KUCHING: The Sarawak government and Petronas are working closely to develop the oil and gas industry in the state based on the commercial settlement agreement (CSA).
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the state is now exploring more opportunities in the downstream activities, thus, looking forward to more collaboration with Petronas.
“Sarawak and Petronas are doing very well based on the CSA; we are now like abang-adik (big brother-little brother).
“Since we are in a close relationship, everything must be shared; including the (development and involvement) of the six oil wells recently discovered offshore Sarawak.
“When we are willing to share, only then we can have further collaborations, especially in the downstream activities such as adding value to our feedstock,” he said.
Abang Johari was speaking at the First Gas Readiness Ceremony of the Bintulu Additional Gas Sales Facility 2 (BAGSF-2) in Tanjung Kidurong, Bintulu.
Sarawak, he said, would not want to be involved or limited in the upstream activities in the oil and gas industry only.
He said the state government was looking at diversifying its downstream products as well, instead of relying solely on liquefied natural gas (LNG).
“It is the intention of Sarawak government that – while we don’t abandon LNG, we must also explore the possibilities of other downstream products out of our gas resources,” he added.
The CSA signed between the state government and Petronas in 2020 enables Sarawak to increase its revenue from oil and gas produced in Sarawak.
It also allowed Sarawak and the local companies to have greater participation in the oil and gas industry; both in upstream and downstream activities as well as to secure adequate gas supply to support the Sarawak Gas Masterplan.
