Sunday, February 27, 2011

Libya can produce petrochemicals for local use even in crisis

Despite the turmoils, Libya's Eastern part where only about 1.4
million people live is still capable of producing petrochemicals for
local consumption. Petrol as well as cooking gas.

Sabah, which also produces light petroleum and gas, cannot produce
anything for local consumption. Everything has to be exported to
Malaya 1000km away. Sabah has a much higher population of 3.4 million
than even this eastern part of Libya.

Even in times of crisis, oil production is not affected. It is the
lack of shipping that is hindering export of oil and gas.

I wonder where the money goes to. With the sanctions on Gaddafi's
regime, the money should go to the interim government of Libya in

Turmoil Rocks Libya's Oil Sector, Slashing Output

by The Associated Press

BREGA, Libya February 26, 2011, 08:05 pm ET

The massive oil terminal at Brega feels strangely deserted for Libya's
second-largest hydrocarbon complex. After more than a week of turmoil
in the country, production has been scaled back by almost 90 percent
with many employees fleeing and ships not coming to collect its

The most activity on the site Saturday appeared to be a squad of boys
from the nearby town finishing the job of tearing apart the local
headquarters of Moammar Gadhafi's Revolutionary Committee.

The seaside Brega complex, some 125 miles (200 kilometers) west of the
rebel stronghold of Benghazi, collects crude oil and gas from Libya's
fields in the southeast and prepares it for export. It also produces
some petrochemicals and refined products for local consumption.

Since the crisis began on Feb. 15, however, General Manager Fathi
Eissa said the facility has had to scale back production dramatically
from 90,000 barrels of crude a day to just 11,000.

There are no reliable figures about the impact of the uprising against
Gadhafi on Libya's oil exports, but facilities across the country have
been forced to make sharp cuts. Most Libyan ports — the main method of
export — also were closed due to bad weather, staff shortages or
production outages, according to the International Energy Agency.

The IEA, citing reports from Western producers, said overall crude
production has dropped from 1.6 million barrels per day to 850,000.
The unrest in the OPEC nation — which ranks about 17th among world oil
producers and has Africa's largest proven oil reserves — has sparked a
major spike in world oil prices.

At Brega, the huge spherical storage containers and reservoirs used to
hold natural gas and crude oil are filling up rapidly with no ships to
cart away their valuable contents.

Production in the southern fields has been throttled back until Brega
can clear some of its capacity.

"At this time we are operating with the minimum required number of
operators, technicians mainly," Eissa said. "The production from the
fields right now is at minimum, it is not completely stopped but it is

On Saturday, a ship arrived to collect some ammonia and methanol, but
it was one of only a few since the troubles began.

Brega has continued to pump natural gas for local consumption along
the coastal pipeline that is keeping the power plants and desalination
plants running, as well as providing the people with cooking gas

Ahmed Jerksi, the chairman of the manager's office and a 40 year
veteran of the company, estimated the terminal was operating with just
45 percent of its normal manpower.

Many employees left amid rumors that Gadhafi was going to bomb the
plant and its volatile contents, while others feared for their
families, he said.

The neighboring petrochemical complex of Ras Lanouf, some 60 miles
(100 kilometers) to the west has experienced similar drops in manpower
and has had to cut production down to similar levels, Jerksi said.

Ras Lanouf is also perilously close to the town of Sirte, one of the
last holdouts for Gadhafi loyalists in central Libya, raising concern
about clashes in the area.

The Gulf of Sidra is critical to Libya's energy exports. The ports of
As Sidra, Marsa el Brega, Ras Lanuf, Tobruk and Zuetina handle about
77 percent of Libya's oil exports. Allegiances in the Gulf of Sidra
and the economic value they represent, therefore, are key to the
survival of Gadhafi's regime.

Libya's uprising came to the Brega complex on Feb. 20 when inhabitants
of the nearby village appeared at the gates and said the complex was
now with the revolution. The facility's guards let them in and they
went around and tore down the many pictures of Gadhafi.

The local headquarters of the Revolutionary Committee was also
trashed, with air-conditioning units pulled out of the walls and a
large-screen projection TV knocked over.

By Saturday, a group of youths had little to do besides smash windows
and set fire to a picture of Gadhafi.

"We are with the revolution," said Eissa, the general manager. "We are
supporting the change by keeping operations running to avoid the
country's collapse."

Many of Brega's 600 foreign workers — mostly from Britain and other
European countries — were preparing to evacuate. The British frigate
HMS Cumberland, which took evacuees from Benghazi to Malta, is set to
return to pick up many of Brega's workers. They missed an earlier
evacuation at Benghazi because of the poor state of communications in
the country.

Marianne Steeley of Britain has been working on and off at Brega since
1981 and is hoping her absence won't be long.

"Everybody's erring on the side of caution and they've certainly
dialed down the oil and gas operation here and the ammonia plant,
everything's been sort of kept on a very cautious level," she said. "I
think they are trying desperately to get things going as soon as
possible, I would certainly be very happy to return once things are

Even Africa reports on Sabah's cancellation of Coal Power

Malaysia scraps Sabah coal power plant project
Thu Feb 17, 2011 1:07am GMT

Print | Single Page
[-] Text [+]

KUALA LUMPUR Feb 17 (Reuters) - Malaysia's federal and Sabah state
governments have scrapped a plan to build a coal-fired power plant
meant to meet the state's energy needs, the Star newspaper reported on

Sabah Chief Minister Musa Aman said national power producer Tenaga
Nasional and national oil corporation Petroliam Nasional Bhd
(Petronas) have been asked to come up with an alternative solution to
replace the proposed 300-megawatt coal-fired plant in Lahad Datu.

