Crude oil marketing general manager Ahmad Nizam Salleh explained on Wednesday.
Speaking at a buyers' forum, he outlined three new approaches that Petronas would use as part of marketing its crude oil, the general manager added.
Carry out physical crude swaps, Salleh added.The new themes reflect the changing shape of Petronas.
This produces 630,000 barrels per day (bpd), of which Petronas entitlement is 454,000 bpd under agreements with private producers.
The company is expanding overseas to build up its crude and gas reserves.
Most notably it is part of consortia inIran planning to develop the large South Pars and Sirri oil and gas fields.
The United States recently waived sanctions on the companies, under its 1996 Iran-Libya Sanctions Act, which punishes companies that invest in the Middle East countries.
Malaysia is also involved in government to government talks with Kazakhstan about securing acreage in the central Asian state.
It also has upstream assets in Vietnam, where two fields are due on stream in the second half of 1998, Philippines, China, Pakistan, North Africa and South Africa, Salleh added.
With growing assets abroad, it made sense to consider oil swaps from different geographic points, oil traders said.
In addition, oil swaps might give Petronas more flexibility in operating the new 100,000-barrels-per-day Malacca refinery, which is due to start up in July at the earliest.
Malaysia mostly produces light low sulphur crudes, but the new refinery is geared to running sour grades out of the Middle East.
Petronas takeover earlier this year ofMalaysian International Shipping Corp (MISC) following an asset reshuffle has consolidated the company's shipping.
This thing might have contributed to the company considering term sales on a delivered basis, oil traders said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
