KUCHING: SEDC Energy Bhd has become a full-fledged oil company, enabling it to carry out downstream sales of petrol and diesel under its own brand.
This is made possible as the wholly-owned subsidiary of Sarawak Economic Development Corp (SEDC) has been granted the exemption by the federal government on federal laws for the distribution of liquified petroleum gas (LPG) in Sarawak.
SEDC Energy general manager Abdul Hadi Datuk Abdul Kadir received the letter of approval for the firm to operate as a full-fledged oil company from Sarawak Federal Secretary Datuk Amir Omar last Thursday.
Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi, who witnessed the hand-over of the letter, said in a statement that holders of Sarawak Distribution of Gas Ordinance (DGO) 2016 licences are exempted from requiring federal permits under the Petroleum Development Act1974 (PDA) and Control of Supply Act 1961 (CSA) to operate.
“We agreed that exemptions from obtaining PDA permits and CSA licences be granted to DGO licencees in Sarawak with effect from June 1,2021.
“This decision was made based on an understanding that Sarawak can self-regulate and be more involved in the governance of the oil and gas industry in the state.
“As the same time, it increases the ease of doing business which will certainly have a positive economic impact,” added Nanta.