State govt plans greater role in oil and gas sector

MIRI: The state government wants to increase its participation in the oil and gas (O&G) sector, particularly in the upstream industry.

Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan said this is vital in accelerating development activities in the state further.

“The late chief minister Datuk Patinggi Tan Sri Adenan Satem started the negotiation with Petronas to increase the state oil royalty and now, present Chief Minister Datuk Amar Abang Johari Tun Openg will continue to pursue it with the existing effort.

“Datuk Amar Abang Johari not only wants to continue with the effort in downstream industry – he also wants to increase the state participation in O&G upstream industry,” he said in his opening remarks at the Hari Raya Aidilfitri open house hosted by the Miri Malay Association (PMM) at its Jalan Kipas premises here yesterday.

Awang Tengah – also Industrial and Entrepreneur Development Minister, and Second Urban Development and Natural Resources Minister – disclosed that Petronas had agreed to award RM2.1 billion as baseline, but the figure would be lower due to the current depressed oil price.

Petronas, he stated, had also agreed to make Miri the centre to register its companies in Sarawak.

He also spoke on prospects for Miri, which is the birthplace of the state’s O&G exploration industry.

“We want small and medium enterprises (SMEs) to continue growing in the city. For Miri being a ‘Resort City’, the service industry is now the new engine for its greater economic growth.”

Awang Tengah also provided an update on the construction of Bio Valley Park, located next to Curtin Sarawak, which is nearing completion.

The project is aimed at increasing research and development (R&D) with the purpose of commercialising local products. In view of that, he called on local SMEs to grab the opportunities that would be created through the Bio Valley Park.

Later, he presented an allocation worth RM50,000 under Minor Rural Project (MRP) grant to PMM to help in its building expansion.

PMM chairman Radzali Alision was asked submit a working paper on the future planning project.

Also present at the event were Awang Tengah’s wife Datuk Dayang Morliah Awang Daud, Sibuti MP Ahmad Lai Bujang, Assistant Minister of Tourism, Arts and Culture Datuk Lee Kim Shin, Assistant Minister of Women, Family and Childhood Development Rosey Yunus, and Piasau assemblyman Datuk Sebastian Ting.