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/

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/

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/

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/

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/

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/

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/

One month bonus for Sarawak civil servants

KUCHING: Civil servants in Sarawak will receive a “special incentive payment” of one month’s salary or a minimum of RM2,000 from the state government next month.

Chief Minister Datuk Patinggi Abang Johari Tun Openg (pix) said this was in recognition and appreciation of civil servants who had contributed to Sarawak’s development and growth.

“This special incentive payment is also in view of the commendable financial performance and healthy financial position of the state, which is attributed to the committed service, prudent spending and discipline financial management of the civil service,” he said in his winding-up speech at the state assembly on Friday (Nov 17).

Abang Johari said the payment would involve an estimated sum of RM45mil for 22,549 people in the state civil service, including local authorities and statutory bodies.

“I trust that this special incentive payment will further motivate our civil service to continue with their excellent service delivery,” he added.

On another matter, Abang Johari said Sarawak would exert its mining rights by requiring Petronas to obtain the necessary licences and leases before it can operate in the state’s territory.

He said while the Petroleum Development Act 1974 (PDA) gave Petronas the right to explore and mine petroleum in Sarawak, the right to issue mining leases remained in the state list of the Federal Constitution.

“We are saying that even if the PDA has vested the rights to exploration and export of petroleum in Petronas by the Federal Government, it does not mean that Petronas has the right to simply enter into Sarawak territory, be it land or sea,” he said.

However, Abang Johari said this did not mean Sarawak was not friendly to the petroleum business in the state.

“We welcome the development of the petroleum industry in Sarawak. We have even set up Petroleum Sarawak Berhad or Petros to develop the petroleum industry in Sarawak.

“We have no intention of disrupting the normal business of the petroleum industry in Sarawak when we exert our mining rights under the Federal Constitution,” he said.

He added that the high-level special task force to be set up by the state government would look at ways and means to exert Sarawak’s rights over its natural resources as enshrined in the Federal Constitution and Malaysia Agreement.

“Having a line of communication with the Federal Government on our rights is only one of the ways. Doing whatever we can in Sarawak to exert our rights is another way.

“We shall have to put our heads together. In the words of my late predecessor Tan Sri Adenan Satem, all that we are doing here is to reclaim our rights as enshrined in the Malaysia Agreement 1963 and which have been encroached by the Federal authorities,” he said.

Source: https://www.thestar.com.my/news/nation/2017/11/17/one-month-bonus-sarawak-civil-servants/

Petronas gets tested by Sarawak’s Petros

As higher oil prices lifted the profit of Petronas Nasional Bhd by more than 100% at the end of its second quarter, it does appear that the vagaries of the oil and gas sector have found some stability.

Oil prices have found stability of late after a period of volatility that saw a number of oil and gas companies endure pain none had seen for years prior to the crash in oil prices in 2014.

With profits on the mend, thanks in part to better cost management, Petronas declared a higher dividend of RM16bil to the Government after its second quarter financial results were announced last month.

With more money to dish out, it then appears the time has come for not only the service providers to ask for greater clarity in the jobs they can expect ahead, but also for states where oil is being produced from.

Sarawak, which has long asked for a greater share of oil revenues from production activities in the state, has decided to set up its own oil and gas company called Petroleum Sarawak (Petros).

Indications are that the state is looking for Petros, which was in the works for some time and before Petronas’ profits had bounced, to be an equal partner with Petronas for oil activities in the state, which will dramatically change the dynamics of the oil industry in the state and also the country.

But the move by Petros is not the first by a state in demanding a greater share of oil revenues from Petronas.

Terengganu, which has a big oil and gas industry, used to receive nearly RM6bil a year in royalties from Petronas but that was ended in the year 2000.

Reports are that the state and Petronas are back discussing the return of royalties to the state.

Apart from states asking for a greater share of oil revenue, the Government too has in the past made moves to expand to role of companies engaged in the oil and gas business in the country.

Jawala Corp, Crest Petroleum and Ranhill Bhd once formed a consortium to get involved in the country’s oil and gas space through the drilling in marginal oilfields.

The creation of the consortium came after the tabling of Budget 2004 where an approval was given to a private consortium to drill for oil in marginal fields.

The stance taken by Petronas then with regard to the consortium entering the oil and gas space was the same taken by the company when it deals with requests from states for more money.

It was reported that Petronas president and group chief executive officer Datuk Wan Zulkiflee Wan Ariffin recently said that he welcomes any involvement by state government entities in the oil and gas (O&G) business, but it has to be within the Petroleum Development Act (PDA).

“We have a strong relationship with the Sarawak government, as such, we welcome its participation in the O&G industry.

“But we also have regulations in place, of which under the PDA, Petronas is the custodian and manager of the O&G resources in Malaysia,” he told reporters at a briefing on Petronas’ mid-year results recently.

Wan Zulkiflee adds in the report that the partnership with Petros could be similar to other Petronas partnerships, either as service providers or as a partner under the production sharing contract (PSC).

“Discussions are ongoing with the Sarawak state government,” he said when asked about the potential partnership between Petronas and Petros.

Chief Minister Datuk Amar Abang Johari Tun Openg officially announced last month the formation of Petros, with a target for the company to be operational in the first quarter of next year.

“The formation of Petros is an unprecedented step taken by the state government to enable Sarawak to actively participate in the extraction of oil and gas in Sarawak while still pursuing its request for a 20% royalty from Petronas,” he says.

The pressure Sarawak can put on Petronas has been evident in the past. As employees in Sarawak need work permits, even for those from Peninsular Malaysia, the state had in the past wielded that right as it pursued that in the past.

In August last year, Petronas issued a press release citing its concerns over a moratorium imposed by the Sarawak state government on all new applications for work permits for Petronas’ employees from outside Sarawak to work in the state.

“Petronas believes the decision, announced over the weekend, may have been made based on the misperception that Petronas’ recent group-wide business restructuring had unfairly impacted its employees from Sarawak.

“Sarawak remains a key investment state for Petronas, where its workforce requirement will continue to grow. Petronas expects the majority of the workforce required to meet the new manpower demand will constitute Sarawakians, as per existing recruitment practices. A number of positions is expected to be filled by experienced employees, which may include non-Sarawakians,” it said then in a statement.

Related story:

Search for Petros CEO intensifies

Source: https://www.thestar.com.my/business/business-news/2017/09/09/petronas-gets-tested-by-sarawaks-petros/

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