By DayakDaily Team
KUCHING, July 23: The resumption of onshore oil production by State-owned Petroleum Sarawak Berhad (PETROS) marks another significant milestone in Sarawak’s journey towards greater economic prosperity, self-reliance and potential revenue growth, said Sarawak Housing and Real Estate Developers’ Association (Sheda) advisor Dato Sim Kiang Chiok.
Sim warmly welcomed the historic announcement by Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg that PETROS had successfully resumed onshore oil production from the Adong Kechil West (AKW) field after a 50-year hiatus, describing it as “one of the best gifts” for Sarawakians as the State celebrates Sarawak Day 2026.
He said the achievement demonstrated Sarawak’s growing capability to participate directly in the upstream oil and gas industry while strengthening PETROS’ role in capturing greater value from the State’s natural resources.
“The fact that this production is undertaken by PETROS is itself a major milestone. It shows Sarawak’s increasing capability to participate directly in the upstream oil and gas sector and creates opportunities to reinvest in exploration, downstream industries, infrastructure and strategic development initiatives that will benefit all Sarawakians,” he said in a statement today.
The AKW field’s current production of about 800 barrels per day is expected to yield approximately 24,000 barrels monthly, or around 288,000 barrels annually.
Based on an estimated average crude oil price of US$70 per barrel and an exchange rate of RM4 to US$1, Sim said the annual gross production value from a single producing well could reach about RM80 million, with the economic contribution expected to increase as more wells come online.
“More wells are expected to come on stream, and this will significantly increase the economic contribution and revenue potential for Sarawak in the years ahead,” he said.
Sim also highlighted the importance of ensuring Sarawak’s oil and gas resources are processed and value-added within the state instead of being exported as raw resources.
He said the direction outlined by the Premier through the Sarawak Gas Roadmap would help drive the development of high-value industries such as petrochemicals, methanol, ammonia, blue hydrogen, fertilisers and specialty chemicals.
“These industries will attract high-value investments, create high-paying jobs and provide greater business opportunities for Sarawakians,” he said.
Sim said maximising the value of Sarawak’s natural resources would allow the State to strengthen its economic base, develop local expertise and position itself as a leading energy and industrial hub in the region.
He added that the PETROS milestone complemented other transformative initiatives under the Post COVID-19 Development Strategy (PCDS) 2030, including renewable energy, hydrogen development, the digital economy, modern infrastructure and industrial growth.
“By adding value to our own natural resources, we can maximise economic returns, develop local expertise and position Sarawak as a leading energy and industrial hub in the region,” he said.
Sim congratulated the Premier, PETROS and all parties involved in achieving the historic milestone, saying it represented another important step towards building a prosperous, resilient and high-income Sarawak for future generations. — DayakDaily
