Petronas is confident that its multi-billion ringgit key projects planned for Sabah will provide tremendous opportunities for present and future generations of Sabahans.
General manager of Petronas Sabah and Labuan Regional office, Joseph Podtung, said these projects will transform the landscape of Sabah’s oil and gas industry into a vibrant oil and gas centre in the region.
“These mega projects will cost billions and will not only boost Sabah’s oil and gas industry but also generate employment and spin-off opportunities for all the rakyat to enjoy,” he said.
Podtung however said Petronas’ mega projects in Sabah are not just about providing opportunities but also require the readiness of the local industry to fully grab them.
“Capacity and capability require time to develop, and it is worth noting that the expected benefits and spin-offs will only materialise in the long term.
“Based on Petronas' experience in Kerteh and Bintulu, it took decades for these places to be what they are today,” he said.
Podtung was presenting an overview of Petronas' activities in Sabah at the two-day Sabah Oil and Gas Industries forum, organised by the Sabah Oil and Gas Contractors Association (SOGCA) here today.
He said Petronas’ efforts in developing Sabah’s oil and gas resources have generated substantial revenues, allowing the national petroleum company to pay the state petroleum royalty totalling RM6.8 billion since 1976, while its total investment to date was RM63 billion.
“Our ongoing exploration and development activities in the state have resulted in steadily growing production of oil and gas, contributing to a steady increase in petroleum royalty paid to Sabah.
“All these royalty payments contribute significantly to the state’s fiscal revenue, which in turn will benefit the rakyat,” he said.
On Petronas' key projects in Sabah, Podtung said the Sabah-Sarawak Integrated Oil and Gas Projects (SSIOGP) will be the cornerstone of an integrated oil and gas master plan for Sabah.
He said the SSIOGP comprises the development of oil and fields offshore Sabah, an onshore oil and gas receiving, storage, processing and export terminal or Sabah Oil and Gas Terminal (SOGT) in Kimanis, and the Sabah-Sarawak Gas Pipeline (SSGP).
“The three upstream projects, Gumusut-Kakap, Kebabangan Cluster and Kinabalu NAG, will collectively require Petronas and its partners to invest around RM28 billion.
“Once complete, these projects will contribute 125 kbpd oil and 750 mmscfd of natural gas to Sabah’s total oil and gas production,” he said, adding gas production is relatively small and challenging to commercially monetise given the resources are scattered and require significant development costs.
“As such, it is critical to secure the highest prices possible for this gas to ensure we are able to maximise the value and royalty (payment) to the state.
“Because of that, SOGT and SSGP are critical enablers to ensure that oil and gas are monetised on a commercially viable basis,” he said.
Podtung said Petronas' plan to build a RM4.6 billion Ammonia-Urea plant in Sipitang (SAMUR) will definitely provide tremendous spin-off opportunities for the local down-stream small-and-medium industries and enterprises (SMIs/SMEs).
“Fertilisers from this facility will be exported to lucrative overseas markets, but a sizeable volume will still be made available to serve the state’s rapidly growing agricultural sector.
“Ammonia can also be used for various end applications such as textiles, melamine and adhesives, creating opportunities for enterprising Sabahans to venture into these businesses.
“This in turn will create more jobs and spur greater economic activity,” he said. -- Bernama
General manager of Petronas Sabah and Labuan Regional office, Joseph Podtung, said these projects will transform the landscape of Sabah’s oil and gas industry into a vibrant oil and gas centre in the region.
“These mega projects will cost billions and will not only boost Sabah’s oil and gas industry but also generate employment and spin-off opportunities for all the rakyat to enjoy,” he said.
Podtung however said Petronas’ mega projects in Sabah are not just about providing opportunities but also require the readiness of the local industry to fully grab them.
“Capacity and capability require time to develop, and it is worth noting that the expected benefits and spin-offs will only materialise in the long term.
“Based on Petronas' experience in Kerteh and Bintulu, it took decades for these places to be what they are today,” he said.
Podtung was presenting an overview of Petronas' activities in Sabah at the two-day Sabah Oil and Gas Industries forum, organised by the Sabah Oil and Gas Contractors Association (SOGCA) here today.
He said Petronas’ efforts in developing Sabah’s oil and gas resources have generated substantial revenues, allowing the national petroleum company to pay the state petroleum royalty totalling RM6.8 billion since 1976, while its total investment to date was RM63 billion.
“Our ongoing exploration and development activities in the state have resulted in steadily growing production of oil and gas, contributing to a steady increase in petroleum royalty paid to Sabah.
“All these royalty payments contribute significantly to the state’s fiscal revenue, which in turn will benefit the rakyat,” he said.
On Petronas' key projects in Sabah, Podtung said the Sabah-Sarawak Integrated Oil and Gas Projects (SSIOGP) will be the cornerstone of an integrated oil and gas master plan for Sabah.
He said the SSIOGP comprises the development of oil and fields offshore Sabah, an onshore oil and gas receiving, storage, processing and export terminal or Sabah Oil and Gas Terminal (SOGT) in Kimanis, and the Sabah-Sarawak Gas Pipeline (SSGP).
“The three upstream projects, Gumusut-Kakap, Kebabangan Cluster and Kinabalu NAG, will collectively require Petronas and its partners to invest around RM28 billion.
“Once complete, these projects will contribute 125 kbpd oil and 750 mmscfd of natural gas to Sabah’s total oil and gas production,” he said, adding gas production is relatively small and challenging to commercially monetise given the resources are scattered and require significant development costs.
“As such, it is critical to secure the highest prices possible for this gas to ensure we are able to maximise the value and royalty (payment) to the state.
“Because of that, SOGT and SSGP are critical enablers to ensure that oil and gas are monetised on a commercially viable basis,” he said.
Podtung said Petronas' plan to build a RM4.6 billion Ammonia-Urea plant in Sipitang (SAMUR) will definitely provide tremendous spin-off opportunities for the local down-stream small-and-medium industries and enterprises (SMIs/SMEs).
“Fertilisers from this facility will be exported to lucrative overseas markets, but a sizeable volume will still be made available to serve the state’s rapidly growing agricultural sector.
“Ammonia can also be used for various end applications such as textiles, melamine and adhesives, creating opportunities for enterprising Sabahans to venture into these businesses.
“This in turn will create more jobs and spur greater economic activity,” he said. -- Bernama
