Ministry mulls O&G supply base in Similajau

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Datuk Jacob Dungau Sagan

KUCHING: The Ministry of International Trade and Industry (Miti) is considering setting up a new integrated supply base for the oil and gas (O&G) industry in the state.

Deputy Minister Datuk Jacob Dungau Sagan said there is currently one supply base in Labuan and the ministry is contemplating a second base in Similajau, Bintulu.

“This is for the advantage of oil and gas industry players, who have complained about high expenditure. With an additional supply base in Sarawak, it will help them cut down costs,” he told a news conference after closing Sarawak Economic Transformation Lab’s three-day workshop on Thursday.

A resolution was made during the Associated Chinese Chambers of Commerce and Industry of Sarawak’s (ACCCIS) annual general meeting last month requesting the authorities to establish a natural gas supply base in major cities statewide.

ACCCIS had said natural gas is more affordable than petrol and hence would help reduce the financial burden of industry players.

Dungau said Miti would take various suggestions into consideration and put forward the relevant proposals for potential implementation.

Workshop participants, he said, called for a Petroleum Development Unit to be set up under the Chief Minister’s Department.

“At the moment, there is no similar unit at the state level. A unit of such should be set up to monitor petroleum-related activities in Sarawak so as to address the needs of industry players.

“I was made to understand that the unit would focus on manpower development as the oil and gas industry, which is fast-growing, requires a more skilled workforce,” said the Baram member of parliament, who added that 35 other initiatives were proposed.

Dungau said these initiatives would serve as input for an upcoming eight-week comprehensive transformation programme to take place in September.

“We will work out the details on initiatives put forward for our main programme to be organised by Performance Management and Delivery Unit (Pemandu) in September.

“During the coming programme, more details such as gross national income are expected,” he said.

Dungau added that his ministry would offer solutions for those falling under its jurisdiction.

Some initiatives had to be deliberated at national-level and subsequently referred to Pemandu for further action.

“There are also initiatives that need collaboration between the state government and federal government. I appreciate the commitment of members of the lab to come up with 35 initiatives for seven major sectors,” he said.

The sectors were manufacturing, services, agriculture, tourism, education, women entrepreneurs and renewable energy.