tv series marathon that's so familiar to UTP-ians its part of our culture. that's not the story again.

Max wanted to go to Ipoh just to hang out. well that's the nearest place to get your mind of mundane or stressful things you face during uni life. im not sure what Max was stressed about. maybe he wasn't in this case. and Grace, being the shopaholic, just wanted to go to Ipoh to...Shop. well i didnt go on this trip, as i figured that the trip was not worth it and i might have been saving for another trip to Kuching for Rainforest World Music Festival in July or was it the time when i climbed mount Kinabalu or both.

to cut the long story short, Max rented a car from some malay guy. Grace followed him to Ipoh in the car. they went around shopping. Ipoh Parade i think. and before they came back bought a packs or a few packs of Claypot Chicken Rice which Ipoh Parade Food Court was famous for. besides the usual Hot Plate Mushroom Noodles.

o anyways. they were walking towards the parking lot, which was a few floors above the shopping mall itself. and they saw another car parked next to them, with 3 burly looking guys - all chinese gangster-looking out of the car and seems like were waiting for 2 of them to approach their car. being trusting, (thrusty is not even a word and i have no idea why i thought about it) they walked to their car nevertheless and was approached by one of the burly guys. here's a recollection of what happened from what i remember. Max and Grace, you're welcome to comment and make necessary alterations to my version.

Big Gangster: Is this your car?
Max and Grace: No, its rented, Why?
Big Gangster: This car has not paid the bank for the loan for more than 3 months
Max and Grace: Well, we dont know coz we don't own the car. and you have no proof of saying that
Big Gangster: Here i have a photocopy of the document. You both need to go to the police station with me to settle some stuff

*this incident followed close after a kidnapping incident where a Waja took off with a couple at the same shopping mall so both victims were quite wary. Max was in his Dusun Warrior mode and Grace in her Cantonese element throughout*

Grace runs into the car, locks the door and started shouting at the gangster through the closed window.

Max tries to settle things the Manly way. but there was one problem. He couldn't speak Cantonese, and the gangster can't speak proper english.

Back in the car, Grace called me from her mobile.

Ring Ring

Jamie: *shuffles to find her mobile between the pillows and the comforter*
Grace: Eh, i have a problem
Jamie: What?
Grace: Someone's threatening to tow our rented car claiming that the owner didnt pay the installments for more than 3 months
Jamie: Huh? Really? So how now?
Grace: The guy wants us to go to the police station. but I'm not sure if he's for real. all he showed us was a photocopied document
Jamie: Call the police then. Would there be a need for some of us to go up? I have Praise and Worship night tonight.
Grace: Yeah, if possible
Jamie: Ok call the police, Ill ask Yeefong and Thana whether they can drive up

im getting nowhere in this phone conversation. so i leave the rest of the story to be descriptive. well to summarize, there were 3 workflows going on simultaneously to solve this issue.

1. Thana and Yeefong decided to drive up to Ipoh. 45 minute drive. Woke Douglas up from his afternoon nap and dragged him along for "a sense of security" we promised that he didnt have to do anything except stand there and look scary just in case. that was before we met Ah Chuan.

2. Tomi went combing through the male student hostels (V5 and V4 in particular) in search for the owner of the rented car, based on Max's description. just to seek clarification on that matter and what happens after they go to the police station

3. My drummer was supposed to be Thana. and in her absence, i was desperately searching for one. was turned down by Josiah for being too abrupt. and Jesse said yes either out of courtesy or he decided it was an all or nothing showdown that night for him with the drums at church

4. Max and Grace were still there at the carpark trying to negotiate their way out while waiting for the police to come. he came plain-clothed. so it was difficult to determine whether he was for real or he was really helping those gangsters out so Grace didnt want to believe all that and decided to wait for Yeefong and Thana. and the police, seem to know those gangsters pretty well, left the scene

by the time the entourage arrived, Yeefong and Thana was greeted with a big burly man lying across the car bonnet like a mermaid and was looking bored, grace still in the rented car and max just standing around coz he ran out of ideas on what to do already. plus my packs of Claypot chicken rice were still in the car.

Yeefong, seemingly to have been accustomed to all these negotiations, talked nicely to the man and by that time, Tomi found the owner, also taking his afternoon nap in a room with a huge TV and PS 2 consoles, the owner said its ok for the Bank Repossessors - that's what they're called - to take his car and leave it there.

so they signed off, went for Menglembu Honey Chicken on the way back. and i am recollecting this story as close as i can remember. well there's also another story to this, if you dont mind reading.

Grace has a something with Rented Cars. seems like she's always jinxing it. here are a list of incidents that compels me to say so. and she agrees by the way. so no offense in that.:


Incident # 1
Renu and Grace rented someone's car to go to Ipoh for some hair treatment. They stopped at Pusing to pump petrol (i hear there are male pump attendants there who are twins and are good looking but i have never seen them). they stopped at the traffic lights, Renu wanted to adjust her seat and it went all the way backwards and got stuck there. So they had to send it to the workshop to get it fixed before making their way to the Hair Salon again.

Incident # 2

Grace and I, to the hair salon again with Nora and Fish. Nora did something i think to her hair. or was it Renu. in another rented car. i remember it was a white Proton Saga. then Fish took the car around Ipoh to run errands and when she came back quite late to the hair salon - but we were still not done anyways - she said there was something wrong with the car and she had to take it to the workshop.

Incident # 3
Refer to Grace's and Max's Car Hijack story - im still looking for the article on Grace's Blog

think i shall stop here. dont know if anyone reads this blog anymore. haha