Hornbill Unleashed

August 10, 2017

Petros a welcomed step – See Chee How

Filed under: Politics — Hornbill Unleashed @ 8:03 AM

The unprecedented step taken by the state administration to incorporate Petros, a Sarawakian wholly-owned oil and gas company, as a vehicle to actively participate in the extraction and development of Sarawak’s oil and gas is most welcomed by all Sarawakians, said Batu Lintang assemblyman See Chee How.

See, who is state PKR vice chairman, said Petros should be a sovereign wealth fund which is a Sarawak-owned investment fund which is answerable to the Sarawak Legislative Assembly.

“The Sarawak administration must first assert and assume control over the awarding of production sharing contracts (PSC) over those remaining blocks or fields of oil and gas potentials onshore and offshore within the territorial boundary of Sarawak.

“A sovereign wealth fund which is answerable to the Sarawak Legislative Assembly will ensure that the entity maintains its characteristic of maximising long-term return from the resource wealth for the future generations of Sarawak while establishing a strongly responsible and accountable institution that distinguish and prevent it from a state-owned fund which runs into the problem like 1MDB,” See told a press conference here today.

He pointed out that the strong sovereign wealth fund will also ensure that the Sarawakian administration is able to be a strong partner to Petronas to jointly undertake all exploration and development of upstream and downstream petroleum-related projects in Sarawak and to put in place a succession plan which will brace and buttress Sarawak’s capacity to develop and manage our depletable petroleum resources independently.

With the incorporation of Petros, See said it is imperative that all individually or separately arranged collaboration, joint ventures and any form of undertakings for upstream and downstream petroleum development projects with Petronas must go through Petros.

“With Petros, it should give Sarawakian private and public corporations the edge in bargaining power, the financial backing and institutional support to maximize returns from all the petroleum resources related development projects in Sarawak, for all Sarawakians.”

“The recent undertaking of a methanol and methanol-derivative project is a case in point.”

According to See, the said Petronas-related project in Sarawak involves Sarawakians privately owned company, public company and purportedly a trust-related company entering a memorandum of understanding for the engineering, procurement, construction and commissioning of the proposed methanol plant with a consortium China Huanqiu Contracting and Engineering Co Ltd (HQC) and Semenanjung-based MACfeam Sdn Bhd, a subsidiary of Pegasus Diversified Bhd.

“The eventual shareholdings of the various parties in the project has not been revealed, but any such arrangement will not be able to maximise returns for Sarawak, for a petroleum-related downstream development project in Sarawak.”

In view of this, See said Chief Minister Datuk Amar Abang Johari Tun Openg must ensure that all revenues and returns from the State’s investments in the exploration, management and development of all upstream and downstream petroleum-related projects in Sarawak are wealth for Sarawak, all Sarawakians and the future generations and that there should be no favouritism or preferential treatments for individuals and groups.

“The petroleum resources are depletable and we have already been deprived of the resource wealth for the past five decades. We must manage and develop whatever petroleum resources wealth zealously to ensure that the wealth generated from now on are not only beneficial to us but sustainable for future generations of Sarawakians.

“I am certainly hopeful that the Chief Minister and his administration will devise a comprehensive masterplan to safeguard our sovereign rights to the valuable resources and the best endeavours for the exploration, management and development of all upstream and downstream petroleum-related projects in Sarawak.”

The formation of Petros was announced by Abang Johari on Sunday night at an appreciation dinner organised by his office.

Source : The Borneo Post Online




  1. Comment by tiuniamah — August 28, 2017 @ 9:49 PM | Reply

  2. Does Sarawak has the human competency and financial resources to do upstream exploration of oil when the current oil price has posed major challenges to many established global oil exploration companies?

    Comment by Mata Kuching — August 12, 2017 @ 2:21 PM | Reply

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