"Sabah needs to increase its power supply to meet the increasing
development but the state cannot afford to put its natural environment
at risk," he said.

Environmental groups campaigned against the building of the power
plant after it was proposed in 2007. (Reporting by Julie Goh)

© Thomson Reuters 2011 All rights reserved

Sunday, February 20, 2011

Malays in Sabah grow by 1,552%!!!

"Look, in those 30 years the Kadazan-Dusun-Murut community grew by
162% – a population growth that makes sense.

"But those classified as Malay grew by a staggering 1,552%. The
federal government hasn't given any solid explanation for this
staggerring rise," Chong said.

It also does not make sense for Kadazan community because in Sarawak,
population growth is only 106% and Brunei 157%. Brunei's growth is due
to immigrants from Malaysia.

It shows that there are also many migrants within the Kadazan
community as well.

As for Malays increasing at such rapid rate, it is due to immigration
from West Malaysia where everybody call themselves Malays as long as
they are Muslims.

I doubt Filipinoes will call themselves Malays because they can always
call themselves Bajau, which is one of the natives of Sabah.

However these Filipinoes like to pretend that they are West Malaysian
Malays, imitating the West Malaysian Malay dialect.

The most vocal groups in SAbah are the Kadazan Dusun communities
because they feel that they are swamped by Muslims reducing their
political influence. But this community is now supporting the current
BN government that allows this situations to occur through parties
such as PBS, UPKO and PBRS.

Sabah's tale of woes
February 20, 2011

Beyond the touristy Kota Kinabalu waterfront lies the 'hazy' reality
of Sabah's fragile social fabric.

Saturday afternoons at the markets flanking the Kota Kinabalu
waterfront are a casual affair. Tourists stroll the walkways toting
cameras, families finish buying their day's groceries, the smell of
pickled vegetables and fresh fruit intoxicates.

A line of tailors steal a nap during the lazy, shady hours. It's quite
a delight seeing those vintage Singers still in use.

And as a solitary machine goes "shik-shik-shik" in the background, the
issue about Sabah's fragile "social" fabric crops up again.

Interwoven in this tapestry is a generation of carefree children, who
neither read nor write, and who each morning leave their homes in the
settlements at Pulau Gaya and come ashore to the city's waterfront
seeking menial work – dishwashing, food preparation and packaging.

Is it fair that these children, innocent of any crime, be deprived of
a promising future because of negligence by their hosts? To them a
high-income economy and the New Economic Model are meaningless.

This is the tale of Sabah that has seen a population increase by a
stupefying 301% in 30 years (1970-2000), a phenomenon that surely
needs to be investigated closely.

Especially since neighbours Sarawak grew by 106%, and Brunei 157% in
the same time-frame.

Said former Sabah senator and activist Dr Chong Eng Leong: "Sabah's
borders were deliberately kept porous. You could enter and leave it
like a sieve."

Chong believes that foreigners and the contentious Project IC are two
of the biggest issues facing Sabah for over two decades.

Project IC, or more pointedly Project M, refers to the "allegation of
systematic granting of citizenship to immigrants (whether illegal or
legal) by giving them identity documents known as IC (identity card),
and subsequently, MyKad" .

It is an alleged covert exercise with its roots in the early 1990s to
alter the demographics of Sabah to make it more favourable to the
ruling government and certain political parties.

"Look, in those 30 years the Kadazan-Dusun-Murut community grew by
162% – a population growth that makes sense.

"But those classified as Malay grew by a staggering 1,552%. The
federal government hasn't given any solid explanation for this
staggerring rise," Chong said.

Damning evidence

But despite the issue being common conversation in the warongs and
kopitiams here and, to some degree, in the local media, investigations
into Project IC never quite reached a satisfactory momentum nor

Chong believes it's because the evidence is damning – it shows up in
the daily life of Sabah.

Chong has self-published a book, "Lest We Forget" (Security and
Sovereignty of Sabah), in July 2009 – a compilation of hard facts and
newspaper clippings to create public awareness of Project IC.

"Don't get me wrong. I have nothing against foreigners…They are human
beings who seek a better life; borders mean nothing to them.

"It is the lack of a political will in both the federal and state
governments to resolve this problem that gets me (upset)… They refuse
to even acknowledge it's a problem.

"Here they (foreigners) are considered a vote bank. I have collated
the reports and evidence in my book," said Chong.

He said the worst thing about Project IC and the influx of these
immigrants is the humanitarian aspect.

"You have brought (them) in as a vote bank, offered them MyKad, given
them Bumiputera status, perhaps resettled them somewhere…

"You are expected to remain grateful. No education for your children.
No proper sanitary system. No refuse collection – rubbish is disposed
of in the sea or burned in some common dumpyard nearby.

"It's an epidemic waiting to happen," he said between conversations
with the local traders at the KK Handicraft Market, commonly known
here as Pasar Filipina.

Tragic Sabahan

Chong, who speaks a variety of local dialects, believes that to
properly understand the issue of Project IC, one needs to walk the
problem. And that was what he did: one Saturday last year, he took
this writer from the Saya Anak Bangsa Malaysia blogsite on a

The most tragic part of the problem is that Project IC has left the
genuine local Sabahan with the short end of the stick.

"You know, conditions are even worse for the natives of Sabah. Visit
their kampungs scattered all over Sabah if you can.

"They get no water or electricity supply. Let's not even mention
schools for the moment.

"We have many cases of true-blue Sabah natives who were denied MyKad
even though they have birth certificates to prove their case.

