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/

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/

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/

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/

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/

Orang Ulu want greater say in petroleum company

MIRI: The Orang Ulu want to be given a major role in projects undertaken by the newly-formed Sarawak oil company, Petroleum Sarawak Bhd (Petros).

They are seeking contracts in upstream exploration operations and downstream spin-off sectors.

These were among the views expressed during the closed-door biennial conference of the Federation of Orang Ulu Association of Sarawak, Malaysia (Forum) held here yesterday.

Forum president Antonio Kahti Galis, who chaired the conference, said all the resolutions adopted by the delegates would be forwarded to the state government.

“We in Forum will liaise closely with the Chief Minister to link the Orang Ulu in urban and rural Sarawak with the state government on issues concerning our people.

“Forum wants to be the platform for that,” he said.

Orang Ulu from the Kiput minority ethnic group seen here in Kampung Kuala Tutoh in Ulu Baram. – filepic

The Orang Ulu, made up of Kayan, Kenyah, Kelabit, Lun Bawang, Kiput, Saban, Lahanan and others, also want to be represented at the management level of Petros so that they will have a direct say in polices and decison-making.

A delegate pointed out that at present, the management of Petros did not have any significant representation from the Orang Ulu.

“Orang Ulu have people with capabilities in the petroleum upstream and downstream sectors but until today, we only get small sub-contracts.

“This situation must be looked into so that Orang Ulu can play a significant role in our own petroleum sector.

“This would hasten the socioeconomic development of Orang Ulu people who are way behind other races,” he said.

Forum secretary-general Dick Bala said they will compile a report on the matters raised to be forwarded to Chief Minister Datuk Patinggi Abang Johari Tun Openg.

“The Chief Minister will be briefed on the matters raised by delegates including Petros.

“Other current issues affecting the Orang Ulu in terms of land and rural development will also be included in the report,” he said.

Forum was set up 10 years ago to function as the umbrella body for the Orang Ulu in the state and country.

Source: https://www.thestar.com.my/metro/metro-news/2018/04/04/orang-ulu-want-greater-say-in-petroleum-company-delegates-at-closeddoor-meeting-say-involvement-shou/

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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