Petroleum Sarawak Berhad (Petros) will focus on further downstream operations to create and realise greater value in the oil and gas industry, says Tan Sri Datuk Amar Hamid Bugo.

The Petros Board of Directors chairman said at the same time, this is to open up opportunities for players, especially locals in the industry.

“Moving forward, our focus should be to make oil and gas as an engine of growth for the economic and social development of Sarawak at least, to realise and create more employment,” he said at Petros’ fifth anniversary celebration which was officiated by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg at Borneo Convention Centre Kuching (BCCK) here last night.

He pointed out that there is a school of thought that with the focus on climate change and of energy transition, the oil and gas industry needed to be phased out.

“That may be so but considering the current geopolitical turmoil which is likely to last a lot longer than just a few years, this industry remains important and significant, and that is an opportunity we should not miss.

“Having said that, Petros will exercise caution and will review and revise our business plans regularly to ensure that we don’t lose sight of reality and the constantly changing economic and geopolitical environment,” he said.

Hamid said since the formation of Petros, the state-owned oil and gas company has evolved into an integrated player throughout the oil and natural gas value chain.

“From our very first venture into domestic gas involving the acquisition and handover of domestic gas assets of Petronas Gas Berhad and Sarawak Gas Distribution Sdn Bhd (Miri and Bintulu pipeline) on Jan 1, 2020; we have gone to signing of the Production Sharing Contract (PSC) and Joint-Operating Agreement (JOA) between Petros and Petronas; and then our signing of Kumang Cluster PSC and JOA between Petronas Carigali Sdn Bhd and Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP), a wholly-owned subsidiary of Petros,” he said.

He announced that Petros is currently in the midst of entering into a Joint Collaboration Agreement with Petronas to explore the potential of developing commercially viable carbon capture utilisation and storage (CCUS) opportunities in Sarawak.

He said apart from that, Petros had also signed a petroleum contract with Petronas to acquire 45 per cent equity in Block SK407, which is located offshore Miri.

“This is a pivotal step for us to increase Sarawak’s access to adequate hydrocarbon resources to enable and propel the realisation of the Miri Hub Development.”

He also said that Petros had executed a Heads of Agreement with Petronas for the sales and purchase of gas, sourced from offshore Sarawak, for a planned 40 megawatt power plant in Miri, an upcoming Petros operated venture with Sarawak Energy Berhad as a partner and customer.

Also present were Deputy Premiers Datuk Amar Douglas Uggah Embas and Dato Sri Dr Sim Kui Hian, Utility and Telecommunication Minister Datuk Julaihi Narawi, Petros group chief executive officer Janin Girie, Petronas chairman Tan Sri Mohd Bakke Salleh, and Petronas executive vice president and chief executive officer of upstream Datuk Adif Zulkifli.

Source:
courtesy of THE BORNEO POST

by MARILYN TEN

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