F6 Field’s expected daily RM2.76 mil gas production projected to boost Sarawak’s coffers with annual RM50 mil Sales Tax

Wan Lizozman speaking at the contract signing ceremony between Brooke Holding and Sarawak Shell for the EPC F6 VLAP project at Hikmah Exchange on Jan 17, 2024. Photo credit: Ukas

By Ashley Sim and Karen Bong

KUCHING, Jan 17: The anticipated gas production of 150 MMscf/d at the F6 Field offshore Bintulu, which will be transported to the MLNG Satu Plant, is projected to generate an impressive daily revenue of approximately RM2.76 million.

Brooke Holding Sdn Bhd director Dato Sri Dr Wan Lizozman Wan Omar said this translates to a substantial contribution to the Sarawak government’s coffers through Sales Tax on oil and gas, estimated at around RM50 million annually.

Currently, Brooke Holding is undertaking the engineering, procurement and construction (EPC) of Fixed Offshore Structure Works for F6 VLAP Compression project, valued at RM421 million, for Sarawak Shell Berhad’s facility at the site.

The F6 Hub Complex is positioned roughly 179 kilometres offshore to the northwest of Bintulu, in water with a depth of 85 metres. The primary objective of the project is to reduce reservoir abandonment pressure, thereby enhancing production and gas recovery from the F6 Field through the implementation of external energy – VLAP compression.

“The successful completion and commissioning of the project will lead to increased production and gas recovery for the late life of the F6 Field.

“This project holds immense promise for the region. The gas production will be transported to the MLNG Satu Plant in Bintulu, ensuring a strategic and efficient utilisation of resources,” he said when speaking at the contract signing ceremony between Brooke Holding and Sarawak Shell for the project at Hikmah Exchange here today.

The momentus occassion was witnessed by Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg.

Additionally, Wan Lizozman highlighted that the transformation from Brooke Dockyard to Brooke Holding marked a pivotal shift in its approach — a catalyst of change.

“We are now more apt, resilient, and agile, aligning with Sarawak’s Post-Covid Development Strategy (PCDS) 2030. Our corporate culture has evolved to think and act like a private company, constantly seeking ways to enhance efficiency, safety, and the quality of our operations,” he said.

He also expressed gratitude and appreciation to the past board members of Brooke Dockyard, led by Datu Safri Zainudin, for their exemplary leadership that had paved the way for the company to secure significant projects and ensuring sustained industry service.

Minister of Tourism, Creative Industry and Performing Arts Dato Sri Abdul Karim Rahmah Hamzah, Deputy Minister of Creative Industry and Performing Art Datuk Snowdan Lawan, Deputy Minister of Infrastructure Development Datuk Ir Aidel Lariwoo, Satok assemblyman Dato Ibrahim Baki, and senior vice president Upstream Malaysia and Country Chair Shell Malaysia Siti Hurrairah Sulaiman were among those present. — DayakDaily