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In the process of PETRONAS purchasing the 70% of the South African oil group, Engen does not already own besides all the downstream investment. The analysts warning that this is hardly the time for yet another agreement Even the transaction made financial sense. This had been happened because of the given low oil prices and Engen listed down the weakness of the Johannesburg Stock Exchange. Engen investment is a way for PETRONAS to expand into the African market. This investment would be a suitable time to consolidate, hunker down, and also is the hardly time to do research into another market. This statement said by one of the executive who follows PETRONAS closely. Most analyst concern about the degree of PETRONAS is being to rescue the heavily indebted groups with strong political connections. PETRONAS announced that it would be willing to buy up government…show more content…
Therefore, refiners and petrochemical producers are forced to search for new customers on the Asian spot market. This also forced them to increase their exports to other country to earn profits. Besides that, the new refinery train functions at the time when the domestic demand decline lower margins and high costs which is due to the fall in the Ringgit-Malaysia value. This causes refiners faced a great loss as the cost of the production is higher than the prices offered in the market. Refiners then tried to curtail those losses by exporting excess output. However, it is too little to avail. Other than that, Petronas Dagangan Bhd.(PDB), which is Petronas’s subsidiary that sells refined product, operates a marketing and retail distribution network nationwide. This type of subsidiary including 500 service stations, 8 bunkering facilities, 10 aviation depots, 7 bottling plants and 11 bulk depots. However, all of these units’ revenues declined by 20-50% and all are either losing money or are only moderately

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