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/

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/

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/

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 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/

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/

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/

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/

Bright chance of regaining seat

MIRI: Sarawak Barisan Nasional component parties must go all out to recapture the Miri parliamentary seat in the coming 14th general election.

Chief Minister Datuk Patinggi Abang Johari Tun Openg noted the seat was once a Barisan stronghold but was lost to the opposition for the first time in 2013.

He said with all four component parties – Parti Pesaka Bumiputera Bersatu (PBB), Parti Rakyat Sarawak (PRS), Progressive Democratic Party (PDP) and Sarawak United People’s Party (SUPP) – now fully recovered after being embroiled in internal conflicts, the chances of winning back the Miri parliamentary seat seemed bright.

“We must win the Miri parliamentary seat so that we can develop together for the future generation,” he said at the Chinese New Year dinner organised by SUPP Miri and Sibuti parliamentary liaison committee.

Abang Johari, who is also the state Barisan chairman, said the Miri community must think rationally during GE14 as it would determine the future of Miri as well as the development of Miri division.

“All four leaders in Sarawak Barisan component parties are Sarawakians, we will protect the state’s rights based on the constitution,” he added.

Meanwhile, Miri SUPP and Sibuti Parliamentary liaison committee chairman Datuk Lee Kim Shim said the party had formed an election committee and its election machinery was ready to move once campaigning starts.

“Together with our component parties PBB, PRS and PDP, we will make sure that we wrest the Miri parliamentary seat,” he said.

On another issue, Lee who is state Assistant Tourism, Arts and Culture Minister hoped that the state government would study the possibility of turning the Miri river from Pullman Hotel to Kampung Wireless into a waterfront that could attract tourists similar to the Kuching Waterfront.

He also appealed to the chief minister to consider making Miri City the headquarters of Sarawak-owned oil and gas company, Petroleum Sarawak Bhd (Petros).

“Miri has been the centre of the oil and gas industry for hundreds of years.

“It is hoped that Petros will play an active role in developing the oil and gas industry in Sarawak, particularly in Miri, thereby creating more jobs and opportunities for the locals,” he added. — Bernama

Source: https://www.thestar.com.my/metro/metro-news/2018/02/20/bright-chance-of-regaining-seat-abang-johari-component-parties-more-united-after-being-embroiled-in/

Tussle for O&G resources

Petronas and Sarawak at loggerheads over control of petroleum rights

PETALING JAYA: In a move seen as a challenge to Sarawak’s claim over petroleum ownership, Petroliam Nasional Bhd (Petronas) has gone to court to declare that, under the Petroleum Development Act 1974 (PDA), it is the exclusive owner of oil and gas resources in Malaysia.

The national oil corporation on Monday announced that it had filed an application before the Federal Court seeking for a declaration on the PDA being the law applicable for the petroleum industry in the country.

Meanwhile, in a related development, the Sarawak state Government said it will defend its rights in court. (see story in Page 2)

The application by Petronas stated that the national oil company was the exclusive owner of the petroleum resources as well as the regulator for the upstream industry throughout Malaysia, including in Sarawak.

“Petronas believes that the determination by the Federal Court would help provide clarity on its rights and position under the PDA,” the group said in a statement.

“Petronas remains committed to support Sarawak’s aspiration to participate in the oil and gas (O&G) industry in the state, for as long as it is within the framework of the PDA,” it added.

The move by Petronas came just a month before the Sarawak government is expected to assume full regulatory authority over the upstream and downstream operations and activities of the O&G industry in the state by July this year.

Sarawak established its own O&G company, Petroleum Sarawak Bhd (Petros), last year. At the launch of the company in March this year, Sarawak Chief Minister Datuk Patinggi Abang Johari Tun Openg said Petros would spearhead the state’s participation in the strategic O&G industry to boost state development, adding that Petros would be granted the rights to mine O&G in the state.

Abang Johari recently also said all companies or persons involved in the O&G industry must henceforth have the necessary licences, leases and approvals required either under the Sarawak Oil Mining Ordinance 1958 or Sarawak Gas Distribution Ordinance 2016.

Sarawak, as well as Sabah, had long been seeking for their O&G royalties be increased to 20%.

Both states currently receive royalties of around 5% from Petronas for O&G revenues.

However, Abang Johari recently lamented that the state government’s request to Petronas for an increase in oil royalty to 20% had proved to be difficult to secure.

“That is why the state government started petroleum company Petros to develop our oil resources using our own means,” Abang Johari said.

“By having our own petroleum company, we will chart our own development agenda,” he added.

Prior to winning the 14th general election last month, Pakatan Harapan had pledged to give O&G-producing states a “reasonable sum” for royalties if it took over the federal government. Under this election manifesto, O&G royalties to Sabah and Sarawak would be raised to 20%.

Meanwhile, in September last year, Petronas president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said while he welcomed any involvement by state government entities in the O&G business, all activities must comply with the 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 said.

Wan Zulkiflee noted 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.

When asked about the potential partnership between Petronas and Petros, Wan Zulkiflee said: “Discussions are ongoing with the Sarawak government.”

Source: https://www.thestar.com.my/business/business-news/2018/06/05/tussle-for-og-resources/

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