Media Releases - 2016


PETRONAS hands over water treatment plant to Terengganu

KUALA TERENGGANU, 26 May 2016 – PETRONAS and the Terengganu State Government signed a Share Sale Agreement (SSA) yesterday that will see the ownership transfer of Bekalan Air KIPC Sdn Bhd (BAKIPC) from PETRONAS to the State.

BAKIPC owns a water treatment facility in Dungun, Terengganu that has the capacity to produce up to 230 million litres of treated water per day. The facility was built in 1999 at RM464 million to supply water to customers within the Kertih Integrated Petrochemical Complex (KIPC). It became operational in 2002.

In 2002, BAKIPC signed a 20-year water concession agreement with the State Government, where at the expiry of the concession in 2022 the ownership of the facility would be handed over to the State. Yesterday’s SSA effectively facilitates the hand-over of the facility to the State, via Menteri Besar (Incorporated) Terengganu (MBI), six years ahead of schedule.

The SSA was signed at Wisma Darul Iman, Kuala Terengganu. Signing on behalf of PETRONAS was its Senior Vice-President of Corporate Strategy Adif Zulkifli, while MBI was represented by its Chief Executive Officer Wan Zalizan Wan Jusoh. Witnesses to the signing were PETRONAS President and Group Chief Executive Officer Datuk Wan Zulkiflee Wan Ariffin and Terengganu Menteri Besar Haji Ahmad Razif Abd Rahman.

In his speech, Datuk Wan Zulkiflee said, “PETRONAS believes this early hand-over of BAKIPC will assist the State Government to meet the increasing demand of clean water from both residential and industrial customers, especially in the district of Kemaman.”

“The transfer of ownership of the water treatment facility represents another significant contribution by PETRONAS towards community development in Terengganu.”

Terengganu Menteri Besar said, “The hand-over of BAKIPC will fulfill the critical need for additonal requirement of treated water especially in the Kemaman area and BAKIPC is the best alternative for the State Government.”

“Despite the increase in demand, the State Government will continue to ensure uninterrupted water supply and prioritise additional water requirements to KIPC in supporting the growth of the oil and gas industry in Terengganu.”


Issued by:


Media Relations

Group Strategic Communications