ABU DHABI: Issues related to Petroliam Nasional Bhd (PETRONAS) and Petroleum Sarawak Bhd (Petros) on gas distribution rights in Sarawak have been resolved through a series of negotiations, including a meeting with Sarawak Premier Tan Sri Abang Johari Tun Openg, says Datuk Seri Anwar Ibrahim.
The Prime Minister said there was no ambiguity on policy matters, noting that the Petroleum Development Act 1974 (PDA 1974) applies nationwide and is accepted by both the Sarawak state government and Petros.
“We (the Federal Government) also recognise that Petros was established to enable Sarawak to pursue its own gas exploration and distribution initiatives,” he told Malaysian reporters yesterday.
Anwar said the Sarawak Gas Distribution Ordinance 2016 does not supersede the PDA 1974, the Federal Constitution, or other federal laws, adding that PETRONAS’ position remains unaffected.
Addressing concerns about the relationship between PETRONAS and Petros, the Prime Minister said discussions involving the Attorney General and the two oil companies had taken place, Bernama reported.
“The PDA 1974 remains the overarching framework for governance in Malaysia’s oil and gas industry. All existing agreements are intact, as disturbing them would complicate relationships with major international companies. This has been mutually accepted,” he said.
Anwar explained that while Petros has been granted authority as a gas aggregator, it will not interfere with PETRONAS’ existing operations.
“PETRONAS retains its authority nationwide but allows Sarawak control over gas distribution for domestic purposes. This exemplifies cooperation between the two.”“Premier Abang Johari has introduced new initiatives, similar to PETRONAS’ inclusive approach. For projects in Sarawak, PETRONAS involves Petros, while Petros includes PETRONAS in exploration, hydrogen ventures, and other efforts within Malaysia,” he said.
Anwar expressed confidence that no further issues would arise, as negotiations for other projects remain commercial in nature.
He assured that granting Petros sole authority as a gas aggregator in Sarawak should not raise concerns, as any related projects, particularly those requiring substantial financing, will inevitably involve Petronas.
