THE Sarawak government will further strengthen the role of Petroleum Sarawak Berhad (Petros) in spearheading the state’s involvement in the oil and gas industry, especially in the downstream sectors.
Chief Minister Datuk Patinggi Abang Johari Tun Openg said this as the state is enforcing its constitutional authority over the distribution of gas through the Distribution of Gas Ordinance, 2016.
“With these rights, we are able to secure natural gas supplies needed to pursue the state’s socio-economic development agenda,” he said in his ministerial winding-up speech today.
He explained the initiatives will ensure greater opportunities for Sarawakians and Sarawak companies to participate and invest in the oil and gas industry as well as acquire expertise, knowledge and technology to develop oil and gas industry in the state.
“The enforcement of the Oil Mining Ordinance (OMO) 1958 is a test of Sarawak government’s efforts to exercise its constitutional rights to regulate oil mining and to take complete control over the exploration and production of petroleum within the territorial boundaries of Sarawak including that in the onshore areas,” he said.
He said the commitment is exemplified by the issuance of Mining Leases to Petros in respect of two blocks — one in the Adong Kechil West in Miri area and the other in the Engkabang Area South of Marudi.
“With this arrangement, Sarawak government, through Petros, will have the control of, and legal title to, all oil and natural gas produced from the onshore areas,” he said.
He added Petros will also have the rights to appoint contractors, or enter into ventures with investors to explore and produce the oil and gas from the onshore areas in Sarawak.
On the Sarawak oil and gas overall policy, Abang Johari said the state government is committed to create a stable and attractive environment for companies, both local and from overseas, to invest in the oil and gas industry in the state.
“The OMO 1958 ensures the protection of the interest and investments of companies undertaking oil exploration and mining in Sarawak, so that the industry can grow sustainably in a well-regulated and business friendly environment.
“Since the 1970s, the focus of oil mining in Sarawak has been in the offshore areas of the state where significant reserves of oil and natural gas has been discovered and currently being produced,” he said.
He said although there have been significant exploration efforts since 1980s by various international oil and gas companies onshore, the results have been very modest.
“However, through a focused approach including the application of new technologies, we remained hopeful that we would be able to discover commercial reserves onshore, which will augur well for the state’s economic development,” he said.
