KUCHING: Sarawak has reached a solution with PETRONAS over the issue of gas distribution in the state, says Premier Tan Sri Abang Johari Openg.
He said Prime Minister Datuk Seri Anwar Ibrahim would announce the solution soon and the matter could now be resolved.
"In fact, the solution is in sight but I cannot disclose it now.
"The Prime Minister will announce the formula. It has been settled," he said in an interview with state-owned broadcaster TVS on Tuesday (Dec 10).
Abang Johari said the issue was merely a legal matter as PETRONAS was relying on the Petroleum Development Act (PDA) and Sarawak on the state Oil Mining Ordinance (OMO).
"It was decided in a previous case that the PDA and OMO can co-exist," he said.
The Premier also said it was unfortunate that the issue had been blown up, with some people claiming that PETRONAS could lose up to RM100bil following Sarawak's decision to appoint state-owned Petroleum Sarawak Bhd (Petros) as the sole gas aggregator in the state.
"There may be a slight reduction in PETRONAS' revenue but I believe this can be resolved," he said, adding that Petros would continue to work with PETRONAS in the gas industry in Sarawak.
Petros was appointed as the sole gas aggregator on Feb 1 this year to procure all natural gas produced in Sarawak for distribution, supply and sale to downstream gas players.
Last month, state Utility and Telecommunication Minister Datuk Seri Julaihi Narawi said the appointment was non-negotiable.
He also said then-ongoing talks between Petros and PETRONAS did not involve the former's appointment as the sole gas aggregator but were technical discussions to ensure compliance with requirements under the state's Distribution of Gas Ordinance.
