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SEDC, PETRONAS and Investors Sign Land Heads of Agreement

Jun 23, 2022

The Sarawak State Government through Sarawak Economic Development Corporation (SEDC) entered into a Land Heads of Agreement (HOA) with PETRONAS, Sarawak Shell Berhad (Shell) and PTTEP HK Offshore Limited (PTTEP) for a long-term lease of land within the Petchem Industrial Park in Tanjung Kidurong, Bintulu, Sarawak. Both the land and Petchem Industrial Park belong to SEDC. 

The creation of the Petchem Industrial Park by SEDC in 2020 was to encourage active participation from domestic and international investors, to intensify Sarawak’s downstream oil and gas activities. This is in line with the Sarawak State Government’s aspiration towards becoming a developed state by 2030.

The earmarked land will be leased to build an onshore plant complex which forms part of the Sarawak Integrated Sour Gas Evacuation System (SISGES) project. The SISGES project is expected to be the catalyst for more development of untapped sour gas resources off the coast of Sarawak. The development plan for the SISGES project is currently undergoing its final review process prior to investment decision by investors and the necessary statutory approvals.

The Land HOA was signed at the Borneo Convention Centre Kuching, where SEDC was represented by its General Manager Haji Abdul Hadi Datuk Haji Abdul Kadir and PETRONAS by its Senior General Manager of Governance and Strategic Relations, Maslina Awang. Signing on behalf of Shell and PTTEP were the General Manager of Malaysia Projects, Richard Kho and Country Manager, Dr. Terapol Phoonsiri, respectively. 

The signing was witnessed by the Premier of Sarawak, Yang Amat Berhormat Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari Tun Datuk Abang Haji Openg. Also present were Minister in the Prime Minister’s Department (Economy), Yang Berhormat Dato’ Sri Mustapa Mohamed, SEDC Chairman, Yang Berbahagia Tan Sri Datuk Amar (Dr) Haji Abdul Aziz Dato Haji Husain, Assistant Minister of Ministry of Energy and Environmental Sustainability of Sarawak, Yang Berhormat Dr Haji Hazland Abang Hipni, Chairman of Petroleum Sarawak Berhad, Yang Berbahagia Tan Sri Datuk Amar (Dr) Haji Hamid Bugo and PETRONAS Senior Vice President of Malaysia Petroleum Management, Mohamed Firouz Asnan.

This major milestone signifies the commitment from the Sarawak State Government agencies in collaborating with PETRONAS to create and maintain a stable, conducive business and investment environment for the sustainable growth of the oil and gas industry in Sarawak. 

Image caption: The site of the Sarawak Petrochemical Hub at Tanjong Kidurong, Bintulu. (Image credit Tribune Press)