Sarawak still guarded in giving details of oil and gas talks

SARAWAK Chief Minister Abang Johari Openg today provided some insight into the highly secretive negotiations between state oil company Petroleum Sarawak Bhd (Petros) and Petronas over the latter’s new role in the state’s oil and gas industry.

He also touched upon the terms of the new resource-sharing agreement, following the state’s decision to fully enforce its Oil Mining Ordinance (OMO).

Source: https://www.themalaysianinsight.com/s/102569

CM relays S’wak’s oil royalty stand to students overseas

KUCHING: Chief Minister Datuk Patinggi Abang Johari Tun Openg has reiterated that Sarawak is constitutionally entitled to licensing rights over its oil and gas resources.

Even the authorities in Putrajaya had acknowledged the state’s rights on the matter, he told Sarawakians residing and studying in Britain during a gathering organised by the Sarawak Foundation in London.

“We have the licensing rights and Petronas’ is the development part,” he said in reference to the Federal Constitution’s provisions.

As such, Abang Johari said the state government through its oil and gas company Petros is collaborating with Petronas to ensure that Sarawak would stand to benefit from its oil and gas resources.

He added that although the state’s licensing rights had not been enforced in the last 40 years, Sarawak would not compromise on what lawfully belonged to the state.

The Chief Minister was in London with a delegation for a two-week study trip to Britain, the United States and Canada before a final stop in Dubai, United Arab Emirates, to meet potential investors.

Abang Johari visited the University of London and Oxford University to explore possibilities of collaboration that would pave the way for Sarawakian students to be given places in various fields of study.

In the US, he will visit Stanford University to look at its research activities and facilities and assess the prospect of similar collaborations with the university and others in Silicon Valley.

Abang Johari said Sarawak would continue to send students overseas to pursue studies in new disciplines which are not available locally, such as cybersecurity, programming and data science.

“Sarawakians need to acquire new knowledge in order to be acquainted with the new ecosystem and development trends around the world,” he added.

Source: https://www.thestar.com.my/metro/metro-news/2018/09/28/cm-relays-swaks-oil-royalty-stand-to-students-overseas/

Group wants Sarawak to end oil, gas talks with Petronas

THE Sarawak government must end the ongoing talks between state oil company Petroleum Sarawak Bhd and Petronas over a new oil and gas sharing deal.

State rights group Sarawak Association for Peoples’ Aspiration (Sapa), said the state government must stand up to its rights over oil and gas in the state.

Source: https://www.themalaysianinsight.com/s/99118

Job Vacancies

Date Position Location Level / Specialization
21 Sep Legal Counsel Sarawak Senior Executive / Law/Legal Services
21 Sep Senior Petroleum Engineer Sarawak Senior Executive / Oil/Gas Engineering
21 Sep Management Assistant Sarawak Fresh/Entry Level / Secretarial
20 Sep Economist Sarawak Junior Executive / Others
20 Sep Head, HSSE Sarawak Manager / Environmental Engineering

 

Hydrogen buses to debut on Kuching roads by March 2019

Abang Johari (middle) looks on as Soedirman (second right) and Jiang (second left) exchange documents. Also in photo are Abdul Aziz (first right) and Lu. Photo by Chimon Upon

 

KUCHING: Hydrogen fuel cell buses are expected to make their much-awaited debut on the roads of Kuching city by March next year.

Chief Minister Datuk Patinggi Abang Johari Tun Openg disclosed that three units of buses will be used as pilot vehicles for the state.

“We will try three buses first, as part of our pilot project and research (to improve and provide better public transportation system),” he told reporters today after he witnessed the the signing of memorandum of understanding (MoU) between Sarawak Economic Development Corporation (SEDC) and Foshan Feishi Automobile Manufacture Co Ltd China for the supply and delivery of these hydrogen fuel cell buses.

When asked on the cost of each bus, he said this is being negotiated but he assured that it will not be that expensive.

Earlier in his speech, Abang Johari said the state government is considering free rides for both locals and tourists to use these hydrogen-powered buses when they arrive for the trial run.

He also mentioned that the cost of such public transportation will be cheap, considering the fact that hydrogen is extracted from water, which is abundant in Sarawak. This is unlike other type of buses where costing is tied up to the global price of fossil fuel.

He added that the hydrogen production plant and fuelling station built by Sarawak Energy Berhad (SEB) is now under construction and expected to be ready when the hydrogen fuel cell buses are delivered here.

“In Sarawak, sometimes the public can be quite skeptical. When we talk about hydrogen, they think about hydrogen bomb. I have to educate people first. That is why the pilot project is important.

“We can see the success of other countries such as Germany and China in implementing this. But we want to convince Sarawakians first,” he said.

He conceded that he had to slowdown or postpone the light rail transit (LRT) implemetation in Sarawak to enable more funds to be allocated to improve facilities and infrastructure in the rural areas.

