
By DayakDaily Team
KUCHING, Feb 5: National oil company Petroliam Nasional Bhd (PETRONAS) recognised Sarawak-owned Petroleum Sarawak Bhd (Petros) as the State’s gas aggregator, excluding liquefied natural gas (LNG).
Additionally, PETRONAS and its subsidiaries are not required to obtain a licence or adhere to any additional procedures to conduct petroleum operations in Sarawak beyond those stipulated in the Petroleum Development Act 1974 (Act 144).
In a news report by The Edge today, Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said explained that under Act 144, PETRONAS is entrusted with developing Malaysia’s hydrocarbon resources, including natural gas.
“Sarawak acknowledges Act 144 as the governing law for Malaysia’s petroleum industry.
“PETRONAS accepts the role of Petros as Sarawak’s gas aggregator, excluding LNG, and has agreed to cooperate with Petros in the State,” she said in a written parliamentary reply to Stampin MP Chong Chieng Jen.
Azalina stated that these agreements were reached during a meeting between Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg on Jan 7, 2025.
Chong had sought clarification on the terms of the settlement between PETRONAS and the Sarawak government regarding the Sarawak’s claim over oil and gas resources within its territory.
All existing agreements between PETRONAS and third parties, including Petros, related to petroleum activities in Sarawak remain valid and must continue unchanged.
Azalina emphasised that both PETRONAS and Petros have committed to full cooperation on all relevant matters.
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.
Previously, PETRONAS served as the nationwide gas aggregator. However, amendments to Sarawak’s Distribution of Gas Ordinance 2016 (DGO 2016) designated Petros as the sole gas aggregator in the State, effective Feb 1, 2024. Under Section 7 of DGO 2016, any entity engaged in gas distribution in Sarawak must obtain a licence.
Concerns over PETRONAS’ LNG exports led to nearly a year of negotiations between the federal and State governments over Sarawak’s role as the exclusive gas aggregator.
In January 2025, Anwar stated that while the DGO is recognised, it must co-exist with the Federal Constitution and other federal laws, ensuring that PETRONAS’ position remains unaffected. — DayakDaily