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By Karen Bong
KUCHING, Sept 1: Sarawak will work together and collaborate with key investors, including both oil giants Petronas and Shell, to harness the potential of the six newly discovered oil fields by Petronas in Sarawak waters.
Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg emphasised that apart from Sarawak’s collaboration with Petroliam Nasional Bhd (Petronas), Sarawak also cooperates with Shell because the company has played an active role in the oil and gas industry in Sarawak since 1910.
“Shell has been an integral part of the oil and gas industry in Sarawak since 1910, and is now also managing the TIMI gas field in offshore Sarawak. Shell is also one of the contractors of Petronas, including the six newly discovered oil and gas fields announced by Petronas.
“Shell also plays a role there other than other companies. So we are open to collaborating with any interested investors keen on investing in Sarawak,” he told a press conference after chairing the Parti Pesaka Bumiputera Bersatu (PBB) Supreme Council meeting at the party’s headquarters in Jalan Bako here.
He highlighted this in responding to comments by Petronas president and chief executive officer (CEO) Tan Sri Tengku Muhammad Taufik Tengku Aziz, who affirmed Petronas’ commitment to continue working closely with Sarawak government in the development of oil and gas resources.
Muhammad Taufik had said this following Abang Johari’s invitation for Shell to become Sarawak’s partner in developing oil and gas resources, including carbon capture and storage (CCS), during his recent visit to Shell in London.
Shell has expressed their commitment to invest in Sarawak and Sabah waters, including on the new CCS technology, which is environmentally friendly and non-damaging.
Abang Johari also mentioned that although Petroleum Sarawak Berhad (Petros) is not directly involved in the discovery of the six new oil fields, there is a commercial agreement in place between Sarawak and Petronas.
This agreement stipulates that net profits derived from any oil fields within the State’s waters must be divided equally between the contractor and Petronas in accordance with the carry interest arrangement.
As previously reported by DayakDaily, the ‘carry interest’ arrangement ensures that Petronas Carigali receives a 15 per cent share of profit, which is further evenly distributed as a 50-50 split, resulting in 7.5 per cent for both Petros and Petronas, as outlined within the framework of the Commercial Settlement Agreement (CSA).
Deputy Premier Datuk Amar Douglas Uggah Embas, Works Minister Datuk Sri Alexander Nanta Linggi and Minister of Food Industry, Commodity and Regional Development Dato Sri Dr Stephen Rundi Utom were among the top PBB leaders present. — DayakDaily
