YLI Holdings Bhd, a pipe maker, said its proposal to take control of a rival is not expensive, considering that the latter has an exclusive long-term contract to supply a water distributor in Selangor.YLI announced a RM48 million deal to buy 51 per cent of Laksana Wibawa Sdn Bhd on Thursday and said this was a discount to what Laksana Wibawa is worth, based on the discounted cash flow calculation.However, it did not say why it was using the method to value Laksana Wibawa, neither did it mention that the company has a contract to supply Syarikat Bekalan Air Selangor Sdn Bhd, a subsidiary of Puncak Niaga Holdings Bhd."We have engaged an independent valuer. We have also done a due diligence and we have got legal adviser to go through the contracts. We have verified the information," Khor Song Sim, YLI's general manager of corporate services told Business Times.
Based on what was announced to Bursa Malaysia, the deal appeared to be expensive as YLI is paying a historical price to earnings multiple of 34 times, way above YLI's own valuation of about 11 times. Aseambankers Malaysia Bhd said it was surprised by the price tag and cut its target price for YLI's stock by 36 per cent to RM1.15."We are not positive on this acquisition, due to the pricing. Our main issue is the period of investment return for this new acquisition, as Laksana Wibawa's historical records are not compelling," the investment bank said in a report yesterday.However, its report was released before it had the chance to speak to YLI's management.Khor said Laksana Wibawa's exclusive contract with Syabas runs from 2006 to 2015. It will supply ductile iron pipes and mild steel pipes to Syabas.Laksana Wibawa is worth between RM102 million to RM133 million, based on calculations done by Kenanga Investment Bank Bhd."If it can fulfil demand from Syabas, it can make a lot of money," Khor said.Based on Laksana's accounts, it made a maiden net profit of RM2.8 million in 2007 since starting business in 2003. Over that period, its revenue has grown by almost 10 times to RM65.6 million.Apart from growing YLI's income, Khor said the deal allows the group to deal with competition.YLI would also help Laksana Wibawa to deal with the supply of ductile iron pipes as its facility has excess capacity. Laksana Wibawa is in the midst of building a ductile iron pipe factory."We can take up the slack and delay the factory a bit," Khor said. -www.btimes.com.my
Sunday, June 29, 2008
Syed Yusof buys Sutra Beach Resort
BUSINESSMAN Tan Sri Syed Yusof Syed Nasir has added another property to his hotel stable, buying the Sutra Beach Resort in Terengganu for RM20 million.Syed Yusof will purchase the hotel, located in Kg Rhu Tapai, Merang, from Dignity View Sdn Bhd and spend some RM6 million to convert it into a Casa del Mar or a Concorde brand.The purchase will be done via ISY Holdings Sdn Bhd, a company owned by Syed Yusof and Sultan of Selangor Sultan Sharafuddin Idris Shah."We plan to convert the 120 rooms and create a five-star Casa del Mar Terengganu or a four-star Concorde Beach Resort," Syed Yusof told Business Times.
The Casa del Mar hotel chain will be modelled after the successful Mediterranean-inspired maiden venture in Langkawi. Casa del Mar literally means "Home by the Sea" in Spanish.Concorde Kuala Lumpur, formerly the Merlin Hotel, on Jalan Sultan Ismail was Syed Yusof first hotel venture in 1990. He is also involved in Concorde Inn Sepang and Concorde Hotel Shah Alam."The Sutra Beach Resort has 5.06ha of land, of which 2.03ha has been developed. The remaining land will be allocated for the development of suites," he said.Once the renovation is done and should it be a Casa del Mar, Syed Yusof said he hopes to be able to increase the hotel's average room rate (ARR) to between RM300 and RM400 per night from about RM250 now."In Langkawi, our hotel enjoys a 90 per cent average occupancy and an ARR of RM500. We want to bring this new hotel to the level comparable with that in Langkawi," he said.Meanwhile, another boutique hotel called Casa del Rio or "Home by the River" is being built by ISY Holdings in Malacca.The company will also open the Hard Rock Hotel, Penang, previously the Casuarina Beach Resort, in early 2009 and has started the development of the Four Seasons Hotel and Service Apartment in Kuala Lumpur.-www.btimes.com.my
