August 21, 2015

Petronas Ensures No Interuption On MLNG Dua After Taking Over

Petroliam Nasional Bhd (Petronas) is committed to ensure that there will be no interruption to the supply and demand of gas and achieve stability in the operations of MLNG Dua, said its Senior Vice President Upstream Malaysia, Datuk Mohd Anuar Taib.

This follows the handover of 50 per cent equity owned by Sarawak Shell Bhd (Shell) to Petronas Carigali Sdn Bhd (PCSB) held at PCSB Sarawak Operations Office in Miri, Sarawak, today.

Previously, Shell operated MLNG Dua via a production-sharing contract (PSC) signed with Petronas in 1993.

With this handover, PCSB and its unit, E&P Malaysian Ventures Sdn Bhd (EPMV), now own 90 per cent and 10 per cent equity respectively as PSC operators.

The previous PSC expired on Aug 20, 2015.

Petronas viewed the handover of MLNG Dua to PCSB as a positive addition to the company's ongoing efforts to position Sarawak as the gas hub in the region.

"Petronas will continue to support all long-term initiatives for the betterment of the state and its community," Mohd Anuar said in a statement Thursday.

Adding on the future of employees and vendors transferred from the previous operator, Mohd Anuar said Petronas stood firm on maintaining the current staff and vendors as well as their original positions.

Petronas has approached and offered employment opportunities to all 39 staff released by Shell, of which all but two accepted the offer, he said.

"The 39 employees released by the previous operator are the only staff that Petronas can legally approach for employment offer, and 37 have accepted.

"They will continue to perform their jobs at MLNG Dua as usual.

"The employees who did not accept Petronas' employment offer made their decision based on personal reasons," he said.

Currently, Petronas' gas operation in Sarawak covers the whole range from well, platform and pipeline as well as terminal operations.

The ceremony, held at 12.1am today, saw the Head of Sarawak Asset, Sarawak Shell Bhd, Chok Chee Tsong, officially handing over documents symbolising Shell's equity to Petronas Vice President, Production Malaysia, Upstream Malaysia, Johari Dasri.

"Petronas would like to thank Shell for all the work they have done at MLNG Dua and Petronas will continue to emulate and improve the previous operating philosophy for the MLNG Dua offshore facilities during this time that PETRONAS is entrusted to do so," Mohd Anuar said.