Corporate Communication Key Concepts In Malaysia Liquid and Gas (MLNG) (200866-W) UC00102 Corporate Communication Jamsari Bin

Hashim Group 1 No. 1. 2. 3. 4. 5. Name FELIX HO KOON CHANG IAN LEVI JACKERY NUR FATANAH REO RICKIE H BATING Matric No BK BK 11110105 BS BS BK 11110257 Tuesday 1100-1300 DKP 13 Semester II 2011/2012 Session Section 2 2 2 2 2 Project Paper (40%) Project Paper Presentation (30%)

CONTENT

No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

CONTENT MISSION VISION OBJECTIVES AND GOALS STRATEGIES IDENTITY IMAGES REPUTATION STAKEHOLDER PUBLIC MARKET ISSUE COMMUNICATION

PAGE

INTRODUCTION (a) BACKGROUND OF THE ORGANIZATION PETRONAS' venture into the liquefied natural gas (LNG) industry more than three decades ago marked Malaysia's entry into the modern gas era. When substantial gas reserves were discovered in Sarawak's Central Luconia basin in the 1970's, it was hoped that monetising this resource would bring revenue and foreign exchange needed to spearhead Malaysia's socio economic development and nation building. It was also realised then that Malaysia's proximity to industrialised Japan, opened the opportunity for PETRONAS to tap into an important energy market in need of a cost effective, efficient and cleaner energy resource. PETRONAS,Shell BV and Mitsubishi held talks which resulted in the birth of a partnership to undertake Malaysia's first LNG project, realised through the incorporation of Malaysia LNG Sdn Bhd or MLNG on 14 June 1978. The MLNG project was Malaysia's largest and most ambitious industrial undertaking at the time and the Malaysian Government established a special LNG task force to see to its successful completion. The MLNG project at that time was also the nation's single largest investment in manufacturing and required what was considered a quantum leap in technology and knowledge acquisition. Beyond the construction of the plant, the MLNG project also involved the construction of a jetty, the acquisition of LNG carriers, the establishment of infrastructure and amenities and the training of human resource.

Through hard work and perseverance, the partners in the initial venture succeeded in transforming the sleepy fishing village of Bintulu into the site of Malaysia's first gas liquefaction plant, which was completed on schedule on 7 August 1982. The LNG complex saw its first cargo destined for the Japanese market leaving Bintulu on 29 January 1983 on board LNG carrier Tenaga Satu.

Escalating demand for LNG led to the formation of the second and third joint-venture companies respectively - Malaysia LNG Dua Sdn Bhd (MLNG Dua) in 1992, and Malaysia LNG Tiga Sdn Bhd (MLNG Tiga) in 1995. Indeed, Petronas' entry into the LNG business was a milestone in the Corporation's journey towards becoming a fully-integrated oil and gas player. It also marked a major leap for the Corporation in terms of capability building and technology development, as the pioneers in the LNG venture persevered to beat insurmountable odds.As a result of the LNG project, PETRONAS' employees rapidly acquired capability in every aspect of the LNG business, from plant construction, commissioning and operations to marketing and logistics. The Central Luconia gas fields are about 125 - 275 km offshore to Bintulu where the sea depth ranges between 60 and 120 metres. The gas reservoirs are at depths of 1,200 to 2,130 metres below the sea bed. In the process of evaluating the discoveries, Sarawak Shell Berhad drilled 94 exploration wells in the period 1968 - 1981.

The E11 gas field in the Central Luconia gas province was discovered in January 1971. Evaluation of this find established with adequate certainty that there was sufficient gas to make it worthwhile to consider a large project to export gas in liquid form i.e., liquefied natural gas or LNG.

(i)

THE HISTORY OF MLNG 1965-1969 1967 - 1969 Discovery of substantial natural gas reserved in the Central Luconia gas fields, about 125 - 250 kilometres offshore Bintulu, Sarawak.

