Supply base to be built in Bintulu for O&G industry

KUCHING: Sarawak will have its own multi-million ringgit integrated supply base in Bintulu next year to serve the needs of oil and gas (O&G) industry.

Phase one of the supply base project, which is undertaken by Bintulu Supply Base Sdn Bhd (BSB), is expected to cost RM300mil. It will provide a 370m long wharf able to accommodate four offshore supply vessels at any one time.

The supply base is scheduled to be operational in the fourth quarter of 2019.

Bintulu Supply Base signed an agreement to lease land at the Second Inner Harbour, Bintulu Port for the project from Bintulu Port Holdings Bhd (BPHB) yesterday.

The signatories were Bintulu Supply Base chairman Ahmadi Yusoff and BPHB chairman Hadzari Abang. Chief Minister Datuk Patinggi Abang Johari Tun Openg witnessed the ceremony.

Bintulu Supply Base is a smart partnership between Yayasan Sarawak and state-owned private companies OBYU Holdings Sdn Bhd and Kris Sakti Petroleum Sdn Bhd. It is a strategic asset and infrastructure for the growth of the Sarawak O&G industry.

“The integrated supply base will provide a one-stop solution for the O&G industry, from exploration to development to production needs, including provision of facilities and services to support drilling operations.

“The integrated asset and facilities hold the key to ensure a cost effective and efficient solution to the O&G players,” according to Bintulu Supply Base.

The company said the development of the supply base would be carried out in phases, taking into consideration the specific requirement of the O&G industry.

“The phased development approach is based on market demand and the fit for purpose of the O&G players.

“The supply base will operate in compliance with the industry health, safety, security and environment standard,” it added.

Bintulu Supply Base said as the project is strategically located in relation to the offshore fields in the Sarawak Basin in close proximity to fields offshore Sarawak, this would enable cost efficiencies to be attained by the O&G players from cost savings due to the shorter travel time from offshore to onshore.

Ahmadi said the set-up of the supply base was in line with Petroliam Nasional Bhd’s (Petronas) initiatives to achieve cost efficiency and operational effectiveness especially for players in Sarawak.

Johari described the integrated supply base project as a significant development of Sarawak’s O&G inclusion strategy.

“It will provide a strong platform for a most effective and efficient logistical service to the upstream activities undertaken by O&G companies on the continental shell, off the coast of Sarawak where valuable petroleum and natural gas resources are located,” he said.

The chief minister said the Sarawak government had decided to issue mining leases to the newly set-up Petroleum Sarawak Bhd (Petros), thereby vesting the mining rights unto Petros.

He said Petros would work out fair and equitable arrangement with Petronas and other companies relating to the mining of O&G from the areas covered by the mining leases.

“In regulating the upstream O&G production, Petronas must only deal with Petros to produce and extract oil and gas from beneath land within the state’s boundaries.

“Petros, under direction from the state government, will then enter into mining and production sharing agreements with Petronas and other major industry players,” he added.

Johari said the state government would also regulate gas distribution in Sarawak by July 1, this year with the enforcement of the Gas Distribution Ordinance, 2016.

“In regulating the distribution of gas ,the state expects to secure more gas necessary to expand its electricity generation capacity and accelerate industrial growth in Sarawak.

“The government wants to put an end to the present scenario whereby Sarawak has abundant gas for export to countries like Japan and South Korea but not enough gas for its own domestic use or to propel its industrialisation agenda.”

The chief minister said that under the Gas Distribution (Licence) Regulations 2018, the distribution of gas to any customers (intermediate and end-users) from any gas processing plant in Sarawak (both onshore and offshore) by way of pipeline would require a licence.

He said Petros would be granted a licence by the state to distribute gas from Petronas processing separation plant at Tanjung Kidurong, Bintulu.

By July 1, Sarawak would assume full regulatory authority over the upstream and downstream aspects of the O&G industry, he said.

The O&G unit of the Chief Minister’s Office will organise an engagement with Petronas and other industry players by the middle of next month to ensure an orderly implementation of the new policies related to the O&G industry.

Source: https://www.thestar.com.my/business/business-news/2018/04/20/supply-base-to-be-built-in-bintulu-for-og-industry/

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/

Hydrogen as energy source

KUCHING: Sarawak is moving ahead in its green energy agenda with the launch of an integrated hydrogen production plant and refuelling station, touted as the first in South East Asia.

Built by Sarawak Energy Bhd (SEB) in collaboration with Linde EOX Sdn Bhd, the facility includes a plant that produces hydrogen through electrolysis and a refuelling station for the state’s first hydrogen-powered vehicles.

The station will initially service three hydrogen fuel cell buses operated by the Sarawak Economic Development Corporation (SEDC) and two cars in SEB’s corporate fleet.

“In Sarawak, we have a green energy agenda. Besides hydropower, we are now exploring hydrogen as another source of energy,” Chief Minister Datuk Patinggi Abang Johari Tun Openg said when launching the facility at SEB’s western regional office.

He said the state planned to introduce three-in-one fuel stations after this, which would cater for vehicles powered by fossil fuel, electricity and hydrogen.

