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Sarawak O&G players set to gain under Petros

PETALING JAYA: Sarawak oil and gas players are set to benefit as the state transitions into the new administration of its oil resources under Petroleum Sarawak Bhd (Petros), with plans to increase local participation in the industry.

UOB Kay Hian Research singled out Serba Dinamik Holdings Bhd as among the major beneficiaries, aside from other Sarawak-listed companies like Dayang Enterprise Holdings Bhd , Petra Energy Bhd , KKB Engineering Bhd (via OceanMight) and Brooke Dockyard.

The research house recently attended the Sarawak oil & gas seminar and exhibition, said the issues covered during the conference included Petros’ plans, and matters relating to vendor development and reserves data.

By end-2019, it said, Petros would take firm action to implement the state’s mandate, particularly in relation to revenue sharing and local participation.

“We believe this is necessary to kick start delayed greenfield projects,” it said in a note.

The research house, which maintained its “market weight” stance on the sector, said Petros CEO Sauu Kakok clarified during the seminar that their key targets included driving more share of revenue from Sarawak O&G resources and boosting participation of Sarawakians.

Petros, it said, was actively working towards meeting the “hard target timeline” of Dec 31 for measures including setting up governance policies.

“This implies that the one-year grace period for Petronas, Putrajaya (and its key advisors), and Sarawak state will conclude.

“We understand further delays are unlikely as all stakeholders are working hard to reach firm agreements,” the research house said.

Petros, which was set up in August 2017, is in charge of regulating upstream production, governed under the oil mining ordinance 1958. It is also regulating the gas distribution governed under the distribution of gas ordinance.A technical session during the seminar revealed that the Sarawak basin has 23% of Malaysia’s oil and 51% of natural gas.

For the overall sector, UOB Kay Hian said many O&G stocks remained “too locally dependent”. It noted that Petroliam Nasional Bhd (Petronas) would focus on overseas upstream capex, while domestic upstream capex is set to improve from RM12bil in 2018 to RM15bil in 2019.

“We understand local activity levels have generally increased, especially for maintenance/brownfield works, with maintenance, construction and modification contractors like Dayang Enterprise and Petra Energy guiding high activity levels in 2019 although rates remain low,” it said.

The research house said it favoured internationally competitive companies, like engineering, procurement, construction and commissioning and storage operator Dialog Group Bhd and Yinson Holdings Bhd .

Source: https://www.thestar.com.my/business/business-news/2019/04/18/sarawak-og-players-set-to–gain-under-petros/

CM: Bold new moves a must

MIRI: Sarawak must take bold moves if it wants to achieve its development agenda, even if they are radically new in nature.

The state government’s decision to set up its own petroleum company – Petros – is among the bold moves that had to be taken, said Chief Minister Datuk Amar Abang Johari Openg.

Speaking at an oil and gas seminar in Miri organised by the Sarawak Bumiputra Chamber of Commerce, he said Petros was formed two years ago to manage the oil and gas resources of Sarawak.

“Sarawak has the right to administer our oil and gas resources.

“Petros was set up to utilise oil and gas resources to propel the social and economic growth of Sarawak.

“Petros is working closely with Petronas and Shell in this area.

“Petronas and Shell are the experienced players with the technology and knowledge in the oil and gas sectors.

“Even though the global demand for fossil fuel has declined due to the surge in green energy concept, fossil fuel still has its uses,” he said.

Johari said Sarawak still has plenty of oil and gas reserves.

There is thus a need to manage these natural resources well so that they are sustainable in the long run, he added.

Johari said the state government has set ambitious goals in the energy sector.

“We also want to develop green energy through hydro resources and from biomass.

“To achieve these ambitious goals, we are going big in the information technology sector, energy generation, transportation and services.

“These new initiatives require us to be bold in our investment strategies,” he said.

He urged locals to be equipped with the required technology in the energy sectors to benefit from the global demands.

Some 20 oil and gas companies took part in the two-day event held in a hotel in Miri.

Source: https://www.thestar.com.my/metro/metro-news/2019/04/17/cm-bold-new-moves-a-must/

Serba Dinamik secures RM330mil Petronas job

KUCHING: Serba Dinamik Holdings Bhd has been awarded a contract to provide maintenance, construction and modification services to Petroliam Nasional Bhd’s (Petronas) onshore facilities in Bintulu and Miri, Sarawak.

The contract involves Package D (Bintulu-Sarawak Gas) and Package E (Miri-Sarawak Oil) onshore facilities in Miri Crude Oil Terminal and Asam Paya onshore facility as well as Bintulu integrated facilities.

Source: https://www.thestar.com.my/business/business-news/2019/03/22/serba-dinamik-secures-rm330mil-petronas-job/

Petros is nothing like scandal-plagued 1MDB, says Abang Jo

KUCHING: Chief Minister Datuk Patinggi Abang Johari Tun Openg has refuted allegations by a website that the state-owned Petroleum Sarawak Bhd (Petros) is like the scandal-plagued 1Malaysia Development Bhd (1MDB).

“There’s been a malicious article written on Petros. We have a transparent organisation.

Source: https://www.thestar.com.my/news/nation/2019/03/05/petros-is-nothing-like-scandalplagued-1mdb-says-abang-jo/

Sarawak’s Brooke Dockyard wants more Petronas jobs

KUCHING: The Sarawak state government wants Petroliam Nasional Bhd (Petronas) to award more offshore fabrication contracts to Brooke Dockyard and Engineering Works Corp as it has tripled its fabrication capacity.

The 107-year-old state-owned corporation has raised its fabrication capacity by 16,500 tonnes to 25,000 tonnes per year with the new Demak Yard in the Demak Industrial Estate near here.

Source: https://www.thestar.com.my/business/business-news/2019/03/05/brooke-dockyard-wants-more-petronas-jobs/

Petroleum Sarawak is not 1MDB, says Chief Minister

KUCHING: The state-owned Petroleum Sarawak Bhd (Petros) is nothing like 1Malaysia Development Bhd (1MDB) as alleged by a website, says Chief Minister Datuk Patinggi Abang Johari Tun Openg.

“There’s been a malicious (article) written on Petros. We have a transparent organisation. That website and has malicious intentions,” he said when opening the Brooke Dockyard and Engineering Works Corporation’s new Demak Yard here on Monday (March 4).

Source: https://www.thestar.com.my/news/nation/2019/03/04/petroleum-sarawak-is-not-1mdb-says-chief-minister/

‘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/