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MIRI, Oct. 13: More than a century after the first oil discovery in Miri through Oil Reservoir No. 1 or more commonly known as The Grand Old Lady, the petroleum industry continues to be part of this city's identity.
Now, the development of Adong Kechil West (AKW) oil field in Block SK433 brings Sarawak's mainland oil industry back to operation after almost five decades, thus opening a new leaf in the state's petroleum history.
For the Acting Head of the Department of Media and Communications at Curtin University Malaysia, Terry Justin Dit, the discovery of oil in 1910 was not only the beginning of the development of the petroleum industry, but a turning point that shaped Miri's economic growth and society.
According to him, the drilling operation of the oil reservoir No. 1 began on October 10, 1910 before oil was discovered on December 22 of the same year.
The operation was headed by a Canadian official from the Anglo-Saxon Petroleum Company, which at the time was a subsidiary of Royal Dutch Shell.
"Before the discovery of oil in Miri, Miri was just a small fishing village. Due to the discovery of oil, expatriate workers, mainly from Canada, came to Miri.
"Oil drillers from Ontario, Canada, who specialize in oil well drilling, were brought in by Shell to work on the oil well there", he said when interviewed by TVS.
According to Terry, the development of the oil industry also changed Miri's position in the administration of northern Sarawak province when the administrative centre previously located at Marudi was moved to Miri following the explosion of the industry.
He said that the growth of the petroleum sector also attracted the inclusion of people from China and local Dayak communities to work in Miri, thus contributing to the development of the city.
"The administration of northern Borneo was actually located in Marudi before being moved to Miri following the explosion of the oil industry.
"As the oil industry developed, people from China and local Dayak communities came to work in Miri", he said.
For Terry, the history shows how the petroleum industry not only transformed the economic landscape but also shaped the identity of local communities that continues to be associated with the oil and gas sector to this day.
He said that although Miri is now also known as Waringin City, the title of Oil City still has its own value, especially for generations who witnessed the development of the industry.
"Miri has long been known as the hub of Malaysia's oil and gas industry. In fact, the nickname we often use for Miri is "Oil Station".
"I know that now we are encouraged to use the title 'War Station', but for my generation, we still call Miri as 'Oil Station'.
"The Grand Old Lady is still important to us because she represents our identity as Miri residents", he said.
In addition to being a historical symbol, the development of the petroleum industry also demonstrates the importance of science, expertise and technology in ensuring the sustainability of the strategic sector.
According to Terry, the existence of educational institutions that offer science, technology, engineering and mathematics (STEM) fields, in addition to training related to the oil and gas industry as well as occupational health and safety aspects, opens up opportunities for younger generations to venture into the field.
He said that interest in the oil and gas industry is still present among young people, including those who want to follow in the footsteps of family members who have previously worked in the sector.
"If you look at the number of institutions here that promote learning in STEM, health and safety as well as other fields related to the oil and gas industry, there are many such institutions in Miri.
"Of course, there are still young people who aspire to venture into the oil and gas industry because they want to follow in their fathers' footsteps", he said.
Meanwhile, the development of the AKW field is seen to bring Sarawak's petroleum industry back to its historical origin through mainland oil production activities.
Terry described the development as significant because it marked a return to mainland oil production activity after nearly five decades, after exploration of oil and gas was increasingly concentrated offshore.
"The news of the discovery of the Adong Kechil West oil field is very exciting as for the first time, onshore oil and gas exploration activities are resumed.
"After 1972, even since the 1950s, efforts have been made to explore oil and gas offshore, namely at sea rather than on land. So now the cycle is back to full", he said.
On 24 July, Sarawak Petroleum Berhad (PETROS) and Petra Energy Berhad started the first oil production through the Early Production System or Early Production System (EPS) at AKW field.
Production follows on from the assessment and development drilling activities carried out in 2023, with the field expected to produce up to about 800 barrels of oil per day.
The next development phase focuses on the provision of production facilities and infrastructure to support gas supply to Miri's combined cycle gas turbine power plant project or Combined Cycle Gas Turbine (CCGT), which is targeted to start operations by the end of 2027.
The development not only marks a revival of Sarawak's mainland oil production, but also shows the potential of the petroleum industry to continue contributing to the state's economic development and energy needs in the future. - TVS
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