CM: Scope aplenty in Sabah's oil and gas sector
Published on: Tuesday, April 14, 2015
Kota Kinabalu: Chief Minister Datuk Seri Musa Aman urged local oil, gas and energy companies to build on their potentials as opportunities are aplenty for them in the industry here. Oil and gas have been tapped for decades in the State, but local participation, especially in downstream activities, is viewed as becoming more active in recent years. There is much to be tapped provided one is equipped with the relevant financial and technical capabilities, he said. But Musa understood that due to the infancy of the industry, Sabah-based companies are being very cautious in entering the field despite the commitment of the State and Federal Governments on oil and gas industry development. ADVERTISEMENT His cited the water requirement of Petronas' Sabah Ammonia Urea Project (Samur) in the Sipitang Oil and Gas Industrial Park (Sogip) of 20 million litres per day, stating that a new water treatment plant has been completed. Furthermore, the construction of the internal infrastructure facilities in Sogip, like roads, lighting, drainage and ICT, which should be completed by the middle of this year. "When the Samur project is operational in the first quarter of 2016, it will be supported by all the necessary infrastructure so that its operations will run smoothly," he said, when launching the Fourth Sabah Oil and Gas Conference and Exhibition, here. His speech was read by Deputy Chief Minister cum Industrial Development Minister Datuk Raymond Tan. In the areas of consistent power supply, he said the Federal Government had also allocated RM333 million to Sabah Electricity Sdn Bhd for the purpose of pulling the transmission line from the Kimanis Power Plant. ADVERTISEMENT Stay up-to-date by following Daily Express’s Telegram channel.
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The project is expected to be completed in 2017. "It is the desire of the State government to be involved, through its agencies or State Government Linked Companies (GLC), to participate throughout the value chain of the oil and gas industry," he said.Musa recalled in the 12 months since the conference was held, Sabah had also shown many improvements in the development of its oil and gas industry.