Sarawak Premier Tan Sri Abang Johari Openg (right) and Federal Transport Minister Anthony Loke at a press conference in Kuching on Wednesday (Feb 12). - ZULAZHAR SHEBLEE/The Star
KUCHING: The issue of authority over Sarawak's oil and gas will be resolved amicably between the Federal and state governments, says Anthony Loke.
The Federal Transport Minister said an agreement is likely to be announced soon between national oil company PETRONAS and state-owned Petroleum Sarawak Bhd (Petros).
He added that the agreement would ensure a win-win outcome for all parties.
"The relationship between the Federal and state governments is very good."
"There is no issue that we cannot resolve, including the oil and gas issue," he said after the sale and purchase agreement signing ceremony between the Sarawak government and Malaysia Aviation Group on Wednesday (February 12).
Loke said Prime Minister Datuk Seri Anwar Ibrahim had explained the issue to the Cabinet with the consensus that it should be resolved amicably on a win-win basis.
"No one will lose, and no one will give up anything on their respective rights," he said.
Loke also expressed confidence in the wisdom of Anwar and Sarawak Premier Tan Sri Abang Johari Openg to manage the issue.
"It's a win-win situation. This is the guiding principle for Putrajaya's relationship with Sarawak," he reiterated.
On Monday (Feb 10), Abang Johari said that Sarawak has the power to make decisions on the distribution of oil and gas resources within its territory.
He said that while Sarawak accepted the Petroleum Development Act (PDA) 1974, which stipulates that PETRONAS has exclusive control over the exploration and distribution of the country's oil and gas resources, the state "must have a say."
"That's why we formed Petros. Petros will work with PETRONAS, and we have a say in the distribution of gas."
"Petros and PETRONAS have similar functions, and based on our consensus, Sarawak can also play its part in the petroleum industry," he was reported as saying.
Abang Johari's remarks came after Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said stated that PETRONAS' recognition of Petros as Sarawak's gas aggregator excluded liquefied natural gas (LNG).
In a written parliamentary reply on February 4, she also said that PETRONAS and its subsidiaries were not required to obtain additional licences to conduct petroleum operations in Sarawak beyond those outlined in the PDA.
Sarawak has been negotiating with Putrajaya and PETRONAS on gas distribution following the state's appointment of Petros as the sole gas aggregator under state laws on February 1 last year.
