RM1 bln Sirung EPC project signals Sarawak’s push to harness resource wealth for future economy

Abang Johari (centre) witnessing the exchange of documents between Brooke Holding represented by Wan Lizozman (right) and PTTEP by Chaisomboonpan (left) after the Provision of EPC for Sirung Production Planform contract signing ceremony at a hotel in Kuching on May 26, 2026. Photo credit: JaPEN Sarawak
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By Karen Bong

KUCHING, May 26: The nearly RM1 billion Sirung Engineering, Procurement and Construction (EPC) Project stands as a symbol of Sarawak’s economic direction towards asserting a “stronger, wiser, and more valuable” role in developing the State’s resource wealth to finance tomorrow’s economy.

Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg emphasised that the benefits of projects such as Sirung should not only be viewed through petroleum economics but through tangible improvements to people’s lives, including villages connected, students supported, services improved, and opportunities created.

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“Today is indeed a proud day for Sarawak. This ceremony is not merely about the signing of an EPC contract. It represents something much larger and far more significant,” he said before witnessing the contract signing ceremony for the Provision of Engineering, Procurement and Construction (EPC) for the Sirung Production Platform between Brooke Holding Sdn Bhd and PTTEP Sarawak Oil Limited at a hotel here today.

He also expressed satisfaction over Brooke Holding’s significant role in the project, saying Sarawak’s development agenda must build Sarawakian capability and not merely position the State as a resource base.

“We want our own companies to grow in competence, confidence, and credibility,” he said, adding that success in the offshore oil and gas sector could only come through discipline, professionalism, technical capability, and continuous improvement.

The Premier said he hoped Brooke Holding would continue to grow into a company capable of competing internationally and becoming a source of pride for Sarawak.

At the same time, he welcomed the involvement of Affin Bank in supporting projects of such scale, noting that Sarawak now holds strategic interest in the financial institution.

“This reflects the kind of ecosystem we want to build where Sarawak’s industrial development is supported not only by engineering capability, but also by financial institutions linked to Sarawak’s long-term economic interests,” he said.

Abang Joharu (centre) together with distinguished guests at the contract signing ceremony for the Provision of EPC for Sirung Production Platform at a hotel in Kuching on May 26, 2026.

Abang Johari said Sirung forms part of Sarawak’s wider economic movement as the State simultaneously advances into strategic sectors such as the hydrogen economy, renewable energy, downstream industries, digital infrastructure, advanced manufacturing, sustainable growth platforms, as well as semiconductor and aerospace technology.

“Our strategy is not about choosing one sector over another. Our strategy is to build from our strengths, capture value wisely, and use today’s resource wealth to finance tomorrow’s economy,” he said.

He also reiterated Sarawak’s commitment to strategic partnerships with credible international investors such as PTTEP, while maintaining a firm policy direction that investment must coexist with fair value capture, local participation, and long-term benefits for the State.

“The project reflected how Sarawak develops its resources, strengthens its economy, and translates the wealth generated from its natural endowment into meaningful value for the people,” he added.

Abang Johari noted that PTTEP had publicly announced the broader Sirung-Chenda development is targeted for first production in 2028, with a combined production capacity of approximately 15,000 barrels per day.

He stressed that Sarawak’s energy future must not only remain productive but also environmentally responsible, efficient, and aligned with low-carbon aspirations amid an increasingly uncertain global energy market.

“The responsible development of our gas resources is not merely an industrial opportunity. It is also a strategic source of fiscal strength, economic resilience, and long-term value for the State and its people,” he said.

According to him, continued development in the oil and gas sector would enable Sarawak to generate stronger revenue in the years ahead, which in turn would strengthen the State’s capacity to invest in roads, bridges, water supply systems, electricity infrastructure, schools, clinics, digital connectivity, and social assistance programmes.

“It means development can reach deeper into rural Sarawak. It means we can continue strengthening education, healthcare, and public service delivery with greater confidence and continuity,” he added.

Meanwhile, the Sirung Production Platform project is Brooke Holding’s largest project ever by contract value at nearly RM1 billion and its heaviest single-project fabrication load by tonnage, with both its Demak and Sejingkat yards expected to operate at almost full capacity.

The contract was awarded to Brooke Holding by PTTEP Sarawak Oil Limited on Feb 5, 2026, with expected completion scheduled for February 2028.

The Sirung Field Development is located approximately 140 kilometres from the Malaysia Liquefied Natural Gas (MLNG) complex in Bintulu and will support oil and gas production for Offshore Block SK405B in water depths of about 40 to 50 metres.

The project comprises approximately 8,500 metric tonnes of topside components and substructure works. Its scope includes engineering, procurement and construction of the production platform, as well as engineering and procurement for brownfield host tie-in works.

The project also represents the largest topsides and substructures scope ever undertaken by Brooke Holding, with execution involving its fabrication yard at Demak Laut for the jacket structure and its Sejingkat yard for the topside works.

Minister of Utility and Telecommunication Dato Sri Julaihi Narawi, Deouty Minister of Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni, State Finance Secretary and Brooke Holding chairman Dato Sri Dr Wan Lizozman Wan Omar, PTTEP Sarawak Oil Limited country manager Vitoon Chaisomboonpan, Malaysia Petroleum Management (MPM) Resource Development and Management senior general manager Nurrunnajwa Mohd Aras, Mitsui Oil Exploration Co. (MOECO) chief executive officer Hidenori Harada and PETRONAS Carigali Sdn Bhd Joint Venture Malaysia general manager Tengku Norina Tg Nasaruddin were among the distinguished guests present. — DayakDaily

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