By Shikin Louis
KUCHING, May 22: All oil and gas companies have to obtain a licence from the Ministry of Utility and Telecommunication (MUT) to operate in Sarawak, although Petroliam Nasional Berhad (PETRONAS) being the national oil company, may be exempted upon request.
Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg today clarified that this is part of the understanding reached under the joint declaration signed between the Sarawak and federal governments yesterday (May 21).
“We give them exemption if they apply. But they have to inform us. Then we give them the exemption,” he told reporters during a press conference at the Sarawak Legislative Assembly (DUS) Complex here today.
He added that the authority to issue operating licenses lies with the MUT, while Petroleum Sarawak Berhad (PETROS) is the recognised gas aggregator in Sarawak.
“As far as gas is concerned, any future agreements must go through PETROS,” he stressed.
The clarification comes after the Sarawak and federal governments formalised a joint declaration on May 21, reinforcing Sarawak’s regulatory authority over the State’s oil and gas sector, particularly through the Distribution of Gas Ordinance 2016 (DGO 2016).
Under the framework, PETROS will act as the sole gas aggregator, managing the purchase and supply of gas in Sarawak. The new arrangement will take effect from March 1, 2025.
Abang Johari said the declaration provides a clear guideline on how PETRONAS and other stakeholders are to conduct their business in Sarawak moving forward.
The joint declaration, signed in the spirit of the Malaysia Agreement 1963 (MA63), aims to ensure mutual respect between state and federal authorities while paving the way for a more structured and cooperative approach to managing Sarawak’s gas resources.
He also indicated that Sarawak will now have a greater say in liquefied natural gas (LNG) allocations, with the joint declaration quoting a baseline of 1.2 billion standard cubic feet per day (scf/d) for domestic gas needs in support of the Sarawak Gas Roadmap.
Responding to concerns over political continuity, Abang Johari reassured that the agreement is a signed, written document that will remain valid regardless of changes in federal leadership.
“This is a basic understanding between the federal government and Sarawak. It’s signed, and it will be the platform for future oil and gas operations in Sarawak,” he said.
Earlier, Abang Johari stressed that the joint declaration reaffirmed the federal and Sarawak governments’ position that both federal and Sarawak laws must coexist in harmony and be respected by all parties.
“Moving forward, Sarawak is committed to working closely with the federal government, PETRONAS and PETROS to implement this framework in good faith.
“This sets in motion a strategic shift towards realising Sarawak’s gas potential, advancing the Sarawak Gas Roadmap, and accelerating the transition to a cleaner and more sustainable energy future, in line with the aspiration of the State of Sarawak to be the energy hub in ASEAN region.
“For the purpose of future projects in Sarawak involving international partners, PETRONAS shall cooperate with PETROS,” he said. – DayakDaily
