KUCHING: The commercial settlement agreement signed by the Sarawak government and Petroliam Nasional Berhad (Petronas) is timely, said Sarawak Housing and Real Estate Developers’ Association (Sheda) Kuching chairman Datuk Sim Kiang Chiok.
He said it set the path to restoring what is rightfully belonged to the state.
“With this, Sarawak will play a much bigger role in the oil and gas industry. As such, this will be good for local businesses. They will provide services to Petros and Petronas, thus creating bigger spin-offs in our economy.
“There is no more ‘tengok saja’ (see only) for Sarawakians, but time for us all to be actively involved in this industry,” he told New Sarawak Tribune today.
Sim, who is also the Sarawak United People’s Party (SUPP) Stakan branch chairman, said under the agreement, Petronas would participate in offshore activities and Petros in onshore activities for the mutual benefit of both organisations and for the best returns of the state and its people.
He also hoped it would give the state more control over its resources onshore and offshore.
“Secondly, the fruits of the oil and gas will be shared with Sarawak much more fairly apart from the five percent royalty and five percent state sales tax (SST) that Petronas must reimburse to the state government.
“Thirdly, more Sarawakians and companies can be involved in the upstream and downstream sectors of the oil and gas industry that will provide more job opportunities and businesses for them,” he said.
Sim said the gas produced in Sarawak should be reserved for the state’s own use to attract and promote more manufacturing factories to be set up here, thus, creating more foreign direct investment (FDI), jobs and business opportunities.
On the agreement that Petros would be given the authority to manage and carry out onshore petroleum operations, he said this was good as it could help infant Petros leapfrog into the established industry in the shortest period of time.
“We have much success in restoring our rights over our oil and gas resources as we have imposed our Oil Mining Ordinance (OMO) and imposed SST over the petroleum products.
“Furthermore, we have started to improve our state income that will be put to good use to build and improve our infrastructure, communications, sovereign fund so that Sarawak can be a developed state by 2030.
“All these are due to the clear, strong leadership and also the support and unity of all Sarawakians to stand firm on our rights. Therefore, Sarawak can look forward to a bright future,” he said.
