Latest news with #PetroleumDevelopment
The Star
21-05-2025
- Business
- The Star
Petros gains federal nod
PUTRAJAYA: Clear parameters for collaboration between PETRONAS and Sarawak's Petros in the oil and gas sector will be the way forward following the inking of a joint declaration between the Federal Government and Sarawak, says Datuk Seri Anwar Ibrahim. 'Both entities will now work hand in hand to elevate the nation through the oil and gas industry, both upstream and downstream, as well as in various alternative energy initiatives, as outlined in our joint declaration,' Anwar said during a joint press conference with Sarawak Premier Tan Sri Abang Johari Openg following the signing ceremony at the Perdana Putra Complex here yesterday. The Prime Minister stressed that PETRONAS' role remains intact and will continue to fulfil its national role, but at the same time it will recognise Petros' role. 'This understanding we've reached ensures that PETRONAS' operations continue, while also recognising the role of Petros,' Anwar said. The joint declaration outlines the key foundational principles agreed upon to facilitate further negotiations between PETRONAS and Petros. Anwar said that the joint-declaration is mainly about establishing clear boundaries and acknowledging the Petroleum Development Act 1974 and the Distribution of Gas Ordinance (DGO) 2016. 'This means that the current situation requires us to acknowledge that Sarawak has grown and now has the capacity, including establishing its own state oil company. 'Our shared aspiration, beyond just strengthening PETRONAS, is to position Sarawak as a launching hub for Asean. 'To me, this is a very realistic approach, and it will lead to national success, meaningful outcomes and the elevation of Sarawak's economic standing,' Anwar said. In turn, Abang Johari thanked Anwar and the Federal Government for their attention to key roles played by Petros alongside PETRONAS. 'Fortunately, we have managed to resolve all the issues that had risen, and today, we are signing a joint declaration that will establish a shared understanding and joint approach between the Sarawak government, particularly PETRONAS and Petros, to collaboratively develop oil and gas activities for the benefit of the nation,' he said. Abang Johari assured that the joint declaration will be carried out following all the existing provisions under both Sarawak and federal laws. 'We will respect and uphold the legal frameworks under both jurisdictions. 'God willing, PETRONAS and Petros will move forward together in the interest of both the nation and Sarawak,' he said. In a separate statement, the Prime Minister's Office (PMO) noted that the joint declaration outlines various matters, including that all federal and Sarawak state laws related to gas distribution within Sarawak must coexist and be respected by all parties conducting such activities in the state, including by PETRONAS and Petros. 'PETRONAS will continue to carry out its functions, activities, responsibilities and obligations as mandated under the Petroleum Development Act 1974 and its subsidiary regulations. 'The Sarawak state government has appointed Petros as the gas aggregator, effective March 1, 2025. 'This appointment must be respected by all parties engaged in the marketing, distribution and supply of gas to domestic consumers in Sarawak,' it added. Any agreements or arrangements between PETRONAS and/or its subsidiaries with third parties for (liquefied natural gas or LNG) sales, from upstream activities to LNG export to international buyers – will remain unaffected, the PMO said. The joint declaration also agreed that other green energy, hydrogen and electricity generation projects that may be implemented by PETRONAS and Petros must be in line with Sarawak's aspirations. 'All further discussions on cooperation must be subject to commercial and technical viability. 'For future projects in Sarawak involving international partners, PETRONAS will collaborate with Petros,' the statement said. 'Both PETRONAS and Petros shall work to continue detailing the framework of cooperation in a transparent manner and in accordance with commercial principles for the benefit of the nation. 'The significant potential unlocked through this agreement is expected to enhance investor confidence, especially among international petroleum companies, in finalising their investment directions in Malaysia,' it added.
