Sabio in consortium for Petronas project

KUALA LUMPUR: Sabio Technology Bhd, which has obtained approval to list on Bursa Malaysia, is partnering with Sinopec Petroleum Services Corp to undertake the development of a Petroliam Nasional Bhd (Petronas) marginal oilfield off the coast of Terengganu.

According to Bernama, Sabio Oil and Gas Sdn Bhd (SOG), a unit of Sabio Technology, will hold a 30% stake in the consortium that undertakes the marginal field development project. China’s Sinopec is the biggest stakeholder in the consortium holding 40%, while International Oil Design and Construction Sdn Bhd (IODC), a unit of ODCC Group of Iran, which will be the main technology provider, holds the remaining 30%. The project will reportedly require up to RM2.07 billion in investment.

“About US$400 million (RM1.18 billion) to US$700 million will be required to develop the site, which is estimated to contain 30 million to 50 million barrels of crude,” International Trade and Industry Minister Datuk Sri Mustapa Mohamed said at the MoU signing between SOG and IODC yesterday, adding that Sabio Technology is the local partner of the consortium.

The minister said the MoU is the first step in the corporate exercise to form an international consortium to undertake the development of a Petronas marginal oilfield off the Terengganu coast.

SOG, which was set up primarily to grab the marginal oilfield development opportunity from Petronas, hopes to seal the agreement with the national oil compay soon, said Datuk Seri Ahmad Sukimi Ibrahim, SOG executive chairman.

Ahmad Sukimi is the president and managing director of Sukimi Group, an integrated petroleum corporation. Sabio Technology is an electronic contract manufacturing services provider.

According to its website, Sukimi Group is invloved in the exploration and production of oil and gas, oil refining, marketing and distribution of petroleum products, trading, gas processing and liquefaction, gas transmission pipeline operation, marketing of liquefied natural gas, petrol chemical manufacturing and marketing, logistics and maritime and property investment.

“We hope to secure more similar contracts in the future,” Ahmad Sukimi was quoted by Bernama as saying.

It was reported that Malaysia has some 106 marginal oil fields containing 580 million barrels of oil. Petronas has firmed up plans to develop 25% of the marginal oilfields to replenish its oil reserves and generate revenue. A marginal oil field can produce about 30 million barrels of oil.

In January, Petronas awarded the first marginal field contract via a risk service contract to a consortium comprising Kencana Petroleum Bhd, SapuraCrest Petroleum Bhd and Petrofac Energy Development Sdn Bhd to develop and produce petroleum sourced from Berantai field, off the coast of Terengganu. The cost of the project was about US$800 million.

The move to develop the marginal oilfields is part of the government’s Economic Transformation Programme in which oil and gas has been identified as a key sector.