‘Unity the key to success’

KUCHING: Sarawak’s Malay community must preserve unity among themselves and with other communities so that the state can continue to develop.

Making this call, Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan said unity was the key to the community’s success over the years.

“But we cannot take this for granted. We need to identify our weaknesses and correct them for our unity to remain strong,” he said when opening a Malay cultural seminar here yesterday.

Awang Tengah said unity and development were the goals of the state government’s leadership under Chief Minister Datuk Patinggi Abang Johari Tun Openg.

“We want Sarawak to be a developed, high-income state by 2030.

“Various initiatives have been introduced to take back our oil and gas rights, such as amending the Oil Mining Ordinance and setting up Petroleum Sarawak Bhd (Petros),” he said.

Awang Tengah also reminded the Malay community not to ignore the rights of others communities in protecting their own rights and interests.

For instance, he said the setting up of the Unit For Other Religions (Unifor) should not be misunderstood.

“Unifor was set up to preserve the harmony in Sarawak’s multicultural society, where people from different faiths, cultures and backgrounds live together in unity.

“No single race can rule on its own without working together with the others. This is the reality.

“As Malays, we should be united and continue to respect and work together with the other communities in the state,” he said.

The three-day seminar was organised by the Sarawak Malay Cultural Foundation with the theme “Managing Culture in the Digital Era”.

The topics discussed included politics, education, rural development and leadership.

Source: https://www.thestar.com.my/metro/metro-news/2018/10/31/unity-the-key-to-success/

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/

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/

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/

Development plans put Sarawak on right track

KUCHING: Sarawak has achieved positive economic growth despite global economic uncertainty, Yang di-Pertua Negeri Tun Abdul Taib Mahmud said.

He said the state’s economy grew by 4.7% last year compared to 2.3% in 2016, while the Gross Domestic Product (GDP) per capita increased from RM44,000 in 2016 to RM46,000.

Exports also grew from RM77bil in 2016 to RM96bil last year. The poverty rate meanwhile dropped from 0.9% in 2014 to 0.6% last year and unemployment remained at less than 4%.

“Sarawak’s growth is supported by strong economic fundamentals, good administration and financial management by the state government,” Taib said when opening the Sarawak Legislative Assembly session here yesterday.

He said the state government’s development plans, such as the Socio-Economic Transformation Plan, Sarawak Corridor of Renewable Energy (SCORE) and Digital Economy Plan, would continue to boost growth and attract investment.

“These are people-centric plans that will improve socio-economic standards and create jobs, especially for the talented and highly-skilled younger generation,” he said.

In particular, he said the Digital Economy Plan could increase productivity in sectors like agriculture, manufacturing and services by promoting the use of digital technology and applications.

“The digital economy has the potential to create new opportunities for our younger generation.

“I believe our young people have the creative and innovative skills necessary for the digital era,” he said.

On another matter, Taib expressed confidence that the state government would be able to manage Sarawak’s oil and gas resources for the benefit of the people.

He said efforts towards developing and managing these resources sustainably had been put in place, including the enforcement of the Oil Mining Ordinance 1958 and Gas Distribution Ordinance 2016 and the formation of Petroleum Sarawak Bhd (Petros).

“This is in line with Sarawak’s aspiration to become an oil and gas hub in the region and to collaborate with Petronas for the interest of Malaysia and the state,” he said.

As such, he said Sarawak’s rights to its territorial waters must be preserved so that the oil and gas resources found there could be developed to benefit the state.

Source: https://www.thestar.com.my/metro/metro-news/2018/07/10/development-plans-put-sarawak-on-right-track-state-economy-grew-by-47-last-year-poverty-rate-dropped/

Affin Hwang upgrades Petra Energy to buy as risk-reward looks favourable

KUALA LUMPUR: Affin Hwang Capital Research says the risk-reward is looking favourable for Petra Energy and upgraded its rating to buy with a higher 12-month target price of 59 sen.

Accoding to the research house, Petronas has been issuing more contract awards and work orders while Petra Energy has also seen higher work orders for hook-up, construction and commissioning (HuCC) contract to the value of RM150mil.

Meanwhile, the maintanence, construction and modifgication contract with Petronas is also picking up momentum in terms of mor work programmes amounting to RM50mil by our estimates. 

“PENB has recently completed the production enhancement programme and is in the midst of
doing some commissioning work. Based on a back-of-envelope calculation, this will increase targeted production to approximately 5,500–5,800 barrels per day (from 4,500 barrels). 

“We are also positive that the KBM risk service contract (RSC), which is due to expire by mid-2020, stands a good chance of being extended, on the current high oil price and good production track record.”

Affin Hwang also believes that Petra Energy stands a good chance of wiinning a rebid for the HuCC contract for another five years, with a total outstanding orderbook current at RM1.6bil.

With regrds to operating in Sarawak, the research house said it understands that service providers like Petra Energy are still waiting for Petros to award licences although it should not have a problem in getting the licence.

Source: https://www.thestar.com.my/business/business-news/2018/07/05/affin-hwang-upgrades-petra-energy-to-buy-as-risk-reward-looks-favourable/

Petronas loses bid to challenge Sarawak govt

PUTRAJAYA: The Federal Court has denied leave to Petronas to commence a legal challenge against the Sarawak government over the national oil company’s right to regulate the state’s oil and gas upstream activities.

Chief Judge of Malaya Justice Ahmad Maarop ruled that the declaratory relief sought by Petronas did not come under Article 4 (4) and Article 4 (3) of the Federal Constitution.

