Awang Tengah (centre) witnesses the exchange of the signed Sales and Purchase Agreement between Hashim (third right) and Azrul (third left). Looking on from left are Len Talif, Naroden, Abdullah and Mohamad Nor. – Photo by Chimon Upon
KUCHING (Nov 2): The Sarawak government aims to be actively involved in upstream and downstream activities in the oil and gas industry, said Deputy Premier Datuk Amar Awang Tengah Ali Hasan.
He said this is to encourage wider participation of local companies in this industry.
“We have entered into a Commercial Settlement Agreement between Petronas and the Sarawak government, which amongst others, provides Sarawak with a greater share of revenues from oil and gas found and produced in the state.
“It also provides for a more active involvement by the state in the oil and gas industry through the management of onshore oil and gas resources by Petroleum Sarawak Berhad (Petros) in the upstream ventures in offshore areas,” he said at the Sales and Purchase Agreement signing ceremony for Bintulu Liquefied Petroleum Gas Terminal Sarawak between Petronas Dagangan Berhad and Pusaka Integrated Resources Sdn Bhd, a subsidiary company of Pusaka Capital Sdn Bhd, here yesterday.
In addition to the state government’s efforts to increase Sarawak’s participation in the oil and gas sector, he pointed out that it is equally important that the private sector be actively involved to ensure a vibrant and dynamic oil and gas industry.
“Therefore, the signing of the Sales and Purchase Agreement today is a good step towards proliferation of the oil and gas sector in Sarawak.
“The state government and Petronas have agreed that contract works in the oil and gas sector within Sarawak waters should be given to Sarawak companies as agreed earlier with the baseline of not less than RM2.1 billion per year.
“This is to be increased gradually depending on the volume of work and the capability of our local private sector,” he said.
He said Petronas has agreed to increase the annual contract value within Sarawak waters while at the same time, increase contract threshold for both upstream and downstream activities.
“For the upstream sector, the threshold value will be increased from RM10 million to RM50 million by 2030 while for the downstream sector, the threshold value will be increased from the current RM5 million to RM20 million by 2030,” he said.
He added that Petronas has also agreed to increase its Standardised Work and Equipment Categories (SWEC) code priority for Sarawakian contractors from the baseline of 63 categories to 600 categories by 2030.
On the agreement, Awang Tengah, who is also Second Natural Resources and Urban Development Minister, said the Sarawak Timber Industry Development Corporation (STIDC) through Pusaka Capital has collaborated with Petronas Dagangan in the distribution of bitumen since 2018.
“Today’s signing ceremony will certainly enhance the cooperation between Pusaka Capital and Petronas Dagangan in the oil and gas industry for the benefit of both parties and the rakyat as a whole,” he said.
During the ceremony, STIDC general manager Datu Hashim Bojet signed on behalf of Pusaka Capital while Petronas Dagangan was represented by its vice president and managing director cum chief executive officer Azrul Osman Rani.
Also present were Deputy Minister of Natural Resources and Urban Development Datu Len Talif Salleh, Pusaka Capital chairman Datuk Naroden Majais, Pusaka Capital chief operating officer Mohamad Nor Topek Julaihi and Land and Survey Department director Datu Abdullah Julaihi.
from Borneo Post Online https://bit.ly/3WnEKFN
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