Sarawak stands by its Oil and Mining Ordinance (OMO) 2018 — CM

By Nigel Edgar

KUCHING, July 5: Chief Minister Datuk Patinggi Abang Johari Tun Openg emphasised today that any oil and gas player wanting to participate in the state’s oil and gas industry must adhere to the state’s Oil and Mining Ordinance (OMO) 2018.

He said as far as the state and its government is concerned, the OMO is part of its constitution and by no means should be ignored.

“The licensing (OMO) is in our (state) constitution. We are not giving it up,” he said.

He said currently the state government and Petronas were in the midst of negotiating a win-win situation.

“We are still negotiating at the moment on the question of participation in our oil and gas (industry). It’s a question of equity. In principle, we have agreed, including OMO. OMO is not an issue because it is in our law.

“It’s the question of quantum and how can Sarawak participate in its oil and gas industry. One is in terms of equity. Second is assuming they got new well, how much percentage were to come in (to Sarawak) in terms of our participation,” said Abang Johari.

He was responding to reporters asking about an article published by The Malaysian Reserve on July 3.

The article quoted Malaysian Oil and Gas Services Council (MOGSC) president Sharifah Zaida Nurlisha Syed Ibrahim as saying Petronas had provided guidance to all of its licensed companies so that they would be able to operate in Sarawak as long as they comply with the state’s new requirements.

However, MOGSC, in a separate statement, rebutted the article, denying receiving any guidance from Petronas that oil and gas players working in Sarawak should adhere to the state’s OMO.

“MOGSC wishes to rebut over a statement printed in The Malaysian Reserve on July 3, 2019, with reference to the oil and gas (O&G) licensing authority in Sarawak. Under no circumstances were we given guidance as mentioned nor did we mention we received such guidance from Petroliam Nasional Bhd (Petronas).

“However, in our many engagements with all the relevant stakeholders, MOGSC is made to understand that at this point in time, no additional licences are required by service contractors to provide services or products in the O&G industry in Sarawak until further notice.

“MOGSC has responsibly conveyed this to our members, and we currently look to both stakeholders for further instructions. As the largest umbrella association in the Malaysian O&G industry, representing close to 500 O&G service providers, MOGSC is constantly engaging with relevant stakeholders to seek clarity for the benefit of our members.

“MOGSC members who provide O&G services spreading over the entire supply chain, look forward to having better clarity on this matter as we continue to provide support in developing our O&G industry in Malaysia,” it said. — DayakDaily