He said the threshold value would be elevated from RM10 million to RM50 million for upstream activities, and from RM5 million to RM20 million by 2030 for the downstream sector.

“Apart from that, they also agreed to increase Petronas SWEC (Standardised Work and Equipment Categories) code priority for Sarawakian contractors from the baseline of 63 categories to 600 categories by 2030,” he said at the Bintulu Liquefied Petroleum Gas (LPG) Terminal Sarawak sale and purchase agreement signing ceremony here today.

Awang Tengah, who is also Sarawak’s second minister for natural resources and urban development, said previously, Petronas had agreed that contract works in the oil and gas sector within state waters should be given to Sarawak companies, with a RM2.1 billion annual baseline.

He said the number will be increased gradually depending on the volume of work and local private sector capabilities.

The signing ceremony involved local company Pusaka Integrated Resources Sdn Bhd, owned by Sarawak Timber Industry Development Corporation (STIDC), buying the Bintulu LPG terminal from Petronas’ subsidiary, Petronas Dagangan Bhd.

Awang Tengah said the acquisition was significant as it will increase local participation, thereby boosting the state’s oil and gas sector.

The acquisition effectively means that there are now two terminals – with another located in Kuching – owned and operated by STIDC subsidiaries.