1970-1974 1973 The proposal to establish the LNG project in Malaysia was submitted to the Malaysian Government by the Coordinating Committee on Hydrocarbons. The Committee was set up by the Malaysian

Government, in the wake of OPEC's oil embargo in the same year, to coordinate all matters pertaining to petroleum resources, which paved the way for the enactment of the Petroleum Development Act 1974 and the establishment of PETRONAS.

1974, August 17 The national oil corporation of Malaysia, PETRONAS, the acronym for Petroliam

Nasional Berhad, was registered under the Companies Act, 1965. 1974, October 1 The Petroleum Development Act (PDA) was passed by Parliament and came into force, vesting upon PETRONAS the legitimate rights, powers, liberties and privileges in respect of petroleum resources development in Malaysia. The establishment of PETRONAS was the starting point for greater national control and participation in the petroleum industry.

1975-1979 1975 The LNG Task Force was established by YAB Prime Minister Tun Abdul Razak Hussein, to undertake the implementation of Malaysia's first LNG Project. 1976, February Negotiations were held between PETRONAS, Shell and Mitsubishi to consider the manner in which the LNG project should be initiated.

Formal approval was granted by the Government to PETRONAS to implement the LNG project. 1978, March 31 Signing of a Joint Venture Agreement to set up Malaysia LNG Sdn. Bhd. to own and operate the new three-train LNG project. Parties to this agreement are PETRONAS (65%), Shell Gas B.V. (17.5%) and Mitsubishi Corporation (17.5%). 1978, June 14 Incorporation of Malaysia LNG Sdn Bhd (MLNG). 1979, September 13 Letter of Intent for the LNG Sale and Purchase Agreement with Tokyo Electric and Tokyo Gas was concluded in Tokyo. 1979, September 28 Letter of Intent was signed between MLNG and a Japanese/American consortium - JGC Corporation of Japan and the Pullman Kellogg division of Pullman Incorporation, for the construction of the multi-million dollar LNG complex. 1979, November MLNG signed Letter of Intent for the LNG Sales and Purchase Agreement, with Tokyo Electric and Tokyo Gas.

1980-1984 1980, June 20 MLNG Signs Main Contract Agreement with a consortium comprising JGC Corporation, Kellogg Overseas Construction

Corporation/Pullman Kellogg of the United States, for the construction of the MLNG plant. 1982, August 8 The first LNG train (Module) is successfully pre-commissioned, with the first flow of gas into the Plant. 1982, September 1 MLNG officially moved its head office premises from Kuala Lumpur to Bintulu. 1983, January 8 MLNG Plant commenced production of LNG. 1983, January 27 The First Loading of LNG into the tanker.

1983, January 29 MLNG sent 1st LNG Cargo to Tokyo Electric Power Co. Inc. and Tokyo Gas Co. Ltd. of Japan. 1983, February 4 The Sale and Purchase Agreement between Tokyo Electric Power Co. Inc and Tokyo Gas Co. Ltd, was signed in Tokyo. 1983, February 7 "TENAGA SATU" berthed at Tokyo Gas, Sodegaura Works, with her 1st LNG Cargo from MLNG. 1983, March 27 MLNG signed the LNG Sale and Purchase Agreement with Tokyo Electric Power Co Inc. and Tokyo Gas Co. Ltd. 1985-1989 1985, March 20 MLNG successfully delivered its 100th LNG Cargo to its customers.

1985, September 20 MLNG sent 1st LNG Cargo to Tokyo Electric Power Co Inc. 1985, November 22 Sarawak State Government became the fourth partner of MLNG when it acquired 5% of the company's equity with PETRONAS holding 65% and Shell Gas B.V. and Mitsubishi Corporation owning 15% each (with the signing of the Specific Agreement). 1989, April 6 MLNG successfully delivered 500th LNG cargo to its customers.

