Sarawak has the potential to become a global hub for the oil and gas industry by establishing a robust downstream petrochemical sector to increase participation in the higher value chain, says Deputy Premier Datuk Amar Awang Tengah Ali Hasan.

He said the state could take advantage of the availability of its natural gas resource as feed stock and the existing infrastructure in Bintulu to become a thriving and vibrant oil and gas hub in the region.

“The amendment of Oil Mining Ordinance 1958 and the signing of Commercial Settlement Agreement on Dec 7, 2020 are important factors in enabling Sarawak to exercise regulatory control over exploration and mining of oil and gas within its territorial boundaries.

“Herein lies the importance of meeting the aspirations of the state for more active participation by Sarawakians and Sarawak companies in the upstream and downstream sectors of the state oil and gas industry.

“However, this cannot be done alone. It requires a collective effort from all of us; the government, private sector and local communities,” he said in his text speech, read by Deputy Minister for Youth, Sport and Entrepreneur Development Dr Ripin Lamat.

Ripin was representing Awang Tengah when officiating at the Sarawakian Bumiputera Oil and Gas Contractors Transformation Programme here yesterday.

With the establishment of the Joint-Coordination Committee (JCC) to facilitate negotiations between the state government, federal government and Petroliam Nasional Berhad (Petronas), Awang Tengah said the state managed to increase Sarawakian companies’ participation in oil and gas activities.

As at 2022, he said there were more than 600 licensed and registered Sarawakian companies and about RM2.9 billion in jobs awared to these companies in the state.

“There are also various programmes made available to harness the full potential of oil and gas industry players such as the Vendor Financing Programme. As at 2022, about RM325.8 million has been approved to 38 Sarawakian companies.

“In terms of engagement, about 300 companies have benefitted from eight engagement sessions with Sarawakian companies last year. We hope that Petronas and other oil and gas companies can include many more Sarawakian companies in this programme,” he added.

About 100 individuals attended the two-day programme which ended yesterday.

Awang Tengah expressed his hope that the participants would use this programme as a platform to gain more insights into the oil and gas industry in Sarawak as well as an opportunity for them to do networking.

Source:
courtesy of THE BORNEO POST

by GALILEO PETINGI

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