Friday, January 1, 2010

DUN Sitting (Day Three): Protect Sarawak companies servicing oil and gas industry

(Nov 03, 2010)

THE state government must step in and demand that Petronas stop the unfair practices that benefit larger Peninsular Malaysia firms at the expense of Sarawak companies.

Andy Chia Chu Fatt (BN-Pujut) said yesterday that there have been complaints that some Petronas policies, licensing requirements and conditions kept changing, placing Sarawak companies at a disadvantage.

“Licensing renewal delays have often caused the local companies to miss important term contract tenders,” he said.

It was reported that the contract work and supply services were eventually subcontracted by these Peninsular Malaysia companies who have no presence in Sarawak to local companies at a lower price, Chia added.

He urged the state government to set up a professionally-run agency that will act as a facilitator and advisory body for the local industry.

“We must protect the Sarawak companies which have been servicing the oil and gas industry for many years.”

He added that Sarawak based and owned companies should be given the priority for supply and service contracts in Sarawak.

Chia pointed out the state can no longer ignore the development of local oil and gas industry.

“We need to set up a special Oil & Gas unit or department specifically to help this industry grow,” he added.

“While doing this, we also need to nurture and protect local companies so that they will grow and provide more job opportunities and boost the local economy.”

Steps must be taken to ensure that oil and gas players like Shell and Petronas continue to make Miri their hub of operations in East Malaysia.

“We must give them incentive to grow their bases in Sarawak. After all, we go a long way to attract foreign investments to Score as well as Kuching electronics hub by providing good facilities, incentives and so on.”

Chia also touched on the subject of Piasau Camp, the residential camp for Shell senior staff and the talk on oil and gas industry for its natural beauty.

“There are not many beautiful green open spaces in the urban city. It should be gazetted as a public park should Shell and Petronas find new homes elsewhere for their staff in Miri,” he said.

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