Business

Sarawak’s journey in the O&G industry

petros

Syndicated News
Written by Syndicated News

KUCHING, March 7 2018 : Sarawak’s humble journey in the oil and gas (O&G) industry started with the commissioning of the first oil well, known as the ‘Old Lady’ in Miri, on Dec 22, 1910.

Sarawak’s first oil refinery was built by Shell at Tanjung Lobang, Miri, and subsequently moved to Lutong, Miri.

In 1920, the Rajah issued what was known as ‘the Shell Concession Order’, designating the area in Miri for the exploration and mining of oil by Sarawak Oilfields Limited, owned by Shell.

In the 1930s, the Dutch and the British began their exploration for oil offshore Baram.

In 1952, the Sarawak colonial government issued an oil mining lease in the form of a deed to Sarawak Oilfields, giving the company the liberties, right and privileges to explore and mine all ‘the petroleum lying or within, under or throughout the territory comprising the colony of Sarawak, including lands beneath all territorial waters’.

In 1954, the Queen-in-Council passed the ‘Sarawak (Alteration of Boundaries) Order’ to extend the boundaries of Sarawak to include the seabed and its subsoil which lay beneath the high seas contiguous to the territorial waters of Sarawak.

In 1958, the then Council Negeri (State Legislative Assembly) passed the ‘Oil Mining Ordinance’ to ‘make better provisions in the law relating to oil mining in Sarawak and its continental shelf’.

In 1960, the exploration had expanded from onshore to offshore, with Orient Explorer being the first mobile drilling rig to be used.

In 1963, the Baram field became the first offshore field, and in 1965, Miri became the first town with a piped gas system.

In 1968, West Lutong delivered the first offshore oil production.

Malaysia LNG Sdn Bhd was incorporated in 1978, and its first export cargo was delivered in January 1983.

In 1979, the Bintulu Crude Oil Terminal became the first major industrial project to commence construction in Tanjung Kidurong, and the following year, the Asean Bintulu Fertiliser was established and commenced operations in 1985.

In 1986, Shell Middle Distillate Synthesis, the world first gas-to-liquid plant was incorporated and commenced operation in 1993.

In 2016, the world’s first floating LNG facility by Petronas produced its first gas, and in 2017, state-owned Petroleum Sarawak Bhd (Petros), was incorporated. – Bernama

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