State-owned petroleum company targeting to invest RM65b in four gas hubs in Sarawak, says premier

KUCHING, Oct 19 — State-owned Petroleum Sarawak Berhad (Petros) is projected to invest RM65 billion over the next 10 years to set up gas hubs in Miri, Samalaju, Bintulu and Kuching, inclusive of downstream value-added industries, Premier Tan Sri Abang Johari Openg said tonight.

He said the gas hubs are targeted to deliver a state-wide access to sufficient gas supply and clean energy under the Sarawak gas roadmap.

“In the immediate term, Petros will deliver a 400MW power plant for the Miri hub to ensure northern Sarawak of energy security,” he said during the fifth anniversary dinner of Petros here.

He said Petros would also lay a gas pipeline and together with Sarawak Energy Berhad (SEB) to build a power plant for the Samalaju hub.

He said this is critical to complete Samalaju as a heavy industry zone.

“These projects alone will require an investment of around RM6 billion,” Abang Johari said.

He said he is confident that the Sarawak gas roadmap will be a game changer for Sarawakians, adding that it is a key supporting pillar in the state’s aspiration to become a high income and advanced state.

Abang Johari noted that Petros achieved a revenue of RM1.2 billion last year, a significant feat by a company that is only five years old.

“Today, I am pleased to say that it is among the ranks of the billion-ringgit companies, with a robust financial performance and a Triple-A RAM rating,” he added.

He said in the offshore exploration and production space, it has three Offshore Production PSCs or Production Sharing Contracts and three Offshore Exploration PSCs or Production Sharing Contracts.

He said he is also aware that Petros is pursuing several other opportunities.

Earlier, Petros board of directors chairman Tan Sri Hamid Bugo said the state petroleum company has signed a petroleum contract with the national oil company Petronas to acquire 45 per cent equity in Block SK407, which is located offshore Miri.

“This is a pivotal step for us to increase Sarawak’s access to adequate hydrocarbon resources to enable and propel the realisation of the development of Miri gas hub.”

He said Petros had also executed a Heads of Agreement with Petronas for the sales and purchase of gas, sourced from offshore Sarawak, for a planned 400mega watt power plant in Miri.

He said it is also in the midst of entering into a Joint Collaboration Agreement with Petronas to explore the potential to develop commercially viable carbon capture utilisation and storage opportunity in Sarawak.