Abang Johari praises Sarawak Shell Berhad for contribution to state’s development

Shell Malaysia chairman Lo (right) presenting a memento to Abang Johari after the cake cutting ceremony in commemorating the Shell's E6 field development achievement in producing the one million barrels of oil on August 20, 2019.

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By Brad Rantayy

MIRI, Sept 4: Chief Minister Datuk Patinggi Abang Johari Tun Openg lauded Sarawak Shell Berhad (SSB) for its contribution towards the state’s economic growth since the company started operating here 100 years ago.

“SSB has proven its expertise in the oil and gas industry, demonstrating commitment to the state via collaboration with its partners and stakeholders, creating job opportunites for the people of Sarawak,” he said.

Abang Johari said this at the SSB dinner gathering to commemorate its first oil production from the E6 field development, and for achieving one million barrels of oil on August 20, at a leading hotel here on Tuesday night.

“Thank you for being our number one citizen to Sarawak, for not only creating job opportunities but also income for the state,” he said.

He added, for the last 100 years, SSB has contributed much to Sarawak.

Therefore, Abang Johari would like other oil and gas players to do the same or give more than what SSB has given Sarawak.

“I encourage the rest of the corporate entities to follow SSB’s footsteps, to do more for our state’s development,” he said.

On SSB’s suceess in producing one million barrels of oil on August 20, Abang Jo said, it reflected the company’s prudent stance in evaluating their projects.

The E6 project comprises the drilling of three 6,000-feet-long horizontal wells which is considered challenging as the length of each well is equivalent to 2km.

The drilling uses a state-of-the-art smart completion that helps to maximise oil production from the entire well.

“God is great, giving Sarawak the resource (crude oil) for oil companies such as SSB to explore, using new technology and new appraoches for exploration,” Abang Johari said.

Abang Johari (font, standing third from right) flanked by Masing on his left and Shell Malaysia chairman together with other guests at the event.

He added, the Sarawak government is observing the change.

“The oil and gas drilling sector is one of the crucial parts of Sarawak’s economy, be it in the long- or short-term, and whatever resources we have, Sarawakians must participate in the process,” he emphasised.

He also noted the Oil Mining Ordinance (OMO)v1958 allowed the government of Sarawak to regulate upstream petroleum activity.

“We do not want to make it hard; (do your) fair share, and don’t worry about that five per cent tax on petroleum products. With that money, we will be able to develop our state,” he said.

The sales tax imposed on petroleum products is expected to generate RM3.897 billion as a new source of state revenue to support Sarawak’s development agenda.

Also present at the dinner gathering were Deputy Chief Minister Tan Sri Dr James Jemut Masing who is also Minister of Infrastruture and Ports Development, Transport Minister Datuk Lee Kim Shin, Assistant Minister of Education, Science and Technological Research (MESTR) Dr Annuar Rapaee, State Secretary Datu Jaul Samion, Sarawak Legislative Assembly Deputy Speaker Datuk Gerawat Gala, Shell Malaysia chairman Datuk Iain Lo, Lambir assemblyman Ripin Lamat, Pujut assemblyman Dr Ting Tiong Choon, and Brooke Dockyard and Engineering Works Corporation (BDEWC) chairman Datuk Abang Abdul Karim Tun Openg.

Representatives from Petronas Malaysia Petroleum Management, Petronas Carigali, Sapura Offshore, Transfame and Dayang Enterprise Sdn Bhd,and Velesto Energy Berhad were also present. — DayakDaily