KUCHING: Sarawak is on the right path towards becoming a regional energy and industrial hub by adding value to its own oil and gas resources.
Sarawak Housing and Real Estate Developers’ Association (SHEDA) adviser, Datuk Sim Kiang Chiok, said processing the state’s oil and gas resources locally instead of exporting them as raw resources would maximise economic returns, attract high-value investments and create greater business opportunities for Sarawakians.
He said the approach, driven by the Sarawak Gas Roadmap, would support industries such as petrochemicals, methanol, ammonia, blue hydrogen, fertilisers and specialty chemicals, while creating high-paying jobs and boosting the state’s economy.
“This is the right direction for Sarawak. By adding value to our own natural resources, we can maximise economic returns, develop local expertise and position Sarawak as a leading energy and industrial hub in the region,” he said in a statement.
Yesterday (Wed, Jul 22), Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg announced that Petroleum Sarawak Berhad (PETROS) had commenced onshore oil production at the Adong Kechil West (AKW) field near Marudi, with the field currently producing about 800 barrels of crude oil per day.
Sim said the development demonstrated Sarawak’s growing capability to participate directly in the upstream oil and gas industry and strengthened PETROS’ role in capturing greater value from the state’s natural resources.
He added that the additional value generated could be reinvested in exploration, downstream industries, infrastructure and other strategic development initiatives that would benefit Sarawakians.
“Based on the current production of approximately 800 barrels per day, the field is expected to produce about 24,000 barrels per month, or approximately 288,000 barrels annually.
“At an estimated average crude oil price of USD70 per barrel and an exchange rate of RM4.00 to USD1, the annual gross production value is estimated at about RM80 million from just one producing well.
“With more wells expected to come on stream, the economic contribution and revenue potential for Sarawak will grow significantly in the years ahead,” he said.
Sim welcomed the announcement, describing it as one of the best Sarawak Day gifts for Sarawakians and another significant step in the state’s journey towards greater economic prosperity and self-reliance.
He said the development, together with the transformative projects and initiatives under the Post COVID-19 Development Strategy (PCDS) 2030, including renewable energy, hydrogen, the digital economy, modern infrastructure and industrial development, strengthened confidence in Sarawak’s future.
“I congratulate the Premier, PETROS and everyone involved in achieving this historic milestone.
“This is indeed wonderful news for all Sarawakians and another important step towards building a prosperous, resilient and high-income Sarawak for generations to come,” he said.
