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

Kota Bharu, August 12 — The Kelantan government aims to boost its engagement in the petroleum and gas sector to ensure the advantages of natural resources are shared by the inhabitants, promoting sustainable economic growth. Deputy Menteri Besar, Datuk Dr Mohamed Fadzli Hassan, revealed that this must be done within the confines of existing laws, including the Petroleum Development Act 1974 and Kelantan's unique constitutional status, which differs from Sarawak under the Malaysia Agreement 1963 (MA63).

To pursue these opportunities, the Kelantan Menteri Besar Corporation has launched Kelantan Ventures Sdn Bhd (KVSB), a special purpose entity dedicated to exploring and participating in the petroleum and gas industry. KVSB aims to build expertise, identify investment prospects, and form partnerships within the industry value chain.

The government's strategy focuses on developing the upstream and downstream sectors' value chain, encompassing supply bases, logistics, and support services. Additionally, they are exploring prospects in the energy sector. This approach aligns with the development of the Northern Offshore Oil & Gas Corridor, including the Tok Bali Supply Base (TBSB) and Tok Bali Industrial Park (TBIP), and potential integration with the East Coast Rail Link Project's logistics network.

Dr Mohamed Fadzli emphasized that the state government will enhance its institutional ability and examine suitable participation models within the legal framework to ensure Kelantan's involvement in the petroleum and gas industry is developed responsibly and incrementally, channeling the returns to the state for the benefit of all citizens.