Asian oil firms discover benefits of globalization
Asian oil firms discover benefits of globalization
SINGAPORE (Reuter): Asian national oil companies are becoming
more involved in all aspects of their industry, stretching from
upstream exploration to downstream refining and retailing.
Having fulfilled their key roles as securing national energy
supplies, their objectives in the next decade are to compete in
the international retail and marketing arena.
Leading the pack are the Petroleum Authority of Thailand
(PTT), Indonesia's Pertamina and Malaysia's Petronas.
All have been making headways in their overseas investments
and have lured more private sector participation in their country
to ease the national burden.
Owners of Malaysia's entire oil and gas reserves, Petronas has
become a fully integrated international petroleum corporation and
is listed on Fortune 500.
"Its corporate philosophy of vertical integration within its
group of companies has spurred it to venture into strategic
projects locally and internationally to diversify and expand its
business portfolio," a Malaysian source said.
Petronas aims to source 30 percent of its revenue from
overseas business by 2005. In the financial year ended last
March, it recorded a pre-tax profit of 7.1 billion ringgit
(US$2.79 billion), up 12.9 percent on the previous year, on a
turnover of 17.1 billion ringgit ($6.73 billion).
As part of its globalisation program, the company launches
itself into overseas upstream activities through its wholly owned
subsidiary Petronas Carigali (Overseas) Sdn Bhd.
Carigali has interests stretching from Vietnam to Syria and is
looking at opportunities in Central Asia, India and the
Philippines.
To enhance its increasingly international oil trading
activities, Petronas Trading Company (Petco) was established to
trade in non-domestic crudes, products and petrochemicals.
Petco has since gained a reputation for making inroads into
Africa and the Indian sub-continent.
Its activities are also supported by investments in Yemen with
a refinery at Aden processing Mid-East crudes, as well as a
terminal in the Seychelles.
Petronas has also ventured abroad to operate gasoline stations
in Cambodia and aims to open a network of service stations in
Thailand, with Unique Gas and Petrochemicals.
The first gas stations in Thailand are expected to open from
early 1996.
Earlier this year, Petronas held talks with Indian firms for a
joint-venture refinery in Madras. It is also investing in a
Australian $540-million gasoline project in Australia.
Thailand's PTT
Just as ambitious as its southern neighbor, Thailand plans to
expand its domestic and overseas ventures in various petroleum-
related fields, notably the retail business.
"Our globalisation move is imperative to ensure the growth of
PTT, now in its 17th year," a PTT source said. "Within the first
10 years of our establishment, PTT has transformed from a
government company to a national oil firm. Now we are entering to
become a regional player," he added.
Sources said the company seeks to capitalize on its expertise
in service-oriented industry.
Domestically, PTT has established joint-ventures and
subsidiaries such as Rayong Refinery Company and the Thai Lube
Base Company for upstream and downstream industrial development.
It currently enjoys 37 percent share of the Thai market.
In the international arena, PTT made headlines when it entered
into a 50:50 venture with U.S. Coastal Corp