State Govt to Set Up Oil Company for Offshore O&G Exploration
KUALA LUMPUR: The Sarawak government is planning to establish a state-owned offshore oil and gas (O&G) exploration company in order to participate in the industry.
Chief Minister Datuk Amar Abang Johari Tun Openg said the plan was discussed with national oil corporation Petronas, which was very receptive to the idea of the state-owned company partaking in upstream and downstream O&G exploration activities.
“I had discussions with Petronas – we are adopting a new approach.
“Sarawak will participate in both upstream and downstream oil and gas activities.
“In the upstream sector, this will be Sarawak’s maiden venture; as such, we need to set up a state-owned company in order to join Petronas in oil and gas exploration in the South China Sea.
“We will establish our company first.
“We will join Petronas to work out a deal with petroleum arrangement contractors,” he told reporters here on Saturday night after breaking fast with Sarawakians studying and working in Peninsular Malaysia.
Abang Johari said the Sarawak-based, 100-per cent state-owned company would have its own entity.
The chief minister also said in the past, O&G companies from Sarawak were only involved in downstream activities in Bintulu, with estimated investments of US$2 billion. — Bernama