‘What Shell takes must be processed in Sabah’

Kota Kinabalu: Penampang Member of Parliament Datuk Darell Leiking (pic) expressed concern over the proposal by Sabah Shell Petroleum Co Ltd to downsize and shift operations to Miri, in Sarawak, saying it will be a big loss to the State’s oil and gas industry. 

“The proposal is shocking considering that Sabah is one of biggest oil producers in the country. 

“Sabah may currently sit as the second largest oil producer in the country but our State has unexplored reserves and these should have been accounted into by any foreign investor if they wishes to commit to the development of the State’s industry.  

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“Hence, as a matter of principle, foreign investors should have understood that while Sarawak and Sabah both formed the Federation of Malaysia, any activity to utilise our State’s natural resources for profit-based economies should be compensated by developing Sabah thru the creation of employment and economic spill over,” he said in a statement. 

Darell, who is also Moyog Assemblyman, said Sabah Shell through Malikai TLP offshore Sabah had recently invested in the 2nd Phase of Malikai deepwater development involving two additional oil producing wells and four water injection wells with production expected to start in second quarter of next year (2021).

“Such investment would had necessitated the expansion of the company’s existing offices in Sabah, if not to create more but what happened is the other way round (closure of offices),” he said.

Darell also said that the historical status of Miri as Shell’s first oil production district in the country or Sarawak as the current largest oil producer do not validate the company’s decision. 

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“There is no validation at all to set up a new office in Miri just because of the historical status and we must protect the State’s Oil and Gas Industry by engaging with that oil company and tell them that while we welcome them to do their business in the State, what had been taken out from Sabah must be processed in our State. 

“Imagine the humiliation Sabahans have to face when Bruneians shake their heads in disbelief when seeing how easy it is for our natural resources to be exploited and we’re keeping quiet over it,” said Darell. 

Darell also said he is personally against the  “Emergency” proposed by the Prime Minister, and that State Cabinet Ministers must ensure that the State’s territorial rights are safeguarded to prevent another exploitation by the Federal Government as in the past.

 “We have learned it through Zainnal Ajamain thru his series of lectures before that the Federal Government had controlled our continental shelf beyond three nautical miles by the Emergency Ordinance back in 1969 and that there had been attempts by the Federal Government through the Territorial Sea Waters Act 2012. 

“Fortunately, the PH-Warisan’s Malaysia Agreement 1963 (MA63) Committee had resolved this matter save that we are not certain why this current Perikatan Nasional (PN) led Government is not fully implementing what the then PH-Warisan MA63 Committee had agreed upon. 

 “This is a trying time and Sabah’s rich resources such as lands and minerals will surely be tempting enough for some to exploit and only a united Sabahans can prevent this from happening,” he said.