TEXT OF SPEECH:

TAN SRI DATUK AMAR (DR) HAMID BUGO,
Chairman of the Board of Directors, Petroleum Sarawak Berhad

At: Sarawak Domestic Gas Signing Ceremony
between PETROS and PETRONAS
Wednesday, 12 February 2020
Kuching, Sarawak

[Salutations, All Protocol Observed]

Good Morning and Salam Sejahtera
INTRODUCTION

1. It gives me great pleasure to welcome you all to the Sarawak Domestic Gas Signing Ceremony between PETROS and PETRONAS.
2. The last time I spoke in public as Chairman of Petroleum Sarawak Berhad was in 2018. That was our genesis as PETROS – as we are fondly and popularly known, the birth of Sarawak’s Petroleum Company. Tasked to deliver on Sarawakians and Sarawak’s ambition for a greater part and role in the next development of her oil and gas resources.
   
   And in the longer-term, realise the State’s stewardship of her resources. 
3. In 2018 we began a journey. Today, we bear fruit for Sarawak Oil & Gas as we undertake the aggregatorship for Sarawak domestic gas and realise the full implementation of the State’s Domestic Gas Ordinance 2016 (or DGO 2016).
   
   On 1 January 2020, PETROS is the Single Entity to supply, sell and distribute natural gas to domestic customers in Sarawak.
4. Many have come together to achieve this milestone
   • PETRONAS and Petronas Gas Berhad have been most forthcoming towards this conclusion. Thank you for this and your continued partnership to ensure smooth operational transition (action: Nod towards Tan Sri Wan Zul and Asnan/Firouz at protocol row)
   • State agencies who have been engaged and facilitating for Sarawak
   • and PETROS’ team driving
   • to our Valued Customers, entrusting and welcoming PETROS and PETROS Gas as your business partner。

To give insight to the efforts throughout 2019, no less than 20 agreements underpin today’s announcement. 

5. Natural Gas is the crown jewel of Sarawak Oil & Gas with the State as the largest holder of Malaysia’s total gas production and reserves¹.
6. Allow me to give you a mental picture of the scale of existing gas supply and transport network in Sarawak, compared to that in West Malaysia served by Gas Malaysia:
   1. Pipeline network spanning 2,500 kilometres in West Malaysia. 36 km in Sarawak,
   2. 890 in West Malaysia Industrial and large-scale Commercial customers, 8 in Sarawak
   3. As for Residential customers, only homes in Miri are piped and served by Sarawak Gas Distribution Sdn Bhd. The rest of Sarawak including my home, is still fuelled by cylinders.
7. Against this backdrop, the domestic gas business in Sarawak can only grow. And as Single Entity to supply, sell and transport domestic natural gas, PETROS is now positioned to deliver, for Sarawak and Sarawakians.
   As a company, our Purpose is clear – to transform our Petroleum Resources to Sustainable Progress for Sarawakians and Sarawak.
8. The milestone we commemorate today delivers on our True North. This is our Start line to ensure secure and sustainable supply, drive domestic demand and access new areas of growth. 
   Three strategic priorities:
   1. First – to ensure Secure and Sustainable Energy Supply. By securing natural gas as an integral part of the State’s energy mix, we facilitate Sarawak as a competitive Investment Destination with the resources to meet.
   2. Second - we are positioned to expand domestic utilisation through the State’s natural gas sub-sectors. This extends the downstream value of gas be it is as petrochemical feedstock or through frontier downstream activities.
   3. Third - underpinned by gas supply, PETROS will extend the availability of gas to:
      1. (one) open up new economic activity/industrial demand centres beyond Bintulu and Miri, and
      2. (two) bring more homes on-grid and modernise energy delivery to Sarawakians.

The initiatives I outline above, are key to PETROS’ downstream operations.

Our Valued Customers here today, we operationalise with you.

9. Your presence is testament of our capability and skills as a full-fledged operator. Thank you for your confidence in PETROS to fully serve your demand needs, now and in the future.  We look forward to working with you, and future customers, towards reliable and secure supply, mutually beneficial cost structure and net a win-win outcome.

Ladies and Gentlemen.

A Collaborative Journey.

10. We believe in collaborative efforts. As industry catalyst, we grow the market for PETROS and equally for Sarawak players and partners.
11. We are on a positive trajectory with PETRONAS. We have firm commitment to partnership in the Upstream. On behalf of the Board of Directors, Leadership and team, we thank you and look forward to ongoing partnership with your team.
12. This is a long and complex journey which must be executed diligently for the benefit of Sarawak and Sarawakians. With the support of all, Sarawakians and Malaysians, god willing, we will.

In concluding, I once again thank you all for being part of this milestone.  This journey we’ve embarked on and our endeavours ahead will need the support of everyone, Sarawakians and Malaysians.

Go Home Safe, Pulang Dengan Selamat.

Everyday.

Thank you.

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