Page 362 - The Guide To Sarawak

360 USEFUL INFORMATION
Oil Well No. 1 outside the Petroleum Museum in Miri. The ‘Grand Old Lady’ first struck oil in 1910 and was the first production well in Sarawak.
development of its abundant hydropower and coal resources to attract massive investment into the State. It is using its competitive electricity price to attract energy- intensive industries, especially those involved in smelting. It is also targeting neighbouring countries and states
as export markets for generated electricity.
OIL AND GAS
Sarawak has been an important oil producer since 1910 when oil was discovered at Canada Hill in Miri, Northeast Sarawak. The original wooden well, the “Grand Old Lady”
can still be seen outside Miri’s Petroleum Museum (see page 156). During
the 1950’s the onshore wells began to dry up and the oil industry moved offshore onto Sarawak’s continental shelf. It remains an important contributor to Sarawak’s economy
with production ranging between 200,000 and 250,000 barrels per day (bpd) over the last decade. Offshore oil exploration also revealed huge deposits of natural gas in the Bintulu Field, which began to be exploited
from the early 1980’s onwards. The huge production volumes and vast reserves, slated to last at least another 50 years, prompted the setting up of Malaysia Liquid National
The Energy Sector
Sarawak can rightfully
lay claim to the title, “Powerhouse of Malaysia”. It produces over 50% of the country’s natural gas, 30% of its crude oil, 80%
of its coal, and possesses over 70% of Malaysia’s
total hydropower potential. Due to the limited local demand, as the population is very small, much of Sarawak’s energy resources
- especially those derived from fossil sources - are exported to Peninsular Malaysia or overseas, contributing massively to the country’s balance of payments.
Initial development of energy resources and power generation capacity was undertaken to meet local organic growth in energy requirements. However, Sarawak is
now embarking on the