‘Acts should be declared null and void’

SIBU: The state government has been urged to pass a motion to review the Petroleum Development Act 1974 as well as the Territorial Sea Act 2012 and obtain a court order to declare them null and void.

Bukit Assek assemblyman Irene Chang in a press statement said this in response to Chief Minister Datuk Patinggi Abang Johari Tun Openg’s comments that the state will assume full regulatory authority over its oil and gas upstream and downstream industry by July.

“Though there are valid considerations that both Acts have contravened the Federal Constitution, it is not correct to say that they are not applicable in Sarawak,” she said.

Chang added the chief minister has to bring the matter before the courts.

“And until the Courts declare them null and void, the Acts are in force and applicable in Sarawak.

“To say otherwise is to give people false hope and the state government owes it to the people to set the matter straight,” she added.

Chang said it was time for the state Barisan Nasional to prove their sincerity in claiming back what rightfully belongs to Sarawak.

On the setting up of Petroleum Sarawak Bhd (Petros) and Development Bank of Sarawak, she said though they sound impressive and would create employment, whatever oil and gas that may be exploited in its waters will still return to Petronas.

“And we are entitled to only 5% of the royalties paid by Petronas.

“So the only way forward is for the state government to go to court to seek declarations that the two laws are null and void.

“Then the ownership over oil and gas resources would revert to the state.

“The state government might even have the legal right to demand that all revenue earned from the resources from 1974 until now be returned,” said Chang.

Source: https://www.thestar.com.my/metro/metro-news/2018/03/13/acts-should-be-declared-null-and-void/

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/

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/

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/

Federal Court turns down Petronas bid to challenge Sarawak

PUTRAJAYA: The Federal Court has dismissed Petroliam Nasional Bhd’s (Petronas) application to commence proceedings to determine that the national oil company is the sole authority of all upstream oil and gas activities in the country, including Sarawak.

Chief Judge of Malaya Tan Sri Ahmad Maarop had on Friday morning rejected Petronas’ application of leave to commence proceeding on the matter in the Federal Court. 

Petronas had last month 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. 

This came in the wake of 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). 

Petronas is seeking a declaration that the OMO was repealed by the PDA and hence Petros is not valid.

Petronas is seeking a declaration that the PDA was duly enacted by Parliament and stated that Petronas is the exclusive regulatory authority for the upstream industry throughout Malaysia, including in Sarawak.
 

Source: https://www.thestar.com.my/business/business-news/2018/06/22/federal-court-turns-down-petronas-bid-to-challenge-sarawak/

Abang Johari welcomes another ‘Chinese tsunami’

KUCHING: A “Chinese tsunami” supporting the ruling Barisan Nasional government in Sarawak in GE14 will strengthen the state’s pursuit to reclaim its rights and will demand Putrajaya’s attention.

Chief Minister Datuk Patinggi Abang Johari Tun Openg (pic) said there are big plans to spur development and economic growth in the state, and strong support from all Sarawakians – especially the Chinese community – is needed.

Sarawak Barisan won 25 out of the 31 parliamentary seats in the state in GE13, but Abang Johari is targeting at least 28 constituencies in GE14.

This would involve wresting Chinese-majority seats it lost such as Stampin, Bandar Kuching, Sarikei, Sibu and Lanang and Miri.

“We must have stronger representation in Parliament to fight for Sarawak rights,” Abang Johari said at the Sejiwa Senada programme at Batu Kawah here on Saturday.

The programme in Kuching is the fifth leg of the event after Miri, Saratok, Meradong and Sibuti. Next week, the Sejiwa Senada programme will be held in Lubok Antu. 

Sejiwa Senada is a free programme will give the public the opportunity to get services, information, and advice from government agencies, government-linked companies, NGOs and the private sector.

 
Abang Johari’s administration has lined up an agenda to transform the state economy. The state has embarked on building high-speed Internet facilities across the state as well as the Pan Borneo Highway project.

“Our new development approach is to embrace technology in all sectors, including agriculture.

He said modern farming methods would strengthen the rural economy, and create a diversity of agricultural products aimed at the global market,” he said.

Abang Johari also said that with the setting-up of Petroleum Sarawak Bhd (Petros), oil and gas royalties would be safeguarded working alongside Petronas.

He said that the additional revenue could support development of other projects such as a RM11bil LRT system across Kuching-Samaahan-Serian divisions, as well as a water grid project throughout the state.

“I promise to source more funds for Sarawak and we will assert our rights under MA63 (Malaysia Agreement 1963).

“We have to look into the future if we want to become a developed state by 2030,” Abang Johari said.

Abang Johari also mentioned plans to set up Sarawak’s very own television station in the future.

Source: https://www.thestar.com.my/news/nation/2018/05/05/abang-johari-welcomes-another-chinese-tsunami/

CM wants Chinese to rally behind state government

KUCHING: Datuk Patinggi Abang Johari Tun Openg says he needs strong support from the people to implement the plans he has for Sarawak.

A united front from all Sarawakians will send a strong signal to Putrajaya that the state is serious in reclaiming its rights, said the Chief Minister.

Abang Johari added he needed the people, in particular the Chinese community, to rally behind the state government to ensure the ruling coalition could put up a strong representation in Parliament.

“Sarawak people must unite and work together. This is the time to show that the Chinese in Sarawak are united and part of the ruling government,” he said at the Sejiwa Senada programme at Batu Kawah here.

Abang Johari added that his administration had lined up numerous initiatives to transform the state economy. The ongoing Pan Borneo Highway would have a multiplier effect to spur economic growth across Sarawak.

“Our new development approach is to embrace technology in all sectors including agriculture. Modern farming, research and technology in production including efficient logistics will help us penetrate the global market.”

Abang Johari (left) greeting Barisan Nasional candidate for Bandar Kuching Kho Teck Wan (right) while Stampin candidate Dr Sim Kui Hian looks on.

He said the setting up of Petroleum Sarawak Bhd (Petros) will ensure the state has strong participation in the oil and gas sector, working alongside Petronas.

The recent acquisition of 25% equity in LNG3 will give the state an extra income of about RM2bil next year, Abang Johari added.

Stronger participation and investment in the oil and gas sector will help the state support the RM11bil LRT project in the Kuching-Samarahan-Serian divisions, as well as the water grid project throughout Sarawak.

“I promise to source more funds for Sarawak and we will assert our rights under MA63 (Malaysia Agreement 1963).

“Petros will ensure Sarawak fully exploits its oil and gas resources,” Abang Johari said.

Abang Johari presenting a mock cheque for RM10,000 to Jimmy Chiang from the Kuching Spinal Injuries Association

The Chief Minister added Sarawak plans to have its very own television station in the near future.

At the event, Abang Johari presented a RM500,000 grant to SJKC Sam Hap Hin, an agreement letter for the relocation of SJKC Chung Hua Bako to Samarahan, as well as land ownership deed for expansion of SJK Chung Hua Mile 4 at Jalan Penrissen.

The Chief Minister also presented native customary rights communal reserve land titles to Kampung Giit in Padawan, Kampung Semadang, Siburan, and Kampung Gita Baru in Sungai Maong.

Petronas, under its corporate social responsibility initiative, presented a total of RM120,000 to 10 non-governmental organisations in Kuching.

Source: https://www.thestar.com.my/metro/metro-news/2018/05/07/seeking-communitys-support-cm-wants-chinese-to-rally-behind-state-government/

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/

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/

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