Relocation of oil and gas company true, claims Sarawak PAS

MIRI: PAS Sarawak said more job losses are expected when a medium-sized company closes down its Miri office and relocates to Kuala Lumpur.

Thus, it is calling on the state government to intervene and help reduce unemployment in the industry which has serious economic repercussions.

In a statement yesterday, Jofri Jaraiee, Sarawak PAS commissioner and Miri PAS chief, said the spate of downsizing and re-structuring exercise by oil and gas companies has resulted in a gloomy economic outlook in Miri.

“Authentic information received from employees who do not want their names to be published has confirmed this (relocation) will occur,” he said of the rumoured relocation exercise of this company from Miri to KL.

Jofri, who formerly worked in Petronas, said it was likely that many of the company’s employees would be jobless and in debt if they were indeed phased out as it had been a trend for many oil and gas companies to reduce staff and restructure in order to reduce costs and operations since the price of oil plummeted in 2014.

He feared that the downsizing and re-structuring exercise would have a negative impact on Miri’s economy.

He called on oil and gas companies planning to reduce their staff to consider the fate of their long-serving employees by retaining their operations office in Miri.

“Their (companies) income is derived from exploration of oil and gas in offshore areas of Miri and Bintulu,” he pointed out.

Although the Sarawak government’s policy is to give priority to local workers, the lack of preparation to absorb workers retrenched in the industry will lead to unemployment and impact badly on the economy, he said further.

“We urge the state government not to let this situation drag on because downsizing of oil operations in Miri causes more unemployment and affects the economy and income of local people in Miri and the many workers from outside who often eat out and rent a house here,” he added.

Assistant Minister of Tourism, Arts and Culture Datuk Lee Kim Shin, who is Senadin assemblyman, when contacted on Monday said he was unaware of such relocation exercise.

A representative of the company had also denied the rumours.

However, social media was abuzz with the purported relocation exercise, with claims of staff either being given voluntary separation scheme (VSS) or be relocated to KL.

One source speculated that over 100 employees would be affected but the company was yet to come out with any statement while its staff refused to comment.