LABUAN: August will be a “mini windfall” month for Labuan and Papar as nearly 1,500 workers would assemble for oil and gas facilities shut down for purpose of scheduled maintenance works.
An informed source said other than the PML (Petronas Methanol Ltd), Petronas Carigali Sdn Bhd Labuan Gas Terminal (LGT) sprawled over 24 hectares in Kiamsam and the Sabah Oil and Gas Terminal (SOGT) at Papar, together with several other offshore facilities, sequence their TA (turnaround) in August.
He said skilled and semi-skilled workers from various states, including Labuan, would be involved in various jobs for about a month.
He added that though it is not an operation as big as that in 2024 when PML, etc, shutdown saw about 3,500 temporary workers engaged.
In the present case, local businesses would still be enjoying “happy hours” during the month due to the workers being well paid and usually are good spenders.
Several segments of the local economy are expected to enjoy the mini boom.
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According to George Elias, a retired senior Shell worker, Labuan needs such O&G activity to boost its economy.
He said the island’s economy began contracting in 2017 when Petronas Carigali relocated its operations in response to calls by the Sarawak and Sabah governments for a strong state presence.
Petronas was an anchor tenant at the Asian Supply Base (ASB) and when it moved many service providers also moved or downsized.
“Over the years, the robust O&G activities had kept the economy ticking but since the development in 2017 many companies had been closing or downsizing quietly without attracting attraction,” said George.
He sad Labuan’s woes were further exacerbated when its duty-free privileges on cigarettes sales were withdrawn, followed by four-can limit on duty booze to visitors, delivering a severe blow to tourism.
Chambers made an outcry over this but was ignored.
George noted that since Labuan became a Federal Territory in 1984, slowly much of its earlier benefits had been deprived.
“Even the civil service senior positions were dominated by Federal officers.”
He said unless things were reviewed and changed it would difficult for the island to economically progress.
In conclusion, he said Labuan was expecting spillover from Sabah’s O&G boom and participating actively in its O&G events, but “feel this is akin to chasing a wild dream.”
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