Hornbill Unleashed

June 12, 2013

Top BN Crony Secretly Secures Sarawak Oil Fields!

Sarawak Report

“one of the largest acreages in Malaysia” – the region off Sarawak being explored by Ananda Krishnan’s Pexco

In a shocking departure from normal practice one of BN’s top business cronies, Ananda Krishnan, has secured direct control of a series of Sarawak’s off-shore oil fields.

It makes his private company Pexco “one of the largest acreage holders in Malaysia”, according to its own CEO.

The astonishing development has placed the multi-billionaire (known for his close relationship with the former PM Mahathir Mohamad) in an unprecedented position to sub-contract to major oil companies.

Till now such negotiations have been strictly controlled by Petronas and not farmed out to intermediaries to cream off the profits, say industry watchers.

Official notices to mariners confirm that Pexco are already exploring the vast area.  They started conducting seismic surveys on the 4th May and have indicated they will continue for 80 days.

Warning notice to mariners to steer clear of Ananda Krishnan’s exploration teams

If Ananda Krishnan can identify the huge areas of oil and gas believed to be located there, it is likely he will then negotiate a lucrative partnership with one of the world’s main oil production companies to extract it.

This places him in a position to hijack a large amount of the revenue that would normally have gone to the state owned Petronas!

Privatising Sarawak’s oil into BN hands

Sean Guest – Chief Executive Officer of Pexco let out the information through his entry on LinkedIn!

This is not the first example of the privatising of Sarawak’s oil resources into the personal control of businessmen, who are known to be extremely close to top BN leaders.

It follows our recent revelation that one of Sarawak Chief Minister Abdul Taib Mahmud’s own key cronies, Tiong Hiew King, was likewise granted on-shore drilling rights in Sarawak late last year.

And it is highly disturbing that both these cosy deals were negotiated in secret behind closed doors and were not announced by the Malaysian government.

Taib last month complained in his closingaddress to the Sarawak State Parliament that it was untrue to claim that he could have had a hand in the awarding of the on-shore concession to Tiong, because such decisions are made federally through Petronas.

However, he neglected the point that for on-shore drilling the Sarawak Chief Minister has a blocking ability to withhold the drilling licence!

“Then when Petronas awarded a contract to a company within the Rimbunan Hijau Group, which was allegedly friendly to me, to explore oil and gas of Bintulu, I was accused for being involved in the award of that contract. As everyone knows Petronas is not under my control or subject to my authority. Yet such frivolous accusations were made against me very much in defiant of what the truth was“[Taib complaining in Parliament over Sarawak Report’s revelations 29th May].

Questions will now be inevitably raised about the political deals surrounding this latest departure of giving Mahathir’s own crony a similar deal, but off-shore where Taib holds no remit.

Has BN’s leadership started laying hands directly on what remains of Malaysia’s dwindling oil reserves?

Mysterious ‘junior’ company that has acquired Malaysia’s “largest acreage” of oil

Sarawak Report was alerted to this astonishing acquisition by the private company Pexco not by any official announcements by the Malaysian Government or indeed by Pexco, but rather by a CV on Linkedin!

Sean Guest, who is Chief Executive Officer of Pexco boasts that the company “is one of the largest acreage holders in Malaysia” in his entry in LinkedIn!

From the horse’s mouth – the information that was never publicised by Petronas, whose top advisor is still the former PM Mahathir Mohamad.

According to Sean Guest Pexco has acquired a staggering 25,000km2 in concession fields in the seas off Sarawak, none of which has been officially or openly announced.

For further information confirming Krishan’s ownership Pexco NV, which is an off-shore company registered in the Netherlands Antilles, we can look at other LinkedIn entries of Pexco employees!

Australian petroleum engineer Graham Bunn states that in working for Pexco NV he was ultimately working for Usaha Tegas, which is the Jersey registered company controlled by Krishnan

The former Chairman of Pexco, Norman Singer, further confirms that Pexco is the “natural resources division of Usaha Tegas”, Krishnan’s vast company based in the off shore tax haven of Jersey.

Owned by Krishnan, according to the former Chairman

It is worth noting that official documents in third countries like America and Australia (where transparency is required in business dealings, unlike Malaysia) Pexco is referred to as an affiliate of Usaha Tegas, which implies that while the Ananda Krishnan company controls Pexco, it may not entirely own it.

