Oil & gas to play major role in Sabah's development
By Emin Madi
KINABALU, Aug 18 (Bernama) -- A prominent Sabahan familiar with the oil
and gas industry says the oil and gas sector is poised to play a major
role in the future development of Sabah.
Dr Johan Arriffin A. Samad, Yayasan Sabah Group deputy director said
the sector would not only attract significant investments but also
provide excellent career development for Sabahans and generate enormous
wealth for the State.
oil and gas sector has a major role to play as the state economy
develops over the next several years and well into the future," said
Johan, who worked with Exxon Mobile for 18 years before joining Yayasan
is poised to grow at a rapid pace given the RM16 billion ($5.1 billion)
investment in several major projects, including the Sabah Sarawak Oil
and Gas pipeline project, Sabah Oil Gas Terminal (SOGT, Ammonia and
Urea Plant (Project SAMUR and the Kimanis Gas Fired Power Plant," he
who is also executive chairman of Petrosab Logistik, a Yayasan Sabah
investment arm for oil and gas business, said there are also
substantial opportunities for oil and gas to further downstream
recently announced major plans to develop long-term key projects to
monetise and add value to Sabah's petroleum resources, which will
result in greater revenue to the state.
discoveries of oil and gas resources in offshore Sabah, Petronas is
forging ahead with its upstream and downstream oil and gas projects
involving a combined capital investment of RM45 billion.
to Petronas' plan is the Sabah-Sarawak Integrated Oil and Gas Project
(SSIOGP), which comprises the upstream development of oil and gas
fields offshore Sabah and downstream development of the Sabah Oil and
Gas Terminal (SOGT) and the Sabah-Sarawak Gas Pipeline ((SSGP).
said the SOGT, being developed at RM3.8 billion, is designed to receive
a total of 260,000 barrels per day of crude oil and a total of 1,250
million standard cubic feet per day of gas from offshore.
said crude oil from the terminal will be exported while the gas will be
supplied to domestic consumers in Sabah and, via the SSGP, to the
Petronas LNG Complex in Bintulu, Sarawak.
Petronas project whose gas feedstock will be supplied by the SOGT is
the RM1.5 billion 300MW gas-fired Kimanis Power Plant being jointly
developed in Kimanis by Petronas Gas Berhad in partnership with Yayasan
Sabah through NRG Consortium (Sabah) Sdn Bhd.
Petrosab Logistik, of which Johan is its executive chairman, represents Yayasan Sabah's interest in the NRG Consortium.
started its oil and gas business in 2005 by providing services to Shell
Petroleum Sdn Bhd as its logistics centre in Usukan, Kota Belud.
further enhance Sabah's electricity supply security, Petronas also
plans to set up a liquefied natural gas (LNG) re-gasification terminal
in Lahad Datu, to feed natural gas to the proposed new 300MW Lahad Datu
to Petronas, its total investment in Sabah since 1975 was RM61 billion,
while the total amount of royalty paid to Sabah (until 2010) was RM6.8
said, the oil and gas industry in Sabah is relatively young compared to
that of Sarawak, nevertheless it has to be developed along a planned
approach, drawing the experiences of Kertih, Terengganu and Bintulu.
said one of the main challenges in managing the development of the oil
and gas industry in Sabah was the lack of infrastructure support for
the orderly development of the sector.
"We need to invest further in the right infrastructure support to attract more oil and gas investors to Sabah.
has already allocated gas for Sabah's industrial development and it is
now up to us to make sure that the gas is utilised for industries which
will bring long-term economic benefits and jobs to Sabah," he said.
who sits as a Board Member of the Kimanis Power Plant, acknowledged
that Sabah needs to train more skilled manpower to meet the requirement
of the new industries, including investing more in the right training
this regard, PLSB, through its subsidiary, Kimanis Operation and
Maintenance Sdn Bhd, is hoping to recruit 60 Sabahans to become
technicians and naturally become the main operator for the Kimanis
fact, we have already sent the first batch of 13 students to undergo
training at Kerteh, Terengganu, and we're in the process of selecting
the next group," he said, adding that the programme was supported by
is also planning to build a permanent petroleum training centre in
Kimanis, expected to be ready by 2013, at a cost of RM50 million.
new campus will replace the present Kimanis Petroleum Training Centre
(KTC), which is operating from a temporary premise in Membakut, where
25 trainees are currently undergoing training.
said since the oil and gas business is not an ordinary job, especially
in off-shore projects, local contractors must team up with established
players with the right technology and experience.
"For a successful industry to develop, we need to establish closer ties with Petronas and the oil majors.
must nurture local oil and gas contractors and service providers with
the right experience and technological know-how," he said.
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