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State sets up oil and gas committee
Posted on : 20 Jul 2015  Source of News: The Borneo Post

KUCHING: The state government has approved the setting up of a Sarawak Oil and Gas Committee to monitor the involvement of local entrepreneurs in the oil and gas industry.

Assistant Minister for Industrial Development (Investment and Promotion) Datuk Julaihi Narawi said the state cabinet gave its nod last month, and Minister of Industrial Development Datuk Amar Awang Tengah Ali Hasan would chair its first meeting soon. At the same time, he revealed that his ministry will have a new unit – Oil and Gas Unit.

“This committee is formed to monitor the involvement of local players in the oil and gas industry. This is because Sarawak has many industry players in the sector and we want them to play a more active role in the industry compared to before,” he said when met at his Hari Raya open house at his home at Taman Heritage here yesterday.

Based on a seminar held by the ministry with Petronas last February in Kuching, Miri and Bintulu, he said the idea was greatly accepted and received overwhelming response.

“In Kuching, many are interested to be involved in the oil and gas industry, while in Miri and Bintulu, there are many companies and entrepreneurs involved and we want them to be awarded more contracts in the future, especially in the downstream industry.”

However, he stressed that the committee would not be involved in negotiations with Petronas on oil royalty as it is under the Chief Minister’s Office’s jurisdiction.

Previously, Petronas only allocated a certain amount of contracts to Sarawak companies, but now, as announced by the Chief Minister, they would be allocated at least RM2.1 billion worth of contracts.

“That is why, if they are able, we want Sarawak entrepreneurs to be involved in oil and gas based upstream industry and not only concentrating or limiting to downstream industry,” he said.