Sarawak Report suggests that the people of Sarawak should be informed therefore as to whom exactly this concession for their off-shore reserves has gone.  Who are all the shareholders of Pexco?

Given the information so far, there is a rightful concern that BN political leaders appear to be busily stuffing what remains of the country’s dwindling oil reserves into the pockets of their known business cronies and their off-shore registered businesses!

Mahathir’s unhealthy control over Petronas

‘Junior’ oil company, according to Pexco’s Chief Finance Officer, William Deertz

The stealthy departure from the normal procedure of offering Petronas controlled oil contracts to major international producers is hard to justify in revenue terms for Malaysia.

Petronas’ traditional Production Sharing Contracts (PSCs) are strictly controlled, allowing major oil companies to make competitive bids in return for around 30% of the oil they drill out. The rest is revenue for Malaysia.

However, there is doubt as to whether Pexco has sufficient experience to manage oil production directly, without itself hiring in one of the major oil producers to carry out the main job.

The company’s own Chief Finance Officer, William Deertz, points to this in his own Linked In entry, in which he describes Pexco as a ‘Junior’ oil company.  This means it habitually conducts preliminary oil explorations and then calls in bigger companies to act in joint ventures to actually produce the oil.

More information from Linked In!

If Pexco is merely a Junior oil company why has Petronas handed it the keys to one of the largest oil exploration areas in Malaysia, off Sarawak’s coast?  Why is Petronas itself not dealing with the contract rather than allowing this Malaysian business crony of ex-PM Mahathir Mohamad to slip in between?

The often relied upon argument if the benefit of giving contracts to home grown ‘Malaysians’.  But at Pexco the top people are still clearly foreign, apart from the owners.

Indeed, the continuing influence of Mahathir over the management of Petronas is perhaps the greatest outstanding scandal attached to BN’s management of Malaysia.

It was already a scandal that the Petronas accounts, which are by far the country’s greatest source of revenue, should have been kept secret only for the eyes of the Prime Minister/Finance Minister!

But at least this fellow was elected, whether to be trusted or not. But, once Mahathir was no longer elected or in government he had no business to be involved in any way in these matters.

To the contrary, the man has stayed as the ‘Consultant’ to Petronas ever since.  He commands a great big office in its vainglorious headquarters in KL, and by all accounts he still dominates the decisions of this crucial public company.

The excuse was that this should be an advisory position offered to the past PMs.  However, Badawi came and went and Mahathir is still sitting there, controlling the key financial asset of the nation – in secret.

If there is nothing to hide be transparent

Ananda Krishnan’s student friendship with Mahathir was the path to his subsequent riches – now he has been granted much of Sarawak’s oil wealth.

It has frequently been observed that BN run Malaysia as their own private business, as if the politicians held personal ownership of the state.

In which case it appears that Mahathir has merely given up the public face of politics, so that he can concentrate on the core business aspect that is worth hundreds of billions of ringgit.

If this is not the case, then it is time that both the shrunken old men of Malaysian politics, Taib and Mahathir, came clean and explain how it is their key business cronies have emerged as vast private concession holders over chunks of the Sarawak’s oil reserves?

Modern Malaysians should not have to resort to Linked In to discover how an unelected past Prime Minister is allocating their natural resources!

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20 Comments »

  1. This will continue to happen if the rural people still watch TV3 and not listen to ‘Radio Free Sarawak’, and continue to make Sarawak the fixed deposit of BN.

    Comment by ST76 — June 14, 2013 @ 11:55 AM | Reply

  2. The Sarawak thief minister cannot claim to be ignorant about the matter and nor can he wash his hand off by saying that it was a federal matter. What Sarawakians wanted to know was did Taib Mahmud already know and had been keeping it a secret from all Sarawakians?

    Comment by Roslinawati — June 13, 2013 @ 9:52 PM | Reply

  3. We want all Sarawak BN MPs to work together with Pakatan Rakyat MPs to uncover the whole truth and nothing but the truth.It is the responsibility of Sarawak BN MPs as much as it is for Pakatan Rakyat to stop this blatant theft.

