Saturday, August 13

BPA, Bintulu Supply Base sign land lease agreement


Abang Johari (centre) together with other distinguished guests witnessing the exchange of documents between Ahmadi (left) and Zulkurnain. – Photo by Muhammad Rais Sanusi

KUCHING: Sarawak’s oil and gas industry achieved another milestone today with the signing of the land lease agreement for the development of an integrated supply base at the Second Inner Harbour, Bintulu Port.

The supply base will cater to the needs of the oil and gas industry offshore East Malaysia, and is targeted for start of commercial operations by the fourth quarter of 2019.

The signing of the land lease agreement between Bintulu Port Authority (BPA) and Bintulu Supply Base Sdn Bhd was witnessed by Chief Minister Datuk Patinggi Abang Johari Tun Openg.

BPA was represented by its chairman Hadzari Abang and general manager Zulkurnain Ayub while Bintulu Supply Base was represented by its chairman Ahmadi Yusoff and director Datuk Ahmad Redza Abdullah.

Abang Johari pointed out that this new integrated supply base at Bintulu Port, will become a one-stop centralised logistic support centre to service the needs of oil and gas exploration, development and production activities in off shore areas of Sarawak.

“I consider this event today as one of the very significant developments to the state’s oil and gas inclusion strategy,” he said in addressing the ceremony earlier.

This development, he added, will provide a strong platform for a more effective and efficient logistical service for the upstream activities undertaken by the oil and gas companies in the Continental Shelf off the coasts of Sarawak where valuable petroleum and natural gas resources are located.

“I am confident this new facility dedicated for the oil and gas industry will result in the growth of this sector and bring economic benefits to the people and contribute substantially towards the economic growth of the state,” he emphasised.

“I welcome such investment initiatives by the private sector and towards complimenting the state government’s drive to transform our state’s economy in order to leap frog to new heights of sustained economic growth and prosperity,” he lauded.

The integrated asset and facilities is key to ensure a cost-effective and efficient solution for oil and gas players operating offshore Sarawak.

The development of the Bintulu Supply Base will be carried out in phases, taking into account specific requirements from the oil and gas industry.

The phased development approach is based on the market demand and the fit-the-purpose needs from oil and gas players.

The supply base will operate in compliance with the industry health, safety, security and environment (HSSE) standards.

The Bintulu Supply Base is strategically located in relation to the offshore fields in the Sarawak Basin.

Being in closer proximity to fielda offshore Sarawak enables coat efficiencies to be attained by oil and gas players from costs savings due to shorter travel time from offshore to onshore.

According to Ahmadi, the supply base is in line with Petronas’ initiatives to achieve cost efficiency and operations effectiveness, especially for players in Sarawak waters.

“We envision that through the supply base development and upcoming operation, it will be the hub to further enhance economic development and local capabilities in Bintulu and Sarawak,” he said.

For Hadzari, the setting up of a local supply base in Sarawak is timely.

“Bintulu Supply Base is a strategic asset and infrastructure that will support the growth of Sarawak’s oil and gas industry,” he said