S’wak looks to boost coffers with crude oil production

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Abang Johari, flanked by Masing on his right and Lo, cuts the cake to mark the First Oil cum 1 millionth barrel oil achievements of E6 Field in Luconia offshore Miri.

MIRI: The state government looks forward to the revival of crude oil production on top of gas to boost its coffers in revenue re-engineering to develop the state, Chief Minister Datuk Patinggi Abang Johari Tun Openg said last night.

He said at the same time the state wants to provide greater participation opportunities to local businesses and increase employment.

The chief minister said this when officiating at the first oil delivery celebration of E6 Field Development Project of Sarawak Shell Berhad under its production sharing contract (PSC) which achieved its one millionth barrel milestone on Aug 20 this year.

Welcoming the return of production of crude oil after a lapse of 20 years by its top corporate citizen, he hoped other oil and gas players will emulate Shell in its business and corporate social responsibility (CSR) contributions to Sarawakians and the state.

“We need good partnership as Shell has proven itself over 100 years, and we want more corporate citizens to emulate and contribute as much as Shell had, if not more,” he added.

Abang Johari said the state government wants Petronas and Petros to work together to further develop the industry for the benefit of the people and state.

“We just want our fair share,” he said of the five per cent sales tax on petroleum products exported from the state.

The chief minister said he is optimistic that geological Big Data and technology will enable smaller players to develop marginal fields which were previously hampered by risky high development costs, and this would enable Sarawak to benefit.

Implementation and execution of E6 Field Development won six global quality recognition, with technology and digital cutting edge enabling it to go from first striking oil to delivering one million barrels of oil in over two and half months.

The oil first flowed from this field in Luconia, offshore Miri on May 30, and Shell Malaysia chairman Ian Lo attributed the milestone to effective collaboration of teams, partners and shareholders.

They are Petronas Malaysia Petroleum Management (MPM), Petronas Carigali, Brooke Dockyard and Engineering Works Corporation, Sapura Offshore, Transfame, Dayang Enterprise Sdn Bhd,Valesto and support teams within Shell led by E6 Project Team.

The project comprised three 6,000 ft-long horizontal wells – a feat as each length is equivalent to two kilometres which uses a state-of-the-art smart completion that maximises oil production of the entire well.

Lo said these are among the most challenging wells with sophisticated completion ever done in Shell Malaysia’s upstream history.

Shell would be celebrating its 110th year in upstream business next year and is looking forward to a fruitful and long lasting relationship with Sarawak which earned the praise of the late chief minister Pehin Sri Adenan Satem as the number one corporate citizen of Sarawak for its contributions to the socio-economic development of the state.

Deputy Chief Minister Tan Sri Datuk Amar Dr James Masing, Minister of Transport Datuk Lee Kim Shin, Deputy DUN Speaker Datuk Gerawat Gala and assistant ministers and senior government officials were among those present.