RMP P1

What do commodity traders do?

• Prospect to discover further hydrocarbons

• Transport, store, or transform commodities into other products

• Operate rigs and refineries

• Interact with players across the value chain to buy and sell commodities

How do traders generate value by selling commodities from their production supply?

• By leveraging system optionalities to capture perfect market

• By taking paper positions in excess of the physical exposure

• By actively sourcing through FOB point of sale

• By selling its entire volume back-to-back at a fixed price

How do traders make money by redirecting cargo to different locations?

• By prospecting to discover further hydrocarbons

• By actively marketing through FOB point of sale

• By taking paper positions in excess of the physical exposure

• By seeing arbitrage opportunities

How do traders increase their margin through time and lot arbitrage?

• By selling remaining volumes in smaller units at higher prices

• By prospecting to discover further hydrocarbons

• By leveraging system optionalities to capture market imperfections

• By actively marketing through FOB point of sale

What is the trading philosophy established by PETRONAS?

• To ensure trading activities are executed

  outside of the defined boundaries

• To provide guidance on principle to transport, store, or transform commodities into other products

• To operate rigs and refineries optimally in achieving maximum profit

• To generate value through trading activities by capturing intrinsic and extrinsic values

What is the purpose of the PETRONAS Trading Mandate?

• To execute PETRONAS trading orders to buy or sell commodities

• To increase PETRONAS value of single supply contracts through trading

• To set the stance on the purpose of trading within PETRONAS

• To operate and trade PETRONAS rigs and refineries

How do traders capture intrinsic value within their trading operations?

• By exploiting arbitrage using derivatives

• By taking paper positions in excess of the physical exposure

• By dynamically monetizing pricing differences between

  delivery months

• By optimising cost and revenue spread within own operations

What is the primary focus of Asset Backed Traders in commodity trading?

• Capturing both intrinsic and extrinsic values within their trading operations

• Transporting, storing, or transforming commodities into other products

• Executing trade orders to buy or sell commodities to maximize profit

• Operating rigs and refineries optimally to generate more revenue

Why is proprietary trading is not allowed in PETRONAS ?

• It is not considered as speculative enough

• Underlying assets is required only to execute dynamic forward trading

• All derivative instruments shall be backed by underlying assets.

• Open physical position is only allowed for liquid commodities.

How do traders capture extrinsic value within their trading operations?

• Monetizing pricing differences between delivery months, locations, sizes, and freight

• Optimising cost and revenue spread within own operations

• Taking paper positions in excess of the physical exposure

• Actively marketing through back-to-back buy and sell