1990-1994 1990, August 30 MLNG signed 20-year Sale and Purchase Agreement with Saibu Gas Co. Ltd. 1992, May 26 Signing of a Joint Venture Agreement to set up Malaysia LNG Dua Sdn Bhd to own and operate the new three-train LNG expansion project. Parties to this agreement are PETRONAS (60%), Shell Gas B.V.

(15%),

Mitsubishi

Corporation

(15%)

and

the

Sarawak

State

Government (10%). 1992, June 1 Incorporation of Malaysia LNG Dua Sdn Bhd (MLNG Dua). 1993, April 7 MLNG successfully delivered 1000th LNG Cargo to its customers. 1993, May 24 MLNG sent 1000th LNG Cargo to Tokyo Electric Power Co. Inc. and Tokyo Gas Co. Ltd. This marked the half-way stage of the 20-year contract with both companies. 1993, June 28 MLNG signed Sale and Purchase Agreement (SPA) with Korea Gas Corporation for supply of LNG for 20 years, beginning 1995. 1993, October 20 MLNG sent 1st LNG Cargo to Saibu Gas Co. Ltd. Japan. 1994, July 27 MLNG signed a Sale and Purchase Agreement with Tohoku Electric.

1994, December 5 MLNG signed a Sale and Purchase Agreement with the Japanese Gas Consortium (GCKE) comprising Tokyo Gas (MLNG's established/earliest customer), Osaka Gas, Kansai Electric and Toho Gas.

1995-1999 1995, March 22 MLNG signed a Sale and Purchase Agreement with Chinese Petroleum Corporation (CPC), the first long-term

customer from Taiwan. 1995, May 19 MLNG sent 1st LNG Cargo to Chinese Petroleum Corporation (CPC) Taiwan. 1995, May 30 MLNG sent 1st LNG Cargo to Japanese Gas Consortium/Kansai Electric (GCKE). 1995, June 26 MLNG sent 1st LNG Cargo (FOB) to Korea Gas Corporation.

1995, November 15 MLNG signed a Sale and Purchase Agreement with Gas Bureau, City of Sendai. 1995, November 8 Incorporation of Malaysia LNG Tiga Sdn. Bhd. 1995, December 8 Signing of a Joint Venture Agreement to set up Malaysia LNG Tiga Sdn. Bhd. to own and operate the new two-train LNG expansion project. Parties to this agreement are PETRONAS (60%), Sarawak State Government (10%), Shell Gas B.V. (15%), Nippon Oil LNG B.V. (10%) and Diamond Gas B.V. (5%). 1996, April 23 MLNG signed ex-ship Sale and Purchase Agreement with Shizuoka Gas. 1996, May 29 MLNG sent 1st LNG Cargo to Tohoku Electric Power Co. 1996, May 29 MLNG sent 1st LNG Cargo to Shizuoka Gas Co. Ltd. 1997, May 28 MLNG sent 1st LNG Cargo to Gas Bureau, City of Sendai, Japan.

1998, February 11 MLNG successfully delivered 2000th LNG Cargo to its customers. 1998, November 6 1st night berthing for LNG tanker - "Tenaga Dua".

2000-2004 2001, April 16 MLNG Tiga signed a Sale and Purchase Agreement with Tohoku Electric Power Co., Inc. 2001, June 10 MLNG successfully delivered 3,000th LNG Cargo to its customers. 2002, February 19 MLNG Tiga signed a Sale and Purchase Agreement with the Japanese Gas Consortium (GC) comprising Tokyo Gas (MLNG's

established/earliest customer), Osaka Gas and Toho Gas. 2002, April 9 MLNG Tiga signed a Sale and Purchase Agreement with Japan Petroleum Exploration Co. Ltd. (JAPEX).

