Abang Johari speaking during the Sarawak Day celebration at the Sarawak Legislative Assembly building on Thursday. – Photo courtesy of Sarawak Public Communications Unit (Ukas)
KUCHING (July 23): The signing of agreement between Petroleum Sarawak Berhad (Petros) and national oil giant Petronas would enable Sarawak to take a more active role in oil and gas industry in the state, said Chief Minister Datuk Patinggi Abang Johari Tun Openg.
He said that Petros’ formation in 2017 has brought instant returns to Sarawak, compared to Petronas which took 20 to 30 years to achieve its current status.
He pointed out that recently, Petros had awarded oil field exploration nearby Miri and Marudi to a successful company.
This development is very important to Sarawak as it shows that the state has full control on its oil and gas resources based on the Oil Mining Ordinance 1958, he said.
“Towards this, Petros is finalising its inaugural Petroleum Contract and Joint Operating Agreement for Block SK433 with Petra Energy Development Sdn Bhd and joint venture partner, Uzma Energy Venture SK433 Sdn Bhd. Petros’ wholly owned subsidiary, Petroleum Sarawak Exploration and Production Sdn Bhd (Petros EP) will also be an equity partner in the Petroleum Contract; contributing specialist expertise towards the success of this joint venture,” said Abang Johari during the Sarawak Day celebration held at the State Legislative Assembly building tonight.
Effective January 1 this year, he said, Petros EP has also entered into two Offshore Sarawak Production Sharing Contracts (PSCs), as a non-operating equity partner and placing Petros EP in third place behind Petronas Carigali and Shell in terms of working interest share of current gas production in Sarawak.
Similarly, Petros EP is also in a good position to enter several Offshore Sarawak Exploration Blocks by end of this year, he said.
In the Downstream based on the Gas Distribution Ordinance 2016 (DGO 2016), Petros is working closely with other State entities to increase the domestic gas utilisation through implementation of various initiatives under the Sarawak Gas Roadmap umbrella – to capture greater value locally from upstream gas production and contributing to socio economic growth through job creation for Sarawakians, Abang Johari added.
“Our journey to get a fairer returns in the oil and gas industry in the state is not a smooth path. The Gabungan Parti Sarawak (GPS) government has to face Petronas in court to determine if the state has the right to impose sales tax on oil and gas products from the state.
“Alhamdulillah, the law is on our side and the battle won n Sarawak Court has brought sales tax of RM2.9 billion from Petronas for 2019,” he said.