KUCHING: Sarawak's revenue from state sales tax on petroleum products is expected to grow due to rising oil prices, says Premier Tan Sri Abang Johari Openg.
Despite geopolitical uncertainties, he said higher prices would have a positive impact on Sarawak as an oil-producing state.
"I do not have the figures, but we will continue to work with international companies in oil exploration and production," he said on Tuesday (May 26).
Abang Johari was speaking to reporters after witnessing a contract signing ceremony between PTTEP Sarawak Oil Ltd and Brooke Holding Sdn Bhd for the provision of engineering, procurement and construction (EPC) of the Sirung production platform here.
He added that Sarawak would continue to explore for potential oil and gas reserves, including offshore areas in western Sarawak.
"These areas have not been explored yet, but new technology can help us to identify reserves in western Sarawak," he said.
In his speech earlier, Abang Johari said the 5% state sales tax on petroleum products contributed RM2.5bil to RM4.8bil annually to Sarawak's revenue, depending on global market prices.
He said the 2026 state budget projected RM13bil in revenue, including RM3.5bil from the state sales tax on crude oil, LNG and other petroleum products.
"With continued development in the oil and gas sector, Sarawak will be able to generate stronger revenue in the years ahead.
"Stronger revenue means greater capacity to invest in public development," he said.
Within this context, Abang Johari said the Sirung project was important amid an uncertain global energy market.
He said PTTEP had also announced that the Sirung-Chenda development was targeted for first production in 2028, with a combined production capacity of approximately 15,000 barrels per day.
"Importantly, the project is designed with zero routine flaring and advanced remote-operated offshore operations.
"This is significant because Sarawak's energy future must not only be productive but also environmentally responsible, efficient and aligned with low-carbon aspirations," he said.
The Sirung EPC contract, valued at nearly RM1bil, was awarded to Brooke Holding by PTTEP Sarawak Oil on Feb 5 this year with an expected completion date in February 2028.
Located about 140km from the Malaysia Liquefied Natural Gas (MLNG) complex in Bintulu, the Sirung field will be supported by a new production platform designed to facilitate oil and gas production for offshore block SK405B.
With about 8,500 metric tons of topside components and substructure, the project is one of the largest undertaken by Brooke Holding.
