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”.

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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

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Infrastructure
& Utilities
Supporting
Facilities

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•
•
•
•
 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
Mesapol Water Treatment Plant
Capacity
4
MLD
Current demand: 11 MLD
SAMUR requirement : 27 MLD
New Water Treatment Plant
Capacity
40
MLD
- To be completed by Q1 2014
- To cater for SAMUR – 27 MLD
Total Capacity by 2014
59
MLD
Kg. Ulau Water Treatment Plant
Capacity
15
MLD
NEW WATER
TREATMENT PLANT
DESIGNATED FOR
SOGIP – Scheduled to be completed June 2014

Approval of 1,000 hectares of
“SEA-LAND” for jetty and port activities
Jetty for SAMUR

A Conceptual Maritime Master Plan

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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
SABAH
FEDERAL
AGENCIES
PETRONAS

PETRONAS plans to develop natural gas to primary fertilizer and encourage the development of downstream value added products.
Natural Gas composition in Peninsular and
Sabah
Composition Peninsular Sabah
Methane
Ethane
Propane
Butane
C5 +
Inert Gas
79%
11%
5%
3%
2%
-
91%
4%
2%
1%
0.1%
1.9%
Methane
Rich
Natural
Gas
Ammonia is a more viable petrochemical route due to regional and local market demand as well as volume availability
Methanol
 Oversupply of market
 Insufficient gas volume for world scale plant
Ammonia
Caprolactam
Ammonium
Sulphate
Diammoniu m
Phosphate
Ammonium
Nitrate
Urea
Ammonium
Chloride
NPK
Melamine
UF
Fertilizer: agriculture
Fertilizer: palm/rubb er
Fertilizer: cash crops
Artificial fibre
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
Huge local demand

INVESTMENT
SCENARIO
Whilst PETRONAS plans to position
Petronas plans to position SOGIP as
Premier Oil and Gas Industrial Park of Choice for Agro-based
Petrochemical in Asia Pacific
Base Feedstock
SAMUR
Downstream Urea Derivatives : i.
NPK ii.
Melamine iii.
Urea formaldehyde resin
New
Ammonia
Plant
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
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
SMIs
Oil Tankage/Ship repairs
/Methanol Derivatives
Housing/
Hotels/Shopping complexes
Reticulation /Gas Distribution
Centralised Utilities Facilities (CUF
)
Road and Infrastructure, Port and
Jetties, Storage and Warehouse
Central Water Supply

x

Natural Gas
(91% Methane)
Ammonia
NPK/Melamine
/ Urea
Formaldehyde
Methanol
Urea
Ammonia
Derivatives
Methanol To
Olefin Process
Chemicals
+
PALM Based
Products
Polyplastics
Pharmaceutical
Products

Opportunities from METHANOL
DERIVATIVES
Formaldehyde
Formic Acid
Dimethoxymethane
Methyl Methacrylate
Methyl Tertiary Butyl Ether (MTBE)
Methanol
Acetic Acid
N,N-Dimethylacetamide (DMAC)
Dimethylformamide (DMF)
Chloromethane
Dimethyl Terephthalate (DMT)
1.Pentaerythrito
2.Trimethylolpropane (TMP
3.1, 4-Butanediol (BDO)
4.Urea Formaldehyde Resin (UF)
5.Phenolic Resin
6.Polyformaldehyde Resin (POM)
7.Melamine-Formaldehyde Resinl
1.Poly(Methyl Methacrylate)
(PMMA)
2.Acrylic Resin
1.Glyceryl Triacetate
2.Ethyl Acetate (EAC)
3.Butyl Acetate (BAC)
4.Vinyl Acetate Monomer
5.Chloroacetic Acid
6.Isopropyl Acetate (IPAC)
7.Acetic Anhydride
1.Dichloromethane
2.Chloroform
3.Carbon Tetrachloride
4.Methylchlorosilane
1.Polyethylene Terephthalate (PET)
1.Unsaturated Polyester Resin (UPR)
2.Alkyd Resin
3.Polyurethane Resin (PU)
4.1,4 - Butyrolactone (GBL)
5.Tetrahydrofuran (THF)
6.Polyester Polyol
7.Polyvinyl Pyrrolidone (PVP)
8.Polyester Resin
9.Polybutylene Terephthalate (PBT)
1.Polyvinyl Alcohol (PVA)
2.Polyvinyl Acetate
Confidential

