KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has been invited by the Timor-Leste government to invest in its offshore gas development, Petronas president and CEO Tan Sri Mohd Hassan Marican said yesterday.
"We have been advising the Timor-Leste government on the development of the gas resources in the Timor Sea. The government has approached us and invited us to participate in that development. We are currently studying it," he said.
Timor-Leste recently rejected a proposal by Australian-based Woodside Petroleum and partners to develop the offshore Greater Sunrise gas field. The rejection was based on the fact that Woodside would develop the gas field without building an onshore plant to liquefy the gas.
Hassan was speaking to reporters at the signing ceremony between Petronas Lubricants International Bhd (PLI) and PROTON HOLDINGS BHD [] here. Also present was former prime minister Tun Dr Mahathir Mohamad, who is adviser to both Petronas and Proton.
Syed Zainal (left) exchanging documents with Petronas Lubricants International Sdn Bhd CEO Aldino Bellazzini, witnessed by Dr Mahathir (centre), Hassan (right) and Proton Holdings Bhd chairman Datuk Nadzmi Mohd Salleh. Photo by Suhaimi Yusuf
The agreement between Proton and Petronas is for a supply, technical and commercial collaboration in the area of automotive lubricants and functional fluids.
Under the agreement, PLI will be the exclusive partner to Proton for its domestic and global OEM lubricants while Proton will be supported by the Petronas subsidiary in the carmaker's effort to produce lubricants to cater specifically to its requirements.
Proton's managing director Datuk Syed Zainal Abidin Mohamed Tahir said given the long history between the two companies, the signing of this agreement was only natural.
"The business has always been there between Proton and Petronas. This is simply formalising and streamlining it," he said, adding that Proton's lubricants business stood at 1.4 million litres per year and it was hoping to grow that to some two million litres per year over the next few years.
However, Syed Zainal was quick to emphasise that it would be the chance to tap into Petronas' research and development that would prove integral.
PLI's chairman and Petronas' vice-president for the oil business Md Arif Mahmood said the tie-up would also provide for a profit-sharing arrangement with Proton in the aftersales or service-fill market segment and greater cooperation in initiating joint marketing and promotions.
However, both parties declined to give details of the profit-sharing agreement.