Sarawak state government and Petronas must explain the SK410B Production Sharing Contract (PSC) awarded to a joint venture comprising Thailand’s PTTEP HK Offshore Ltd (PTTEP), Kuwait’s KUFPEC Malaysia (SK-410B) Ltd. (KUFPEC) and the Malaysian national oil company’s upstream arm Petronas Carigali Sdn Bhd, says Batu Lintang assemblyman See Chee How.
According to Bangkok Post dated July 21, PTTEP has won the rights for exploration of an offshore petroleum resource block in Sarawak whereby
PTTEP holds 42.5 per cent, KUFPEC and Petronas Carigali holds 42.5 per cent and 15 per cent respectively.
The parties concerned signed the PSC with Petronas for the exploration of the Block SK410B located in shallow water in offshore Sarawak on July 21.
See, who is also Sarawak PKR vice-chairman, doubted if the state government was consulted on this PSC to operate a block of 695 sq miles or 1,800 sq kilometres offshore Sarawak as it was not reported locally. It was, however, widely reported outside Malaysia.
“Barely a month before it was awarded, the Chief Minister and Sarawak state assembly had made clear our determination to control and develop the natural resources found within the territorial boundary of Sarawak and that the state government must be involved in the award of all PSCs for the exploration, development and production of oil and gas and related petroleum products in Sarawak, whether onshore or offshore of Sarawak.
“However, it appears that Sarawak has no share of equity and direct participation in this joint venture that was announced. In this SK410B PSC, PTTEP and KUFPEC each has a participating interest of 42.5 per cent, while Petronas Carigali holds the remaining 15 per cent stake,” said See.
See strongly questioned whether Petronas made the decision behind the back of the Sarawak state government.
“Clearly, Petronas has not been fair and transparent with Sarawak regarding its operation in the state,” See said: “In the follow-up discussion with Petronas today, the state delegation led by our DCM must demand an explanation from Petronas on the award of this particular PSC.
“This is one necessary step by the state government to show our determination to demand for the rights and interests of Sarawak, in the development of our natural resources as a corporate partner,” added See.
Phyllis Wong, firstname.lastname@example.org