2003, January 6 Incorporation of ASEAN LNG Trading Co. Ltd. (ALTCO), a trading company whose principal activity is to conduct a global business buying and selling LNG, chartering LNG ships, transporting and supplying LNG and re-gasified gas. 2003, February 8 PETRONAS increased equity in MLNG to 95% (from 65%) upon the expiry of the Joint Venture Agreement with Shell Gas B.V. and Mitsubishi Corporation. 2003, March 17 MLNG renewed Sales & Purchase

Agreement (SPA) with Tokyo Electric Power Co. Inc. and Tokyo Gas Co. Ltd. for the supply of LNG for 15 years beginning 2003. In 1983, Tokyo Electric Power and Tokyo Gas became the pioneer buyers of LNG from Malaysia when they signed a 20-year contract with MLNG. After this contract expired, a new agreement marked another milestone in the long-term relationship between MLNG and the two buyers, and was a testimony to MLNG's reputation as a stable, reliable and competitive LNG supplier. 2003, March 26 MLNG Tiga sent 1st LNG cargo to Japan Petroleum Exploration Co. Ltd. (JAPEX).

2003, May 8 Official launching / opening of the PETRONAS LNG Complex in Bintulu by Y.A.B. Prime Minister Dato Seri Dr. Mahathir Mohamad. 2003, May 9 MLNG Tiga signed a Sale and Purchase Agreement (SPA) with Korea Gas

Corporation (KOGAS) to supply LNG for seven years. 2003, December 1 Mitsubishi Corporation acquired 5% equity in MLNG from PETRONAS, changing the PETRONAS' stake to 90%, while Sarawak State Government held the remaining 5%. 2004, April 16 MLNG Tiga sent 1st LNG Cargo to Japanese Gas Consortium (GC).

2005-2009 2005, April 5 MLNG Tiga sent 1st LNG Cargo to Tohoku Electric Power Co., Inc.

2005, July 4 MLNG signed a Sale and Purchase Agreement (SPA) with Hiroshima Gas Co., Ltd. (Hiroshima Gas) to supply LNG for eight years. 2005, July 12 MLNG Tiga signed a Sales & Purchase Agreement (SPA) with Korea Gas

Corporation (KOGAS) for supply of LNG for 20 years beginning 2008. The relationship between MLNG and KOGAS started in 1991 with sales of spot cargoes, followed by a long-term contract signed in 1993, expanded into medium-term and short-term supply contracts in 2003 and 2004 respectively. The signing of a long-term contract marked another important milestone, and was testimony to the spirit of mutually-beneficial relationship between the two companies. 2006, March 2 MLNG Tiga signed a Sale and Purchase Agreement with Toho Gas Co., Ltd. Toho Gas, the third largest gas company in Japan, has been importing LNG from MLNG since 1995 under a 20-year supply contract, signed in 1994 through a consortium of Japanese companies of which Toho Gas is a member. The signing of a new SPA marked the first supply deal for Toho Gas as a single buyer.

2006, April 7 MLNG signed a Confirmation of Intent (COI) with Osaka Gas Co. Ltd (Osaka Gas) to supply LNG for 15 years beginning April 2009. The long term relationship with Osaka Gas, the second largest gas company in Japan, started in 1994 when MLNG signed a 20-year supply contract with a consortium of Japanese companies of which Osaka Gas is a member. In 2002, the consortium signed a contract with MLNG Tiga, for the supply of LNG for a period of 20 years from 2004. The new signing marked another important milestone for Osaka Gas, as this was its first supply deal signed independently with MLNG. 2006, April 25 MLNG signed a Sale and Purchase Agreement with Chubu Electric Power Company, Incorporated. The relationship between MLNG and Chubu Electric existed in 1991, 2001, 2002 and 2004, when MLNG sold spot ex-ship LNG cargoes to the Company. The new SPA was its first long-term contract with MLNG. 2006, July 21 MLNG Tiga signed a Sale and Purchase Agreement with Shanghai LNG Company Limited for supply of LNG for 25 years beginning 2008. The signing of the SPA marked a major breakthrough for PETRONAS into

