Kelantan sets up SPV to boost O&G participation

The Kelantan government has set up a special purpose vehicle, Kelantan Ventures Sdn Bhd (KVSB), to bolster the state's involvement in the oil and gas industry, Deputy Menteri Besar Fadzli Hassan declared during a legislative assembly address. KVSB was established under the Kelantan Menteri Besar Incorporated framework, aiming to ensure local benefits and sustainable economic growth while adhering to legal requirements such as the Petroleum Development Act 1974.

Hassan's remarks came in response to a query from Nasriff Daud @Daut Yatimee (PN-Pengkalan Pasir), who inquired if the state would create an oil and gas corporation akin to Sarawak's. However, the Deputy Menteri Besar clarified that Kelantan is constructing capacity through KVSB, conducting investment prospecting, and forming alliances with reputable entities within the oil and gas sector.

The state's engagement concentrates on enhancing the industry value chain, encompassing supply bases, logistics, upstream and downstream support services, as well as exploring opportunities within the energy sector. This strategy aligns with the development of the Northern Offshore Oil & Gas Corridor, which encompasses the Tok Bali Supply Base, Tok Bali Industrial Park, and prospective integration with the East Coast Rail Link logistics network.

The government pledges to bolster institutional capacity and evaluate the optimal participation model within the confines of the current legal framework.