KUCHING: Sarawak’s oil and gas industry achieved another milestone yesterday with the signing of the land lease agreement for the development of an integrated supply base at the Second Inner Harbour, Bintulu Port.
The supply base will cater to the needs of the oil and gas industry offshore East Malaysia and is expected to begin commercial operations by the fourth quarter of 2019.
Speaking during the signing of land lease agreement ceremony between Bintulu Port Authority (BPA) and Bintulu Supply Base Sdn Bhd at Pullman Hotel here yesterday, Chief Minister, Datuk Patinggi (Dr) Abang Johari Tun Openg said that the agreement was a significant development to the State’s oil and gas inclusion strategy.
“This new integrated supply base at Bintulu Port will become a one-stop centralised logistic support centre to service the needs of Oil and Gas exploration, development and production activities in offshore areas of Sarawak,” he said.
He added that the development would provide a strong platform for effective and efficient logistical service for the upstream activities undertaken by the Oil and Gas companies in the Continental Shelf off the coasts of Sarawak where valuable petroleum and natural gas resources are located.
“I am confident this new facility dedicated for the Oil and Gas industry will result in the growth of this sector and bring economic benefits to the people and contribute substantially towards the economic growth of the State.
“I welcome such investment initiatives by the private sector and towards complimenting the State Government’s drive to transform our State’s economy in order to leapfrog to new heights of sustained economic growth and prosperity,” he stressed.
Meanwhile, BPA chairman Hadzari Abang said that with the new impetus to Sarawak’s oil and gas industry, the setting of a local supply base in Sarawak was timely.
“Bintulu Supply Base is a strategic asset and infrastructure that will support the growth of Sarawak’s oil and gas industry,” he added.
He also said that the added facilities to Bintulu Port would have a positive impact on the local economy through growth in supporting businesses, greater capacity-building in terms of job opportunities and increased skilled labour in oil and gas.
Bintulu Supply Base chairman, Ahmadi Yusoff revealed that the supply base was in line with Petronas’ initiatives to achieve cost efficiency and operations effectiveness, especially for players in Sarawak waters.
“We envision that through the supply base development and upcoming operation, it will be the hub to further enhance economic development and local capabilities in Bintulu and Sarawak,” he added.
The integrated supply base, will provide a one-stop solution for the industry from exploration, to development and to production needs including the provision of facilities and services to support drilling operations.
The integrated asset and facilities is key to ensuring a cost-effective and efficient solution for oil and gas players operating offshore Sarawak.
The development of the Bintulu Supply Base will be carried out in phases, taking into account the specific requirements from the oil and gas industry.
The phased development approach is based on the market demand and the fit-for-purpose needs from the oil and gas players. The supply base will operate in compliance with the industry health, safety, security and environment (HSSE) standards.
Bintulu Supply Base is strategically located in relation to the offshore fields in the Sarawak Basin.
Being in close proximity to fields offshore Sarawak enables cost efficiency to be attained by oil and gas players from costs savings due to the shorter travel time from offshore.
