by DayakDaily Team
KUCHING, Feb 13: Any commercial terms under the agreement on the distribution of oil and gas resources in Sarawak must take into account Petroliam Nasional Bhd’s (Petronas) investments and Petroleum Sarawak Bhd’s (Petros) potential future investments, says Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
According to a report by The Edge, Azalina said, the financial impact on the federal and Sarawak revenues from the ongoing dispute over gas rights in the State has yet to be determined as negotiations are still underway.
“(The financial impact) depends on the commercial terms and implementation mechanisms that are still being negotiated and have yet to be finalised,” she was quoted as saying in a written parliamentary reply to Fong Kui Lun (Pakatan Harapan-Bukit Bintang) on Wednesday.
The report said, Fong had inquired about the impact of the agreement between Petronas and Petros on the national oil company’s overall income, including its dividend contributions to the federal government.
Last week, Azalina said in a parliamentary reply that Petronas recognises Petros as the state’s gas aggregator, excluding liquefied natural gas (LNG).
At the same time, all existing agreements between Petronas and third parties, including Petros, related to petroleum activities in Sarawak remain valid and must continue unchanged.
Petronas and its subsidiaries are also not required to obtain a licence or comply with additional procedures to conduct petroleum operations in Sarawak beyond those outlined in the Petroleum Development Act 1974.
This agreement was part of the settlement reached between Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Tun Openg during their meeting on Jan 7, 2025.
Azalina had also said the federal government, Petronas, the Sarawak government, and Petros are currently refining several aspects of the agreement, including its legal implications.
Under Sarawak laws, a gas aggregator is responsible for procuring, distributing, and maintaining the region’s gas supply network.
Sarawak, a key gas-producing State, exports gas to markets such as South Korea, Japan, and China. – DayakDaily
