SHELL REFINING MALAYSIA

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SHELL REFINING MALAYSIA

CARDIFF METROPOLITAN UNIVERSITY
QUEEN ELODIE CYUZUZO 0110FSFS0612 STRATEGIC MANAGEMENT: ASSIGNMENT ONE BABS SEMESTER 6 MR FRANCIS ASIRVTHAM

Table of Content

1.0 INTRODUCTION
1.1 OVERVIEW OF OIL AND GAS IN MALAYSIA
Malaysia Oil and gas reserves were in discovered in 1909 by Shell in Sarawak, Malaysia and led to the creation of many opportunities for major oil producers like shell, Exxon Mobil to invest in. the industry provided employment to thousand of Malaysians and changed the economy of the country. This industry has government support due to the long term objectives they have for it such as securing a sustainable and long term success of the oil and gas industry, through increasing the aggregate production capacity by 5% per year until 2020, so as to meet the domestic demand and at the same time exporting for the overseas market (Corporation, 2013). 1.2 ROYAL DUTCH SHELL MALAYSIA

As shell first discovered oil and gas in Malaysia, the first production was made in 1910. It was incorporated in September 1960 and was listed as a public company on the bursa Malaysia on 29 October. Today, shell is the largest natural gas producer and leader in petroleum retail market in Malaysia, catering to one-third of Peninsular Malaysia and half of Sabah and Sarawak’s market requirements and it shares production contract with Malaysian oil and gas company Petronas (Shell, 2013). Shell operations in Malaysia involve upstream, downstream, project and technology and shell business service center. 1.2.1 SHELL OPERATIONS

A) UPSTREAM OPERATIONS
Shell upstream operations have been there for 100 years, and their main focus is in the development and extraction of crude oil and natural gas sharing the contract with Petronas offshore Sarawak and Sabah. It also has a GTL( gas to liquids) plant in Bintulu, which is a technology used in converting gas into a range of valuable liquid products instead of using crude oil as the raw material. The GTL products include: GTL gasoil as an alternative to diesel and GTL kerosene also an alternative to conventional oil based kerosene (upstream, 2013). B) DOWNSTREAM OPERATIONS

The downstream sector looks at refining, supplying, trading and marketing the crude oil and other petroleum products. It has over 900 stations in Malaysia and operates a refinery at Port Dickson. The fuel produced by shell is modified to develop engine and environmental performance (Malaysia, 2013, p.11). C) PROJECTS AND TECHNOLOGY BUSINESS

It was officially launched in January 2010, where it provides technical services to their upstream and downstream operations, technical and operation expertise, as well as turnkey solutions to leading companies in the energy, oil and gas sectors within and outside the Shell Group of companies and helps in the delivery of major projects to the upstream and downstream activities. The capability of delivering fully integrated third-party capability combined with our proprietary technology and technical capability standards makes us an attractive partner of choice for our stakeholders and potential partners (technology, 2013). D) SHELL BUSINESS SERVICE CENTER

It is one of the global services centers that provide finance, accounting, human resource, customer service, contracts and procurement services and information technology to shell operating company globally. Its aim is to deliver a common business operations and services for shell, at world class operational excellence (Malaysia, 2013, p.13). 1.2.2 SHELL REFINING VISION AND MISSION

Any organization must have a vision so as to provide direction to where they are heading, shell vision looks at making it be...