By Marlynda Meraw
KUCHING, Feb 16: Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has disagreed with Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said’s statement that PETRONAS does not require licences to operate in Sarawak.
When asked whether Azalina’s statement was inaccurate, Johari reaffirmed that negotiations on the licensing matter are still ongoing with Prime Minister Datuk Seri Anwar Ibrahim (PM).
“It (statement) is perhaps inaccurate. I deem it inaccurate. Allow me to keep negotiating with the PM,” he said when met by reporters after the closing ceremony of Parti Pesaka Bumiputera Bersatu’s (PBB) 16th triennial general meeting (TGM) at the Borneo Convention Centre Kuching (BCCK) here today.
Azalina had previously stated in a parliamentary reply that under the Petroleum Development Act 1974 (PDA74), PETRONAS does not need additional licensing from the Sarawak government to operate in the State.
She explained that while PETRONAS acknowledges Petroleum Sarawak Berhad (Petros) as Sarawak’s gas aggregator—excluding liquefied natural gas (LNG)—the federal government maintains that PETRONAS retains full authority over Malaysia’s petroleum resources.
Her remarks have reignited long-standing tensions over regulatory control, as Sarawak has insisted that O&G activities in the State must comply with its own laws, including the Oil Mining Ordinance 1958 and the Distribution of Gas Ordinance 2016 (DGO16).
The Sarawak government has also argued that PDA74, enacted during an emergency period, may no longer be applicable in the current legal landscape.
The licensing issue is a key aspect of ongoing negotiations between Sarawak and the federal government, with Abang Johari emphasising that the State is determined to safeguard its rights.
Since 2020, Sarawak has asserted greater regulatory control through agreements such as the Commercial Settlement Agreement (CSA) with PETRONAS, but differences in interpretation continue to cause friction.
Despite these challenges, Abang Johari remains firm that discussions with Anwar will ensure a fair resolution that upholds Sarawak’s autonomy while maintaining cooperation with federal authorities. — DayakDaily
