Published on: Friday, January 11, 2013
Kota Kinabalu: Five of Petronas' key projects in Sabah valued over RM10 billion will start coming on-stream this year, marking an important milestone for the State's oil and gas industry.
The projects are the Sabah Oil and Gas Terminal (SOGT), the Sabah-Sarawak Gas Pipeline (SSGP), the Kimanis Power Plant (KPP), the Kimanis Petroleum Training Centre (KTC) and the Kinabalu Non-Associated Gas (NAG) upstream development.
Petronas Sabah and Labuan Chairman Joseph Podtung (pic) said these projects have been progressing well and achieving targeted milestones in their respective implementations.
He added these projects act as catalysts for further growth of Sabah's economy and will create spin-off effects to further spur economic activities, ample jobs for the people and opportunities for Sabah companies to participate.
"These projects, many of which are world-scale, are part of Petronas' overall plan to optimise the value of the oil and gas resources found offshore Sabah.
"In 2011, Petronas had announced a host of projects, both upstream and downstream involving a combined capital expenditure of RM45 billion which had excited many and these have been showing significant progress especially in Kimanis area.
"The total expenditure of RM45 billion also included the Sabah Ammonia Urea Plant (Samur) in Sipitang and the Lahad Datu Regasification Terminal," he said, at a luncheon with Sabah media, Thursday.
He said Petronas has 13 producing oil fields, three gas fields and one gas terminal in Sabah and Labuan. Between 2009 and 2011, he said Petronas awarded 45 contracts worth RM1.07 billion to Sabah companies and more than 20 Sabah-based companies participated in SOGT and SSGP projects.
"SOGT in Kimanis involving a total investment of RM3.8 billion is an onshore oil and gas receiving, storage, processing and export terminal.
"It will receive oil and gas via subsea pipelines from three offshore upstream projects namely Gumusut-Kakap, Kebabangan and Kinabalu NAG.
"It is expected to receive gas in the third quarter of this year and the facility to receive oil is expected to be completed in the first quarter of 2014.
"Once fully completed, the SOGT will have a capacity of 260,000 barrels per day (bpd) of oil, 1,250 million standard cubic feet per day (mmscfd) of natural gas and 77,000 bpd of condensates," Podtung said.
The RM4.6 billion SSGP, he said, is expected to be ready by the fourth quarter of this year and the construction for the Sabah side of the 512km pipeline, involving a length of 82km, has been completed.
On the RM1.5 billion Kimanis Power Plant (KPP) project, he said the first block of the 300MW plant is expected to be ready by the third quarter this year while the other two blocks of the power plant are to be completed in the first and second quarter of 2014, respectively, "Kinabalu NAG is one of three upstream projects under the Sabah-Sarawak Integrated Oil and Gas Project (SSIOGP) implemented by Petronas.
"The other two projects are the Gumusut-Kakap (oil production) and Kebabangan (gas production) and all these three projects involved a total investment of RM28 billion for upstream development which are being pursued and progressing as planned.
"The first gas production is expected from the Kinabalu NAG by the third quarter of this year," he said.
According to Podtung, the RM30.5 million permanent campus of Kimanis Petroleum Training Centre (KTC) located just across the SOGT will be completed in the second quarter of this year.
So far, KTC has taken in 48 trainees through two intakes in July 2011 and July last year and they are currently studying at KTC's temporary premises in Membakut Jaya.
KTC augmented Petronas' existing training efforts in collaboration with five institutions in Sabah namely the Institut Kemahiran Mara, Institut Latihan Perindustrian and Kolej Yayasan Sabah, all in Kota Kinabalu as well as in GiatMara in Kimanis and Institut Latihan Teknikal dan Perdagangan in Papar.
"These efforts would help develop the skills and capabilities of Sabahans to give them employment opportunities and help support the growth of the oil and gas industry in Sabah," Podtung said.