KUCHING: Petroleum Sarawak Berhad (PETROS) has entered into a production sharing contract (PSC) with Petroliam Nasional Berhad (PETRONAS) to acquire 45 percent equity in Block SK407 located offshore Miri effective Jan 1, next year.
This was announced by PETROS chairman Tan Sri Hamid Bugo who described the move as a pivotal step by the state oil and gas company.
He said it improves Sarawak’s access to adequate hydrocarbon resources to enable and propel the realisation of the Miri Hub Development.
“I am proud to stand before you on this significant day, which serves as a reminder to all of us of how far we have come.
“From where we began five years ago, PETROS has evolved into an integrated player throughout the oil and natural gas value chain,” he said during his speech at the PETROS 5th anniversary celebration last night.
At the same time, the PETROS chairman said the company had also executed a Heads of Agreement (HOA) with PETRONAS for the sales and purchase of gas, sourced from offshore Sarawak.
“This is for a planned 400mega watt Power 3 Plant in Miri, an upcoming PETROS operated venture with Sarawak Energy Berhad as a partner and customer.
“PETROS 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 & Storage (CCUS) opportunity in Sarawak,” he said.
Hamid said moving forward, PETROS will focus on further downstream, to create and realise greater value and open up opportunities for the players especially locals in the industry.
“Our focus should be to make oil and gas as an engine of growth for the economic and social development of Sarawak at least, to realise and create more employment,” he said.
Realising that there will be a time where energy transition will take place and oil and gas may be phased out, Hamid said given the current geopolitical turmoil, the industry remains important and significant.
“Having said that, we will exercise caution and will review and revise our business plans regularly to ensure that we don’t lose sight of reality and the constantly changing economic and geopolitical environment,” he said.
