Chief Minister Datuk Patinggi Abang Johari Tun Openg is optimistic that the oil and gas (O&G) industry in the state, particularly Miri as the O&G hub, will thrive and help boost the state’s economy.
In referring to the setting up of a new office by a Japanese company JX Nippon Oil and Gas Exploration (Malaysia) in Miri recently, Abang Johari said that it is a good sign as it shows that the oil and gas industry players are slowly coming back to Miri.
Petronas has claimed that some parts of the state Sales Tax Ordinance 1998 which require the national oil company to pay the 5% sales tax on petroleum products to Sarawak are “unconstitutional”.
Therefore, the notice of assessment issued by the Sarawak government to Petronas, seeking payment of the state sales tax on petroleum products, was also considered to be invalid, said Petronas lawyer Malik Imtiaz Sarwar.
Since national oil company Petronas began extracting oil and gas in Sarawak from 1976 to 2017, it had earned a total revenue of about RM660 billion, but only RM33 billion was returned to Sarawak, said Datuk Sharifah Hasidah Sayeed Aman Ghazali.
The state de facto law minister said if Sarawak were to have a hand in its own oil and gas resources since then, it would have been in a better economic position now to attain a high income economy and develop the state by the year 2030.
Petronas today failed in its attempt to disqualify Judicial Commissioner Christopher Chin from hearing the case over Sarawak’s suit for unpaid state sales tax.
Petronas had earlier applied for Chin to discharge himself from hearing the case.
The national oil company claimed that Chin would decide the case to favour the prime minister as his tenure as a judicial commissioner was temporary and was subject to confirmation by the prime minister, who is also the person with ultimate control over Petronas.
Chin, however, said that during his nine months on the bench, he had never been instructed, hinted or urged by his “bosses” — the chief judge of Sabah and Sarawak, the chief justice, or any judge or person for that matter — on how he should decide any dispute.
Ba’Kelalan state assemblyman Baru Bian today expressed his concern at the latest report of a fourth leakage along the Petronas Sabah Sarawak Gas Pipeline (SSGP) which occurred between Long Kawa and Ba Selulung in Mulu, Baram yesterday evening.
“I am also equally relieved that no one was hurt in this major incident,” the federal works minister said.
He said he was informed that SSGP Block Valve 112 was shut down about 2am at dawn this morning, as pressure dropped at both upstream and downstream Block Valve 112, indicating pipeline leakage and rupture.
The state government has issued a permit to state-owned Petroleum Sarawak Berhad (Petros) to undertake oil and gas exploration on-shore in the Miri and Limbang Divisions, Chief Minister Datuk Patinggi Abang Johari Openg said today.
He said the permit was issued in accordance with the Sarawak Land Code and the Federal Constitution.
“Oil and gas resources belong to Sarawak. It is our right to explore these resources,” he said at the launch of the “Sarawakku Sayang” programme here.
JX Nippon Oil & Gas Exploration Corporation’s subsidiary, JX Nippon Oil & Gas Exploration (Malaysia) Limited, the Operator of Block SK10 offshore Sarawak, Malaysia together with PETRONAS Carigali Sdn Bhd, commenced commercial oil production from Layang Field on 3 December 2019.
Layang Field (“Layang”), in addition to its natural gas production since May 2017, commenced oil production by using a Floating Production, Storage and Offloading System (FPSO) named “FPSO Helang”.