Tripartite committee on oil and gas development proposal

KOTA KINABALU: More talks will be held with Brunei and Sarawak to discuss collaborative efforts in developing oil and gas industry, with Sabah proposing a three-state planning committee to be set up for coordinating activities among the partners.

Industrial Development Minister, Datuk Raymond Tan Shu Kiah said there has been some positive response from both Brunei and Sarawak during previous meetings and Sabah was committed to working with them to establish a close working relationship in the area.

“Brunei is moving quickly in developing their oil and gas and we have agreed to plan our industries together. And both Brunei and Sarawak are well ahead in oil and gas sector and we can learn from them,” he told reporters, commenting on Sabah’s effort to seek partnership and support from its two neighbours while attempting to develop its oil and gas industry.

Tan had during his last visit to Brunei proposed the idea of developing a platform for finding collaborative opportunities between Sabah, Sarawak and Brunei to accelerate efforts to develop oil and gas industry in their respective lands, in particular in the areas of downstream and value- adding activities.

However nothing concrete has been announced by any of the three parties so far in regard to their cooperation.

“There have been some discussions with Brunei as well as Sarawak and there will be more discussions not only at state government level but also through the federal government,” said Tan.

He noted the Minister of International Trade and Industry Datuk Mustapa Mohamed will be engaging the federal government for discussions with Brunei.

He also noted that investors to be involved in oil and gas sector and its spin-off activities will be centred in Sipitang, and the State Government has agreed to develop the district into a oil and gas town similar to Kerteh and Bintulu due to its location being near the Brunei Bay, Labuan and Sarawak

He added the state government was also working very closely with Petronas in developing the SOGT and encouraging oil and gas activities in the Sabah as well as in planning efforts to tap the opportunities to be created following the setting up of the Terminal.

“Petronas has also agreed to plan with State Government their activities in Sabah. They have outlined what they are planning to do. So, we are working with everyone involved, including the private sector, to properly develop the industry,” he said.

By : By MURIB MORPI

New Sabah Times

When Petronas is agreeable to letting Sabah keep gas

KOTA KINABALU: Petronas will only agree to let Sabah keep portions of the gas channelled to the Sabah Oil & Gas Terminal (SOGT) if it is able to substantially build up its infrastructure and manpower to support the oil and gas industry in the State.

State Industrial Development Minister Datuk Raymond Tan said the national oil company is also willing to help Sabah with the development of human resources in the industry.

Speaking after visiting booths at the Asean Oil and Gas Expo 2010, Thursday, he said the State Government is vigorously trying to spur and shape the industry to meet the requirements of the higher ups of Petronas.

“We are now looking into oil and gas activities, into what kind of industries we can capture in Sabah…it is not only just getting the gas bur it is now (about) planning what we do with the gas”.

“If gas is made available, by itself, the industry players will be asking us (for the gas). In fact, we have been coordinating with a number of industries now to see where we can locate them properly,” he said.

Tan said he had told Petronas in a previous meeting of the State’s intention to keep some of the gas and subsequently spur the oil and gas industry in Sabah.

“Our State Government made it known strongly that we want gas in order to attract industries or gas-related industries to be in Sabah…it has already happened in Sarawak, even in Malacca, Johor and it can happen in Sabah. They have got the message and they will help us.

“They have already started building the pipes to Bintulu, that was a decision made earlier. But I’m telling them, if I can use the gas in Sabah, maybe it’s not necessary to send the gas to Bintulu because they can still make money by providing the gas for industries in Sabah.

“But if we are doing nothing then it’s just the gas going to Bintulu. That is why there is an urgency on my part, to work closely with Petronas to plan what our industrial activities would be and to get it started so that I can keep the gas here,” Tan said.

“He (Petronas CEO) agreed with me in this kind of exchange…he said if he needed the gas for Bintulu he will take but if Sabah needs it, lets look into Sabah’s needs,” he added.

However he pointed out that Petronas made it clear to him they were concerned with only the two items – infrastructure and human resource.

“With any industry, you have to make sure the infrastructure is in place and second, which we need to work very hard on, is the development of human resources because you are into an industry that is quite technical.

“We are working with Universiti Malaysia Sabah (UMS) on how we could develop and come out with these kind of people, ready in time when gas is landed…we have basically two years (before SOGT comes on stream),” Tan said, adding there would also be various levels of training with Petronas’ help.

“Petronas is even willing to invest with us in various ways how we could develop the human resources and this is very important. You cannot have a gas industry when you can’t provide people to work there…the Petronas CEO also had discussion with the Chief Minister on this (investment on human resource).”