EMPLOYMENT OPPORTUNITIES IN SOGIP
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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

BUSINESS OPPORTUNITIES IN SOGIP
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
International Business participations
 New technologies
 Transfer of Knowledge
Local business participations
 JV opportunities
 Develop local human
Capitals
 SMEs Opportunities
 Develop local businesses
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New Technologies
Project Development
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Design and Engineering
Constructions
Start-up and Commissioning
Procurement
Manufacturing / Production operations
 Services
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Operations and Maintenance
Equipment Services
IT services
Logistics Services
Warehousing and Packaging
Port Services

DEVELOPMENT OPPORTUNITIES IN SUPPORT SERVICES IN
AND AROUND SOGIP AND SIPITANG
 Infrastructures improvement
 Community Services
 Higher Educations
 University
 Research &
Development
 Recreations and
Healthy Entertainments
 Improvement in infrastructure
 Logistics & transportation
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
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
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
New schools
High grading of the facilities
 Institute Of Higher Education
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
University
Technical Colleges
 Recreation and Healthy Entertainment Developments
 Improve esplanade for community interactions
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Parks for healthy lifestyle activities
Libraries for inquisitive minds

What lies beneath those challenges are actually host of business opportunities
ENABLERS
Port
Utilities : CUF, Electricity Transmission line
Waste Management
Logistic and Warehouse
Water Supply
Internal infrastructure
(Roads, street lighting, drainage, ICT)
Note :
Total Cost : RM315mil
Approved by UKAS: RM195mil
ESTIMATED EXPENDITURE (mil)
ESTIMATED COST
RM mil
1,530
900
200
100
700
315
3,745

Development plan for type of investments in SOGIP
INDUSTRIES
PETROCHEMICAL & FERTILIZERS
▪
MARKISA (Ammonia Plant)
▪
Ammonia Derivatives
▪
Urea Derivatives
▪
Methanol Derivatives
▪
Bio-based Industries
BULK STORAGE & HEAVY INDUSTRIES
▪
Bulk Storage
▪
Bulk Products Distribution Terminal
▪
Oil Refinery
▪
Fabrication Yard
▪
Ship Repair Services
SUPPORTING INDUSTRIES
▪
Transportation
▪
Warehouse (Storage Facilities)
▪
Packaging
▪
Printing
▪
SMI
UTILITIES & INFRASTRUCTURE
▪
Road, Streetlights & Drainage
▪
Electricity , Water & ICT
▪
Centralized Utilities Facility (CUF)
▪
Gas Reticulation
▪
Port & Jetty
▪
Phase 1
▪
Phase 2
▪
Phase 3
▪
Phase 4A
▪
Phase 4B
2014 2015
Phase 1
2016 2017 2018 2019 2020
Phase 2
2021 2022 2023 2024
Investments in SOGIP
Phase 1: A. Planned investment
1.Fertilizers
• Ammonia Plant
• Ammonia Derivatives
• Urea Derivatives
2.Utilities
• Centralized Utilities Facility (CUF)
• Gas Reticulation
3.Bulk Storage
• Bulk Oil Storage
• Bulk Products Distribution
Terminal
4.Other Investment
• Bio-based industries
• Fabrication (shipping, onshore & offshore structures)
• Refinery
Phase 1: B. Planned Development by SOGIP
1.Infrastructure
• Road & Street Lights
• Drainage
• Port and Jetty
• Telecommunications
Phase 2: Subject to future availability of gas
1.Methanol Derivatives
2.Ammonia Derivatives
3.Urea Derivatives
4.Other heavy industries

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