Anwar hopes Petronas-Petros gas issue resolved, Petros remains sole gas aggregator in Sarawak

Anwar assures that granting Petros sole authority as a gas aggregator in Sarawak should not raise concerns, as any major projects requiring significant financing will inevitably involve Petronas. Photo credit: Anwar Ibrahim Facebook
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by DayakDaily Team

ABU DHABI, Jan 15: Prime Minister Datuk Seri Anwar Ibrahim believes that the issue of gas distribution rights in Sarawak between Petronas and Petros has been resolved following his meeting with Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

According to news reports by Bernama, Anwar affirmed that the Petroleum Development Act (PDA) 1974 remains the overarching framework for Malaysia’s oil and gas industry governance, and this framework is accepted by both the Sarawak government and Petros.

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Anwar emphasised that the Sarawak Gas Distribution Ordinance 2016 does not supersede the PDA 1974, the Federal Constitution, or other federal laws, and that Petronas’ position remains unaffected.

However, he acknowledged that the federal government recognises Petros’ establishment to facilitate Sarawak’s own gas exploration and distribution initiatives.

On that note, he explained that while Petros has been granted authority as a gas aggregator, it will not interfere with Petronas’ existing operations.

“Petronas retains its authority nationwide but allows Sarawak control over gas distribution for domestic purposes. This exemplifies cooperation between the two entities.

“Premier Abang Johari has introduced new initiatives, similar to Petronas’ inclusive approach. For projects in Sarawak, Petronas involves Petros, while Petros includes Petronas in exploration, hydrogen ventures, and other efforts within Malaysia,” he was quoted by Bernama as saying during a press conference concluding his visit to the United Arab Emirates (UAE) on Tuesday.

“Our policy is to respect the rights of Petronas and Petros in their respective domains,” he said.

The prime minister assured that granting Petros sole authority as a gas aggregator in Sarawak should not raise concerns, as any major projects requiring significant financing will inevitably involve Petronas.

“The PDA 1974 remains the overarching framework for governance in Malaysia’s oil and gas industry.

“All existing agreements are intact, as disturbing them would complicate relationships with major international companies. This has been mutually accepted,” he said.

In a separate report by New Straits Times, Anwar said his discussions with Japan Prime Minister Shigeru Ishiba, as well as with UAE companies such as Mubadala led to the same conclusion.

“We want to make Sarawak a regional gas hub but with federal and Petronas involvement as well as Petros’,” he said.

Addressing concerns about the relationship between Petronas and Petros, Anwar said discussions involving the Attorney General, Petros, and Petronas had taken place.

He added that on Jan 1, 2025, he met the Sarawak Premier to resolve issues related to gas distribution in the state.

Anwar expressed confidence that no further issues would arise, as negotiations for other projects remain commercial in nature. – DayakDaily

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