By DayakDaily Team
KUCHING, Feb 17: Petroliam Nasional Bhd (PETRONAS) will continue to honour all existing domestic and international contractual obligations in Sarawak as Petroleum Sarawak Bhd (Petros) is set to take over the State’s gas distribution effective March 1, says Prime Minister Datuk Seri Anwar Ibrahim.
Speaking at the Dewan Rakyat today, the prime minister also said that in line with the federal government’s aspiration to support Sarawak in engaging in the oil and gas (O&G) industry in the State, PETRONAS and Petros will move forward as partners to ensure the protection of the nation’s and Sarawak’s interests and benefits.
He said this was among the agreements both governments reached, which was in line with the spirit of federalism and the Malaysia Agreement 1963 (MA63).
“To support Sarawak’s aspiration to engage in oil industry activities within the State, as reflected in the Distribution of Gas Ordinance 2016 (DGO) that will come into effect on March 1, read with the Petroleum Development Act (PDA) 1974, Petros will act as an aggregator in Sarawak.
“This role confirms the previous approvals granted to PETRONAS and its subsidiaries. Petros, under the DGO, is guaranteed access to natural gas up to 1.2 billion cubic feet per day for Sarawak’s domestic needs, with additional supplies guaranteed as required. It will also have the authority to expand its activities and leverage cooperation with Petronas,” he said, as quoted by New Straits Times.
Last year, on Feb 1, Petros was appointed the sole gas aggregator for Sarawak following an amendment to the DGO.
In January this year, it was reported that gas distribution rights in Sarawak between PETRONAS and Petros were resolved in a meeting between Anwar and Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He also added that the PDA 1974 will continue to be the country’s overarching framework for oil and gas industry governance.
“All further detailed negotiations will maintain shared benefits and interests, adhering to commercial principles. This is the agreement that has been reached.”
Anwar also stated that slight adjustments had been made to reflect Sarawak’s growing contribution to the national oil and gas industry and to recognise Petros’ role in driving the State’s economic growth. — DayakDaily
