By DayakDaily Team
KUCHING, Aug 14: The Petroleum Development Act (PDA) 1974 is not a “license for immunity” and cannot override Sarawak’s constitutional and legal rights over its oil and gas resources.
Senator Dato Ahmad Ibrahim stressed this as in urging all parties, particularly lawmakers, to respect the Malaysia Agreement 1963 (MA63), the Oil Mining Ordinance 1958 (OMO 1958), and Sarawak’s century-old petroleum history.
He was responding to a recent televised remark which he said was biased and ignored fundamental laws that have been in force since Malaysia’s formation, adding that “ignorance of the law is no excuse, especially for a member of Parliament”.
He outlined six key legal and historical points underscoring Sarawak’s rights, beginning with the fact that the State has been producing oil and gas since 1910, 53 years before Malaysia was formed, under its own laws.
“Section 73 of the Malaysia Act 1963 preserved all State laws existing prior to Malaysia, including the OMO 1958, which remains valid and enforceable,” he said in a statement on Wednesday (Aug 13).
The OMO 1958, amended in 2018, grants Sarawak full authority to regulate oil and gas licensing on land and its continental shelf.
Ahmad emphasised that while the PDA 1974 applies fully in other states without similar laws, it does not override Sarawak’s OMO 1958, the Distribution of Gas Ordinance 2016 (DGO 2016), the Sarawak Land Code, or the State Sales Tax.
On gas distribution, he said the DGO 2016 gives Sarawak exclusive powers over domestic gas licensing and regulation, with Petroleum Sarawak Berhad (PETROS) recognised by the federal government as the sole aggregator for the domestic market, excluding liquefied natural gas (LNG).
“LNG remains under Petroliam Nasional Berhad’s (PETRONAS) management due to its status as an international export commodity tied to long-term foreign contracts, as agreed in the 2020 Commercial Settlement Agreement to protect market stability and avoid breaches of export obligations,” he said.
Ahmad also cited Sarawak’s legal victory in 2020 when the High Court affirmed the State’s right to impose State Sales Tax on petroleum products, leading PETRONAS to withdraw its appeal and settle the payment.
“To the MP for Pasir Gudang, before making comments based on hearsay, study these legal facts. Sarawak’s constitutional, historical, and legal foundations are not matters to be politicised,” Ahmad advised. — DayakDaily
