Presentation on theme: "TRANSFORMING CHALLENGES INTO OPPORTUNITIES ABDUL KADIR ABDULLAH 26 th May 2014 ABDUL KADIR ABDULLAH 26 th May 2014."— Presentation transcript:
TRANSFORMING CHALLENGES INTO OPPORTUNITIES ABDUL KADIR ABDULLAH 26 th May 2014 ABDUL KADIR ABDULLAH 26 th May 2014
Quotations from YAB CM …………………………….In response to the numerous mega projects embarked by PETRONAS in Sabah amounting to a staggering billions of ringgit, YAB CM had this to say at the 2 nd SOGCE “Let me assure you that the State Government is fully committed to the development of the oil and gas industry in Sabah. We constantly engage with the Federal Government to discuss provision of funds for physical development of infrastructure and industrial facilities, and with PETRONAS on matters such as gas supply. Sabah will also continue to work with PETRONAS and the Malaysian Investment Development Authority (MIDA) to attract investors to establish oil and gas industrial activities in Sabah, apart from our own efforts in nurturing local investments”.
The presentation today is therefore about…….. A ‘Report Card’ of the Year that Was! Taming the Challenges The SOGIP Master Plan – Forging the Partnerships What lies Now and Ahead- Creating the Opportunities
According to Merriem Webster dictionary it is about a complete or major change in someone’s appearance, form, etc ?
The project site and the condition of the area where SOGIP was to be located was described by consultant as….. The proposed SOGIP site is approximately 1646 hectares or 4, 065 acres in size. The area is presently bare of any forest stand. The existing site condition is flat, overgrown with shrubs, bushes and other vegetation. A large part of the area is greatly sandy and some part as swampy. Mangrove can also be found at the northern section of the site. Utility services for water and electricity are not available in the site.
AND YET…IT WAS UNDER THIS CONDITION THAT PETRONAS DECIDED TO LOCATE THEIR MEGA AMMONIA AND UREA PROJECT (SAMUR) WORTH STAGGERING RM4.5 BILLION SAMUR PROJECT IN PROGRESS
What are these challenges that needed to be overcome?
From SOGIP’s perspective, the challenges come in three forms…. Infrastructure & Utilities Supporting Facilities ?
INFRASTRUCTURE & UTILITIES Absence of common port facilities in SOGIP Absence of electricity transmission line (275KVA) to SOGIP Inadequate water supply for industrial use Site is yet to be prepared for industrial activities Absence of dual carriage way to cater for large cargo movement SUPPORTING FACILITIES Inadequate housing Lack of public transport Absence of railway services Absence of commercial airport (nearest airport in KK) Lack of recreational areas (nearest in Labuan and Brunei) Lack of accommodation for business travellers (nearest in Lawas)
Water Treatment Plant Current demand: 11 MLD SAMUR requirement : 27 MLD Total Capacity by 2014 59 MLD New Water Treatment Plant Capacity 40 MLD -To be completed by Q1 2014 -To cater for SAMUR – 27 MLD Kg. Ulau Water Treatment Plant Capacity 15 MLD Mesapol Water Treatment Plant Capacity 4 MLD NEW WATER TREATMENT PLANT DESIGNATED FOR SOGIP – Scheduled to be completed June 2014
PARTNERSHIP IN DEVELOPMENT = SOGIP SABAH FEDERAL AGENCIES PETRONAS THE SABAH STATE GOVERNMENT TOGETHERWITH THE FEDERAL AGENCIES AND PETRONAS FORMED A SMART PARTNERSHIP TO DEVELOP THE OIL AND GAS RESOURCES AND LAND IN SIPITANG
Methane Rich Natural Gas Methane Rich Natural Gas Methanol Ammonia Natural Gas composition in Peninsular and Sabah Ammonia is a more viable petrochemical route due to regional and local market demand as well as volume availability Ammonium Nitrate Diammoniu m Phosphate Caprolactam Ammonium Sulphate Artificial fibre Fertilizer: palm/rubb er Fertilizer: cash crops Urea Power Generation Power demand in Sabah is limited 100mmscfd = 600 MW Note : ethane volume is not sufficient to develop ethylene and derivatives complex UF – Urea Formaldehyde Oversupply of market Insufficient gas volume for world scale plant Fertilizer: agriculture Huge local demand NPK Ammonium Chloride Mela- mine UF PETRONAS plans to develop natural gas to primary fertilizer and encourage the development of downstream value added products.