China's energy sector. This was PETRONAS' first LNG deal with China. The deal further enhanced the economic ties between the two countries. 2006, November 9 MLNG successfully delivered 5,000th LNG Cargo to its customers 2007, March 8 MLNG signed a Sale and Purchase Agreement (extension) with Saibu Gas Co. Ltd. for supply of LNG for another 15 years beginning 2013. The new SPA was a testimony to the spirit of long-term mutuallybeneficial relationship between MLNG and Saibu Gas that was forged when the two parties first sealed a 20-year supply contract in 1990. 2007, May 11 MLNG Dua signed a Sale and Purchase Agreement with Shikoku Electric Company Limited for supply of LNG for 15 years beginning 2010. The deal increased MLNG's portfolio of Japanese customers to 15. 2007, November 19 MLNG signed a Sale and Purchase Agreement with Osaka Gas Co., Ltd., for supply of LNG for 15 years beginning 2009. The long term relationship with Osaka Gas, the second largest gas company in Japan,

started in 1994 when MLNG signed a 20-year supply contract with a consortium of Japanese companies of which Osaka Gas is a member. The COI with Osaka Gas was signed in April 2006. 2008, January 29 MLNG celebrates the 25th anniversary of Malaysia's 1st LNG Cargo to Japan. (b) RATIONALE CHOOSING THIS ORGANIZATION

MLNG proven capability in operating a fully integrated LNG operation is among their greatest strengths. The availability of gas resources from our upstream operations has enabled PETRONAS to diversify into downstream gas liquefaction activities in Malaysia and increasingly overseas, in line with our value-adding, business integration and globalisation strategy. By leveraging on their ability to ensure security of supply from our gas reserves, and synergy of connectivity throughout the whole value chain of our LNG business, they are able to meet their customer's needs with a high level of reliability and flexibility. It was over three decades ago when PETRONAS carried out detailed studies on the feasibility of implementing a Liquefied Natural Gas (LNG) project in Sarawak. Through joint ventures with other global players, they have successfully developed their resources and realised their vision to monetise the gas reserves of the Central Luconia Basin offshore to Sarawak. The integration of the three LNG plants formed the world's largest LNG production facility at a

single location - the PETRONAS LNG Complex at Bintulu, Sarawak, in East Malaysia. Since the first LNG shipment in 1983, the LNG Complex has proven to be a reliable supplier of LNG to our overseas customers and has generated significant contributions in terms of foreign exchange earnings for the country. The PETRONAS LNG Complex has not only positioned PETRONAS as a formidable player in the global LNG market, but also stands as a testimony to the capability of Malaysians in participating and successfully undertaking a complex world scale mega project, with perseverance and strong teamwork. The integrated LNG project is a successful collaboration between the government and the private sector, and a partnership between the producing and importing countries. In current parlance, it is a Malaysia Incorporated and smart partnership.

MISSION MLNG is in the business of manufacturing and marketing LNG. As a key player in the LNG business, they seek to be a reliable and preferred supplier of LNG. As a leading producer of LNG, they will operate in a safe and efficient manner, consistent with best practices, government regulations and international standards. As a JV company, they will optimise the use of resources, maximise our revenue and ensure commensurate return on investment to their Shareholders. As a responsible corporate citizen, they will maximise our foreign earnings for the benefit of the country and the well-being of the people. As a caring employer, they will create an environment of mutual respect and trust among our employees.

VISION To be a global LNG player, continually creating value to our stakeholders and preferred by customers. MLNGs vision To be a global LNG player, continuously creating value to its stakeholders and preferred by customers, is supported by our achievement of superior performance through managing our assets safely, reliably, and cost effectively. To support the vision, we shall strive to implement our Reliability and Integrity Management System (RIMS) effectively to achieve Superior Performing Asset of our facilities in accordance with the following principles:

Nurture a risk based reliability and integrity centred culture in the company by having challenging reliability and integrity targets, implementing initiatives towards achievements of these targets, monitoring and owning the performance at all levels.

Adopt standards and procedures from Petronas and other relevant renowned international bodies or organizations, industry applicable best practices into the design, modification, operation and maintenance of our facilities.

