Petronas Denies Shutting Down Offshore Rigs

The Malaysian oil and gas company Petronas has denied reports claiming the company has shut down 14 oil rigs.

"Petronas refutes the allegations in news reports published in the New Straits Times dated 24 April 2020, regarding the deactivation of 14 Petronas oil rigs as reported in its print version, and the shutting down of 14 projects as reported in its electronic version," the company said Monday.

Petronas has said it has not shut down any of its rigs, offshore Malaysia, "other than those concluding their drilling campaigns or are under temporary suspensions due to the current COVID-19 pandemic."

Petronas said Monday there were 18 rigs in operation within Malaysia waters.

"Petronas also wishes to clarify that there was a temporary suspension of projects at some worksites due to the Movement Control Order (MCO) implemented by the Government. Currently, most of these projects have either resumed their work activities or will be resuming soon upon securing the necessary approval from the Government," Petronas said.

The Malaysian oil and gas company said it was striving to minimize the impact to its planned domestic CAPEX program in the face of the current challenges. 

"However, we do expect that some projects will be naturally delayed due to the prolonged lockdowns implemented globally and the MCO in Malaysia, and further disruptions anticipated to the global supply chain," Petronas said.

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