By Lian Cheng and Shikin Louis
KUCHING, May 23: Padungan assemblyman Chong Chieng Jen (PH-DAP) proposes that Sarawak be given 30 per cent equity in Petrolium Nasional Berhad (PETRONAS) to end the longstanding oil and gas conflict between the State and the national oil company.
In view of PETRONAS’ role as custodian for national oil and gas under Petronas Development Act 1974 (PDA74) which subsequently become a point of contention for those advocating for Sarawak’s oil and gas rights, Chong started his argument by bringing up the issue of its validity.
Citing Kota Sentosa assemblyman Wilfred Yap’s (GPS-SUPP) view that the Act is unconstitutional, and contrasting it with the acknowledgment by Gabungan Parti Sarawak (GPS) president and Sarawak Premier Datuk Patinggi Abang Johari Tun Openg—evident in his signature on the recent Joint Declaration affirming Petroleum Sarawak Berhad (PETROS) as the sole gas aggregator in Sarawak—Chong highlighted the resulting confusion surrounding the PDA74.
He acknowledged Abang Johari’s efforts in fighting for Sarawak’s oil and gas rights, though, to him, there are he still rooms for improvement, he underscored Abang Johari entering into the arena of negotiation with “hands tied” due to the passing of PDA74, which was tabled by then Sarawak MP Tun Taib Abdul Mahmud, and supported by then Chief Minister Tun Abdul Rahman Ya’kub who was also a MP from Sarawak.
What was worse to him was that, Sarawak since 1975 has been receiving a certain amount of “compensation in lieu of rights” from the Federal government.
“It is called compensation in lieu of rights…It means that it is a compensation for you to give up your rights. Is that not the case? It is a compensation paid to Sarawak for you to give up your oil rights. And that is in the annual budget document since 1975, after the passing of the Act,” said Chong who insisted that the acceptance of the allocation showed that Sarawak had willingly given up its O&G rights over oil.
He held that legally speaking, he was of the view that “to now turn around and say that this is not a valid Act would be quite a very stretched legal argument”, before revealing his stance that the Act is constitutional.
Despite so, due to the current fragmented political landscape in Peninsular Malaysia and an accommodative Prime Minister (Datuk Seri Anwar Ibrahim), Chong believed that Abang Johari has an advantage over Putrajaya.
Chong who is also Stampin MP pointed out the signing of the recent declaration was not its first time as there was agreement earlier which was later nullified.
“This thing will never end. And this is going to hurt us. This is going to hurt not only Sarawak, but Malaysia. The economy,” said Chong when delivering his motion of appreciation on TYT’s address during Sarawak Legislative Assembly today.
Citing ConocoPhillips, he said the uncertainty of law had resulted in companies pulling out.
To him, PETRONAS and PETROS is a zero-sum gam. Rather than a head-on collision with PETRONAS, he suggested Sarawak to push for participation in the national oil company.
“Why not negotiate and push for equity participation? I have suggested a 30 per cent equity participation in PETRONAS that Sarawak be given 30 per cent of PETRONAS’ share.
“My 30 per cent equity participation is a suggestion. I made a suggestion, it’s for the (Federal) government, the State government to proceed to think whether 30 per cent equity participation is enough or too much. If it’s too much, you go for less,” said Chong. — DayakDaily