Towards this end, he said having the right kind of infrastructure and consistent supply of technical workers would convince investors and industry players that Sabah has a bright future in oil and gas sector.

“We have to set our target to make sure the supply of power and water, and place is ready for industries to come in…with the kind of capital that can be given to Sabah, and the support of the Federal and Sabah governments, I think it shouldn’t be a problem.

“When you get the industry going, it will basically drive the economy…now it’s more important that we create activities and make sure our people get those opportunities,” Tan said.

“I hope in the not very long run, we will basically (be able) to set up oil and gas as a major part of the State development.”


Source-Daily Express

Petra Energy to set up new onshore fabrication facility in Sabah

KOTA KINABALU: Petra Energy Bhd is identifying a suitable site for its new onshore fabrication and logistics facility at Sabah’s oil and gas (O&G) hub in Kimanis.

Executive director Kamarul Baharin Albakri said the new onshore fabrication facility was part of the group’s strategy to leverage on the growing opportunities in the brown field sector of the upstream O&G industry in the state.

“The fabrication facility, backed by our framework for strategic expansion in marine assets, is primarily to take advantage of the growing opportunities in the Sabah O&G market,” he said in a statement at the pre-opening of the Asean Oil and Gas Expo 2010, which takes place from July 22-24.

The group currently has six offshore marine vessels comprising four work barges and two work boats.

Kamarul said the vessels were all commissioned for offshore platform work, primarily for the Sarawak-Sabah Shell project.

“Through our alliances with Petra Perdana Bhd, Bourbon Group and Bumi Armada Navigation , we have exclusive charter rights to a comprehensive range of marine assets comprising work barges, work boats, anchor handling tug supply vessels, crew boats and related crafts.

“This enables us to efficiently deploy our services for large scale and integrated-type projects, such as topside major maintenance, hook-up, construction and commissioning, topside structural maintenance and subsea maintenance,” he said.

Kamarul said the company was bullish about Sabah’s O&G market as recent reports indicate that Petroliam Nasional Bhd’s new focus was to increase domestic output from existing oil fields.

source: http://thestar.com.my/news/story.asp?file=/2010/7/22/business/6708554&sec=business

Sabah can largest oil, gas producer - Raymond

Sabah has the potential to be the biggest oil and gas producer if gas is fully utilized to develop the industry in the state instead of merely piping it to Bintulu, Industrial Development Minister Datuk Raymond Tan said.

Tan said Sabah does not have to depend heavily on tourism industry because it has ample resources to attract investors.

"If gas is available, industry players will be coming in to set up their operations here. People who are using gas facilities will come in and be followed by the other players too," he said.

"The state government is hoping that investors know the facilities that are available here," he told reporters after visiting Sabah's first Asean Oil and Gas Expo (AGEX) at Sabah Trade Center here yesterday.

The three-day event, which started yesterday, is participated by exhibitors from various countries, including Singapore, United Kingdom, United States, China, Korea, Italy, Germany, Taiwan, Japan and Malaysia.

Tan stressed that although the pipes were already l;aid to send gas to Bintulu as planned, the gas can be made available for Sabah to attract the investors.

"But we have to start calling the investor and training our young people to allow the industry to be developed, otherwise that will be all we can do, sending our gas to Bintulu and receiving royalty.

"It would be much better for us to have our own oil and gas industry than just send gas to Bintulu. That is why there is an urgency to have industrial activities started in Sabah to tap the availability of the gas from Sabah Oil and Gas Termial at Kimanis," he said.

Tan said Petronas had been very supportive towards Sabah's effort to develop its own vibrant oil and gas industry and had agreed to find workable solution to allow Sabah to keep some of its own gas.

"We want oil and gas to create economic activities in Sabah, in line with efforts to generate downstream activities and create high income community.

"It is not just the landing of gas in Sabah but also the planning of oil and gas activities in the state and this includes effort to provide the infrastructure and human resource required," said Tan.

He added Petronas was willing to assist Sabah in developing trained and skilled human resources for its oil and gas industry through various levels of training programs.

On the exhibition, he said the event was timely as it brought major names in oil and gas sector where investment opportunities can be highlighted or even discovered.

"The organizer is very brave as a project of this nature is never a small undertaking and very significant as Sabah needs to know and bring in the palayers in the industry,

"The exhibitors here are well-know brands in oil and gas, with most of them being suppliers and partners of Petronas.

"We will continue to organize this kind of activities to create awareness on the opportunities available in oil and gas Sabah," he said.

- The Borneo Post

Oil and gas in Sabah