Sarawak to discuss with Petronas

Datuk Patinggi Abang Johari Tun Openg

KUCHING: The state government will be discussing further with Petroliam Nasional Berhad (Petronas) on the recent discovery of gas fields on Sarawak’s shores.

Chief Minister Datuk Patinggi Abang Johari Tun Openg, in a statement through his office today, said this would be based on the Commercial Settlement Agreement (CSA) with the national oil and gas company.

“The Sarawak government has been duly notified by Petronas of the two gas fields finding both offshore Sarawak.

“This is the Lang Lebah-2 exploration appraisal well in Block SK410B in the Central Luconia Province as announced a fortnight ago, and another discovery as announced today in respect of Dokong-1 in Block SK417.

“In this regard, further discussion will be held between Petronas and the state government based on the terms of the CSA that will bring about greater benefits to both Sarawak and Petronas,” he said.

Today, Petronas announced a gas discovery from the Dokong-1 wildcat exploration well in Block SK417 Production Sharing Contract (PSC), located in the shallow waters of Baram Province, 90 kilometres off the coast of Sarawak.

Petronas senior vice president of Malaysia petroleum management Mohamed Firouz Asnan said the discovery strengthened the role of Baram gas supply network as part of the larger Sarawak gas system.

“Petronas together with the Production Sharing Contract (PSC) parties are currently undertaking further evaluation to determine the full extent of the discovery,” he said.

Meanwhile, the gas discovery from Lang Lebah-2 exploration appraisal well in Block SK410B production sharing contract (PSC), located in the Central Luconia Province, about 80 kilometres off the coast of Sarawak was announced on Feb 10.

On Dec 7 last year, Petronas and Sarawak signed the CSA which offers Sarawak a greater share of revenues from oil and gas (O&G) found and produced in the state.

The deal also provides for a consultative framework whereby both parties will be able to jointly discuss and deliberate on matters of importance to the O&G industry including those which affect the interests of the state.