Read as whole, not buffet menu: PETRONAS-PETROS issue rooted in constitutional authority

Doris (centre) represents GPS BBC to hold a press conference in Parliament on Oct 9, 2025.
Advertisement

By DayakDaily Team

KUCHING, Oct 9: The Federal Constitution is not a buffet menu to pick and choose clauses for political convenience but must be read as a whole, asserted Gabungan Parti Sarawak (GPS) Backbenchers Club (BBC GPS) members in defending Sarawak’s legal rights over gas distribution and the role of State-owned Petroleum Sarawak Berhad (PETROS).

In a statement, Sarawakians members of Parliament (MPs) said the issue between Petroliam Nasional Berhad (PETRONAS) and PETROS should not be seen as a “family quarrel”, but rather a matter of law and constitutional authority, firmly rooted in the powers granted to Sarawak under the Distribution of Gas Ordinance (DGO) 2016 and the Borneo States (Legislative Powers) Order 1963.

Advertisement

They reminded all members of Parliament of their oath to “preserve, protect and defend” the Constitution in its entirety, including the rights of the states enshrined within it.

“We cannot take Item 8(j) of the Federal List to justify full federal control over oil and gas while ignoring Item 2(c) of the State List, which grants the State the authority over licences and permits. Both are interconnected — that is the balance of federalism agreed upon since 1963,” the statement read following a press conference held by Sri Aman MP Dato Sri Doris Sophie Brodie in Parliament today.

The statement came after the Pakatan Harapan MP for Pasir Gudang, Hassan Karim, warned in Parliament that the ongoing dispute could undermine PETRONAS’ position as the national oil company.

The BBC GPS MPs explained that Sarawak’s jurisdiction in this matter lies solely in downstream activities, specifically gas distribution, a power legally established under the DGO 2016, which was enacted by the Sarawak Legislative Assembly and does not conflict with the Federal Constitution.

They pointed out that through the Exemption (Amendment) Notification 2021, activities related to the marketing and distribution of natural gas and liquefied petroleum gas (LPG) in Sarawak were exempted from the Petroleum Development Act (PDA) 1974, making DGO 2016 the sole law governing gas distribution in the State.

“The DGO and the appointment of PETROS as gas aggregator do not contravene the PDA 1974, as Sarawak has already been exempted from the relevant provisions.

“The Ordinance is a valid law, never annulled by any Malaysian court, and enjoys the presumption of constitutionality,” the MPs stated.

They also raised concern that certain entities continue to operate in Sarawak’s oil and gas sector without adhering to the State’s licensing requirements, stressing that compliance is not optional and must be upheld by all, including national corporations.

“If all other companies, both local and international, can comply with Sarawak’s laws, it is only proper that a national company does the same,” they said.

Clarifying Sarawak’s position, the MPs said the State has no intention of undermining or destroying PETRONAS, but seeks cooperation built on mutual respect to develop the oil and gas industry in ways that benefit both Sarawak and Malaysia as a whole.

“PETROS is not a competitor to PETRONAS but a strategic partner, ensuring that operations in Sarawak are conducted sustainably, transparently, and for the benefit of the people without compromising national interests,” they said.

The MPs further stressed that Sarawak continues to contribute to the nation through petroleum revenue, energy, and economic development, but maintains its right to manage resources within its borders as guaranteed under the Federal Constitution and the Malaysia Agreement 1963 (MA63).

“Let us not interpret the Constitution selectively. Let us defend it in its entirety with honesty, understanding, and respect for the founding spirit of this nation.

“Sarawak demands no more than its rights, and will not accept less than what was promised,” the statement concluded. — DayakDaily

Advertisement