July 1, 2018
Dateline 2018-05-17, Borneo Post Online:
With just two more months before Sarawak state-owned Sarawak Petroleum Bhd (Petros) assumes full regulatory authority over the upstream and downstream aspects of the state’s oil and gas (O&G) industry, existing industry players are wondering if their business activities will be impacted.
During an industry engagement session on the implementation of the Oil Mining Ordinance (OMO) and Distribution of Gas Ordinance (DGO) in Sarawak held yesterday, Petros’ chief executive office Saau Kakok explained that most, if not all, entities undertaking activities in the O&G industry will need to apply or reapply for their respective licenses and leases.
Under the amended OMO which will come into effect on July 1, players will be required to apply for their licenses and leases to the State Minerals and Management Authority (SMMA) through Petros.
Similarly, under the newly passed GDO in 2016 which will be gazette on July 1, players will be required to reapply for their licenses as licenses granted under the gas supply act 1993 is not applicable in the state. This includes any licenses issued by the Secretary General of Ministry of Domestic Trade, Co-operatives and Consumerism under the Petroleum Regulations 1974 or the Control of Supplies Act 1961.
June 16, 2018
For the historical record.
Dateline 2018-04-24, The Malaysian Reserve:
Malaysia Petroleum Resources Corp (MPRC) will collaborate with the Sarawak state government on the latter’s move to assume control of its oil and gas (O&G) rights from Petroliam Nasional Bhd (Petronas).
MPRC stated it would also engage with the relevant parties including Petroleum Sarawak Bhd (Petros) on how local O&G service and equipment players are to proceed once the takeover move and new rulings come into effect on July 1 this year.
“We will update industry players once there is further clarity on the regulatory structure and how local O&G service and equipment companies could be impacted by the changes,” MPRC stated in its response to a query by The Malaysian Reserve (TMR) on the latest status of the move by the Sarawak state government.
Following prospective amendments to the Oil Mining Ordinance 1958 and Gas Distribution Ordinance 2016, companies involved in Sarawak’s O&G industry will be required to obtain the necessary licences and leases from the state government.
May 9, 2018
Especially for us boutique service providers:
Dateline 2018-03-09, NST:
SARAWAK’s state oil corporation, Petroleum Sarawak Bhd (Petros), was officially launched earlier in the week by Chief Minister Datuk Patinggi Abang Johari Abang Openg in Kuching.
With a symbolic digital signature, the state chief executive finally made concrete a collective state aspiration to be an active player in the oil and gas sector, which Abang Johari described as strategically important to the socio-economic development objectives of Sarawak.
He marked the symbolic launch with a significant gesture in handing over to Petros chairman Tan Sri Hamid Bugo a state government licence, granting the new oil corporation the rights to mine oil and gas in Sarawak.
Abang Johari said: “Petros must build on its strategic presence in Sarawak to grow and deliver sustainable economic benefits via its business model, while, at the same time, safeguarding the interests of our state and its resources.”
May 1, 2018
Dateline 2018-03-07, The Straits Times:
Sarawak announced yesterday that it now has complete mining rights over its territory, making it the first state in Malaysia to form a state-owned oil and gas company.
Sarawak Chief Minister Abang Johari Openg said the formation of Petros, which was founded last year, was part of the promise made by the federal government to return eroded rights from the Malaysia Agreement 1963 (MA63), signed when the giant state agreed to become part of Malaysia.
“This gives Sarawak full regulatory authority of the upstream, downstream aspects of the oil and gas industry,” said Datuk Abang Johari at an event to launch Petros in the Sarawak capital of Kuching.
February 24, 2018
How come SIB isn’t making press statements every week?
Dateline 2018-01-15, Borneo Post:
The state’s wholly-owned oil and gas (O&G) company, Petroleum Sarawak Berhad (Petros), is set to become an active player in the O&G industry within two years.
Chief Minister Datuk Patinggi Abang Johari Tun Openg said the company, established in August last year, aims to exploit all opportunities in the O&G industry once it is fully operational.
“Wait two years for Petros to take active participation in the oil and gas industry,” he said when opening the Parti Pesaka Bumiputera Bersatu (PBB) Miri Zone 10 triennial delegates meeting here yesterday.
The setting-up of Petros was to enable the state government to participate directly in the O&G industry in Sarawak.
Petros chairman Tan Sri Hamid Bugo was reported in November last year as saying the company was expected to start operations in the first quarter of 2018, and was looking for a suitable candidate to fill the post of chief executive officer.
Abang Johari, meanwhile, said Sarawak has the potential to become the strongest state in Malaysia by 2030 with a well-structured development plan based on digital economy, and headed by the state’s backbone party, PBB.
February 10, 2018
Dateline 2018-01-02, FMT:
It was reported last month that Petronas had awarded the new field development plan (FDP) of the Beryl gas field off the Sarawak coast in October 2017 to JX Nippon Oil & Gas Exploration (Nippon Oil).
So, the Japanese firm and Petronas Carigali will form another joint venture on the development, production and monetisation of Sarawak’s gas reserves.
It is uncertain how Petros, the newly-formed state entity formed by the Sarawak state government in June last year to participate in oil and gas activities, will participate or enjoy, if at all, any of the returns generated by the production and sale of the gas from the Beryl field development.
Likewise, for the gas produced from the other Nippon Oil and Petronas Carigali fields of Layang and Helang, situated adjacent to Beryl.
The gas produced in these three fields are piped and sold to the Petronas liquefied natural gas (LNG) plant in Bintulu, Sarawak.
Contrary to what the Sarawak state government had been saying earlier, it appears Petros has not announced any interest in this new gas block for development.
January 13, 2018
Dateline 2017-11-21, The Edge:
UP until a few years ago, any state looking to set up its own dedicated oil and gas outfit — and aiming for a larger share of oil revenue from production activities, or any similar plan — would have hit a brick wall in the form of Petroliam Nasional Bhd (Petronas). However, more recently, the situation has changed for various reasons.
In 2014, the Sabah government formed Sabah International Petroleum Sdn Bhd “as a special-purpose entity to support the state’s continuous development in the oil and gas sector and to further strengthen the Sabah government’s position in the oil and gas industry”.
And now, there is Petroleum Sarawak Bhd (Petros), which will seek a larger share of oil revenue from production activities for Sarawak.