Ensure there are sufficiently trained personnel to safety and effectively manage, supervise, operate and maintain our facilities in accordance with statutory regulations, and approved standard guidelines and procedures.

Continually improve our RIMS effectiveness by conducting external benchmarking with other LNG producers, international Situational Assessment and ensuring that measures are taken to close any gaps identified,

Together we can achieve our organisational goals and support Petronas towards Global Championship. OBJECTIVES AND GOALS 1. What are the goals?

STRATEGIES A marketing strategy must be created in order to determine the means by which a set of clear objectives may be met. Objectives communicate what marketers want to achieve, guide marketing actions and are used to measure how well a plan is working. They can be related to market share, sales reaching the target audience and creating awareness in the marketplace. The marketing strategy is the statement of how objectives will be delivered. It explains what marketing actions and resources will be used and how they will work together.

a. Product The important thing to remember when offering items to potential customers is that there is a huge amount of choices available to those potential customers with regard how and where they spend their money. Therefore, MLNG places considerable emphasis on developing what customers want. However, customers requirements change over time. What is attractive today may be discarded tomorrow. Marketing continuously monitors customers preferences. MLNG currently produces three main products for export. These are LNG, LPG and Gasoline. i. LNG Liquefied Natural Gas (LNG) is an odourless, colourless, non-corrosive and non-toxic product of natural gas consisting primarily of methane (CH4) that is in liquid form at near to atmospheric pressure. This is clean fuel. Natural gas is increasing becoming the fuel of choice for

customers around the world due to its clean-burning and lower emission qualities. LNG is a way of delivering natural gas to all corners of the globe, safely and reliably. Currently MLNG supply LNG under long term contracts to customers in Japan, Korea, Taiwan and China.

ii.

LPG Propane and Butane, normally termed as LPG, is gaseous hydrocarbons at normal temperature and pressure but readily turn into liquids under moderate pressure at normal temperature. MLNG export this product to Vietnam, India and Philippines. MLNG also bottle them domestic market.

iii.

Gasoline Stabilized Gasoline from MLNG and MLNG Tiga Fractionation units. MLNG Dua Stabilization Unit as well as MLNG Tiga Condensate Stabilization unit. MLNG sell this product to Bintulu Crude Oil Terminal (BCOT).

IDENTITY With the phenomenon of globalization, companies have their eyes firmly fixed on global expansion. This expansion has caused the businesses to set up quality standards for proper branding and management of their products. Thats why the need to establish a proper and authentic trademark has never been so direly needed. A trademark is a guarantee of consistency and quality. It assures the customers that all the products bearing a specific trademark are of the same quality everywhere in the world. MLNG Shared Values

Loyalty Professionalism Integrity Cohesiveness

Board of Directors

Malaysia LNG Sdn Bhd

Chairman Dato Shamsul Azhar Abbas

Members

M Sabarudin M Amin Datuk Wan Zulkiflee Wan Ariffin Datuk George Ratilal Samsudin B. Miskon Datuk Mohd Zain Abdul Majid Tan Sri Datuk Amar Hj Abdul Aziz B. Hj Husain Sulaiman) Kazuyuki Mori

(alt: Dato Sri Ahmad Tarmizi Hj

(alt: Junichi Iseda)

IMAGES AND REPUTATION

STAKEHOLDERS The Stakeholder Model A stakeholder is defined as any individual or group who has an interest in the success of the business. It is worth noting the reference to 'success' because this would exclude competitors from the model. Competitors may have an interest in seeing the business decline but not necessarily in its success so for that reason we are excluding this group.

