Kelantan sets sights on petroleum, gas opportunities through new state vehicle

Kota Bharu, Aug 12 — The Kelantan government plans to intensify its engagement in the petroleum and gas sector to ensure the benefits of natural resources reach the people and support the state's sustainable economic growth. Deputy Menteri Besar, Datuk Dr Mohamed Fadzli Hassan, revealed that the state must comply with existing legislation, such as the Petroleum Development Act 1974, and consider Kelantan's unique constitutional status, which differs from Sarawak's rights under the Malaysia Agreement 1963 (MA63).

In response to a question at the State Legislative Assembly sitting in Kota Darulnaim Complex, Dr Fadzli introduced Kelantan Ventures Sdn Bhd (KVSB), a special purpose company tasked with exploring and securing opportunities in the petroleum and gas industry. KVSB aims to develop the value chain, including supply bases, logistics, and support services for both upstream and downstream sectors, as well as explore energy sector opportunities.

This strategy aligns with the development of the Northern Offshore Oil & Gas Corridor, which encompasses the Tok Bali Supply Base (TBSB) and Tok Bali Industrial Park (TBIP), and will integrate with the East Coast Rail Link Project logistics network in the future. Dr Fadzli emphasized that the government will gradually strengthen institutional capacity and explore appropriate participation models within the legal framework to ensure that the benefits from participation flow back to Kelantan and its people.