By Karen Bong
KUCHING, May 13: A formal agreement between Sarawak and the federal government on oil and gas is set to be unveiled soon, with Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg revealing that the document will, among others, recognise both federal and Sarawak laws governing the petroleum sector.
“Wait for a couple of days because there will be a document on the agreement between me and the Prime Minister,” he told reporters after officiating the International Construction Week Borneo at Borneo Convention Centre Kuching (BCCK) today.
Abang Johari hinted that the long-anticipated agreement will reaffirm the legal standing of both federal and Sarawak laws related to oil and gas, particularly in the context of governance and regulatory jurisdiction.
“Second, Petros is recognised as the sole aggregator, and third, there will be a commercial agreement which includes Sarawak increasing its stake in LNG (liquefied natural gas),” he disclosed.
His remarks followed a high-level meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim in Putrajaya on May 9, which brought together the top leadership of Petroliam Nasional Berhad (PETRONAS) and Petroleum Sarawak Berhad (Petros).
The session was convened to resolve longstanding disputes and chart a structured framework for future cooperation.
A statement from the Prime Minister’s Office issued on Friday confirmed that both Abang Johari and Anwar had agreed to resolve all outstanding issues between PETRONAS and Petros through negotiations, with the basic principles to facilitate the talks also expected to be finalised soon.
“This step is important to ensure that the great potential identified from the collaboration between PETRONAS and Petros can be fully explored and implemented effectively,” the statement read, adding that one of the shared goals is to expedite the commercial supply of energy to Asean countries.
Tensions between PETRONAS and Petros have escalated in recent months, particularly after Sarawak accused PETRONAS’ exploration arm, PETRONAS Carigali, of operating the Miri crude oil terminal without a valid State licence— a move that reignited a licensing dispute and pushed both sides toward a negotiated settlement.
Petros has also taken legal action against PETRONAS over a RM7.9 million claim related to a bank guarantee demanded by the national oil company.
The forthcoming agreement is expected to mark a significant milestone in federal-state relations concerning oil and gas resources. It comes amid Sarawak’s assertive push for greater regulatory and commercial control under its Oil Mining Ordinance (OMO) 1958 and Distribution of Gas Ordinance (DGO) 2016.
It remains to be seen how the final document will balance national interests with Sarawak’s aspirations for resource sovereignty, but Abang Johari’s comments suggest a consensus is within reach. — DayakDaily
