Potential overlaps in PETRONAS-Petros gas rights seen as opportunity to strengthen cooperation, says minister

Dato Sri Abdul Karim Rahman Hamzah
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By Shikin Louis

KUCHING, Jan 17: Despite potential overlaps between Petroliam Nasional Berhad (PETRONAS) and Petroleum Sarawak Berhad (Petros) regarding the recent resolution on gas distribution in Sarawak, the State government views it as an opportunity to refine processes and strengthen cooperation.

Sarawak’s Tourism, Creative Industry, and Performing Arts Minister, Dato Sri Abdul Karim Rahman Hamzah, emphasised that while the Petroleum Development Act 1974 (PDA) remains relevant as a federal framework, it operates alongside Sarawak-specific laws, such as the Oil Mining Ordinance 1958 (OMO) and the Sarawak Land Code.

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“The most important thing is ensuring that Sarawak’s resources, both on land and on the continental shelf, can be extracted and bring economic benefits to Malaysia.

“If there’s something that’s not in line, we’ll work to fine-tune it. We won’t let the laws hinder or frustrate our efforts to develop and extract the resources we have, for the betterment of Malaysia,” Abdul Karim said during a press conference at the Baitul Makmur II building here today.

Abdul Karim reaffirmed that Prime Minister Dato Seri Anwar Ibrahim had agreed for Sarawak to act as the gas aggregator, a role that strengthens the State’s authority in managing its gas resources. He emphasised that this role does not negate the PDA but ensures that State laws are respected.

“It’s not for us to say the PDA is no longer applicable; it still applies, but in a different capacity. For gas distribution in Sarawak, we refer to Sarawak as the aggregator.

“This means that if PETRONAS or other parties wish to operate within Sarawak, they must first refer to the Sarawak government or to Petros as the sole gas aggregator,” he explained.

He concluded, “Don’t let the PETRONAS-Petros issue become a problem. Our focus should be on how we can move forward and create wealth for both Sarawak and Malaysia.”

According to a recent report by Bernama, Anwar affirmed that the PDA remains the overarching framework for Malaysia’s oil and gas industry governance, and this framework is accepted by both the Sarawak government and Petros.

He emphasised that the Sarawak Gas Distribution Ordinance 2016 does not supersede the PDA 1974, the Federal Constitution, or other federal laws, and that Petronas’ position remains unaffected.

However, he acknowledged that the federal government recognises Petros’ establishment to facilitate Sarawak’s own gas exploration and distribution initiatives. — DayakDaily

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