Second RM6b ammonia plant

March 9, 2017

Dateline 2017-02-03, Daily Express:

A second ammonia plant will be built at the Sipitang Oil and Gas Industrial Park (SOGIP) as part of the oil and gas industry’s development in Sabah this year.

Disclosing this, Deputy Chief Minister-cum-Industrial Development Minister Datuk Seri Raymond Tan said the project will see Sabah venturing into the natural gas downstream industry and would cost more than the existing Sabah Ammonia Urea Project (Samur) in Siptang.

“Sabah is looking into developing the oil and gas industry as another prospective area to be ventured into like engaging in natural gas development instead of selling our ample natural gas without value adding.

“What Samur does is turn the natural gas into solid substance like fertilisers and the project is worth about RM6 billion.

“Hence, for this year, Sabah will be venturing into another project which is a different one because Sabah will have a bigger share in setting up the second ammonia plant with the cost being more than RM6 billion,” he said at a Chinese New Year luncheon, Thursday.

Territorial Sea Act null and void?

December 11, 2016

Dateline 2016-10-30, Borneo Post:

ON June 22, 2012, Sarawak and Sabah lost their sovereign rights and jurisdiction over the area of the Continental Shelf, consisting of the seabed and its subsoil beneath the high seas contiguous to the territorial waters of the Borneo states, when Territorial Sea Act 2012 (TSA) came into effect, limiting both their jurisdictions to three nautical miles (5.5 km) from the coastline.

The implication is that with the reduced breadth limits of its territorial waters, the state’s rights to fisheries, marine and mineral resources, tourism sites in marine areas and so forth are now confined to only 3 nautical miles (5.56 km) from its coastline.

Borneo oil royalty push sign of Putrajaya’s strength, not weakness

September 24, 2016

We look forward to an election right after this is all resolved.

Dateline 2016-08-12, Malay Mail:

The renewed demands by Sabah and Sarawak for oil royalties and greater devolution of powers is prompted by the federal government’s growing influence rather than any perceived vulnerability, said state leaders and analysts.

Despite controversies linked to Putrajaya, they said the federal government’s powers have not been reduced, which required both east Malaysian states to be more vocal in demanding a return of the rights they said were due to them according to the Malaysia Agreement 1963.

“It has nothing to do with Putrajaya being weak or strong,” Sarawak Deputy Chief Minister Tan Sri Dr James Masing told Malay Mail Online.

“Sarawak is led by the leader (Tan Sri Adenan Satem) who finally realises that we have been short-changed all this while,” Parti Rakyat Sarawak (PRS) president said while declining to state who has short-changed Sarawak.


CM: Petronas told to choose Sabahans first, but locals lack skills

September 11, 2016

I presume ‘foreigners’ means non-Sabahans?

Dateline 2016-08-09, The Malay Mail:

National oil giant Petronas is not giving priority to foreigners over Sabahans as claimed, as the firm had already been asked from the very beginning to consider the state residents first for jobs, Sabah Chief Minister Datuk Seri Musa Aman has said.

Musa said he had requested that Petronas fill up high-ranking positions in the company with Sabahans first, but noted that Sabah itself lack workers who have the skills required for the oil and gas industry.

“This includes to fill in the job vacancies and in fact many local youths are employed there in the two projects. I have also asked Petronas to also give priority to Sabahans for high level posts, not only rank and file.

“But I admit that we lack skilled workers in this sector and in view of this I have asked that our youths be given training so that they can obtain a degree and be employed to fill in these vacancies,” he was quoted saying at the state legislative assembly by local daily The Borneo Post’s portal.


Lower oil price is not a valid reason: SAPP

April 5, 2016

Dateline 2016-02-13, Daily Express:

Lower gas price is not a valid reason for the cancellation of the Lahad Datu Regasification Terminal which could have helped alleviate the energy woes of Sabah’s east coast region.

Sabah Progressive Party (SAPP) President Datuk Yong Teck Lee said the project was approved in 2012 and scheduled to be completed in 2015 and by the time oil and gas prices began to fall in the middle of last year, the project would have been completed or near completion.

“In any case, why would lower gas prices affect the Regasification Terminal investment? Would not lower gas prices make it more viable for our energy producer to produce cheaper electricity?” he said in a statement here, Friday.

Yong added that lower gas prices only means that Petronas Gas makes less profits from Sabah’s oil and gas.


Improving Sabah’s edge in O&G

January 14, 2016

Dateline 2015-12-08, Daily Express:

The State Government will continue to further enhance Sabah’s position in the oil and gas industry despite the current economic challenges and decline in the global oil prices.

Sabah’s oil and gas sector is progressively growing and moving towards becoming the region’s important exploration and production centre.

“We, the government recognise the vast potential of this industry that would help accelerate the State’s social and economic development,” said Chief Minister Datuk Seri Musa Aman in his speech delivered by Deputy Chief Minister cum Industrial Development Minister Datuk Raymond Tan during the launching of the Symposium on Unlocking Oil and Gas Potentials in Sabah at Shangri-La’s Rasa Ria Resort and Spa here, Monday.

Currently, he said Sabah produces about 220,000 barrels of oil per day which is almost 40 per cent of the total national oil production of 557,000 barrels of oil per day.


Decision on gas pipeline within two months: Ongkili

September 18, 2015

Dateline 2015-08-17, NST:

A decision on the proposed gas pipeline from Tuaran to Sandakan will be made by the government in two months, said Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili.

The proposed pipeline is expected to connect to a 380Mw gas-fired power plant in Sandakan and improve power supply at Sabah’s east coast if the project is approved.

Speaking to reporters at an international energy gathering here, Ongkili said the Economic Council has approved the idea which will allow districts along the way such as Kota Belud, Kota Marudu and Beluran to tap on the gas source.