By DayakDaily Team
KUCHING, Oct 4: Senator Dato Ahmad Ibrahim has rejected claims that national oil giant Petroliam Nasional Berhad (Petronas) faces catastrophic financial losses due to Sarawak’s energy autonomy, insisting that commercial revenues estimated at up to RM20 billion annually cannot override the State’s constitutional rights.
Responding to a statement made by former law minister Datuk Zaid Ibrahim on Facebook, the Senator countered assertions that Petroleum Sarawak Berhad’s (Petros) role as Sarawak’s sole gas aggregator would strip Petronas of key business operations.
He clarified that figures ranging between RM10 billion and RM20 billion represent broader profit estimates associated with Sarawak gas exports, rather than an audited financial loss that Petronas will automatically incur.
“Financial consequences are certainly important, and Petronas is a major national institution whose financial strength matters to Malaysia.
“But commercial value cannot by itself determine constitutional jurisdiction. If a constitutional or legal right exists, it does not disappear merely because recognising that right may affect the revenue of another entity,” he said in a statement, recently.
He stressed that the May 21, 2025 Joint Declaration—signed by the Prime Minister and the Premier of Sarawak—established a framework where both federal and state laws co-exist.
Effective March 1, 2025, Petros operates as Sarawak’s gas aggregator while Petronas continues executing its core responsibilities under the Petroleum Development Act 1974 (PDA 1974). Existing LNG export contracts also remain explicitly unaffected.
The Senator pushed back against claims that the arrangement forces Petronas to forfeit its status as Malaysia’s national petroleum company.
Addressing historical context, Ahmad underscored that Sarawak’s oil industry and local legal frameworks, such as the Oil Mining Ordinance 1958, existed well before the creation of the Federation of Malaysia in 1963 and the enactment of the PDA in 1974.
Addressing ongoing legal challenges, including the Shell Middle Distillate Synthesis (MDS) payment dispute, he noted that commercial contract rulings do not resolve the overarching constitutional questions regarding State regulatory authority.
With both Petronas and the Sarawak government petitioning the Federal Court, a five-day hearing has been scheduled starting January 25, 2027 to deliver a definitive ruling on the matter.
“This should not become a contest of Petronas versus Petros, much less Malaysia versus Sarawak. A mature federation should be capable of doing both,” he said. — DayakDaily
