State PKR vice chairman See Chee How urges Sarawak government to administer Petros as a sovereign wealth fund answerable to the Sarawak Legislative Assembly, to avoid the problems besetting 1MDB.
PETALING JAYA: Sarawak PKR has welcomed the establishment of Petros to drive the state’s direct participation in the extraction and development of petroleum and gas resources in Sarawak.
State PKR vice chairman See Chee How, who gave Petros the thumbs-up, urged the state-owned entity to assume control over the awarding of production sharing contracts in the remaining areas with oil and gas potentials, onshore and offshore, within Sarawak’s borders.
“The petroleum resources are depleting and we have already been deprived of this wealth for the past five decades.
“We must manage and develop whatever petroleum resources zealously to ensure that the wealth generated from now on is not only beneficial to us but sustainable for future generations of Sarawakians,” he said in a statement today.
He also advised the state government to administer Petros as a sovereign wealth fund answerable to the Sarawak Legislative Assembly.
Chief Minister Abang Johari Openg announced the incorporation of Petros in Kuching at a dinner on Sunday night to the applause of the guests who included state ministers.
According to a report by Borneo Post, he said the board members of the company had been appointed and were drawn from Sarawakian professionals with experience in the oil and gas industry, and none of them were politicians.
However, he did not name the board members or the CEO.
“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 said in the report.
See said Petros would enable the Sarawakian administration to become a strong partner to Petronas to jointly undertake all exploration and development of upstream and downstream petroleum-related projects in Sarawak.
“With the incorporation of Petros, it is imperative that all individually or separately arranged collaboration, joint ventures and any form of undertakings for upstream and downstream petroleum development projects with Petronas must go through Petros.
“Petros should give Sarawakian private and public corporations the edge in bargaining power, the financial backing and institutional support to maximise returns from all the petroleum-related development projects in Sarawak, for all Sarawakians,” he said.
See pointed to the recently announced methanol and methanol derivatives project as an example.
He said the Petronas-related project in Sarawak involved China Huanqiu Contracting and Engineering Co Ltd and peninsular Malaysia-based MACfeam Sdn Bhd, a subsidiary of Pegasus Diversified Bhd.
“The eventual shareholdings of the various parties in the project has not been revealed, but any such arrangement will not be able to maximise returns for Sarawak.
“I am hopeful the chief minister will devise a comprehensive masterplan to safeguard our sovereign rights to the valuable resources,” he added.