Despite this, he was confident that Sarawak can still improve its public transportation particularly in the Kuching city by using hydrogen as source of energy for the buses.

He also hoped the federal government will also play its part by upgrading the vehicle registration at Road Transport Department (JPJ) to include vehicles fuelled by hydrogen through water-based system.

Abang Johari also spoke about the possibility of Sarawak exporting hydrogen energy through Petros, as extra income for the state. He noted that scientific research is being done to make it possible to transport hydrogen almost in the same manner as LNG cylinders.

Signing the MoU today for SEDC was its general manager Soedirman Aini and witnessed by chairman Tan Sri Datuk Amar Abdul Aziz Husain, while Foshan Feichi Automobile was represented by its general manager Jiang Yong and witnessed by project director Lu Yong.

Source: http://www.cm.sarawak.gov.my/modules/web/pages.php?mod=news&sub=news_view&nid=2230

CEO: Petronas in ‘active discussion’ with Petros

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) is currently in “active discussion” with the Sarawak state-owned oil and gas (O&G) company Petroleum Sarawak Bhd (Petros), according to Petronas group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin.

“We are currently discussing with Petros on the working arrangement over the O&G reserves in the state that is acceptable to both,” he told reporters after Petronas’ mid-year 2018 review.

In May, the national oil company filed an application to seek a declaration from the Federal Court on matters pertaining to the Petroleum Development Act 1974 (PDA) and its position with regard to the regulatory controls of upstream activities in Sarawak.

However, the case was dismissed by the Federal Court to commence proceedings to determine Petronas as the sole authority of all upstream O&G activities in the country, including Sarawak.

Wan Zulkiflee pointed out that Sarawak was the only oil-producing state that Petronas is currently in discussions with, and that the group is not involved in any discussions related to state oil royalties.

“We leave that discussion to the federal government and the states. We are guided by the federal government, which is our shareholder,” he said.

He added that the grace period guided by the Sarawak state government on the working arrangement was until end of next year.

Wan Zulkiflee stressed that it is very important to ensure the long-term sustainability and implications of any changes in the local O&G industry. “At the end of the day, we need to ensure the competitiveness of the industry and continue to attract investments,” he said.

The situation between Petronas and Sarawak came in the wake of Sarawak setting up its own O&G company, Petros, as the regulator of O&G activities in the state based on the Sarawak Oil Mining Ordinance.

Source: https://www.thestar.com.my/business/business-news/2018/08/31/ceo-petronas-in-active-discussion-with-petros/

Petronas and Petros in discussion over S’wak’s O&G resources

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) is currently in discussion with the Sarawak state-owned oil and gas company Petroleum Sarawak Bhd (Petros), according to the former group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin.

“We are currently discussing with Petros on the working arrangement that is mutually acceptable for both,” he told reporters after Petronas’ mid-year 2018 review.

In May, the national oil company filed an application to seek a declaration from the Federal Court on matters pertaining to the Petroleum Development Act 1974 (PDA) and its position with regard to the regulatory controls of upstream activities in Sarawak. 

However, the case was dismissed by the Federal Court to commence proceedings to determine Petronas as the sole authority of all upstream oil and gas activities in the country, including Sarawak.

Wan Zulkiflee pointed out that Sarawak is the only oil-producing state that Petronas is currently in discussion and that the group is not involved in any discussion in regards to oil royalties.

“We leave that discussion between the federal government and the states. We are guided by the Federal government, which is our shareholder,” he said.

He added that the grace period given by Sarawak is until end of next year.

Wan Zulkiflee stressed that it is very important to ensure the long-term sustainability of the local oil and gas industry.

The situation between Petronas and Sarawak came n the wake after Sarawak setting up its own oil and gas company, Petros, as the regulator of oil and gas activities in the state based on Sarawak Oil Mining Ordinance (OMO). 

Source: https://www.thestar.com.my/business/business-news/2018/08/30/petronas-and-petros-in-discussion-over-swak-og/

SUPP’s proposal to make every Sarawakian a Petros shareholder a ‘bad idea’

SARAWAK PKR vice-president See Chee How said Sarawak United People’s Party’s (SUPP) proposal to make all Sarawakians shareholders in state oil company Petroleum Sarawak Berhad (Petros) is “a bad idea”.

See, the Batu Lintang assemblyman, dismissed the proposal passed at the party’s annual delegates conference in Kuching yesterday as “just a populist idea to appeal to the urban folk”.

Source: https://www.themalaysianinsight.com/s/87307

‘Politics need not dominate oil royalty talks’

KUCHING: Chief Minister Datuk Patinggi Abang Johari Tun Openg says the issue of oil royalty needs to be discussed professionally between Petronas, representing the federal government, and Petros, which represents the Sarawak government.

