SARAWAK’S newly formed state-owned oil and gas company, Petros, will not be a “partner” of national petroleum company Petronas unlike other oil giants.

Chief Minister Abang Johari Openg said Petros, whose formal incorporation was made to his cabinet colleagues at his private 67th birthday party last Sunday, will be granted the “same status” as Petronas.

With Petros, Sarawak will have its own vehicle to work with Petronas in the upstream business of the oil and gas industry.

“We have to protect the state’s interests in the oil and gas industry,” he said.

At the same event, Abang Johari said the setting up of Petros is separate from the state’s demand for a 20% oil and gas royalty from Putrajaya.

The state currently receives only 5% with Putrajaya and Petronas reportedly balking at the demand.

The chief minister, speaking to reporters after opening the international conference on language studies in Kuching, refused to disclose the board members of the new company.

The board, he said, would have five members “for a start” and they are “retired Sarawakians who have wide experience in the oil and gas industry”.

“And they are not politicians.”

Sources told The Malaysian Insight that director of the Sarawak Public Works Department, Zuraimi Sabki; managing director of Bintulu Port Holdings Bhd Mohammad Medan Abdullah; and chief executive officer of Sarawak Energy Bhd Sharbini Suhaili are among the Petros directors.

Mohammad and Sharbini were formerly with Petronas while Zuraimi was once with Shell.

Abang Johari, when asked if it is true Sharbini is the new CEO of Petros, dismissed the rumour, saying “there are other qualified people around”.

He added that he would disclose details of the formation of the company and paid-up capital at the budget sitting in November.

PKR Batu Lintang assemblyman See Chee How said Petros should be a sovereign wealth fund answerable to the legislative assembly.

He said a sovereign wealth fund answerable to the state assembly would ensure the entity maintains “its characteristic of maximising long-term return from the (oil and gas) wealth for the future generations of Sarawak, while at the same time establish a strongly responsible and accountable institution”.

The PKR vice-president said that would prevent the fund from ending up in financial scandals, such as 1Malaysia Development Bhd (1MDB).

See added thta for Petros to be successful, the state government “must first assert and assume control over the awarding of production sharing contracts (PSC) over those remaining blocks or fields of oil and gas potentials onshore and offshore within the territorial boundary of Sarawak”. – August 9, 2017.