The Casa del Mar hotel chain will be modelled after the successful Mediterranean-inspired maiden venture in Langkawi. Casa del Mar literally means "Home by the Sea" in Spanish.Concorde Kuala Lumpur, formerly the Merlin Hotel, on Jalan Sultan Ismail was Syed Yusof first hotel venture in 1990. He is also involved in Concorde Inn Sepang and Concorde Hotel Shah Alam."The Sutra Beach Resort has 5.06ha of land, of which 2.03ha has been developed. The remaining land will be allocated for the development of suites," he said.Once the renovation is done and should it be a Casa del Mar, Syed Yusof said he hopes to be able to increase the hotel's average room rate (ARR) to between RM300 and RM400 per night from about RM250 now."In Langkawi, our hotel enjoys a 90 per cent average occupancy and an ARR of RM500. We want to bring this new hotel to the level comparable with that in Langkawi," he said.Meanwhile, another boutique hotel called Casa del Rio or "Home by the River" is being built by ISY Holdings in Malacca.The company will also open the Hard Rock Hotel, Penang, previously the Casuarina Beach Resort, in early 2009 and has started the development of the Four Seasons Hotel and Service Apartment in Kuala Lumpur.-www.btimes.com.my
Thursday, June 26, 2008
Malaysia Offers Opportunity For Auto Manufacturers Producing Hybrid Vehicles
KUALA LUMPUR, June 26 (Bernama) -Malaysia offers the opportunity for leading automotive companies particularly those producing hybrid vehicles to locate their operations in the country.The companies would be able to cater for the domestic and regional markets, International Trade and Industry Minister, Tan Sri Muhyddin Yassin said Thursday.He said high fuel cost has created demand for such vehicles in the region.The minister's speech was read by the ministry's deputy minister Datuk Jacob Dungau Sagan at the Frost & Sullivan Asean Automotive Awards 2008, here Thursday."Malaysia in fact is well placed to become the hub for hybrid vehicles in the region. I hope automotive assemblers will take advantage of this opportunity," he said.Given that the automotive industry is evolving at such a dynamic pace, he said Malaysia is also paying attention to capacity building and is continuously developing the capabilities of small and medium scale enterprises (SMEs) producing automotive parts and components to ensure these companies remain competitive.Among the programmes undertaken have been the familiarising of SMEs with Lean Production System relating to quality control and improvement, reducing waste, inventory management, control improvements and reduction of rejection rate and in producing upgrading processes.Others have been upgrading the skills of those involved in the automotive industry and enhancing SME capabilities in mould and die designing as well as manufacturing.Under the Ninth Malaysia Plan, the ministry through SMIDEC has provided assistance to SMEs in the automotive sector under various Matching Grant Schemes.As at May 30 this year, SMIDEC approved a total of 612 applications amounting to RM18.35 million, he said.Going forward, he said spiraling energy prices will remain one of the main challenges of the automotive industry.Higher fuel costs also means that consumers will look to fuel efficient vehicles and perhaps vehicles using alternative energy.To meet these demands, continued investment in research and development will be necessary, he added.
Thursday, June 19, 2008
Broadband set to be TM's largest revenue contributor
SINGAPORE: Telekom Malaysia Bhd (TM) said broadband business could become the group's largest revenue contributor in three years, as demand for Internet and related services increases.As of first quarter 2008, TM's retail revenue was RM1.61 billion, of which 31 per cent came from its Internet and data services. Voice call services accounted for the bulk or 57 per cent.This compared with a 63 per cent contribution from voice and 27 per cent from Internet and data sales a year ago."We believe broadband business will contribute 60 per cent of the retail revenue in three years, overtaking voice.