Abang Johari (in driver’s seat) and Abdul Hamed trying out a hydrogen  cell-powered car.   

The stations will be set up by state-owned Petroleum Sarawak Bhd (Petros) and SEDC.

“We are going to set up initially five stations, starting at the end of this year. That is our next move,” he said.

Meanwhile, SEB chairman Datuk Amar Abdul Hamed Sepawi said the hydrogen plant can produce 130kg of hydrogen daily and is capable of fully refuelling up to five fuel cell buses and 10 fuel cell cars per day.

“We are working together with SEDC who leads the hydrogen-fuelled bus pilot project to improve and green our public transportation system.

“In addition, we have added two Hyundai Nexo hydrogen fuel cell vehicles into our corporate fleet,” he said.

SEDC chairman Tan Sri Abdul Aziz Husain said the buses would be used as a pilot project to demonstrate the capabilities of hydrogen fuel cell technology for public transport in Sarawak.

He said the buses will commence operations as soon as SEDC receives the necessary permits from the relevant authorities.

Source: https://www.thestar.com.my/metro/metro-news/2019/06/04/hydrogen-as-energy-source/

Sarawak govt ‘disappointed’ with decision to postpone hearing

KUCHING: The Sarawak government has expressed its “deep disappointment” with the decision by the Federal Court to postpone a hearing over the state rights on its oil and gas resources to June 21.

In a statement yesterday, the state government said it will consider all other options to protect and enforce its constitutional rights in this matter,

“The state government would not allow Petroliam Nasional Bhd (Petronas) to disrespect and disregard our rights to regulate the upstream activities under our laws such as the Oil Mining Ordinance and the Land Code,” it said.

Over the past year, Sarawak has embarked on several initiatives that would see Petroleum Sarawak Bhd (Petros) come into force from July.

An official letter from Sarawak Attorney General (AG) Datuk Talat Mahmood Abdul Rashid to Petronas president and chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin on April 13 stated that from July 1, the state government would regulate the downstream and upstream O&G industry in accordance to state laws.

On June 4, Petronas filed a suit seeking a declaration from the Federal Court that it is the exclusive owner of petroleum resources in the country, as well as the only regulator of upstream activities nationwide, including in Sarawak.

Meanwhile, the Sabah government is set to intervene in the Petronas suit seeking a declaration that it is the exclusive owner of the country’s petroleum resources.

Chief Minister Datuk Seri Mohd Shafie Apdal said that he had asked the state AG to monitor the suit against the Sarawak government that would have implications on Sabah.

Source: https://www.thestar.com.my/business/business-news/2018/06/12/sarawak-govt-disappointed-with-decision-to-postpone-hearing/

Three-in-one fuel stations in Sarawak to offer fossil fuels, electricity and hydrogen

KUCHING: Sarawak plans to set up three-in-one fuel stations catering for vehicles powered by fossil fuel, electricity and hydrogen fuel cells.

Chief Minister Datuk Patinggi Abang Johari Tun Openg said five stations will be built initially, starting at the end of this year.

“I have directed Petros (Petroleum Sarawak Bhd) and the Sarawak Economic Development Corporation (SEDC) to set up three-in-one refuelling stations throughout the state.

“That is our next move,” he told reporters after launching Sarawak Energy Bhd’s (SEB) integrated hydrogen production plant and refuelling station here on Monday (May 27).

Abang Johari said the hydrogen plant and refuelling station – touted as the first in South-East Asia – were in line with the state government’s green energy agenda.

He said Sarawak, with five hydropower dams, had the potential to produce hydrogen from water as an alternative source of energy.

“The Sarawak government is going in the direction of green energy. We have hydropower, now we are producing hydrogen.

“This is still under research but we believe over time, there will be new technology that will make the process cheaper,” he said.
Abang Johari also said Sarawak could potentially export hydrogen in the future.

“There is already interest shown by one country to invest and set up a plant to produce hydrogen and they buy it back. This country wants to replace nuclear fuel with hydrogen,” he said, adding that he could not reveal the country as the matter was still being negotiated.

Earlier, SEB chairman Datuk Amar Abdul Hamed Sepawi said the hydrogen plant can produce 130kg of hydrogen daily and is capable of fully refuelling up to five fuel cell buses and 10 fuel cell cars per day.

At present, three buses operated by SEDC and two cars in SEB’s corporate fleet will be served by the facility.

“We are working together with SEDC, who leads the hydrogen-fuelled bus pilot project to improve and green our public transportation system.

“In addition, we have added two Hyundai Nexo hydrogen fuel cell vehicles into our corporate fleet,” Abdul Hamed said.

SEDC chairman Tan Sri Abdul Aziz Husain said the buses would be used as a pilot project to demonstrate the capabilities of hydrogen fuel cell technology for public transport in Sarawak.

He said the buses will commence operations as soon as SEDC receives the necessary permits from the relevant authorities

Source: https://www.thestar.com.my/news/nation/2019/05/27/three-in-one-fuel-stations-in-sarawak-to-offer-fossil-fuels-electricity-and-hydrogen/

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/

Sabah granted observer status in Petronas vs Sarawak case

PETALING JAYA: The Sabah government will be participating as an observer in the legal proceeding between Petroliam Nasional Bhd (Petronas) and the Sarawak government, which will be held on June 21.

