O&G: Land lease agreement signed to facilitate devt of first integrated supply base in Bintulu

Ahmadi (second right) exchanges the signed agreement documents with Hadzari (second left) witnessed by Abang Johari (third right) and others.

KUCHING, April 19: Sarawak’s oil and gas industry achieved another milestone today with the signing of the land lease agreement for the development of its first integrated supply base at the Second Inner Harbour Bintulu Port.

The supply base would cater to the needs of the oil and gas industry offshore East Malaysia, and is targeted for start of commercial operations by the fourth quarter of 2019.

The signing of the land lease agreement was witnessed by Chief Minister Datuk Patinggi Abang Johari Tun Openg this morning, between Bintulu Supply Base Sdn Bhd (BSB) chairman Ahmadi Yusoff and Bintulu Port Authority chairman Hadzari Abang.

Abang Johari in his speech said this development would provide a strong platform for a more effective and efficient logistical service for the upstream activities undertaken by the oil and gas companies on the continental shelf off the coast of Sarawak where valuable petroleum and natural gas resources are located.

“I am confident this new facility dedicated for the oil and gas industry will result in the growth of this sector and bring economic benefits to the people and contribute substantially towards the economic growth of the state.


“I welcome such investment initiatives by the private sector which compliments the state government’s drive to transform our state’s economy in order to leapfrog to new heights of sustained economic growth and prosperity,” he said.

The integrated supply base would provide a one-stop solution for the industry from exploration to development and to production needs including the provision of facilities and services to support drilling operations.

The integrated asset and facilities would be key to ensure a cost-effective and efficient solution for oil and gas players operating offshore Sarawak.

The development of the supply base would be carried out in phases, taking into account the specific requirements from the oil and gas industry. The phased development approach is based on market demand and the fit-for-purpose needs from the oil and gas players.

The supply base would operate in compliance with the industry health, safety, security and environment (HSSE) standards.

Bintulu Supply Base would be strategically located in relation to the offshore fields in the Sarawak basin. Being in closer proximity to fields offshore Sarawak enables cost efficiencies to be attained by oil and gas players from costs savings due to shorter travel time from offshore to onshore.

Ahmadi (third left) presents a memento to Abang Johari (third right).

According to Ahmadi, the supply base was in line with Petronas’ initiatives to achieve cost efficiency and operations effectiveness, especially for players in Sarawak waters.

“We envision that through the supply base development and upcoming operations, it will be the hub to further enhance economic development and local capabilities in Bintulu and Sarawak,” he said.

Hadzari meanwhile said with the new impetus to Sarawak’s oil and gas industry, the setting up of a local supply base in Sarawak was timely.

“The Bintulu Supply Base is a strategic asset and infrastructure that will support the growth of Sarawak’s oil and gas industry.

“The added facilities to Bintulu Port will have a positive impact on the local economy through growth in supporting businesses, greater capacity-building in terms of job opportunities and increased skilled labour in oil and gas,” he said.

The setting up of BSB is a smart partnership between the state government and the private sector namely Yayasan Sarawak and Sarawak-owned OBYU Holdings Sdn Bhd and Kris Sakti Petroleum Sdn Bhd. — DayakDaily