Contractors call for Petroleum Act Review

KOTA KINABALU: The Sabah Oil and Gas Contractors Association (SOGCA) has called on the Government to review the Petroleum Act I974.

SOGCA president, Datuk Iskandar Malik, suggested that the members of parliament, especially those from Sabah, hold a dialogue with us and to let us know what is happening on the ground as this is the time for the people ofSabah to look to Parliament for a review of the Petroleum Act 1974.


"We are urging the Government to review the Petroleum Act 1974 for us Sabahans, we are actually grateful that PETRONAS had given us a contract, but we want PETRONAS to give it directly to the people of Sabah not through the main contractors from Sarawak or Semenanjung", he explained during a press conference at Novotel Hotel yesterday.

In spite of that, Iskandar added that what needed to be done first is to review the Petroleum Act 1974 in Parliament before the State can demand or more or 'enough' from Petronas. He said that in line with the Government's policy of a high-income concept, SOGCA hoped to help the people, for example, university graduates.

These graduates who may only be paid RM500 per month if they work, are the ones SOGCA is hoping to provide with jobs. SOGCA can actually employ these graduates but the problem is if Sabah contractors are only given sub-contracts how are they going to pay salaries for the graduates.

"If we get the main contract, we can deliver, but when we only get a sub contract our income would not be much," said Iskandar, who also urged PETRONAS to consider giving them a direct contract.

"At the moment we still get our contract but only from sub contractors," he said.

He also suggested for the sake of transparency and credibility, that PETRONAS should only award contracts to its licence holders and priority should be given to
SOGCA members who have the experience and capability to implement projects hands-on.

The association has set the record straight by saying that PETRONAS which is the national oil company, has in fact been playing its part for the State as evidenced by the total amount of contracts awarded-about RM500 million so far.

SOGCA indeed paid tribute to PETRONAS for according due recognition to SOGCA.

However, Iskandar pointed out that no matter how much PETRONAS has contributed to the State the amount would never be 'enough' to satisfy certain quarters unless the issue is resolved which includes competition for oil and gas jobs from Sabah Government Linked Companies( GLCs).

He regretted such competition from the GLCs competing for almost everything including small "fencing and drainage jobs".

"The GLCs should instead let the opportunities go to genuine oil and gas contractors who are already in the field but struggling to obtain work and participate in the oil and gas business.The GLCsa re supposed to be investors and not our competitors," he asked.

Meanwhile, Iskandar also hopes that with the 300MW IPP project, the GLCs will give SOGCA the oppoftunity to implement Sabah jobs, as far as the Vendor Development Programme (VDP) is concerned.

"PETRONAS is now considering to award one such licence to a Sabah company."

"The question on how much is 'enough' that PETRONAS should give to Sabah would depend Qn how well and organised the State Government and its elected representatives especially those at the Federal level handling the problems that have been cropping up as far as the industry here is concerned.

Iskandar proposed that the setting up of a special committee by the State Committee should include SOGCA to ensure a more credible set-up to oversee all matters with regard to development of the oil and gas industry in the state.

Also present were SOGCA secretary general cum Captain Walter J. Nair and SOGCA treasurer Mohamed hilfekar Ahmad.

By Suraini Andokong (Borneo Post)