In a letter dated June 11, the Federal Court granted the Sabah Attorney General’s (AG) application to attend the hearing as a “watching brief”.

A watching brief functions as an observer in a proceeding in which one was not directly or immediately concerned. Sabah AG Dayangku Fazidah Hatun Pg Bagul submitted the application to the Federal Court on June 5 to attend the hearing as a watching brief, stating that any decision from the case would have an impact on the state.

Last week, Petronas challenged the Sarawak government by taking legal action in seeking a declaration that the national oil company is the sole governing authority for upstream oil and gas (O&G) activities in Malaysia for both onshore and offshore.

The case by Petronas, which was filed on June 4, said the national oil company was seeking the declaration that the Petroleum Development Act 1974 (PDA) supersedes the Sarawak Oil Mining Ordinance 1958 (OMO) , the law the state has used as its basis for setting up its own O&G company Petros (Petroleum Sarawak Bhd) as the sole authority for O&G activities in Sarawak.

On Monday, Sabah Chief Minister Datuk Seri Mohd Shafie Apdal said he had asked the state AG to monitor the legal case by Petronas against the Sarawak government as it would have an implication on the state.

Petronas filed another document on June 8 to seek a court order to preserve the status quo until the legal case was resolved.

The court hearing to seek leave was postponed to June 21 from June 12.

Following that, the Sarawak government issued a statement to express its “deep disappointment” with the decision by the Federal Court to postpone a hearing over the state’s rights on its O&G resources.

The state government said it would consider all other options to protect and enforce its constitutional rights.

“The state government would not allow Petronas to disrespect and disregard our rights to regulate the upstream activities under our laws such as the OMO and the Land Code,” it said.

Source: https://www.thestar.com.my/business/business-news/2018/06/13/sabah-granted-observer-status-in-petronas-vs-sarawak-case/

Abang Johari: Oil and gas companies must get relevant permits by July 1

KUCHING: Companies involved in the oil and gas industries in Sarawak must obtain the necessary licences and leases required under the Oil Mining Ordinance 1958 and Gas Distribution Ordinance 2016 starting July 1.

 

Chief Minister Datuk Patinggi Abang Johari Tun Openg said the licenses, including permits, leases and other approvals will cover all persons and companies involved in the oil and gas industries in Sarawak including their contractors, sub-contractors and vendors.

 

He added that licenses will be issued by the Sarawak government under the Oil Mining Ordinance (OMO) and Gas Distribution Ordinance (GDO), in accordance with legislative powers conferred on the state under the Federal Constitution.

 

The state government will carry out engagement with all oil and gas industry players beginning next month on laws and regulations compliance including the Land Code and Natural Resources and Environment Ordinance. The session will also touch on penalties and consequences of non-compliances.

 

“This is normal practice. When you do business in other countries, you have to adhere to their regulations as well. We are asserting our rights within the Federal Constitution to regularise oil and gas operations in the state,” he told reporters after a MoU signing ceremony between Bintulu Port Authority and Bintulu Supply Base Sdn Bhd here Thursday.

 

Abang Johari said the regulating of both upstream and downstream of the oil and gas production, as well as gas distribution in Sarawak is crucial to the state’s planning to expand its economy and enhance level of participation by locals in the oil and gas industry.

 

He added that the forthcoming amendments to OMO 1958, to be tabled in the next Sarawak Legislative Assembly sitting, will require all oil and gas industry players in Sarawak, including Petronas, to comply with the ordinance.

 

“Section 2, Section 6 and Section 8 of the Petroleum Development Act (PDA) 1974 undoubtedly confirm that all industry players must comply with OMO and other state laws including the Land Code of Sarawak in regards to land use and occupation in the state.

 

“Under Section 8 of the PDA, only the Petroleum Mining Act 1966 (except Section 14 thereof) is not applicable to Petronas. Section 14 of the Act, which no longer applies to Sarawak, requires Petronas to seek permission to use and occupy land needed for its activities,” Abang Johari said.

 

He added that Petronas, not being exempted by the PDA from compliance with the Sarawak Land Code, must have licenses or leases to use and occupy land including the continental shelf for the production of oil and gas in accordance to the land code.

 

Touching on the GDO, the chief minister said all persons and companies undertaking the distribution of gas, including the setting up of gas processing, separation or regasification plants and pipelines will be required to obtain a license.

 

The Gas Distribution (License) Regulations 2018 would set out the procedures for applying for license and fees payable by licensees, Abang Johari said.

 

Petroleum Sarawak Bhd (Petros), under direction of the state government, will enter into Mining and Production Sharing Agreements with Petronas and other major industry players. Petros would also be granted license by the state to distribute Gas from Petronas processing separation plant at Tanjung Kidurong in Bintulu.

 

Source: https://www.thestar.com.my/news/nation/2018/04/19/abang-johari-oil-and-gas-companies-must-get-relevant-permits-by-july-1/

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/

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/

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