LABUAN: The issues that have caused the RM3 billion integrated oil and gas (O&G) project off Pulau Daat to be stopped temporarily will be resolved, said Minister of Federal Territories and Urban Wellbeing Datuk Raja Nong Chik Raja Zainal Abidin.
He said discussions would take place soon with stakeholders to come up with better solution to ensure the mega project will continue as scheduled.
"The project is rather important and it is one of the Economic Transformation Programme (ETP) projects, and we will discuss the issues with stakeholders," he told press conference.
He said the land is a private land and the government had look at ways and means for an effective solution.
A total of 104 families with Malaysian citizenship and permanent resident status as reported earlier would be provided with houses to enable the project to be implemented smoothly.
The 237 families living in Pulau Daat have been compensated earlier with RM1,000 for each family, with half of them having left the island to look for dwellings elsewhere.
Not only the living will have to go, but the dead too have been relocated since May last year, with the help of the Labuan Religious Department (Jawi) which started a massive relocation of old graves, with some even having been there for more than 40 years, to the Sungai Labu Muslim Cemetery.
Most of those staying on the island are IM13 holders of the United Nations High Commissioner for Refugees (UNHCR).
Former secretary-general of the ministry Datuk Ahmad Phesal Talib had said a meeting with various agencies and departments, including the National Security Department, had been held.
"We need the consensus from all relevant parties as those staying there are also Malaysians," he said.
Meanwhile, Jimmy YM Tang, group project director of RG Oil and Gas, the main contractor for the project, has confirmed the relocation of all the families would be carried out soon and agreed to provide them with houses.
"We do not foresee any problems in negotiating with the families concerned for their relocation as the construction of houses would be borne by us," he said.
Tang said the integrated O&G hub, which would provide land-based logistics and support services, would be built over four phases.
"Earthworks for the first phase of the project will be completed by year-end.
"We expect the first phase to commence operations by end-2012 or early 2013," he said.
The hub is one of the nine new Entry Point Projects of the ETP.
Tang said the first phase, with an investment of RM500 million, would involve the building of a storage tank terminal with a capacity of 300,000 cubic metres.
"The other three phases include building a 1.5 million cu metre storage tank terminal, engineering fabrication yard and other facilities including water storage facilities," he said.
The hub would likely benefit from the opening of new oilfields around the area, he said.
"Besides, it is also strategically located, nearer to South Korea and China that could be potential customers," he said.
The proposed Labuan O&G hub would complement the Sabah Oil and Gas Terminal (SOGT) being develop by Petronas in Kimanis. (DE)