By Shikin Louis
KUCHING, July 19: Sarawak’s battle to assert its rights over oil and gas (O&G) resources is far from over, as the State government is currently negotiating to reclaim control over the gas aggregator role.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the move is part of the broader efforts by the Sarawak government to strengthen its position in the O&G sector and increase revenue streams for the State, following the successful imposition of the State Sales Tax (SST) on petroleum products in recent years.
“When you gave us the mandate to be the government in the last election, I used the power entrusted by the people to Gabungan Parti Sarawak (GPS) to find new sources of income.
“What did we do? We taxed Petroliam Nasional Berhad (PETRONAS). We imposed the sales tax (SST) on PETRONAS, and they had to pay us because we have rights in the O&G industry,” he said when officiating the opening of the Batang Saribas 1 Bridge and the launch of the Betong Division Development Agency (BDDA), which was broadcast live by the Sarawak Public Communication Unit (UKAS) via Facebook today.
Abang Johari said this had successfully increased Sarawak’s revenue, but the fight is not yet finished.
“But it’s not over yet. We are still in negotiations because I want to reclaim our right referred to as the gas aggregator.
“If everything goes smoothly, God willing, our revenue will increase even more. And we will return that to the people,” he added.
On May 21, 2025, the federal and Sarawak governments signed a Joint Declaration formalising Sarawak’s role as the gas aggregator for the State. The appointment of Petroleum Sarawak Berhad (PETROS) as the aggregator, effective March 1, 2025, marked a major milestone in Sarawak’s efforts to gain greater control over its own gas resources.
Under this new framework, all existing and future agreements for the supply and sale of natural gas in Sarawak must reflect PETROS’ central role in domestic gas aggregation.
However, existing and future liquefied natural gas (LNG) export arrangements involving PETRONAS, its subsidiaries, and international buyers will remain unaffected.
The Joint Declaration also outlines a framework for future cooperation between PETRONAS and PETROS, including joint discussions on domestic gas supply, collaboration on the Sarawak Gas Roadmap’s 1.2 billion standard cubic feet per day (Bscf/d) target, and joint ventures in green energy initiatives such as hydrogen development and power generation. — DayakDaily
