Petronas to develop several upstream and downstream projects in Sabah
KOTA KINABALU: Petronas is committing a combined capital expenditure of RM45 billion to implementing an integrated oil and gas master plan for Sabah, which will involve development of several upstream and downstream projects over the next few years.
Petronas general manager for Sabah and Labuan Regional Office, Joseph Podtung, said some of these projects had already started while others were expected to commence soon.
“Petronas plans to develop long-term key projects to monetise and add value to Sabah’s petroleum resources that will result in greater revenue to the State, in addition to the revenue to be gained from royalties,” he said.
Addressing a special media briefing here yesterday, Joseph said these projects would act as a catalyst for economic growth while providing various spin-offs for the State’s socio economic benefits.
The cornerstone of this plan, he said, will be the Sabah-Sarawak Integrated Oil and Gas Project (SSIOGP), which comprises oil and gas fields offshore Sabah, the Sabah Oil and Gas Terminal (SOGT) and the Sabah-Sarawak Gas Pipeline (SSGP).
He explained that the SSIOGP will involve three upstream components, namely the Gumusut-Kakap, Kebabangan and Kinabalu Non-Associated Gas offshore facilities, which will cost a total of RM28 billion.
“The Gumusut-Kakap oil rig is expected to commence production by the end of 2012, while Kinabalu NAG and Kebabangan are scheduled to start production by early 2013 and end of 2014, respectively.
“These facilities will contribute an additional 125,000 barrels per day (kbpd) of oil and 750 million standard cubic feet per day (mmscfd) of natural gas, which will be sent to the SOGT in Kimanis,” he said.
The remaining RM16.7 billion will be injected into downstream components, involving a number of key projects, with the SOGT and SSGP in particular being the critical enablers in monetising commercially viable base-load of the upstream resources.
Other key downstream projects include the highly anticipated Kimanis Power Plant and the Lahad Datu Power Plant, as well as the Sabah Ammonia and Urea Project (SAMUR), which upon completion, will be the biggest of its kind in South East Asia.
Costing RM4.6 billion, SAMUR is expected to commence construction by the second quarter of next year and be fully completed by 2015, to produce 1.2 million metric tons of fertilizer annually.
Meanwhile, the Kimanis and Lahad Datu power plants, costing RM3.7 billion, will each start producing 300 megawatt of electricity by 2014 and 2015 respectively.
Petronas executive vice president of downstream business Datuk Wan Zulkiflee Wan Arifin, who was also present at the briefing, said the company was pleased that all of the projects were progressing well at various stages of implementation.
“These projects, many of which are of a world scale, form part of Petronas’ overall plan to optimise the value of the oil and gas resources found offshore Sabah, currently being developed in an integrated manner by Petronas and its production sharing partners,” he said.
Also present was Petronas executive vice president of gas and power business Datuk Anuar Ahmad.
To support the implementation of these projects, Petronas will emphasise on developing the State’s human capital by training local people in related fields.
Towards this end, a permanent campus for a Petroleum Training Centre costing RM50 million will be set up in Kimanis by 2013.
Having established itself in Sabah since 1975, Petronas has to date spent over RM61 billion in capital expenditure in the State and contributed RM6.8 billion in royalties alone.