F6 gas production set to rake in RM50m in sales tax

KUCHING: An expected gas production of 150 million standard cubic feet per day (MMscf/d) at the F6 field offshore Bintulu is projected to generate an impressive revenue of approximately RM2.76 million per day.

“This, in turn, will translate to a substantial contribution to the Sarawak government’s coffers through sales tax on oil and gas, estimated at around RM50 million annually,” said Brooke Holdings Sdn Bhd director Datuk Seri Dr Wan Lizozman Wan Omar.

He said the gas will be transported to the MLNG Satu Plant in Bintulu.

BHSB is presently undertaking the Engineering, Procurement and Construction (EPC) of Fixed Offshore Structure Works for the F6-VLAP Compression Project valued at RM421 million, for Sarawak Shell Berhad’s facility at the site.

Wan Lizozman said the project, will span 20 months from July 2023 to February 2025.

He said this during the contract signing ceremony between BHSB and Sarawak Shell Berhad for the project at Hikmah Exchange Event Centre here today (Jan 17).

The completion of the F6-VLAP (Very Low Abandonment Pressure) project and commissioning of the project will ensure a production increase and gas recovery late in the life of the F6 field.

The project is also expected to create economic spin-off effects to multiple industries and benefit small and medium enterprises (SMEs).

“This substantial investment creates demand for highly skilled oil and gas workers, enable job creation to approximately 1,000 new jobs for Sarawakians,” he said.

The EPC F6-VLAP project is the heaviest single topside ever built by Brooke Holdings for Shell at 2,900 metric tonnes.

Presently, Wan Lizozman said the yards in Demak and Sejingkat are abuzz with activity, handling the SF30 project set to complete mid-year 2024 and the F6-VLAP project which is expected to conclude in the first quarter of 2025.

“We express our sincere gratitude to Sarawak Shell for the unwavering trust and partnership since 1999, 19 projects weighing 22,000 metric tonnes, allowing us to contribute to the state’s income while providing businesses and jobs to our fellow Sarawakian companies,” he said.

Earlier, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg witnessed the contract signing ceremony for the project between BSHB and Sarawak Shell Berhad.

Also present were Minister of Tourism, Creative Industry and Performing Arts Datuk Seri Abdul Karim Rahman Hamzah; Petros chairman Tan Sri Datuk Amar Hamid Bugo; and Senior Vice President Upstream Malaysia and Country Chair Shell Malaysia Siti Hurrairah Sulaiman.