"There're two main reasons for that. First, the migration of fixed voice to mobile. Second, we see the trend of Internet becoming more of a necessity rather than a luxury service for Malaysians," said TM group chief executive officer Datuk Zamzamzairani Isa in an interview here on Wednesday.The company also plans to launch its Internet Protocol Television (IPTV) services in the second quarter of 2009, which is expected to boost TM's revenue.Meanwhile, TM expects to sign up more new broadband customers this year, as compared with 2007 when it signed up 401,000 new customers.It believes that its broadband subscriber base could expand by at least 35 per cent this year."Initial signs have been very encouraging. In April, we signed up 43,000 new broadband customers, which was a record for us. May was another strong month where we signed up some 40,000 new customers," Zamzamzairani said.On the RM15.2 billion national high-speed broadband project, TM is considering its funding options.The project comes in two phases. First phase, in which most of the job will be done in the initial three years, involves around RM11.3 billion, of which TM will fund RM8.9 billion."We are finalising the details," Zamzamzairani said.TM and the Government are expected to sign a public-private partnership agreement by the end of this month."We are hopeful that it will materialise this month. But even if it doesn't happen this month, it won't be too far away," Zamzamzairani added. -www.btimes.com.my
"There're two main reasons for that. First, the migration of fixed voice to mobile. Second, we see the trend of Internet becoming more of a necessity rather than a luxury service for Malaysians," said TM group chief executive officer Datuk Zamzamzairani Isa in an interview here on Wednesday.The company also plans to launch its Internet Protocol Television (IPTV) services in the second quarter of 2009, which is expected to boost TM's revenue.Meanwhile, TM expects to sign up more new broadband customers this year, as compared with 2007 when it signed up 401,000 new customers.It believes that its broadband subscriber base could expand by at least 35 per cent this year."Initial signs have been very encouraging. In April, we signed up 43,000 new broadband customers, which was a record for us. May was another strong month where we signed up some 40,000 new customers," Zamzamzairani said.On the RM15.2 billion national high-speed broadband project, TM is considering its funding options.The project comes in two phases. First phase, in which most of the job will be done in the initial three years, involves around RM11.3 billion, of which TM will fund RM8.9 billion."We are finalising the details," Zamzamzairani said.TM and the Government are expected to sign a public-private partnership agreement by the end of this month."We are hopeful that it will materialise this month. But even if it doesn't happen this month, it won't be too far away," Zamzamzairani added. -www.btimes.com.my
Wednesday, June 18, 2008
RM1b biotech investments
SAN DIEGO: Malaysia is poised to receive investments in biotechnology projects worth RM1 billion over the period 2008-2011 as a result of deals that will be signed during a world-class event this week."These (amounts) are the kinds of benchmarks that we have for events like BIO 2008," Malaysian Biotechnology Corp (BiotechCorp) chief executive Datuk Iskandar Mizal Mahmood told Malaysian journalists here on Tuesday.Six agreements will be signed this week on the sidelines of the world's biggest biotechnology conference, dubbed BIO 2008.Iskandar said that more details will be revealed during the signings, adding that they involve areas like healthcare, agriculture and industrial biotechnology.
Malaysia wants to win a slice of the booming and lucrative biotechnology industry, estimated to be worth billions of dollars. Revenue from biotechnology firms in Asia-Pacific alone was US$36.7 billion (RM119 billion) in 2006.Iskandar is leading BiotechCorp, the agency tasked to develop Malaysia's biotechnology industry, at its fourth BIO event. There are about 82 Malaysian delegates this year, led by Science, Technology and Innovation Minister Datuk Dr Maximus J. Ongkili."We are looking for anything that's new, whether in terms of technology or practice," Ongkili told reporters after opening BiotechCorp's exhibition booth.However, Malaysia's core focus are alternative energy and boosting agriculture production.One example is mapping the complete genetic information of the jatropha plant, Ongkili said. This could lead to a better-yielding and more pest-resistant jatropha, which is used to make biofuel, apart from palm oil and corn.The minister is also conducting about 12 one-on-one meetings throughout the four-day event that ends tomorrow."We are zeroing in on the list of potential investors," he said.BIO 2008, which is bringing together more than 20,000 visitors from 70 countries, features about 2,200 leading biotechnology companies worldwide. -www.btimes.com.my
Malaysia wants to win a slice of the booming and lucrative biotechnology industry, estimated to be worth billions of dollars. Revenue from biotechnology firms in Asia-Pacific alone was US$36.7 billion (RM119 billion) in 2006.Iskandar is leading BiotechCorp, the agency tasked to develop Malaysia's biotechnology industry, at its fourth BIO event. There are about 82 Malaysian delegates this year, led by Science, Technology and Innovation Minister Datuk Dr Maximus J. Ongkili."We are looking for anything that's new, whether in terms of technology or practice," Ongkili told reporters after opening BiotechCorp's exhibition booth.However, Malaysia's core focus are alternative energy and boosting agriculture production.One example is mapping the complete genetic information of the jatropha plant, Ongkili said. This could lead to a better-yielding and more pest-resistant jatropha, which is used to make biofuel, apart from palm oil and corn.The minister is also conducting about 12 one-on-one meetings throughout the four-day event that ends tomorrow."We are zeroing in on the list of potential investors," he said.BIO 2008, which is bringing together more than 20,000 visitors from 70 countries, features about 2,200 leading biotechnology companies worldwide. -www.btimes.com.my
Tuesday, June 17, 2008
Iran opposes any Saudi unilateral oil output hike
Iran said on Tuesday it would be opposed to any move by OPEC kingpin Saudi Arabia to raise its oil output without a consensus from fellow members of the oil cartel.