"How can a government do this to its own people?" Chong asked.

From the charm of the KK waterfront, Chong took us across the scenic
Likas Bay to Telipok, about 30 km away.

Here, two government-initiated settlements have sprung up over the

Hazy meaning of "Malaysian'

Atop a hill lies Kampung Boronuon. The residents prefer to call it
Kampung Penempatan – resettled.

They were resettled from Pulau Gaya in 2001. Back then, the mayor of
Kota Kinabalu had assured the people of Telipok that the Pulau Gaya
resettlers were Malaysians.

But in this part of the world, as we were beginning to see, the
meaning of "Malaysian" can be as hazy as smog from the annual
Kalimantan fires.

In his book, "Lest We Forget", Chong cites numerous cases of dubious
citizenship. Here is a sampling:

• A Pulau Gaya fag smuggler admitted in court he is a Philippine-born
Malaysian, but his new IC is coded 12, that is, born in Sabah. His old
IC number was H0558763, and is still registered on the Sabah electoral
rolls today.

• One foreigner was convicted in 1992 for possession of fake IC and he
told the court that he got his IC through Project President Mahathir
(appendix 51 of book). He was jailed for two years and managed to get
registered in 1995 on Sabah electoral rolls after his release – was he
deported but later sneaked back? His old IC number was H0487096 and is
still on Sabah electoral rolls today.

• Salman Majid – arrested in March 2005 at KLIA and detained for 199
days at the immigration centre in Sepang… Salman stated in the "Sijil
Akuan" that he was born in Ranau, Sabah, when in fact he was born in
Pakistan. His old and new IC numbers were H0352141 and 620202-12-5053

Salman had reportedly said about his IC: "Pada tahun 80′an saya telah
ditawarkan kad pengenalan di Sabah semasa Projek Khas. Saya telah
menerima tawaran itu bersama dengan beribu-ribu rakyat Sabah yang
lain." (In the 1980s, I was offered an identity card in Sabah under
the a speical project. I accepted the offer together with thousands of
other people in Sabah.)

Down in the valley from Kampung Penempatan lies a serpentine grouping
of houses. This is Kampung Pelarian, otherwise known as the UNHCR
Settlement Scheme. It was established in the 1970s under the care of
the UN for Filipinos fleeing from the civil war in the southern

Growing settlements

Although the war has long since ended and UN funds ceased, the land
continues to be inhabited.

Instead of diminishing in number, more houses are being built in this
area. A 2006 Borneo Post report said more than 1,000 dwellings are
occupying the land and growing.

In both these neighbouring settlements, life isn't super.

There aren't many in terms of amenities; there's electricity and water
supply. Waste just goes into a hole or a waterway. The residents are a
hardy lot. But the story repeats – no schooling.

At about 3pm that afternoon, we noticed a dusty van passing in front
of us along the narrow, winding lane. It stopped not far ahead, its
body listed to one side because of the potholes.

A couple of young girls – no more than 15 years old and dressed in
Tees and jeans – boarded the van.

Were they heading for their day jobs as dish-washers or other menial
jobs at the market, we wondered? Or rather, we hoped.

For it could easily be something even worse. Something like

It is not mere imaginings. Another excerpt from Lest We Forget:

• Six girls in vice activities in Perak in March 2002 were initially
said to be Sabahans but Sabah police chief later on corrected by
saying that they were Indonesians whose Malaysian ICs were issued by
Sabah NRD.

If all this is true, then Project IC is not merely about the story of
a power-crazed government pulling out all the stops to retain its

It is also about the social repercussions which hurt the state and the
very people who were invited inside our borders.

Saturday, February 19, 2011

2Million RM a day for Diesel in Sabah?

TNB subsidises RM2million a day for diesel. Do you know how much will
TNB need to subsidise if coal were produced? It could be up to RM20
million a day for COAL. Taking into account all costs, storage,
transportation and cleaning up.

And this does not include the RM2.5 billion gas pipeline to export
Sabah's gas!!!
If this gas were to be used in Sabah, there is no need to spend 2.5
billion RM, no need to subsidise any diesel at all. The most important
of all is that, it is the cleanest fuel EVER. That is why it is very
valuable for other nations but SAbah is denied its use.

Musa used to be a strong supporter of the coal power plant. Why the
sudden change of heart??? Is it caused by the coming election??? What
happens after the ELECTION????

They will start saying that COAL IS CHEAPER THAN GAS etc. Just as what
they have been doing now.
Notice the lack of commitment in abolishing this coal powered plant.
Musa only said that the people of SAbah objected, NOT HIM.

Guaranteed 100% that if BN wins, the coal power will continue. After
all, this is what BN believes sincerely, that COAL IS MUCH CHEAPER
THAN GAS etc. So far there is no admission of error or the slightest
sense of guilt at all from the BN parties.

SAbahans should wake up and SEE THE FACTS!!!

Bintulu LNG to generate power supply for Sabah's east coast
February 19, 2011

KOTA KINABALU, Feb 19 — Petronas and Tenaga Nasional Berhad (TNB) will
soon be working on bringing liquefied natural gas (LNG) from Bintulu
to generate alternative power supply to Sabah's east coast.

Chief Minister Datuk Seri Musa Aman said this was to address the
critical shortage of power supply in the east coast, especially since
the proposed coal-fired power plant project was recently scrapped.

"I know that we have a critical problem in terms of providing stable
electricity to the people in the east coast, and not many know that
TNB was subsidising RM2 million a day for diesel used in the various
independent power plants there," he said at Gerakan's Chinese New Year
and Chap Goh Mei celebrations here today.