The National
02-03-2025
- Business
- The National
How the start of Abu Dhabi's oil and gas journey made a spectacular comeback
One of Abu Dhabi's newest luxury resorts, The Anantara Santorini hotel, is just 45 minutes from the capital along the E11 motorway, on the coast near Ghanadhah. But back in 1950 it was a remote and inaccessible spot, almost impossible to visit by vehicles and guarded by sabka, the deceptive mix of sand hardened with gypsum and salt that turned into a quagmire with the first rains of winter. It was on the beach here, 75 years ago, now overlooked by a five-star replica of a Greek village, that men and machines first arrived by sea to begin Abu Dhabi and the UAE's journey towards becoming an oil and gas superpower. Just 20 kilometres away lay Ras Sadr, identified as the first site for drilling by what was then known as Petroleum Development (Trucial Coast), the concession granted by the then Ruler of Abu Dhabi, Sheikh Shakhbout bin Sultan. Sheikh Shakhbout was a patient man, which was fortunate as negotiations to award a concession for oil exploration in the emirate had started nearly two decades earlier. An agreement had been reached in January 1939, promising the Ruler a lump sum of 300,000 Gulf rupees, the currency of the year, and 100,000 rupees every year until oil was found. Allowing for inflation, that translates to more than Dh8.32 million for the initial instalment at today's prices, and Dh2.7 million every year after. Useful income for what was then a poor country, but nothing compared to the riches that would flow along with oil in commercial quantities. Eight months later, the Second World War broke out, with the oil company representative Basil Lermitte regretfully telling Sheikh Shakhbout that 'the company's exploration programme for this year in Your Excellency's territory has had to be temporarily abandoned owing to the international emergency'. 'Temporary' turned out to be over a decade, for even when the war ended in 1945, it would be several years before the oil men returned to begin their explorations. Finally, though, in early 1950 the British political agent in the Gulf was able to report to his superiors in London that 'The drilling rig of the Petroleum Development (Trucial Coast) Limited, has already been completed to a height 140 feet (45m) at Ras Sadr (Abu Dhabi territory) and the drilling for oil will be commenced on the 15th'. Arriving on barges, equipment was hauled to the site by a fleet of Land Rovers and massive Dodge Power Wagons. For the next 14 months, the giant rig, visible for miles across empty desert, drilled ever deeper. By April, it had become the deepest well in the Middle East at 3,962m – equal to nearly five Burj Khalifa's stacked on top of each other. And yet apparently it was all for nothing. Only traces of oil were found, and nothing to indicate significant quantities. A second well the following year near Jebel Ali also proved dry. It was only in 1958 that oil was finally struck off the coast of Abu Dhabi. The long promised oil revenue came in 1962. Ras Sadr remained as a monument to the start, if not the conclusion of the UAE's modern economic prosperity. In 1999, a small memorial was created on the drilling site, marked only by a concrete square, in a ceremony attended by three elderly Emiratis who had worked there nearly 50 years earlier. But as it turns out, Ras Sadr was not quite the failure first thought all those years ago. Last May, Abu Dhabi National Oil Company (Adnoc), made surprising announcement. A huge reserve of natural gas reserves had been discovered under the site with the capacity to produce 100 million standard cubic feet every 24 hours - equivalent to produce enough to supply a country of the size of Sweden for an entire day. How had not been spotted all those years ago? The answer is the huge advances in technology led by Adnoc, including a 3D mega seismic survey started in 2018 which covered the entirety of Abu Dhabi both on land and offshore. Interpreting the results of the survey using artificial intelligence and other advanced digital technologies had led to the new discovery. Three quarters of a century ago, hitting natural gas when prospecting for oil had been a dangerous hazard. Just three years after drilling ended at Ras Sadr, drilling a third well at Murban ended in tragedy when poisonous fumes from escaping sour gas caused the deaths of two oil company engineers. Once considered a nuisance in oilfields that had to be burnt in a process known as flaring, natural gas is now recognised as a value resource in great demand, with exports of liquid natural gas (LNG) from the UAE now worth over $7bn (Dh25.7bn) annually. Today, Ras Sadr stands as both a historical landmark and a testament to the UAE's ability to turn past failures into future successes. What was once dismissed as an unproductive well is now poised to play a crucial role in Abu Dhabi's energy strategy and serve as a reminder that, in the world of energy, the journey is never truly over.
