Shell Malaysia to build largest upstream O&G lab in Sarawak


MIRI: Shell Malaysia is constructing the largest upstream oil and gas laboratory in Lutong to efficiently deliver the demands for their deepwater exploration and production activities in Malaysia.

The laboratory costs over RM8 million and is set to be one of the largest in Malaysia. It is scheduled for completion by end of 2016 and will be equipped with sophisticated modern facilities, including high-tech analytical instruments to meet the expanding analytical capability required by Shell’s existing and future projects.

Sarawak Shell Bhd general manager Chok Chee Tsong said the new building would showcase the company’s commitment in continuing to invest in the oil and gas (O&G) industry in the state and in Malaysia.

“It will be built according to the industry’s best practices for lab design, housing state-of-the-art facilities including high-tech analytical instruments and will have the capability of analysing more than 50 analytical parameters for the purpose of sample investigation, sales product quality control, production optimisation, well construction and legislative reporting,” Chok said.

He said this at the building’s ground-breaking ceremony officiated at by Assistant Minister in the Chief Minister’s Office (Promotion of Technical Education) Datuk Len Talif.

Chok added that services provided would also support the operation and projects of its partners, including Petronas Carigali and other oil and gas players.

“It too will enable us to support local community laboratory service requests, such as testing contaminated water source and oil spill, and enable us to provide trainings in chemistry and chemical handling to staff and contractors.”

Chok said the project would provide more job opportunities for the local community in the construction, landscaping, maintenance, commissioning and other areas of the project.

Len meanwhile applauded Shell for its continuous commitment in skills training and other capacity development programmes.

“Shell’s commitment in expanding its capacity development programme is well known and commendable. This RM8 million-building and its content that will cost more than the cost of the building itself is one clear example.

“It is important that the private sector continues to invest in developing skill capacity among the local people to achieve our national aspirations.”

He added that the oil, gas and energy industry had been identified as one of the 12 National Key Economics Areas (NKEA) under the Economic Transformation Programme (ETP).

According to Len the industry’s NKEA targets to achieve an annual growth of five per cent between 2010 and 2020 adding that NKEA was expected to deliver RM131.4 billion Gross National Index (GNI) impact and consequently, create an additional 52,300 jobs in the sector.

Under the ETP, the government aspires to develop Malaysia into a leading oil and gas service hub in Asia, grow Malaysia’s role in oil storage, logistics and trading and import LNG to serve latent gas demand and attract new gas-based industries.

Deputy Residents Abdul Aziz Mohd Yusuf and Imang Oyo Imang, deputy mayor of Miri City Council Mohd Chee Kadir and senior manager (government relations) of Shell companies in Malaysia Jonathan Jolly were among those present at the function.