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By Shikin Louis
KUALA LUMPUR, June 27: The whole world should follow the exemplary synergy between Petroliam Nasional Berhad (Petronas) and Petroleum Sarawak Berhad (Petros) in developing the oil and gas industry.
Deputy Sarawak Secretary Datu Dr Muhammad Abdullah Zaidel noted Sarawak’s oil and gas industry started in 1958 and today, it contributes almost 60 per cent of Malaysia’s total oil and gas production.
Back then, due to sentiment on the ground describing Sarawak as bystanders as Petronas exploits its oil and gas resources, the Sarawak government then set up its own oil and gas company — Petros.
“We thank God that Malaysians being Malaysians, we are united in a sense that we (Petronas and Sarawak government) sat down, discuss and we found the best way to move forward and not argue and waste time.
“So the teaming up between Petros and Petronas through our Commercial Settlement Agreement (CSA) is very important where Petronas recognised the fact that Sarawak has a role to play in oil and gas development.
“So the way I look at it is that being rational is the answer, instead of being emotional. When you are rational, you can solve problems better than when you are being emotional or when you start to think outside the box,” he said when speaking at the Energy Asia 2023 conference at Kuala Lumpur Convention Centre here yesterday (June 26).
Muhammad Abdullah further said that he does not see that the development of Sarawak’s own oil and gas company as disrupting the industry and in fact, Petros has added value to the industry.
“When Petronas decided to allocate a certain number of natural gas (sic) to our State government, for example 450 MMcf/d (million cubic feet per day), Petronas is actually giving the Sarawak government a special preferential rate for us to develop our petrochemical industry where we are setting up one of the biggest mega methanol production (plants) in Bintulu which should be up and running next year.
“This means Petronas supplies the gas (while) the Sarawak government entity builds up the facilities. This becomes a synergy, rather than making a big fuss or quarrel about it.
“This should be the example where the rest of the world should follow—rather than showing their might, that one (nation) is stronger than the other (nations); and this wouldn’t solve the problem,” he added.
Abdullah was one of the speakers at a parallel session titled ‘Asia’s Opportunity: Building New Alliances’ moderated by S&P Global Commodity Insights’ director of Upstream Transformation, Rachel Calvert.
The other speakers were special advisor to the Cabinet of Japan Government-cum-board chairman of Japan Bank for International Cooperation, Tadashi Maeda; SCG president and chief executive officer Roongrote Rangsiyopash; and Xcoal Energy and Resources founder and chief executive officer Ernie L. Thrasher. — DayakDaily