The Shareholders List

1. PETRONAS BERHAD

Petronas Bhd was established as Malaysias national oil company in 1974 to develop and manage the countrys oil and gas resources. It is wholly-owned by the Malaysian Government and is vested with the entire ownership and control of the petroleum resources in Malaysia through the Petroleum Development Act 1974. Over the years, Petronas has grown to become a fully integrated oil and gas corporation and is ranked among the FORTUNE Global 500 largest corporations in the world. Petronas has four subsidiaries listed on the Bursa Malaysia and has ventured globally into more than 30 countries worldwide in its aspiration to be a leading oil and gas multinational of choice. The companys gas experience was demonstrated with the successful commissioning of MLNG Satu in 1982 and its global LNG venture in Egypt, Australia and many more.

2. SHELL

Shell is a global group of energy and petrochemical companies, operating in more than 140 countries and territories. Since 1907, the Shell group has grown and developed its business interest around the world. Shell delivers a wide range of energy solutions and petrochemicals. These include transporting and trading oil and gas, marketing natural gas, producing and selling fuels for ships and planes, generating electricity and providing energy efficiency advice. Shell also produces and sells petrochemical building blocks to industrial customers globally and is investing in renewable and lower-carbon energy resources competitive for large-scale use.

3. Sarawak Government

The current Sarawak Government is formed by four Barisan Nasional (National Alliance) component parties namely Parti Pesaka Bumiputera Bersatu, Sarawak United Peoples Party, Sarawak Progressive Democratic Party and Parti Rakyat Sarawak. The government holds equity stake in most oil and gas companies operating in the State.

4. Mitsubishi Corporation

Mitsubishi Corporation (MC) is Japan's largest general trading company (sogo shosha) with over 200 bases of operations in approximately 80 countries worldwide. Together with its over 500 group companies, MC employs a multinational workforce of approximately 60,000 people. MC has long been engaged in business with

customers around the world in virtually every industry, including energy, metals, machinery, chemicals, food and general merchandise.

5. Nippon Oil Corporation

Nippon Oil Corporation is a Japan-based supplier of petroleum products. The Company operates in four business segments. The Oil Refinement and Sales segment is engaged in the refinement and processing of petroleum products, as well as the manufacture and sale of petrochemical products. This segment is also engaged in the storage and transportation of its petroleum products, as well as the purchase and sale of coal and other mining products. The Petroleum and Natural Gas Development is engaged in the exploration and development of petroleum and natural gas. The Construction segment is involved in road construction and civil engineering works, as well as the design and construction of oil-related facilities. The Others segment is involved in the real estate, automobile-related and other businesses.

6. Diamond Gas Operation Co. Ltd. (DGO)

1

Diamond Gas Operation Co. Ltd. (DGO) is a wholly-owned subsidiary

of Mitsubishi Corporation. It was established in 1990 to handle the practical business related to customs clearance and payment settlements relating to MC's LNG suppliers in Alaska, Brunei, Malaysia, Indonesia and other countries in which MC is involvedareas supplying a total of about 20 million tons of LNG a year. In addition to this, DGO collects information about natural gas and other relevant industry information from all over the world and provides it to customersincluding electric power companies, gas companies, government agencies, petroleum companies, shipbuilding companies, plant engineering companies and banksby issuing and delivering a weekly newsletter named "Diamond Gas Report (DGR)." As an additional service to its customers, DGO has also started to provide Natural Gas-related information via its website.

http://www.mitsubishicorp.com/jp/en/bg/energy/investments/dngb2.html

PUBLIC i. Giving Back to the Society MLNG is proud to represent a country rich in tradition, history and natural resources. MLNG position as a leader in Malaysias energy industry is an opportunity for MLNG to support important social development initiatives that will continue to improve the lives of the people of this country. Corporate citizenship forms an integral part of the companys vision. Apart from providing valuable assistance to health, safety, education and sport programmes throughout Malaysia, MLNG will ensure that the people of Bintulu and generally Sarawak will continue to benefit directly from the LNG project which acted as catalyst for the development of basic infrastructures such as roads, water, electricity, housing and schools, as well as telecommunications, customs services and civil aviation facilities. The LNG project also became the catalyst for other gas-related projects to emerge in the area, which added value and further diversified the output from this resource. Bintulu became the site for an ASEAN joint-venture granular urea fertiliser plant, and a high technology middle distillate synthesis plant, converting natural gas into quality petroleum products. With the proliferation of these

