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/

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/

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/

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/

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/

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/

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/

Petros gets 40 applications from Sarawakians for CEO

KUCHING: Some 40 applicants – all Sarawakians – are eyeing the post of chief executive officer (CEO) at newly-formed Petroleum Sarawak Bhd (Petros).

Petros chairman Tan Sri Hamid Bugo said the applicants included those who are currently working for Petroliam Nasional Bhd, Shell as well as local and foreign oil and gas (O&G) companies. Some of the applicants are working abroad.

“We are now in the process of categorising the applicants. We may go for psychometric tests for them.

“It will take a while for us to pick the CEO. We have to choose the best among them,” he added when asked by reporters yesterday at the Sarawak Energy Bhd (SEB) headquarters, where chief minister Datuk Patinggi Abang Johari Tun Openg announced that SEB was spearheading research in hydrogen and fuel cells for commercial applications.

Hamid said Petros had advertised the CEO post in the newspapers, as this was the fairest way to enable anyone who is interested to apply.

Petros is also recruiting other key management executives to enable it to be operation-ready by the first quarter of 2018.

Hamid was non-committal on whether the operational deadline set by the Government could be met, but is confident that it should start operations in first half-2018.

The primary objective of setting up Petros is to enable Sarawak to participate in upstream O&G development, particularly in the exploration and extraction of O&G within Sarawak waters. The development of marginal oil fields could be among Petros’ undertakings.

Earlier, the chief minister said the Sarawak government had allocated RM5mil initially for SEB to conduct the hydrogen and fuel cell research, which formed an integral part of the Government’s new emphasis to develop the state.

Johari said Sarawak aspired to transform the public transportation sector with clean and green technologies, adding that hydrogen and fuel cell technology is known to be clean since water is the only by-product in the process of producing electricity.

Source: https://www.thestar.com.my/business/business-news/2017/11/08/petros-gets-40-applications-from-sarawakians-for-ceo/

Special session needed to discuss oil and gas rights

KUCHING: An “urgent” session of the Sarawak Legislative Assembly should be called immediately to discuss the state’s rights over oil and gas, including issuing licences for upstream and downstream activities.

Batu Lintang assemblyman See Chee How made this call in view of Chief Minister Datuk Patinggi Abang Johari Tun Openg’s recent announcement that Sarawak would assume full regulatory authority over oil and gas activities by July.

He said a special sitting of the state assembly will provide a platform for differing legal and political opinions, propositions and solutions to be deliberated, considered and adopted in order that Sarawak may speak with one voice on the matter.

In particular, See said the special sitting was needed to make clear the state assembly’s collective stance on the prospecting, mining and development of Sarawak’s petroleum resources with regard to the Petroleum Development Act, Territorial Sea Act and the tripartite agreement signed between the Federal Government, state government and Petronas.

“According to the Chief Minister, both Acts are Federal laws which were not endorsed by the Sarawak Legislative Assembly and therefore could not be implemented in Sarawak or supersede state laws,” See, who is state PKR vice-chairman, said.

However, he noted that Petronas, in welcoming the setting up of the state-owned Petroleum Sarawak Bhd (Petros), supported the state’s aspirations to participate in the oil and gas industry “in line with the current framework of the Petroleum Development Act”.

He added that Sarawak PKR was in favour of demanding the return of the state’s rights and authority over its oil and gas resources.

“We are wary that the state will compromise on our ownership of petroleum resources in return for mere regulatory control and authority,” See said.

As such, he said it was “prudent and right” for the state government to present its proposition in the state assembly for deliberation and endorsement.

Source: https://www.thestar.com.my/metro/metro-news/2018/03/29/special-session-needed-to-discuss-oil-and-gas-rights/

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