    Comment by Irene Kana — June 12, 2013 @ 11:16 PM | Reply

  4. We must make a stop on all this….by whatever mean!

    Comment by rod — June 12, 2013 @ 11:03 PM | Reply

  5. Chase this bastard out of Sarawak!

    Comment by rod — June 12, 2013 @ 11:01 PM | Reply

  6. I cannot understand why the state government cannot form its own oil company to explore and operate its own field. We have more than enough capable Sarawakians to run the company with so many experienced Sarawakians all over the oil industry all over the world. The state government just let PETRONAS and the federal government dictate what it wants to do with what should be ours. Very sad day…

    Comment by Juk Den — June 12, 2013 @ 2:05 PM | Reply

    • Taib sold us Dayaks out to Malaya at federal level and to his chinese cronies at state level with the tacit and endorsed approval of the Dayaks elected representatives. Nothing we Dayaks think we now owned are not ours anymore!

      The recent Gawai dayak dinner in Pulman Hotel was turned into a ball polishing and self serving political event by one arrogant Iban leader which took the Gawai spirit out of the Dinner.He accomplished nothing to help the dayaks cause. The food taste worst after his long boring speech!

      Our Dayaks Leaders are so willing to please Malaya.

      Comment by brian — June 12, 2013 @ 4:41 PM | Reply

  7. Malaysia is no better than Burma!

    fas·cism [fash-iz-uhm] noun

    1. ( sometimes initial capital letter ) a governmental system led by a dictator having complete power, forcibly suppressing opposition and criticism, regimenting all industry, commerce, etc., and emphasizing an aggressive nationalism and often racism.

    Comment by Akai sigol — June 12, 2013 @ 12:31 PM | Reply

  8. WTF to scream now ????? Sarawakians already DONATED all of Sarawak money to UMNO during last GE13 by helping them to win simple majority to ruin our Country.

    Comment by gagojackman — June 12, 2013 @ 11:37 AM | Reply

    • You cant donate something you didnt know you had Bodoh! 🙂

      It’s still yours – its a fundamental right!

      Comment by √×√×√×√× — June 12, 2013 @ 2:18 PM | Reply

      • Who said we don’t know ? Fundamental right ? Yes, Sarawakians have the righst, but all threw away their rights during GE13 to UMNO.

        Comment by gagojackman — June 12, 2013 @ 10:04 PM | Reply

        • Yes, Sarawakians got this for supporting BN.
          I hope they can wake up before the State Election.

          Comment by Sherry — June 14, 2013 @ 11:57 AM | Reply

  9. The thieves are getting more and more blatant and bold. This is the legacy handed down from Mahathir the chief thief. Why are we Sarawakians so stupid as to welcome the thieves into our very home and let them go on rampage with their plunder?

    On the proposed re alienation of native land, I wouldn’t jump for joy. Once carved out and given title, natives will no longer be able to claim any more land because whatever is not re alienated will be plundered by BN leaders and their cronies. Think carefully my Dayak friends.

    Comment by apai — June 12, 2013 @ 10:02 AM | Reply

    • Apai,even the land where our long houses now stands does not belong to us. Why do you think they dare called us squatters? All the lands have been given and divided among taib supporters especially the big timber looters! They made him win the elections with their money so now they are demanding to be paid back two folds!

      The purpose of re alienation of our NCR lands is to make sure we own as little land as possible from the huge track of NCR lands we inheritted from our forefathers and they from theirs!

      How much did they do with the initial allocations to the parameter survey which was more then RM30 millions? Who do we think benifit from such allocations and the recently announced additional allocations?

      They are playing football with us dayaks as the ball and we don’t even realised it!

      Comment by brian — June 12, 2013 @ 10:51 AM | Reply

  10. Majority of Sarawakians are still cluless about how their government is formed and what are their rights as Sarawakians. All these MACC people and police can be easily bribed with pocket changes.

    Comment by gou — June 12, 2013 @ 9:26 AM | Reply

  11. All right thinking Sarawakians must lodge a police and MACC reports over this revelation and abuse of power committed by Petronas, its advisor and the thief minister of Sarawak.

    Comment by Mata Kuching — June 12, 2013 @ 9:10 AM | Reply

    • Report to MACC? What FOR? So they can make sambal from it???

      Can’t they read? UMNO talking religion daily and they cannot RECITE !

      We didnt make it in GE13. Mebbe no 13 is no good! Is no 14 good? 🙂

      Comment by numerologist — June 12, 2013 @ 12:29 PM | Reply

      • REPORTS USUALLY FILED IN ZE BIN!

        Comment by anon — June 14, 2013 @ 1:04 PM | Reply


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