Logical to develop oil-gas sector in Sabah: Dompok

Source : Daily Express 10/05/2010

KINARUT: Chief Minister Datuk Seri Musa Aman's announcement on the plan to develop Kimanis and Sipitang into oil and gas towns reciprocates the Federal Government's strong commitment to develop the industry in Sabah.

Plantation Industries and Commodity Minister Tan Sri Bernard Dompok said he supported the State Government's move as announced by Musa at the First Borneo International Oil and Gas Conference on Friday.

"I think this is a good move because there is no reason why we should not utilise the resources that we have," he said, when met at the Montfort Youth Training Centre (MYTC), Sunday.

Dompok, who is also United Pasok Momogun Kadazandusun Murut Organisation (Upko) President said in fact the Federal Cabinet had made a decision that reflected its commitment to develop Sabah's oil and gas industry.

He explained that he had raised his objection to the Kimanis-Bintulu gas pipeline project in the Federal Cabinet meeting when Tun Abdullah Ahmad Badawi was the Prime Minister.

The Cabinet decision then was that it was not necessary to stop the gas pipeline project but at the same time, it also instructed Petronas to give priority to Sabah if the State required the resources, he said.

"There was a guarantee that no gas will be transported to Bintulu through the gas line if there (gas) is a need here so therefore the State Government will have to look at the infrastructure for the utilisation of gas," he said.

Dompok who in the previous Federal Cabinet was a Deputy Minister in the Prime Minister's Department who was placed in charge of Petronas said furthermore, there is a lot of people in Sabah who are interested to venture into the oil and gas industry.

"My own little discussion with the (local) people in the oil and gas industry (showed) there's very little gas that can be exported because it is actually (more) needed here," he said.

Firstly, he said gas is needed for power generation in Sabah, hence little gas could be exported and it was for this reason he had expressed his view to the Federal Cabinet that perhaps the gas pipeline should not be completed.

"But if Petronas wants to go ahead with it then they must have their reasons É but when Sabah needs the gas they (Petronas) must not export.

I think that is the undertaking," he said.

Secondly, he said Petronas had been asked by the Federal Cabinet to write a Letter of Commitment to the State Government on this matter, which he believed had been already been received by the State Government "a while ago".

Dompok said the opposition had been banging him on the matter but he had raised the issue at the Federal level and was glad that there was an assurance of giving priority to Sabah needs in respect of exporting gas.

Towards this end, he said the Federal Government was very committed to assist if Sabah wants to use its gas resources itself but that the State Government needs to follow through on it.

According to him, the decision had also been documented.