Musa said the venture between Petronas and TNB was a directive by
Prime Minister Datuk Seri Najib Razak during the recent National
Economic Action Council (NEAC) meeting, which came prior to his
meeting with the premier, together with Deputy Chief Minister Tan Sri
Joseph Pairin Kitingan and state Industrial Development Minister Datuk
Raymond Tan on the proposed coal-fired power plant.

During that meeting, Musa told Najib of the Sabah people's unhappiness
over the project.

Meanwhile, Gerakan president Tan Sri Dr Koh Tsu Koon said the party
fully supported the decision by the government to scrap the proposed
coal-fired power plant project, that was in line with the
sustainability concept under the New Economic Model.

"This (decision) reflects the commitment of the chief minister and the
BN (Barisan Nasional) to continue to make environment as its main
agenda. So, this is most welcome," he said.

Koh, who is also minister in the Prime Minister's Department, said the
scrapping of the project was one of three reasons for BN to smile in
the Chinese New Year of the Rabbit.

The other two, he said, were the victory in the Batu Sapi
parliamentary by-election and Gerakan receiving many new members. —

Amazed with Sabah's 4.5% growth vs 7 for malaysia, 14 for Singapore?

And this is despite having a positive trade balance of over 2, 000%!!!
Export is 20 times import.

No wonder Sabah is the poorest in the whole world.
Despite exporting so much, very little has gone into Sabah. over 95%
goes to develop Malaya.(West Malaysia).

Musa Aman dapat pujian

<b>Pengesahan buat Musa</b>: Muhyiddin Yassin menandatangani plak
menandakan lawatannya di tamu Donggongon di Penampang. Bersamanya
ialah Musa (kiri) dan Menteri Perusahaan, Perladangan dan Komoditi,
Tan Sri Bernard Dompok.

Pengesahan buat Musa: Muhyiddin Yassin menandatangani plak menandakan
lawatannya di tamu Donggongon di Penampang. Bersamanya ialah Musa
(kiri) dan Menteri Perusahaan, Perladangan dan Komoditi, Tan Sri
Bernard Dompok.

Timbalan perdana menteri kagum dengan pencapaian Sabah

Sabah mendapat RM5.7 bilion pelaburan tahun lalu, empat kali ganda
lebih banyak pada 2008, dan walaupun berlaku kegawatan global. Jumlah
ini hampir seperlima daripada RM32.6 bilion pelaburan yang diterima
Malaysia dan meletakkan negeri di timur Malaysia ini sebagai tumpuan
pelabur asing.

Ia adalah pelaburan dalam perindustrian merangkumi sektor pembuatan
galian bukan besi hinggalah kepada produk kimia, makanan, kertas dan

Timbalan Perdana Menteri Datuk Muhyiddin Yassin agak kagum dengan
ketahanan ekonomi Sabah yang dijangka berkembang di antara 4 peratus
dan 4.5 peratus tahun ini. Ketika lawatan selama tiga hari di Sabah,
Muhyiddin berasa selesa membiarkan perkara berkaitan ekonomi selamat
di tangan Ketua Menteri Sabah, Datuk Musa Aman yang bekerja tanpa
mengenal penat untuk menjauhkan negeri ini daripada kesan kemelesetan
ekonomi dunia.

Sebaliknya, beliau mengalihkan perhatian kepada kekurangan sekolah di
Sabah yang menyaksikan banyak sekolah rendah berkongsi bangunan dengan
sekolah menengah. Sebagai menteri pendidikan, Muhyiddin berkata,
beliau berasa terkilan dengan keadaan itu dan berjanji untuk membuat

Dalam dialog dengan ahli perniagaan, Muhyiddin berkata, keseimbangan
jualan semula Sabah memberinya RM2.3 bilion. Kemelesetan melengahkan
eksport pada tahun lalu. Namun, Sabah masih mengeksport RM2.4 bilion
nilai komoditi primari, terutamanya minyak mentah sawit manakala ia
mengimport hanya RM125.5 juta hasil produk - kebanyakannya barangan
pengguna dan jentera. – Insight Sabah

Melaka get NGV Train while Sabah export NGV but no NGV Train

Melaka is to spend RM272 million for NGV Train while Sabah had to
spend 2.5Billion RM to supply this train with NGV, while having NO NGV
at all for Sabah.

The train in Sabah, after spending RM200 million, will use diesel
fuel, which has to be imported.

Melaka Tram to open to public in May 2012

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AYER KEROH -- Train maker, Mrails International Sdn Bhd expects its
RM272 million Melaka Tram, the first natural gas vehicle (NGV) powered
tram in the world, to open to the public in May next year.

Its president and managing director, Datuk Jeya Kumar said, the
implementation and application of the environmentally friendly "Next
Generation Tram" will revolutionise the locomotive industry.

"We will be using this technology to add convenience to culture and
enhance heritage without affecting the environment in compliance with
Melaka's status as a Unesco World Heritage Site," he told a media
briefing here today.

Kumar said the tram would scrap the traditional "pantograph" system in
keeping with the times and also in line with United Nations Framework
Convention on Climate Change to combat global warming.

"This also represents our vision to take part in Melaka's growth as an
ultimate destination centre for tourism, and marks our commitment to
creating sustainable transport systems," he added.

The ground breaking ceremony was performed by Prime Minister Datuk
Seri Mohd Najib Tun Razak.

Also present was Melaka Chief Minister Datuk Seri Mohd Ali Rustam and
Terengganu Menteri Besar Datuk Seri Ahmad Said.

Melaka Tram was made official via an agreement between the Chief
Minister Incorporation (CMI) and Mrails in March last year.