activities, Bintulu became a regional growth centre attracting some of the state's leading development projects including a deep-water port and container terminal, a power plant, and other infrastructural support facilities. In addition to the new LNG infrastructure and facilities, the people of the state of Sarawak have gained tremendously through increased employment opportunities. Through job-based skills training, Sarawak today boasts a competent and committed workforce; motivated by the rapid development they witnessed first-hand in their villages and towns. Today, the entire management team at the PETRONAS LNG Complex is Malaysian, signifying the successful transfer of capability and expertise to the nation. In addition, the experience gained by our local workforce has opened up more opportunities for these skilled staff to move to other PETRONAS projects in Malaysia and overseas, and other foreign oil and gas ventures around the world. The PETRONAS LNG Complex is an active member of the community in Bintulu and MLNGs staffs enjoy many opportunities to engage with the residents. Throughout the years, MLNG has built up strong relationship with the community through annual activities like sporting events, festive celebrations, education sponsorships, school-based tutorial and motivational camps, health and safety workshops, and environmental projects. Through these community programmes, we shoulder a continuous

responsibility to progressively, proactively and positively contribute to the society in Bintulu, as well as in areas of our operations around the globe. PETRONAS

hopes to inspire our partners, employees and stakeholders to participate in our mission to enrich the lives of the millions of people we touch.

ii.

Growing With the Local Community

MLNG companies and their joint venture partners have contributed tremendously to nation building. This can be gleaned from the massive transformation of Bintulu town from a sleepy fishing village in the late 70s to a bustling industrial township today. MLNG has also brought significant socioeconomic and infrastructural transformation to the surrounding areas of Bintulu. Sarawakian especially the people of Bintulu have benefitted directly from the LNG projects through various modernization undertakings which have resulted in the provision of infrastructure such as roads, water, electricity, housing and schools, as well as telecommunication, customs and civil aviation facilities. The PETRONAS LNG Complex is an active member of the community in Bintulu, and our staffs enjoy many opportunities to engage with the citizens. Over the years, we have built up a strong relationship with the local community through annual activities like sporting events, festive celebrations, scholarships school-based tutorial and motivational camps, health, safety and environmental programmes.

MARKET In 2005, Malaysia LNG exported 21.85 million ton of LNG. LNG is exported through Bintulu port ex-ship (for all term Japanese sales) and FOB (for some Korean volumes) on various sized ships. Malaysia Dua has agreed a sale ex-ship to Sendai City Gas and Saibu Gas using small ships. These vessels of 18,928 cu.m. can cause some operational problems as they are relatively slow in loading and occupy one of the berths at Bintulu that is also used for larger ships. MLNG Japan buys 65% of Malaysian LNG, and this represented 22% of Japans LNG requirements in 2005. Other importers are Korea (26%) and Taiwan (9%). In addition to the export on a long-term basis, MLNG also sells LNG on the spot market to the Asia region and the Atlantic Basin.2

http://en.wikipedia.org/wiki/Malaysia_LNG

ISSUE

COMMUNICATION i. Investing in Education Under the MLNG Minor Scholarship programme, MLNG is sponsoring the underprivileged children to pursue their secondary school education. We believe that education initiatives such as this one are an investment into the future of company and our country. ii. Focus Areas a. Education MLNG Minor Scholarship Award Scheme - Cybercamp For Schools - Program Bakti Pendidikan PETRONAS - Motivational Camps For Schools (Kem Motivasi) b. HSE HSE Awareness Programme c. Sports - Liga Bolasepak PETRONAS - PETRONAS Golf - Inter-School Sports d. Social - Activities in support of festive occasions such as Majlis Berbuka Puasa, Pre-Gawai, and Program Sentuhan Kasih