Awang Tengah said Petros Upstream had a daily production of 100,000 barrels of oil equivalent from its equity shares in five oil and gas fields Production Sharing Contract.
KUCHING (May 24): Petroleum Sarawak Berhad (Petros) Upstream is now among the top three players in Malaysia.
Deputy Premier Datuk Amar Awang Tengah Ali Hasan who is also Minister for International Trade, Industry and Investment said that Petros Upstream had a daily production of 100,000 barrels of oil equivalent from its equity shares in five oil and gas fields Production Sharing Contract (PSCs).
“Petros Upstream earned RM450 million nett income after tax (NIAT) in 2022. It also has equity share in 12 Exploration and Appraisal PSCs; through carried interests from investors to Sarawak. Petros Upstream’s capital investment budget for 2023 is RM 1.2 billion,” he told the august House in his winding-up speech yesterday, adding that Petros Downstream was also growing fast.
“Petros is also investing in a 400MW Combined Cycle Power Plant in Miri, in collaboration with Sarawak Energy Berhad (SEB), as well as investing in a 24-inch pipeline to bring gas from Bintulu to Samalaju Industrial Park. The combined capital investment of the projects is estimated at RM2 billion.
“Petros is also undertaking a study with a multinational player, to supply gas to Kuching, and transform the capital city into a new gas and energy hub.”
Awang Tengah added that Petros was also discussing with Sarawak Energy Berhad (SEB) to build a new gas-fired powerplant in Kuching and to retire the existing coal-fired powerplant. It is also expanding its liquefied petroleum gas (LPG) business and aspiring to capture 100 per cent of the subsidised household market share by year-end.
To do this, its subsidiary, PNiaga, is injecting an investment of RM60 million to the project, he said.
Petros is also looking at the state’s Carbon Capture and Storage (CCS) potential, and is seriously exploring it.
He said Petros had been granted approval-in-principle for a CCS licence for the F block offshore Sarawak to begin the operationalisation of the State Land Code amendments approved by the august House during the previous sitting.
On this front, he said Petros is working closely with Petronas, as an investor, to convert the M1 depleted gas field into the first CCS project in Sarawak with a capital investment estimated at RM2.5 billion.
A ‘Development and Storage’ Agreement is being developed, together with an application for M1 Storage Permit in compliance with the Sarawak Land Code, Land (Carbon Storage) Rules, 2022, Awang Tengah added.