Petros set to play more active role in state’s O&G industry

KUCHING: The success of Petroleum Sarawak Berhad (Petros) in signing an agreement with Petronas will enable Sarawak to take a more active role in oil and gas industry in the state says Chief Minister Datuk Patinggi Abang Johari Tun Openg.

Recently, Petros has awarded oil field exploration near Miri and Marudi to a company and 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.

“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 at the Sarawak Day celebration held at the state legislative assembly building last night.

Effective January 1 this year, 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, he said.

Similarly, Petros EP is also in a good position to enter several Offshore Sarawak Exploration Blocks by end of this year.

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.

“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.