INVESTMENT SCENARIO Petronas plans to position SOGIP as Premier Oil and Gas Industrial Park of Choice for Agro-based Petrochemical in Asia Pacific Central Water Supply Road and Infrastructure, Port and Jetties, Storage and Warehouse Centralised Utilities Facilities (CUF ) SAMUR Downstream Urea Derivatives : i.NPK ii.Melamine iii.Urea formaldehyde resin Downstream Urea Derivatives : i.NPK ii.Melamine iii.Urea formaldehyde resin SMIs Downstream ammonia derivatives : i.Ammonium Nitrate ii.Diammonium Phosphate iii.Ammonium Chloride iv.Ammonium Sulphate /Caprolactam v.CO2 Derivatives i.e. Acetal Resins, Dry Gas, EOR Downstream ammonia derivatives : i.Ammonium Nitrate ii.Diammonium Phosphate iii.Ammonium Chloride iv.Ammonium Sulphate /Caprolactam v.CO2 Derivatives i.e. Acetal Resins, Dry Gas, EOR Reticulation /Gas Distribution New Ammonia Plant Base Feedstock Whilst PETRONAS plans to position Oil Tankage/Ship repairs /Methanol Derivatives Oil Tankage/Ship repairs /Methanol Derivatives Fertilisers chain will bring approx. net investment value of RM9.57 Billion and 5,370 direct and indirect jobs SOGDC plans to invite other investors to invest in other industries Housing/ Hotels/Shopping complexes
Technical Chemical and Process Engineers Mechanical Engineers Design Engineers Operations Engineers IT Analyst Electrical Engineers SHE Specialists Turbo Machinery Engineers Business and General Management Business Graduate Law Graduate Human Resources team Medical Specialists Accounting and Control Analysts Corporate Planners Corporate Affairs Specialists Controllers Asset Management Team Skilled Technicians Operators Instrument and Electrical Specialists Electrical Chargemen Mechanical and Maintenance Specialists Turbo Machinery Specialist IT Specialists Logistics Team Welding Specialists (various levels) Construction Team (Supervisors, fitters, riggers, etc…) Design Draftsmen Office Administrative Support Staff EMPLOYMENT OPPORTUNITIES IN SOGIP
International Business participations New technologies Transfer of Knowledge Local business participations JV opportunities Develop local human Capitals SMEs Opportunities Develop local businesses New Technologies Project Development Design and Engineering Constructions Start-up and Commissioning Procurement Manufacturing / Production operations Services Operations and Maintenance Equipment Services IT services Logistics Services Warehousing and Packaging Port Services BUSINESS OPPORTUNITIES IN SOGIP
Infrastructures improvement Community Services Higher Educations University Research & Development Recreations and Healthy Entertainments Improvement in infrastructure Logistics & transportation Pan Borneo Highway Railway link Air freighting services Power Supply Service Water Supply Management and Services Port Services Community Services Heath care for local and new arrivals participating in the petrochemical industries New and improve hospitals equipped with modern facilities to handle emergency cases Schools New schools High grading of the facilities Institute Of Higher Education University Technical Colleges Recreation and Healthy Entertainment Developments Improve esplanade for community interactions Parks for healthy lifestyle activities Libraries for inquisitive minds DEVELOPMENT OPPORTUNITIES IN SUPPORT SERVICES IN AND AROUND SOGIP AND SIPITANG
ENABLERS ESTIMATED COST RM mil Port1,530 Utilities : CUF, Electricity Transmission line900 Waste Management200 Logistic and Warehouse100 Water Supply 700 Internal infrastructure (Roads, street lighting, drainage, ICT) Note : Total Cost : RM315mil Approved by UKAS: RM195mil 315 ESTIMATED EXPENDITURE (mil)3,745 What lies beneath those challenges are actually host of business opportunities
Phase 1: A. Planned investment 1.FertilizersFertilizers Ammonia Plant Ammonia Derivatives Urea Derivatives 2.UtilitiesUtilities Centralized Utilities Facility (CUF) Gas Reticulation 3.Bulk Storage Bulk Oil Storage Bulk Products Distribution Terminal Bulk Products Distribution Terminal 4.Other Investment Bio-based industries Fabrication (shipping, onshore & offshore structures) Fabrication (shipping, onshore & offshore structures) Refinery Phase 1: B. Planned Development by SOGIP 1.InfrastructureInfrastructure Road & Street Lights Drainage Port and Jetty Telecommunications Phase 2: Subject to future availability of gas 1.Methanol DerivativesMethanol Derivatives 2.Ammonia DerivativesAmmonia Derivatives 3.Urea DerivativesUrea Derivatives 4.Other heavy industriesOther heavy industries Investments in SOGIP Development plan for type of investments in SOGIP Phase 1 20232024202220212020201920182017201620152014 Phase 2 PETROCHEMICAL & FERTILIZERS BULK STORAGE & HEAVY INDUSTRIES INDUSTRIES SUPPORTING INDUSTRIES ▪ Transportation ▪ Packaging ▪ Warehouse (Storage Facilities) ▪ MARKISA (Ammonia Plant) ▪ Printing UTILITIES & INFRASTRUCTURE ▪ Road, Streetlights & Drainage ▪ Electricity, Water & ICT ▪ Centralized Utilities Facility (CUF) ▪ Port & Jetty ▪ Phase 1 ▪ Phase 2 ▪ Phase 3 ▪ Phase 4A ▪ Phase 4B ▪ Oil Refinery ▪ Fabrication Yard ▪ Gas Reticulation ▪ Bio-based Industries ▪ Bulk Products Distribution Terminal ▪ Ammonia Derivatives ▪ Urea Derivatives ▪ Methanol Derivatives ▪ Ship Repair Services ▪ Bulk Storage ▪ SMI