By DayakDaily Team
KUCHING, Feb 11: Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has reaffirmed that Sarawak “must have a say” in the production and distribution of oil and gas within its territory.
While Sarawak “accepts” Malaysia’s Petroleum Development Act (PDA) 1974 – which stipulates that PETRONAS has exclusive control over exploration and distribution of the country’s oil and gas resources in Malaysia, Abang Johari stressed that Sarawak assert its role in managing its own resources.
“That’s why we formed Petroleum Sarawak Berhad (Petros). Petros will work with PETRONAS.. and we have a say in the distribution of gas.
“Lately, Prime Minister of Malaysia (Datuk Seri Anwar Ibrahim) and myself has agreed, under our gas distribution role, that Petros is to be the aggregator of gas (in Sarawak). Petros and PETRONAS has similar functions, and based on our consensus, Sarawak can also play its part in the petroleum industry,” he said in a pre-recorded interview on the sidelines of a public lecture at Singapore’s ISEAS-Yusof Ishak Institute on Monday (Feb 10).
Abang Johari further pointed out that under Article 47, all assets vested in Sarawak at the formation of Malaysia, including those in the continental shelf, remain part of the State.
“Secondly, under Agong’s Order 1963, our oil and gas industry, as Sarawak had been producing oil since 1910, and during that day, the gas distribution is under the State,” he added.
Abang Johari’s remarks follow the Malaysian government’s recent stance reaffirming PETRONAS as the sole guardian of the nation’s oil and gas reserves, including those in Sarawak.
On Feb 4, Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said stated in a written parliamentary reply that while PETRONAS recognises Petros as Sarawak’s gas aggregator, this does not extend to liquefied natural gas (LNG).
This development is seen as a major setback for Sarawak’s ongoing push for greater autonomy over its hydrocarbon resources.
Channel News Asia (CNA) reported that Azalina’s statement has caused unease in Sarawak, with Abang Johari tasking Deputy Prime Minister Dato Sri Fadillah Yusof to address the issue at the federal level.
Sarawak has been engaged in tough negotiations with the federal government and PETRONAS over the oil giant’s monopoly under the PDA 1974. Talks between PETRONAS and Petros have been ongoing since July 2023, following Sarawak’s move in February 2024 to appoint Petros as the State’s sole gas aggregator under the Distribution of Gas Ordinance 2016 and the Sarawak Oil Mining Ordinance (OMO) 1958.
Azalina’s parliamentary response referenced a Jan 7, 2025, agreement between Anwar and Abang Johari, in which the Sarawak government purportedly acknowledged the PDA 1974 (Act 144) as the governing law for Malaysia’s petroleum industry.
The agreement also states that PETRONAS and its subsidiaries are not required to obtain additional licenses to operate in Sarawak beyond what is outlined in the PDA.
It further stipulates that existing agreements between PETRONAS, third parties, and Petros regarding petroleum activities in Sarawak will remain unchanged.
Sarawak holds about 60 per cent of Malaysia’s gas reserves and contributes almost 90 per cent of Malaysia’s LNG exports. — DayakDaily
