NEWLY APPOINTED CONSORTIUM’S ASSOCIATE, SABAH ENERGY CORPORATION (SEC) WILL DISTRIBUTE PROJECTS TO QUALIFIED LOCAL COMPANIES OR CONTRACTORS - MUSA

RM600m PETRONAS CONTRACTS FOR SABAH FIRMS

KOTA KINABALU 7th October, 2011: Sabah firms are set to be awarded contracts worth some RM600 million in the US$1.5 billion Sabah Ammonia-Urea (Samur) Plant project owned by Petronas Chemicals Group Bhd in Sipitang.

The newly appointed consortium’s associate, Sabah Energy Corporation (SEC) will distribute the projects to qualified local companies or contractors, Chief Minister Datuk Seri Musa Haji Aman told a press conference after witnessing the signing of the Samur project’s BEPCC Alliance agreement here yesterday.

The agreement was signed between Petronas Chemicals Group and Mitsubishi Heavy Industries Ltd, Apex Energy Sdn Bhd and PT Rekayasa Industri.

The local firms to be awarded the contracts will do civil work, construction of the administration complex, road and jetties, as well as earthwork, inland transportation and power supply.

He said the participation of locals in this effort showed the state government’s call has been answered.

“This also signifies the earnestness of Petronas in giving Malaysians in Sabah opportunities to be players in the business of oil and gas.

“As you know, the state government has on numerous occasions voiced our wish to see more local companies participate in the oil and gas industry,” he said.

Thanking Petronas, Musa who is also Finance Minister assured that the state government would extend its full support and assistance to facilitate Petronas-related activities in Sabah.

He said the Samur project is one of the mega projects of Petronas which reflected the national oil firm’s commitment in continuing efforts towards the development of the oil and gas industry in the state.

“The state government welcomes effort such as this project to boost development of the oil and gas sector and subsequently, economic and social development,” he added.

Earlier in his speech, the Chief Minister said the contract signing signified the in-depth of the nat ional oil company’s commitment to drive the development of the nation’s oil and gas resources to cover as many parts of the country as possible.

“Sabah shares a long relationship with Petronas that has seen significant investment over the years including when the company and its partners achieved Malaysia’s first deepwater project with the coming online of the Kikeh oilfield offshore Sabah,” he said.

The Samur project, Sabah Oil and Gas Terminal, Sabah-Sarawak Gas Pipeline project, the Kimanis and Lahad Datu electricity power plants, the Gumusut-Kakap deepwater project and related on-going developments, he said, were some projects expected to add to the value-chain of Sabah’s oil and gas industry.

“The state government wholeheartedly welcomes the development of the Samur project as it is just one of the many mega projects identified for Sabah which will bring great benefits to the state and people,” he said.

Musa also said the upcoming key upstream and downstream oil and gas projects of Petronas in Sabah, expected to come online in 2015, were worth an estimated RM45 billion, and would facilitate a marked increase in employment opportunities for Malaysians in the state.

And, he expressed confidence that the BEPPC Alliance contract signing would prove to be the catalyst for significant growth, especially in the petrochemicals sector which could then lead to the creation of other industries.

“In the interest of long-term human resource development in the oil and gas industry, this project will provide further avenue for a new generation of technical professionals among Malaysians in Sabah who in turn can complement the state government’s agenda to build capabilities and strengthen our economy,” he said.

The Chief Minister also said he was pleased to note that Petronas was training local technicians at its various plants nationwide to take on the responsibility of running the Petronas Chemicals Fertiliser Sabah Bhd’s plant in Sipitang once the Samur project there was completed.

Meanwhile, Musa congratulated the consortium formed by Mitsubishi Heavy Industries Ltd (MHIL), Apex Energy Sdn Bhd and Pt Rekayasa Industri for being awarded the BEPPC Alliance contract.

“And I would also like to congratulate SEC for its appointment as an associate of the consortium,” he said.

Also present were Industrial Development Minister Datuk Raymond Tan Shu Kia, Petronas Chemicals Group chairman Datuk Wan Zulkiflee Wan Ariffin and President/CEO Dr Abdul Apiz Abdullah, Apex Group executive chairman Tan Sri Abdullah Ali, Mitsubishi Heavy Industries’ senior vice president Naohito Hoshino, PT Rekayasa’s CEO Mochamad Ali Suharsono and SEC CEO Datuk Harun Ismail.

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Project to bring great benefits – Musa