Bernama quoted Justice Ahmad as saying that the declaratory relief sought by Petronas was not within the exclusive jurisdiction of the Federal Court but came under the jurisdiction of the High Court.

He dismissed yesterday the Petronas application for leave to commence proceedings against the Sarawak government and ordered the national oil company to pay RM50,000 in costs to the state government.

Meanwhile, Petronas withdrew its application for a stay order in respect to the Sarawak government’s commencement to regulate upstream activities in the state under the Sarawak Oil Mining Ordinance 1958 (OMO) beginning July 1.

Petronas would be required to comply with the OMO and must have the requisite licences or leases by July 1, failing which the upstream activities carried out by Petronas would be illegal and appropriate action would be taken.

The stay application was heard before a Federal Court three-man bench comprising Justice Ahmad and Federal Court judges Justices Azahar Mohamed and Zaharah Ibrahim, after Justice Ahmad dismissed Petronas’ leave application.

The bench struck out the stay ap­­pli­cation following the withdrawal.

Petronas had filed an application on June 6 for leave to commence proceedings under Article 4 (4) of the Federal Constitution to seek a declaration that the Petroleum Development Act (PDA) applied in respect of the regulation of upstream activities in Sarawak.

It sought the court’s declaration that the PDA was duly enacted by Parliament, and it states that Petronas is the exclusive regulatory authority for the upstream industry throughout Malaysia, including in Sarawak.

The company had sought a declaration that the OMO was impliedly repealed by the PDA.

Petronas was represented by lawyer Datuk Malik Imtiaz Sarwar while Sarawak state legal counsel Datuk Seri J.C. Fong appeared for the state government.

In a statement later, Petronas said its leave application was declined based solely on technical ground.

“The Federal Court did not in any way determine or endorse the merits of the legal position taken by the Government of Sarawak to regulate upstream petroleum activity under its Oil Mining Ordinance 1958.”

It said the court also noted the concession by the Government of Sarawak that the PDA was validly enacted.

“This reinforces Petronas’ view that only Parliament can legislate on matters relating to upstream petroleum industry including regulatory powers throughout Malaysia, both onshore and offshore by virtue of the PDA.”

It said the court decision did not in any way impair Petronas’ ability to further pursue its legal actions, with the intent to seek clarity on its rights and position under the PDA.

In Kuching, the Chief Minister’s Office welcomed the Federal Court outcome, saying that the decision paved the way for the state government to enforce its state laws from July 1.

It said in a statement that Petroleum Sarawak Bhd (Petros) would be delegated with the powers to implement OMO.

Sarawak had announced in March that it would assume full regulatory authority over oil and gas activities in the state by July 1.

This would require all those involved in the oil and gas industry in Sarawak to obtain the necessary licences and permits.

Source: https://www.thestar.com.my/news/nation/2018/06/23/petronas-loses-bid-to-challenge-sarawak-govt/

Federal Court turns down Petronas bid to challenge Sarawak

PUTRAJAYA: The Federal Court has dismissed Petroliam Nasional Bhd’s (Petronas) application to commence proceedings to determine that the national oil company is the sole authority of all upstream oil and gas activities in the country, including Sarawak.

Chief Judge of Malaya Tan Sri Ahmad Maarop had on Friday morning rejected Petronas’ application of leave to commence proceeding on the matter in the Federal Court. 

Petronas had last month 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. 

This came in the wake of 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). 

Petronas is seeking a declaration that the OMO was repealed by the PDA and hence Petros is not valid.

Petronas is seeking a declaration that the PDA was duly enacted by Parliament and stated that Petronas is the exclusive regulatory authority for the upstream industry throughout Malaysia, including in Sarawak.
 

Source: https://www.thestar.com.my/business/business-news/2018/06/22/federal-court-turns-down-petronas-bid-to-challenge-sarawak/

Sarawak welcomes dismissal of Petronas’ case over state oil rights

KUCHING: The Sarawak government has welcomed the Federal Court’s decision to dismiss Petronas’ application for leave to commence proceedings to determine that the national oil company is the sole regulatory authority of all upstream oil and gas activities in the country, including Sarawak.

The Chief Minister’s Office said the decision paved the way for the Sarawak government to enforce its state laws from July 1 as announced earlier this year.

“Our Chief Minister (Datuk Patinggi Abang Johari Tun Openg) would like to thank our state legal team and all Sarawakians for their solid support and prayers for Sarawak to exercise its constitutional rights related to oil and gas activities in Sarawak,” the office said in a statement on Friday (June 22).

It added that Petroleum Sarawak Bhd (Petros) would be given the appropriate powers to implement the state’s Oil Mining Ordinance (OMO) 1958.

Earlier on Friday, Chief Judge of Malaya Tan Sri Ahmad Maarop rejected Petronas’ application of leave to commence proceedings against the state government in Federal Court.

He held that the declarations sought by Petronas did not come within the jurisdiction of the Federal Court and should have been brought before the High Court instead.

Petronas had sought declarations that the Petroleum Development Act 1974 (PDA) applied to the regulatory control of upstream activities in Sarawak and that it repealed the OMO by implication.

This came in the wake of Sarawak setting up Petros, its own oil and gas company, as the regulator of oil and gas activities in the state based on the OMO.

Abang Johari had announced in March that Sarawak would assume full regulatory authority over oil and gas activities in the state by July 1.

This would require all persons and companies involved in the oil and gas industry in Sarawak to obtain the necessary licences and permits required by the state’s laws.

Source: https://www.thestar.com.my/news/nation/2018/06/22/sarawak-welcomes-dismissal-of-petronas-case/

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