Under the agreement, the company has agreed to design, construct and
finance, manage, maintain and supervise the road tramway and tramcar
operations for 25 years, while the financing of the project worth
RM272 million is borne by Mrails as well.

The company has also been charged with managing ticket collections for
25 years, with CMI taking 20 per cent in terms of ticket collection
and the balance by Mrails, Kumar said.

He highlighted that the Melaka Tram Corridor would begin from its
depot adjacent to the Ayer Keroh Toll Plaza heading to the heritage
town of Melaka with a distance of 40 kilometres covering 11 of
fourteen major tourist spots.

"We will work hand-in-hand with our partners, CNR Tangshan Railway
Vehicles Co Ltd, a Chinese-based locomotive manufacturer," he said.

The tram is a rail borne vehicle, lighter than a train and differs
from other forms of locomotion, as the tracks are embedded in the

It is able to accommodate 120 passengers at one time, caters to the
disabled because its ground-level design and will operate at speeds of
40 km/h.

Kumar said Mrails, which is expecting at least a 40,000 ridership
daily, would make commuting affordable, with a fare charge of RM2.

It is free for the disabled and students.

Moving forward, the company intends to export its train to other
cities in the country as well as overseas, namely to India and Africa
next year, he said. -- BERNAMA

Read more: Melaka Tram to open to public in May 2012

PBS is similar to BN in making Sabahans the poorest in the whole world

This is an honest and truthful view of the political situation in
Sabah and a reminder what Jeffry Kitingan was.

Usno and Berjaya govts took better care of poor'
David Thien
| January 11, 2011

Umno-Barisan Nasional is a poor match to Usno and Berjaya's native-
friendly policies, according to Sabah DAP.

KOTA KINABALU: Sabah DAP has conceded that the previous Usno and
Berjaya state governments had better and more effective policies which
helped alleviate poverty and improve the economic status of the
natives in the state.

Placing credit where it's due, state party chief Jimmy Wong said the
"Usno and Berjaya governments had done something unique and

"For example, the low-cost housing started by Usno involving only six
posts was laughed at by many (at that time) but today these six-post
houses are sitting on premium lands and have become expensive

"We can at least praise Usno for lifting the economic status of the

"As for the Berjaya (governemnt), it started giving away 15 acres of
land for every Sabahan.

"This was a brilliant policy and today those people who received,
retained and planted oil palm on these lands are much better off than
many people working in the city and towns.

"These are policies of the past governments that have benefited and
uplifted the standard of living of the people," Wong said.

He said when PBS took over the state administration, it did a huge
"disservice'"to the people by cancelling the policy of giving each
Sabahan 15 acres of land.

"PBS cancelled the policy and instead went on to give away huge tracts
of land to non-Sabahans for oil palm plantations.

"The Umno-BN government today is proud to give away communal lands to
natives which is akin to confining the Red Indians in a 'reserve' in
the United States.

"If the Sabah natives cannot own lands, they will always remain in
poverty and disadvantaged including their children and grandchildren,"
Wong said, alluding to Sabah's poverty level.

According to the Ninth Malaysia Plan, Sabah is not only the poorest
but had the highest number of abject poverty. This has also been
confirmed by the World Bank report published late last year.

No respect for Sabah and Sarawak

Wong was speaking at a Pakatan Rakyat solidarity dinner in Inanam on
Sunday. Also present at the dinner was the newly-appointed PKR state
chied Pajudin Nordin and Sabah PAS deputy commissioner, Haji Aminudin

A five-member team from DAP headquarters led by Cheras MP Tan Kok Wai
(national DAP election director), Petaling Jaya Utara MP Tony Pua
(national publicity secretary), Serdang MP Teo Nei Ching (deputy
publicity secretary), an academician Ong Kian Meng and the party's
national bureau executive director Ooi Leng Hang.

Pua, when addressing the crowd, said: "Sabah and Sarawak did not get
the respect of the federal government when assessed based on the
annual budget."

According to Pua, the two states were only allocated less than 10% of
the total value of the nation's development fund in Budget 2011.

"The federal government intends to spend millions of ringgit on a
useless multi-storey building in Kuala Lumpur while neglecting the
high poverty rate in Sabah," Pua said.

Tan, meanwhile, reminded party leaders of the long and hard struggle
that lay ahead.

He told them that the picture was not as rosy as painted because Prime
Minister Najib Tun Razak was "cleverly using his plans that come in
alphabets" including NEM, NKRA, KPI and others.

"Nevertheless, the country is facing so many problems including price
hikes, creeping inflation, corruption, poor perception of the
judiciary, abuses by the police, human rights issue and poor
international ratings on corruption and free press, to say a few.

"Poverty is a household word in Sabah and it is an issue which the
Umno-BN government finds hard to put a lid on.

"Poverty itself is not an issue as it exists almost in every corner of
the world.

"But it becomes an issue when a country blessed with an abundance of
natural resources (like in Sabah) is home to many inhabitants living
in poverty," he said.

Real story of Sabah's Petroleum resources

Malaysian oilfields: 50,000 drums per day

The Commercial Arrangement Area (CAA) in the Malay Basin, which
Malaysia shares with Vietnam, also contributes to the country's oil
production. Talisman Energy (Canada) holds operating interests in the
Northern and Southern oil fields in the CAA. While the Southern Fields
are still under exploration, the Northern Fields development
reportedly began producing at 25,000 bbl/d in August 2009, reportedly
rising to 50,000 bbl/d in early 2010. Talisman holds a 41.4 percent
interest, Petronas holds a 46 percent interest and PetroVietnam has
12.5 percent. Talisman is continuing to explore and develop fields in
the area.

