Monday, May 20

Sabah has massive deep water potential – Musa

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KOTA KINABALU: Chief Minister Datuk Seri Musa Aman on Saturday said that the State Government is fully committed to the development of the oil and gas industry in Sabah.

“Most of you should be aware by now that a few days ago I announced that Petronas has agreed to give Sabah a 10 per cent stake in Liquefied Natural Gas Sdn Bhd 9 or LNG 9 in Bintulu. This is just one of the several avenues that will allow Sabah to have greater participation in the oil and gas industry.

“To this end, we will constantly engage with the Federal Government to discuss provision of funds for infrastructure and industrial facilities, and with Petronas on matters to the overall development of the sector. Sabah will also continue to work with Petronas to attract investors to establish industrial activities in Sabah, apart from our own efforts in nurturing local investments,” he said when officiating the launch of the Sabah Oil and Gas Services Council (SOGSC).

In his speech which was delivered by Industrial Development Minister Datuk Raymond Tan Shu Kiah, Musa pointed out that Sabah has bold and ambitious plans to continue to transform itself in the coming years and the oil and gas sector will be a big part of this transformation.

Apart from driving forward opportunities and growth in oil and gas, Sabah is poised to directly play a bigger role via the acquisition of M3nergy, he disclosed.

“I also wish to encourage local companies keen on participating in the sector to equip themselves with knowledge and expertise in order to be part of the value chain. The key to any success is building competency and capability to become mature service providers.

“Emulate the success of service providers from peninsula and Sarawak, some of which have gone global. One day, I sincerely hope to see our local-based companies offering their services beyond the state,” he said.

According to Musa, the establishment of SOGSC is timely and he congratulated its president, Datuk Ilyas Ibrahim and exco members for spearheading this platform that will gather local-based industry players under a single umbrella in the interest of achieving a more sustainable future for the industry.

“I was briefed that SOGSC is a platform to network and promote the interest of its members through discussion, seminars, technical development and forums with the focus to enhance capability and competency. This is a positive approach and I again urge members to use this platform to foster partnerships, share knowledge and form strategic alliances.

“I urge the SOGSC to constantly keep tabs on what is happening on the ground, and to respond to the fast-paced developments in the oil and gas industry. We are always open to hearing from you about issues that are impacting the sector, so that we can find ways to create solutions that will benefit all quarters in the long run.

“The support of major players in the sector to the SOGSC is testimony of your exemplary networking skills. I am confident the Council will go a long way in propelling Sabah’s growth in the oil, gas and energy sector,” he said.

Sabah is entering an exciting era in the oil and gas sector. Development in the last five years both in the upstream and downstream sectors best describes how vital the industry is to Sabah and our nation, said Musa.

This is especially so with the state’s massive deep water potential, he said, adding that Sabah being the first state to commission the first and second deep water fields, Kikeh and Gumusut-Kakap, shows the state’s deep water potential.

The discovery and commissioning of these deep water fields has seen Petronas investing in major projects – and these are the Sabah Oil and Gas Terminal (SOGT) in Kimanis, Sabah – Sarawak Gas Pipeline (SSGP), Sabah Ammonia and Urea Plant (SAMUR) and the Kimanis Power Plant.

Existing development and additional planned investment of some RM60 billion by Petronas in the upstream sector for the next five years will certainly propel Sabah to meet its aspiration of becoming a developed and high-income state, he said.