He said politics must not be too dominant in the discussion, which was now ongoing between the two parties.

According to him, the discussion started following the Federal Court decision in June to dismiss Petronas’s proceeding to obtain court declaration to have exclusive ownership on oil and gas resources in the state.

Abang Johari delivering his speech.

“We leave it to professionals, let it be done professionally…politics must not be too dominant in the discussion. To me, let it (oil royalty) be discussed based on our right and how we benefit from oil and gas industry for the sake of the country and how Sarawak, which has the rights, can participate in the oil and gas industry…let it be discussed professionally,” Abang Johari said yesterday at the ‘Chief Minister with the media: The way forward’ event at Grand Margherita hotel here.

He pointed out that he would not want to make comments on the oil royalty as it could jeopardise the ongoing discussion.

“I do not want to be trapped into this argument (oil royalty) because there is now discussion between Petros and Petronas…I do not want to jeopardise their discussion, and Petros is exerting our right…let them work together,” he stressed, adding that the Sarawak government has the right to have regulatory control over its oil and gas.

Abang Johari also informed that whatever decision reached at the discussion would be referred to the federal government by Petronas, and to the state government by Petros.

Having said that, the chief minister stressed that the 20 per cent oil royalty should be based on production and not profits.

Abang Johari (seated fifth left) with Uggah (fourth left), Masing (third right), Morshidi (third left), Abdullah (second left) and Sharifah Hasidah (second right) in a photo call with the media practitioners after the function.

He further pointed out that there had been no communication between the federal and state governments about the oil royalty.

Thus, he said the ‘5 plus 20’ formula as mentioned by state Pakatan Harapan (PH) chairman Ching Chieng Jen was not from the federal government.

Chong, outside the Parliament on Monday, told reporters that while the five per cent royalty would be retained, the state would receive an additional 20 per cent in oil profits.

The chief minister also pointed out that when the state government rejected the offer in a memorandum sent by PH Sarawak to his office before the 14th general election, PH was not the government, adding that that memorandum was just from the party.

Abang Johari also stressed that the state would continue to fight for its rights based on rule of law as stipulated in the Malaysia Agreement 1963 (MA63), Federal Constitution and Oil Mining Ordinance (OMO) 1958.

“If that is our rights, that is our rights…nothing more, nothing less,” he asserted.

Meanwhile, the chief minister said there was a good working relationship between the federal and state government as demonstrated by the visit by Prime Minister Tun Dr Mahathir Mohamad and several federal ministers to Sarawak.

He said the state government would support any policies made by the federal government, if they are good for the state and the people.

Abang Johari (left) taking question from Abdullah Saidol on stage. Abdullah is also the moderator for the event.

Source: http://www.cm.sarawak.gov.my/modules/web/pages.php?mod=news&sub=news_view&nid=2189

Abang Johari: Sarawak govt to assert right to regulate oil and gas industry

KUCHING: Sarawak will continue to assert its right to regulate the oil and gas industry in the state while pursuing royalties based on production, says Datuk Patinggi Abang Johari Tun Openg.

The Chief Minister said Petronas was now in discussions with the state-owned oil and gas company Petroleum Sarawak Bhd (Petros), pursuant to the passing of the Oil Mining Ordinance (Amendment) Bill in the Sarawak Legislative Assembly earlier this month.

The updated ordinance requires oil and gas industry players, including Petronas, to obtain licences and permits from the state government for their upstream activities.

They have been given a grace period until the end of next year to comply.

Abang Johari said he did not want to be dragged into the argument about whether the 20% royalty promised by Pakatan Harapan in its manifesto was based on production or profits in view of the ongoing discussion between Petronas and Petros.

“I do not want to jeopardise the discussion. Let them work together.

“Whatever decision they make, they will refer to the Federal Government as well as the state government.

“We leave it to the professionals. Politics must not be too dominant in this discussion,” he said during a high tea with the media here on Tuesday (July 31).

On Sarawak Pakatan’s announcement on Monday (July 30) that the state will be given 20% oil profits on top of the existing 5% royalty, Abang Johari said this came only from the state Pakatan parties and not the Federal Government.

“If it’s from the Federal Government, there will be communication with the state government. But as it is, there is no communication whatsoever,” he said.

He also reiterated that royalty must derive from production, not profit, and that the state would not give in on this matter.

“How can you say royalty is based on profits? Royalty means ownership.

“The oil and gas are found on our land, therefore how can we give in? That is our right.

“If (Pakatan) promised 20% in their manifesto and now they want to change their promise, that has nothing to do with us. That is up to them.

“But we must stick to the rights that we have over oil and gas, particularly our regulatory control,” he said.

Source: https://www.thestar.com.my/news/nation/2018/07/31/abang-johari-sarawak-govt-to-assert-right-to-regulate-oil-and-gas-industry/

Latest Articles