Sabah's oil fields: 300,000 drums per day

Construction began on the Sabah Oil and Gas Terminal (SOGT) in
February 2007 and it is expected to be completed by 2012. It will have
handling capacity of 300,000 barrels of crude and 1 billion cubic feet
of natural gas per day and will primarily serve Malaysia's export
markets. The Sabah-Sarawak Gas Pipeline project is part of this

With one drum of petrol can earn US100, at 300,000 drums per day, it
will be 30 million US$ per day.

I'm afraid Sabah will see very little of this revenue but instead more
destruction and poverty as a result of the pollution created. What a
sad end to the heaven that was Sabah.

Malaysia Energy Profile:

Written by: Eurasia Review

(EIA) –Malaysia's national oil and gas company, Petroleam Nasional
Berhad (Petronas), holds exclusive ownership rights to all oil and gas
exploration and production projects in Malaysia and is the single
largest contributor of Malaysian government revenues, almost half in
2009, by way of dividends and taxes.

As Malaysia's oil fields are maturing, the government is focused on
enhancing output from existing fields and from new offshore
developments of both oil and gas, which are expected to increase
aggregate production capacity in the near- to mid-term.

Malaysia's western coast runs alongside the Strait of Malacca, an
important route for seaborne energy trade that links the Indian and
Pacific Oceans. Malaysia's position in the South China Sea makes it a
party to the various disputes among neighboring countries over
competing claims to the sea's resources. Although Malaysia has
bilaterally resolved competing claims with Vietnam, Brunei, and
Thailand, a potential problem is the fact that China claims almost all
of the South China Sea, including the Spratly Islands, which are in
proximity to oil and gas producing basins.


According to the Oil & Gas Journal (OGJ), Malaysia held proven oil
reserves of 4 billion barrels as of January 2010. Nearly all of
Malaysia's oil comes from offshore fields. The continental shelf is
divided into 3 producing basins: the Malay basin in the west and the
Sarawak and Sabah basins in the east. Most of the country's oil
reserves are located in the Malay basin and tend to be of high
quality. Malaysia's benchmark crude oil, Tapis Blend, is very light
and sweet with an API gravity of 44° and sulfur content of 0.08
percent by weight.

Top 5 Asia-Pacific Proven Oil Reserve Holders, January 2010

Sector Organization

Malaysia's national oil and gas company, Petroleam Nasional Berhad
(Petronas), holds exclusive ownership rights to all oil and gas
exploration and production projects in Malaysia, is responsible for
all licensing procedures, and is subject to only the prime minister,
who controls appointments to the company board. The company holds
stakes in the majority of oil and gas blocks in Malaysia. It is the
single largest contributor of Malaysian government revenues, almost
half in 2009, by way of dividends and taxes. Since its incorporation,
Petronas has grown to be an integrated international oil and gas
company with business interests in 31 countries. It was ranked by
Fortune as the 80th largest corporation in the world in 2009 and the
13th most profitable. All foreign and private companies must operate
through production sharing contracts (PSCs) with Petronas. ExxonMobil
is the largest foreign oil company by production volume and other
major foreign oil producers operating in Malaysia via PSCs include
Shell, Murphy Oil, and Talisman Energy.

Energy policy in Malaysia is made and overseen by the Economic
Planning Unit (EPU) and the Implementation and Coordination Unit
(ICU), which report directly to the Prime Minister. Malaysia's oil and
gas policy has historically focused on maintaining the reserve base to
ensure long term supply security while providing affordable fuel
supplies to its population. In July 2010, the government introduced
subsidy reductions for gasoline, diesel, and liquid petroleum gas
(LPG) with the aim of gradually rationalizing the fuel subsidy system
to reduce expenditures. Further cuts in fuel subsidies are expected.

Exploration and Production

Total oil production in 2009 was 693,000 barrels per day (bbl/d), of
which 83 percent was crude oil. More than half of total Malaysian oil
production currently comes from the Tapis field in the offshore Malay
basin. Malaysian oil production has been gradually decreasing since
reaching a peak of 862,000 bbl/d in 2004 due to its maturing offshore
reservoirs. Malaysia consumes the majority of its production and
domestic consumption has been rising as production has been falling.
Exports in 2009 were 157,000 bbl/d. However, the government is focused
on opening up new investment opportunities by enhancing output from
existing fields and developing new fields in deepwater areas offshore
Sarawak and Sabah.

Exxon-Mobil's enhanced oil recovery project at the Tapis field, which
lies 118 miles off Terengganu in 210 feet of water, will start up in
2013, with an estimated gross investment of more than $1 billion.
Tapis is one of 7 mature fields offshore peninsular Malaysia that
ExxonMobil and Petronas have agreed to develop as part of a 25-year
production-sharing contract that was finalized in June 2009. Under the
agreement, which includes provisions for the deployment of enhanced
oil recovery and further drilling to boost output, work will be
carried out on all 7 fields, including Seligi, Guntong, Tapis,
Semangkok, Irong Barat, Tebu, and Palas.

The Commercial Arrangement Area (CAA) in the Malay Basin, which
Malaysia shares with Vietnam, also contributes to the country's oil
production. Talisman Energy (Canada) holds operating interests in the
Northern and Southern oil fields in the CAA. While the Southern Fields
are still under exploration, the Northern Fields development
reportedly began producing at 25,000 bbl/d in August 2009, reportedly
rising to 50,000 bbl/d in early 2010. Talisman holds a 41.4 percent
interest, Petronas holds a 46 percent interest and PetroVietnam has
12.5 percent. Talisman is continuing to explore and develop fields in
the area.

