THE Terengganu state government is set to launch Terengganu Petroleum, a state-owned entity, in partnership with an Omani oil and gas company to enhance state revenue and reduce reliance on federal royalties.
Opponents of the PAS-led government are mocking the launch, suggesting it could become yet another white elephant under their rule.
Nevertheless, Terengganu Menteri Besar (MB) Datuk Seri Dr Ahmad Samsuri Mokhtar announced that two oil fields have been identified for operational takeover, with preliminary talks underway with Petroliam Nasional Bhd (Petronas).
The initiative, part of Terengganu Inc’s plan, aims to expand state government-linked companies’ involvement across the petroleum value chain, including upstream activities.
This new venture, unprecedented before 2018, is expected to drive significant medium-term revenue for Terengganu.
“We have identified a company from Oman as our strategic partner in oil and gas production activities. Preliminary discussions have begun with Petronas for the two identified oil fields.”
“We aim for this petroleum entity to be the primary driver of state revenue in the medium term. It will reduce our dependence on royalties alone.
“This is something new that did not exist before 2018,” the Terengganu MB is quoted as saying.
Despite securing RM1.8bil in contracts by EPIC Bhd, scepticism surrounds the project due to the unstarted bidding process and past PAS-led project failures like Widad Langkasuka.
Opponents doubt its feasibility, fearing it may become a white elephant. — April 19, 2025
Main photo credit: Sinar Harian
