[ad_1]
Shell’s announcement on October 15 that Plaza Shell’s Kota Kinabalu office would be closed, with a relocation of all staff from Sabah to Miri next year, was met with silence.
The Kota Kinabalu office was established in November 2015 with promises of Shell’s significant presence, strategic partnership and the offering of measurable progress to the state. This change of commitments, a sad truth about the change of events, generates a lot of reservation, suspicion and reveals Shell’s broken promises to the state, its people and its communities.
The well-established and forward-thinking 200 Shell staff, occupying four floors of the 14-story Shell Plaza, a distinguished landmark in Kota Kinabalu located strategically in the city’s business district, may see the last of their pivotal presence very soon. Their lives may sadly never be the same again.
The oil and gas (O&G) entity in Sabah is owned by Sabah Shell Petroleum Company Ltd, which is a separate entity from Sarawak Shell Bhd.
Sabah Shell manages all of Sabah’s platforms and operates the largest and most unique deepwater oil rigs in Malaysia, consisting of Gumusut-Kakap and Malikai. The Gumusut-Kakap platform produces 150,000 barrels per day (bpd) while Malikai produces 65,000 bpd.
With such a massive daily production capacity, Shell’s presence attaches very significant importance to the economic, social, technological and political well-being of the state and especially as a business entity in the O&G sector.
The multifaceted importance that emerges from its current presence offers far-reaching benefits and opportunities to the people of Sabahans. With such a significant contribution from the state, it is unprecedented for Shell to move out of Sabah and leave the state, its people and a wide variety of stakeholders in such a distressed and disadvantaged state.
With the expected serious impact of this untimely measure and the disappearance of the importance of Sabah O&G to the local community, this call is made to Chief Minister Hajiji Noor to seriously question Shell’s change of pledges to the state, and his decision to close. the position and move out. to Miri, Sarawak.
The justifications for why Shell should continue to remain in Sabah are as follows:
- Both deepwater oil rigs, being the only and largest in the country, are in Sabah waters.
- These oil rigs generate huge revenue for Shell and gross domestic product (GDP) for Sabah.
- A considerable number of Sabahans are engaged with Shell, with families in Sabah.
- The technological, social, economic and other benefits would be compromised and lost forever with the move of the state.
- Severe disruption to O & G’s supply chain provided by more than 200 local suppliers who would lose business opportunities once they moved out of state, directly benefiting the people of Sarawak.
- The measure will cost a potential loss of business in the amount of RM40 million and will hit some 3,000 local workers hard.
- The indirect cost of the loss of property rentals, investments, services, hospitality and the resulting services will be enormous, amounting to 24 million ringgit per year.
- Sabahans must apply for a Sarawak work permit, which places them in a disadvantaged and precarious position with possible rejection from the local authority, as locals are always preferred to fill those essential positions.
- Sabah needs to safeguard its MA63 rights with resources harnessed for Sabahans benefits.
- Shell’s reasons for moving are unsupported and lack strong justifications.
- Sabah must not continue to take advantage of its limited resources over and over again. Why do we allow it to happen?
It is an opportune moment, and with the mandate given to him by Sabahans in the recent elections, we make this desperate call to the Prime Minister to exercise his wisdom and to intervene in a timely manner against an unprecedented decision by the Sabah Shell Petroleum Company to move lock, stock and barrel. Out of state.
With the deep-sea oil rigs still sitting in the waters of Sabah, it is our sovereign right to safeguard our resources and ensure that our interests are not unduly and unfairly exploited. We must protect our soul, our people, and our beloved state. It is our right to do so.
Save the state, save our people, save our O&G. We have faith in you, Chief Minister. We await your opinion on this urgent matter. You are the only one who can provide a justifiable answer and ensure that Shell’s presence remains in Sabah. On behalf of the Sabah O&G community, we thank you and look forward to a perceptible response.
Shell Sabah’s O&G community is made up of concerned Sabahans who only want the best for the people and the state.
Opinions expressed are those of the authors and do not necessarily reflect those of FMT.
