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
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