The over-20-years dispute between Malaysia and Brunei over land and
sea boundaries was ended when the two countries signed a boundary
agreement in April 2009. Blocks L and M were ceded to Brunei while
Limbang, a popular tourist site on the Sarawak-Brunei border, was
ceded to Malaysia. In September 2010, Petronas and the Brunei
government reportedly agreed to jointly develop the 2 blocks offshore
Borneo Island, signing a 40-year production sharing agreement for
newly named Block CA1; an agreement on Block CA2 is expected.

Deepwater oil production projects under development are all offshore
The Kikeh oil field is currently Malaysia's only producing deepwater
oil field. It is offshore Sabah in 4,400 feet of water and was
discovered and is operated by Murphy Oil in partnership with Petronas.
It came onstream in 2007 at an initial rate of 20,000 bbl/d; estimated
production in 2010 is 68,000 bbl/d of oil and 62 mcf/d of gas. Murphy
Oil is carrying out more developmental drilling in order to boost
output to 120,000 bbl/d in the near term. The nearby Kakap and Siakap
fields, discovered in mid-2009 in the same block, will be tied into
Kikeh in 2011 and 2013, respectively, to maintain steady production
through 2015.

The Gumusat/Kakap project, offshore Sabah in 3,900 feet of water, will
include the region's first deepwater floating production system from
19 subsea wells. Gumusat/Kakap is expected to be onstream in 2012 with
production of 150,000 bbl/d, using reinjected associated gas to
maintain pressure. Shareholders are Shell, the operator, at 33
percent, ConocoPhillips at 33 percent, Petronas at 20 percent, and
Murphy Oil at 14 percent. The system will be connected via pipelines
to the new Sabah Oil and Gas Terminal being built in Kimanis, which is
also expected to be completed by 2012.

Development is also underway at the Kebabangan Northern Hub
development project (KBB), to be brought online together with Gumusat/
Kakap and Malikai between 2012 and 2014. KBB, about 87 miles northeast
of Kimanis, will be the hub for the development of deepwater oil and
gas assets offshore Sabah. The KBB platform will be located in 460
feet of water and has a design capacity of 825 Mmcf/d of gas and
22,000 bbl/d of condensate. It consists of 4 contiguous fields being
developed by the Kebabangan Petroleum Operating Company (KPOC),
consisting of Petronas at 40 percent, ConocoPhillips at 30 percent,
and Shell, the operator, at 30 percent.

The Malikai oil and gas field is located nearby and will be tied into
the KBB via liquids and dry gas pipelines shortly after first gas
comes from KBB. It will supply the Sabah Oil and Gas Terminal. The
field was discovered in 2004 at 1,854 feet and field development began
in 2009. Malakai is expected to come online by 2013 with production of
up to 150,000 bbl/d. Shell is the operator at the Malikai oil field
with 35 percent interest, in partnership with ConocoPhillips at 35
percent and Petronas with 30 percent.

Oil Pipelines

Malaysia's main oil pipelines connect oil fields offshore Peninsular
Malaysia to onshore storage and terminal facilities. From the Tapis
oil field runs the 124-mile Tapis pipeline, which terminates at the
Kerteh plant in Terengganu, as does the 145-mile Jerneh condensate
pipeline. The oil pipeline network connecting oil fields offshore
Sabah with the coast is currently expanding following the launch of
development projects including the Kebabangan cluster, the Malikai,
Gemusat/Kekap, and Kikeh oil fields. The majority of pipelines are
operated by Petronas, although ExxonMobil also operates a number of
pipelines connected with its significant upstream holdings located
offshore Peninsular Malaysia.

An international oil products pipeline runs from the Dumai oil
refinery in Indonesia to the Melaka oil refinery in Melaka City,
Malaysia. An interconnecting pipeline then runs from this refinery via
Port Dickenson to the Klang Valley airport and to the Klang oil
distribution center.

Downstream Activities

According to OGJ, Malaysia had about 515,000 bbl/d of refining
capacity at six facilities as of January 2010. Petronas operates 3
refineries (259,000 bbl/d total capacity), while Shell operates 2
(170,000 bbl/d total capacity), and ExxonMobil operates one (86,000
bbl/d). Malaysia invested heavily in refining activities during the
last two decades and is now able to meet most of the country's demand
for petroleum products domestically, after relying on the refining
industry in Singapore for many years.

Petronas' refinery in Melaka is a joint venture with ConocoPhillips,
which owns a 47 percent interest. The refinery produces a full range
of refined petroleum products. An expansion project at Melaka is being
completed in 2010 to increase crude oil, conversion, and treating unit

The Sabah Oil and Gas Terminal is under construction in Kimanis by
Samsung Engineering, and is expected to be completed by end-2013. It
will receive crude from offshore fields, process and distribute the
products via a planned 310-mile onshore pipeline linking Sabah with
Bintulu, Sarawak. The terminal will have a processing capacity of
300,000 bbl/d of crude and condensate, and 1.25 million cubic feet per
day (Mmcf/d) of natural gas.

Natural Gas

According to the Oil and Gas Journal, Malaysia held 83 trillion cubic
feet (Tcf) of proven natural gas reserves as of January 2010. Most of
the country's natural gas reserves are in its eastern areas,
predominantly offshore Sarawak.

Sector Organization

As in the oil sector, Malaysia's state-owned Petronas dominates the
natural gas sector. The company has a monopoly on all upstream natural
gas developments, and also plays a leading role in downstream
activities and the LNG trade. Most natural gas production comes from
production sharing agreements operated by foreign companies in
conjunction with Petronas.

