Kota Sentosa rep: PETRONAS is operating in Sarawak on borrowed time

Logo of PETROS and PETRONAS.
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By Lian Cheng

KUCHING, May 22: Citing Article 95D of the Federal Constitution, Kota Sentosa lawmaker Wilfred Yap says from a constitutional standpoint, PETRONAS has been operating in Sarawak on borrowed time.

He explained that under Article 95D, federal laws concerning matters in the State List do not apply to Sarawak unless the State Legislative Assembly formally adopts them. As Sarawak never adopted the PDA74, Yap believed PETRONAS’ operations in Sarawak has been based on the State’s consent.

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Sarawak’s rights over its natural resources, particularly gas, are enshrined in key legal and historical documents such as the Federal Constitution, Malaysia Agreement 1963 (MA63), the Oil Mining Ordinance 1958 (OMO 1958), and the Distribution of Gas Ordinance 2016 (DGO 2016).

To him, MA63 was never intended to be a footnote in Malaysian history. It was a foundational treaty that guaranteed Sarawak control over its own resources.

Following the amendments of the Federal Constitution to reaffirm MA63 in 2022, Sarawak was recognised as an equal partner, not just another state.

“These amendments were not symbolic. They were legally binding. They codified the spirit of MA63 into the very framework of federal law. Any claim that Sarawak must ‘follow federal law’ without its consent directly violates this newly reaffirmed constitutional reality.

“PDA74 is powerful but powerless in Sarawak. PETRONAS leans heavily on the PDA74, which gives it control over petroleum resources nationwide. But here’s the catch: the PDA74 is a federal law, and in Sarawak, federal laws don’t walk through the door uninvited.

“The PDA74 was never adopted by Sarawak’s legislature, making it legally inapplicable on Sarawak soil. In fact, Sarawak never consented to the centralization of oil and gas rights in the first place,” said Yap when delivering motion of appreciation on the TYT’s address at the Sarawak Legislative Assembly sitting today.

PETROS, he said, stands on firm ground—constitutional, legal, and moral instead. Gas distribution within Sarawak falls squarely under the State List—because it involves land, infrastructure, and resources within the state’s territory.

Noting the recent development where Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Abang Johari Tun Openg reached an agreement to enhance cooperation, particularly in the oil and gas industry through a joint declaration, he reminded that while PETRONAS is the national custodian of Malaysia’s petroleum resources, it must operate in a way that does not undermine Sarawak’s rights and interest in oil and gas matters.

To him who is a lawyer by training, PETRONAS should facilitate, not hinder Sarawak’s participation in decision-making and revenue.

“PETRONAS must align with the federal government’s commitment to Sarawak and remove any unnecessary bureaucratic barriers.

“If PETRONAS continues to create obstacles, both the Sarawak and federal governments must address these challenges firmly to ensure that the agreed-upon collaboration is implemented effectively,” said Yap. — DayakDaily

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