Premier: S’wak wants collab with Petronas to develop O&G industry, not control

KUCHING (July 1): Sarawak is not assuming control of Petroliam Nasional Berhad’s (Petronas) rights in the state’s oil and gas industry, but rather seeking collaboration to develop the sector, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said Sarawak’s oil and gas resources belong to the state, so it is important it gets involved in developing them, hence the creation of Petroleum Sarawak Berhad (Petros).

“What is happening between Sarawak (through Petros) and Petronas is for mutual benefit. In this collaboration, Sarawak and Petros respects the collaborative spirit.

“Although it is much like a sibling relationship, it is also nothing like a big brother, small brother sort of thing — we are equal in this collaboration. We also do not infringe on each other’s rights,” he said in his speech during the Sarawak Oil and Gas Services and Equipment (OGSE) Industry Vendor Appreciation Ceremony hosted by Petronas here today.

Apart from that, since he took office as then-Chief Minister, now Premier, he said Sarawak’s actions have been guided by five laws namely the Sarawak Land Code, the Oil Mining Ordinance 1958, the Gas Distribution Ordinance, the Federal Constitution and the Malaysia Agreement 1963.

On the ceremony, Abang Johari said it was important successful vendors in the OGSE industry be recognised.

“Under the Post Covid-19 Development Strategy 2030, the oil and gas sectors are pivotal for Sarawak to achieve developed state status by 2030. We not only want to appreciate them, but want to see even more participate in the oil and gas sector as vendors too,” he said.

Meanwhile, Petronas senior vice president Datuk Bacho Pilong praised the resilience and competitiveness of Sarawak vendors in the Malaysian OGSE industry and there has been an upward trend in jobs awarded to Sarawak vendors since 2020.

Following that, he said Petronas is optimistic about meeting its 2024 targets.

“By February this year, the total value of jobs awarded to Sarawak vendors reached RM37.41 billion with RM22.62 billion awarded within the state itself.

“We would like to thank the Sarawak government and petroleum regulatory contractor in assisting local vendors amidst current challenges,” Bacho said in his speech.

During the ceremony, 47 local vendors received commemorative plaques from Petronas Procurement Group vice president Rashidah Alias.

Also present were Deputy Premier Datuk Amar Dr Sim Kui Hian and Minister of Utilities and Telecommunications Dato Sri Julaihi Narawi.