"If Saudi Arabia takes a measure to unilaterally increase (oil) output, it is a wrong move," Mohammad Ali Khatibi, Iran's new representative to OPEC, was quoted as saying by the state television website.
UN chief Ban Ki-moon announced on Sunday that Saudi Arabia had told him it would increase its oil output by a further 200,000 barrels a day in July, although it was not clear if Khatibi was reacting to these comments.
Saudi Arabia is also organising talks among major oil producers and consumers in the Red Sea city of Jeddah next week to discuss the current sky-rocketing prices.
Iran is OPEC's number two producer, behind the Saudis, and has consistently argued that the high oil price has nothing to do with market fundamentals and OPEC's output should not be increased.
"Any increase in production should be approved in the meeting of the organisation's ministers," Khatibi stressed.
Iran's OPEC representative also said there was no shortage in the oil market: "Oil producers are all agreed that the oil market is saturated," he said.
"Evidence shows that consumers will discuss the increase of oil production more than other issues in this (Jeddah) meeting. This is while the producers believe that there is no shortage in the market," he said.
The National Iranian Oil Company's director for international affairs, Hojatollah Ghanimifar, said any boost to output would have little impact on world prices.
"In the current situation even an increase of 500,000 barrels of oil will not make any change in oil prices," Ghanimifar was quoted as saying by the state television website.
Oil futures reached record highs of almost 140 dollars a barrel on Monday.
In Asian trade on Tuesday, the main New York futures contract, light sweet crude for July delivery, dropped 15 cents to 134.46 dollars per barrel after striking an intraday record of 139.89 dollars on the New York Mercantile Exchange.
Earlier on Tuesday, Iranian President Mahmoud Ahmadinejad said that the current high price of oil was artificial and the market was well supplied.
"The rise in consumption is lower than the rise in production," Ahmadinejad told a meeting in the central city of Isfahan of OPEC's fund for international development.
"Certain hands, for political and economic ends, are controlling the price in an artificial manner," he said.-Copyright Agence France-Presse, 2008
"If Saudi Arabia takes a measure to unilaterally increase (oil) output, it is a wrong move," Mohammad Ali Khatibi, Iran's new representative to OPEC, was quoted as saying by the state television website.
UN chief Ban Ki-moon announced on Sunday that Saudi Arabia had told him it would increase its oil output by a further 200,000 barrels a day in July, although it was not clear if Khatibi was reacting to these comments.
Saudi Arabia is also organising talks among major oil producers and consumers in the Red Sea city of Jeddah next week to discuss the current sky-rocketing prices.
Iran is OPEC's number two producer, behind the Saudis, and has consistently argued that the high oil price has nothing to do with market fundamentals and OPEC's output should not be increased.
"Any increase in production should be approved in the meeting of the organisation's ministers," Khatibi stressed.
Iran's OPEC representative also said there was no shortage in the oil market: "Oil producers are all agreed that the oil market is saturated," he said.
"Evidence shows that consumers will discuss the increase of oil production more than other issues in this (Jeddah) meeting. This is while the producers believe that there is no shortage in the market," he said.
The National Iranian Oil Company's director for international affairs, Hojatollah Ghanimifar, said any boost to output would have little impact on world prices.
"In the current situation even an increase of 500,000 barrels of oil will not make any change in oil prices," Ghanimifar was quoted as saying by the state television website.
Oil futures reached record highs of almost 140 dollars a barrel on Monday.
In Asian trade on Tuesday, the main New York futures contract, light sweet crude for July delivery, dropped 15 cents to 134.46 dollars per barrel after striking an intraday record of 139.89 dollars on the New York Mercantile Exchange.
Earlier on Tuesday, Iranian President Mahmoud Ahmadinejad said that the current high price of oil was artificial and the market was well supplied.
"The rise in consumption is lower than the rise in production," Ahmadinejad told a meeting in the central city of Isfahan of OPEC's fund for international development.
"Certain hands, for political and economic ends, are controlling the price in an artificial manner," he said.-Copyright Agence France-Presse, 2008
Monday, June 16, 2008
MASkargo bullish on China operations
MALAYSIA Airlines Cargo Sdn Bhd (MASkargo), the cargo arm of Malaysia Airlines (MAS), expects its operations in China to continue to show growth this year, despite soaring fuel prices and the less favourable global economy climate.Managing director Shahari Sulaiman said the bullish outlook is largely attributable to its freight network, which is servicing lucrative trade lanes, namely Asia to Europe, Europe to Asia as well as Europe to Australia."We are serving the right markets. We are big in China, Europe and Australia," he told reporters covering Air Cargo China 2008. "Furthermore, since the end of February, we have diverted 70 per cent of our flights into Europe to Uzbekistan. This has allowed us to serve the same market at a much reduced cost."