Exploration and Production

Natural gas production has been rising steadily, reaching 2.1 Tcf in
2009, while domestic natural gas consumption has also increased
steadily, reaching 1.0 Tcf in 2009. There are several important
ongoing projects that are expanding natural gas production in Malaysia
over the near term. Exploration and development activities in Malaysia
continue to focus on offshore Sarawak and Sabah.

Malaysia-Thailand Joint Development Area

One of the most active areas for natural gas exploration and
production is the Malaysia-Thailand Joint Development Area (JDA),
located in the lower part of the Gulf of Thailand. The JDA reportedly
holds 9.5 Tcf of proved plus probable natural gas reserves. The area
is divided into three blocks, Block A-18, Block B-17, and Block C-19,
and is administered by the Malaysia-Thailand Joint Authority (MTJA),
with each country owning 50 percent of the JDA's hydrocarbon resources
(map of the JDA). The Carigali-Triton Operating Company (CTOC), a
joint venture between Petronas Carigali and Hess, operates Block A-18,
while Blocks B-17 and C-19 are operated by the Carigali-PTTEP
Operating Company (CPOC), a joint venture of each country's national
oil company. Block B18 phase 1 came online in 2005, and in September
2009, production was reported to have reached 1 Bcf/d. Block B17 came
online in 2009. In October 2010, B17 gas shipments reportedly reached
335 Mmcf/d, with half going to Thailand and half to Malaysia

New Sarawak Natural Gas Projects

Murphy Oil announced in September 2009 the startup of several smaller
new gas fields located in Blocks SK309 and SK311. The first phase of
this project, located 137 miles offshore Sarawak, is to produce gas
from the Golok, Golok Barat, Serampeng, and Merapuh gas fields, which
are being developed in a cluster and will supply the Bintulu LNG
Terminal. It was reported in fourth quarter 2010 that gross production
had reached 250 Mmcf/d and is expected to remain at that level for 5
years. Murphy Oil holds an 85 percent interest and Petronas holds 15
percent. Murphy Oil projects that Phase 2 could produce 350 Mmcf/d for
another 10-year period when additional fields in SK311 are brought

The Kumang Cluster in Block SK306, Central Luconia province, a major
gas field offshore Sarawak, is being developed by Petronas. Phase 1 is
expected to provide 500 Mmcf/d and 22,000 bbl/d of condensate to the
Bintulu Terminal when it goes online at end-2010.

Three new gas fields in Block SK 308, 124 miles offshore Sarawak, are
being jointly developed by Shell and Petronas. They are projected to
produce first gas of 90 Mmcf/d in 2012.


Malaysia has one of the most extensive natural gas pipeline networks
in Asia. The Peninsular Gas Utilization (PGU) project, completed in
1998, expanded the natural gas transmission infrastructure on
Peninsular Malaysia. The PGU system spans more than 880 miles and has
the capacity to transport 2 billion cubic feet per day (Bcf/d) of
natural gas.

A number of pipelines link Sarawak's offshore gas fields to the
Bintulu facility. Petronas is building the 310-mile Sabah-Sarawak Gas
Pipeline between Kimanis, Sabah and Bintulu, Sarawak to transport gas
from Sabah's offshore fields, such as Kota Kinabalu, to Bintulu for
liquefaction and export. Some of the gas will be used for downstream
projects in Sabah. This pipeline is expected to be completed by March

The Association of South East Asian Nations (ASEAN) is promoting the
development of a trans-ASEAN gas pipeline system (TACP) aimed at
linking 80 percent of ASEAN's major gas production and consumption
centers. Because of Malaysia's extensive natural gas infrastructure
and its location, the country is a natural candidate to serve as a hub
in the ongoing TACP project. The first pipeline connected Malaysia
with Singapore and was commissioned in 1991. This has been followed by
gas pipeline links between West Natuna, Indonesia and Duyong,
Malaysia, commissioned in 2002, and the Trans-Thailand-Malaysia gas
pipeline, commissioned in 2005, which allows Malaysia to pipe natural
gas from the Malaysia-Thailand JDA to its domestic pipeline system.
Other links are under development.


Malaysia was the second largest exporter of LNG in the world after
Qatar in 2009, exporting over 1 Tcf of LNG, which accounted for 12
percent of total world LNG exports. Japan, South Korea, and Taiwan
were the 3 primary purchasers. LNG is primarily transported by
Malaysia International Shipping Corporation (MISC), which owns and
operates 27 LNG tankers, the single largest LNG tanker fleet in the
world by volume of LNG carried. MISC is 62-percent owned by Petronas.

The Bintulu LNG complex on Sarawak is the main hub for Malaysia's
natural gas industry. Petronas owns majority interests in Malaysia's 3
LNG processing plants, all located at Bintulu, which are supplied by
the offshore natural gas fields at Sarawak. The Bintulu facility is
the largest LNG complex in the world, with 8 production trains and a
total liquefaction capacity of 1.1 Tcf per year. A further increment
through debottlenecking is expected by end-2010, raising overall
capacity by 0.6 Tcf per year. Japanese financing has been critical to
the development of Malaysia's LNG facilities.

Construction began on the Sabah Oil and Gas Terminal (SOGT) in
February 2007 and it is expected to be completed by 2012. It will have
handling capacity of 300,000 barrels of crude and 1 billion cubic feet
of natural gas per day and will primarily serve Malaysia's export
markets. The Sabah-Sarawak Gas Pipeline project is part of this

Source: EIA


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