Adenan and Manyin (right) applaud as Abang Abdul Karim unveils a model of Murphy Oil platform after the contract was signed. — Photo by Tan Song Wei
KUCHING: Chief Minister Datuk Patinggi Tan Sri Adenan Satem said the government will thoroughly study the proposal for the privatisation of Brooke Dockyard and Engineering Works Corporation before coming to a decision.
He observed that the state-owned corporation had made good progress since moving away from shipbuilding and maintenance to join the oil and gas industry in 1996.
Brooke Dockyard was able to maintain a clean and concrete record, the move seen as a major decision that benefitted the company. Adenan agreed that Brooke Dockyard had room for expansion in marine engineering and as a service provider that specialised in various aspects of the oil and gas industry.
Describing the corporation as ‘the pride of Sarawak’, he hoped it could maintain its progress and strong track record in the years to come.
“The state will favourably consider the corporatisation request of Brooke Dockyard. I want to study the papers to know the advantages that can be achieved.
“However, we still insist on government control as after all it was the government that started it. The people know that Brooke Dockyard is the oldest corporate body in Sarawak,” Adenan said when officiating at a contract signing ceremony between Brooke Dockyard and Murphy Sarawak Oil Co Ltd at Hilton Hotel here yesterday.
Present at the ceremony were Infrastructure Development and Communication Minister Dato Sri Michael Manyin, minister-in-charge of Brooke Dockyard, its chairman Datuk Abang Abdul Karim Tun Openg, Murphy Oil (Malaysia) vice-president Harry Howard and Murphy Oil (Sarawak) general manager Benjamin Choo.
The contract valued at RM149 million was awarded to Brooke Dockyard with the scope of work covering detailed engineering, procurement, construction and commissioning (EPCC) of South Acis Satellite (SA-SA) Topside for Murphy Sarawak in Block SK309/311, located offshore Bintulu.
There have been media reports over the years singling out state-owned Brooke Dockyard as a potential takeover, several parties having shown interest.
The privatisation of the marine-engineering entity will enable expansion to undertake bigger jobs.
Throughout the years, the company has completed and load-out 19 offshore modules, 14 offshore substructures and four offshore living quarters with a total 34,697 metric tonnes for clients such as Petronas Carigali Sdn Bhd, Sarawak Shell Bhd, Sabah Shell Petroleum Corporation, Talisman Energy Ltd, Exxon Mobil Exploration and Production Ltd in addition to Murphy Oil.
Brooke Dockyard was founded by the third White Rajah Sir Charles Vyner Brooke in 1912 to repair his fleet of boats.
Adenan who witnessed the contract signing revealed that the state’s negotiation with Petronas to increase its oil and gas royalty to 20 per cent from five per cent was ongoing.
The chief minister is adamant for Sarawak companies to participate fully in the development of the oil and gas industry.
Earlier discussions had resulted in Petronas awarding RM2.1 billion worth of contracts to Sarawak companies with the number of participants doubled.
The event also saw an exchange of the memorandum of understanding (MoU) between Brooke Dockyard with Perunding Ranhill Worley and MEO Australia Pte Limited, represented by their respective CEOs Roni Adrian and Peter Strickland.