Air Cargo China 2008, which starts in Shanghai tomorrow, is dubbed as one of the largest gatherings of the international air cargo community. It is expected to be attended by more than 10,000 executives from the airlines, airports, freight forwarders, shippers, suppliers and service providers from all over the world.Shahari said MASkargo saw a 10 per cent year-on-year growth in cargo throughput at the KL International Airport (KLIA) in Sepang for the first two months of this year and is optimistic that the trend will sustain for the medium term.On its Chinese operations, its station in Shanghai will remain its biggest contributor in terms of revenue and expects the margin to expand although MASkargo plans to reduce the number of flights but carry more cargo there due to rising fuel cost.Fuel makes up about 40 per cent of its total operating cost."We have reduced our capacity (flights) by about seven per cent in the first quarter this year. This has resulted in an improvement in yields and profits," Shahari said.Another factor that would contribute to growth would come from the new cargo building located near the Pudong International Airport which is near completion."The new cargo building will be able to accommodate one million tonnes of freight and there will be more parking bays for freighters," he said, noting that Pudong is leading growth in cargo by more than 10 per cent.The company also plans to look for more strategic partnerships with other airlines that would improve its operations.MASkargo operates four B747-200 and two B747-400 freighters. It also offers belly space capacity on MAS' passenger fleet, servicing almost 100 destinations worldwide.The company more than doubled its operating profit to RM38 million last year, from RM18 million in 2006. -www.btimes.com.my
Air Cargo China 2008, which starts in Shanghai tomorrow, is dubbed as one of the largest gatherings of the international air cargo community. It is expected to be attended by more than 10,000 executives from the airlines, airports, freight forwarders, shippers, suppliers and service providers from all over the world.Shahari said MASkargo saw a 10 per cent year-on-year growth in cargo throughput at the KL International Airport (KLIA) in Sepang for the first two months of this year and is optimistic that the trend will sustain for the medium term.On its Chinese operations, its station in Shanghai will remain its biggest contributor in terms of revenue and expects the margin to expand although MASkargo plans to reduce the number of flights but carry more cargo there due to rising fuel cost.Fuel makes up about 40 per cent of its total operating cost."We have reduced our capacity (flights) by about seven per cent in the first quarter this year. This has resulted in an improvement in yields and profits," Shahari said.Another factor that would contribute to growth would come from the new cargo building located near the Pudong International Airport which is near completion."The new cargo building will be able to accommodate one million tonnes of freight and there will be more parking bays for freighters," he said, noting that Pudong is leading growth in cargo by more than 10 per cent.The company also plans to look for more strategic partnerships with other airlines that would improve its operations.MASkargo operates four B747-200 and two B747-400 freighters. It also offers belly space capacity on MAS' passenger fleet, servicing almost 100 destinations worldwide.The company more than doubled its operating profit to RM38 million last year, from RM18 million in 2006. -www.btimes.com.my
Sime's Sarawak rice venture
CONGLOMERATE Sime Darby Bhd has identified 7,000ha of land in Sarawak to start its rice production venture, its chairman Tun Musa Hitam said yesterday."As we go on, we'll increase it (the hectarage)," he told reporters on the sidelines of the World Economic Forum on East Asia in Kuala Lumpur yesterday.Musa said that to help meet the country's food needs, Sime Darby will use advanced technology, including Chinese expertise, to produce higher yield compared to existing production methods."God willing, it will be more than the average produced now. The Sarawak state government is positive about this, and they will make available more land," he added.
According to previous reports, the new fields would be able to produce at least nine tonnes of rice per hectare.Malaysia produces about 1.6 million tonnes of rice a year, which accounts for about 70 per cent of annual demand.Amid rising global food prices, the government has identified Sarawak as Malaysia's new rice bowl to boost production. The government has allocated RM4 billion for the Food Security Policy, of which RM2.5 billion has been approved to increase food production. Farmers are also given incentives to boost the national stockpile.Under the Ninth Malaysia Plan, government-linked companies (GLCs), agriculture associations and cooperatives are encouraged to venture into large-scale food production.Musa said that unlike crude palm oil, which Sime Darby sells worldwide, the rice produced in Sarawak will be exclusively for local consumption.He added that details of the project, such as production and investment costs, will be announced later."We have already identified how we are going into it, but the target, the cost, and all that (will be determined later). "Of course, there will be due diligence to make sure that it is productive, economic and contributing."And there will be more of such projects, I should think. The government had announced its intention to intensify rice production."Asked if the latest project was Sime Darby's national service to the country, Musa said: "A little bit of that, but we must make sure that it is viable, going to be profitable, and of quality that can contribute to the food needs of the country."-www.btimes.com.my
According to previous reports, the new fields would be able to produce at least nine tonnes of rice per hectare.Malaysia produces about 1.6 million tonnes of rice a year, which accounts for about 70 per cent of annual demand.Amid rising global food prices, the government has identified Sarawak as Malaysia's new rice bowl to boost production. The government has allocated RM4 billion for the Food Security Policy, of which RM2.5 billion has been approved to increase food production. Farmers are also given incentives to boost the national stockpile.Under the Ninth Malaysia Plan, government-linked companies (GLCs), agriculture associations and cooperatives are encouraged to venture into large-scale food production.Musa said that unlike crude palm oil, which Sime Darby sells worldwide, the rice produced in Sarawak will be exclusively for local consumption.He added that details of the project, such as production and investment costs, will be announced later."We have already identified how we are going into it, but the target, the cost, and all that (will be determined later). "Of course, there will be due diligence to make sure that it is productive, economic and contributing."And there will be more of such projects, I should think. The government had announced its intention to intensify rice production."Asked if the latest project was Sime Darby's national service to the country, Musa said: "A little bit of that, but we must make sure that it is viable, going to be profitable, and of quality that can contribute to the food needs of the country."-www.btimes.com.my
Friday, June 13, 2008
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Shell to pump in RM10 billion
THE Royal Dutch Shell Group is looking to invest some RM10 billion in its oil and gas operations in Malaysia in the next five years.Shell Malaysia chairman Datuk Saw Choo Boon said while the investment is spread across the range of business activities, exploration and production will take up most of the expenditure."We have been in the country since 1891, more than 100 years. We intend to stay and continue to grow our business here," he said at a media dialogue in Kuala Lumpur yesterday. Also present was Royal Dutch Shell chief executive officer Jeroen van der Veer.Worldwide, van der Veer said, the company has set aside some US$27 billion (RM87 billion) as capital investment for this year, about the same amount allocated last year.
"We probably have the highest investment among oil companies in the world. I think there are enough opportunities for us, including in the downstream, to come up with more investments," he said.He said the company will probably be shifting its focus to the East rather than the West, with growth likely to come from Malaysia, China, Indonesia, India and Ukraine."We are also building a new chemical cracker plant in Singapore and are active in the downstream segment in Thailand," he said.In Malaysia, he said, the development of the Gemusut-Kakap deepwater field is one of the key projects undertaken by Shell, of which production is expected to begin in 2010.On the outlook of the global oil and gas industry, van de Veer said fossil fuel - namely oil, gas and coal, will continue to play an important role by 2050 to meet the ever increasing demand for those fuels."Within 25 years from now, the world will still use more oil, gas and coal," he said.On the current escalating price of crude oil, van der Veer said he did not see any shortage of oil supplies that would cause the price to increase substantially."There are no physical shortages in the world. We don't have ships waiting in the Middle East, no people queuing up for gasoline. From a stocks point of view, the whole value chain works well," he said, declining to project how high the price of crude will go. -www.btimes.com.my
"We probably have the highest investment among oil companies in the world. I think there are enough opportunities for us, including in the downstream, to come up with more investments," he said.He said the company will probably be shifting its focus to the East rather than the West, with growth likely to come from Malaysia, China, Indonesia, India and Ukraine."We are also building a new chemical cracker plant in Singapore and are active in the downstream segment in Thailand," he said.In Malaysia, he said, the development of the Gemusut-Kakap deepwater field is one of the key projects undertaken by Shell, of which production is expected to begin in 2010.On the outlook of the global oil and gas industry, van de Veer said fossil fuel - namely oil, gas and coal, will continue to play an important role by 2050 to meet the ever increasing demand for those fuels."Within 25 years from now, the world will still use more oil, gas and coal," he said.On the current escalating price of crude oil, van der Veer said he did not see any shortage of oil supplies that would cause the price to increase substantially."There are no physical shortages in the world. We don't have ships waiting in the Middle East, no people queuing up for gasoline. From a stocks point of view, the whole value chain works well," he said, declining to project how high the price of crude will go. -www.btimes.com.my
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