KUCHING: Sarawak is requesting the Federal Government for more offshore areas, especially off western Sarawak, to be made available for gas exploration, says Tan Sri Abang Johari Openg.
The Sarawak Premier said this is to ensure that PETRONAS can deliver guaranteed access to 1.2 billion cubic feet of natural gas per day for domestic use within Sarawak and the implementation of the Sarawak Gas Roadmap.
He said the state government would ensure that the guaranteed volume of gas would be delivered at a fair price to promote investments and industries in Sarawak.
"The Sarawak Government, in the national interest, is firmly committed to ensure that the guaranteed volume of gas as well as any additional gas produced offshore of western Sarawak and elsewhere in the continental shelf will be used sustainably to support the growth of industries in Sarawak, to meet the demand for energy in Peninsular Malaysia and the production of clean energy, consistent with the declared intention of the Federal Government that Sarawak will be the clean energy hub for Malaysia," he said in a statement on Tuesday (Feb 18).
Abang Johari said this was one of several matters regarding gas distribution rights on which he had reached an understanding with Prime Minister Datuk Seri Anwar Ibrahim.
He said they also agreed that all parties would respect Federal and state laws, including the Petroleum Development Act (PDA) and the Distribution of Gas Ordinance (DGO).
In addition, PETRONAS and Petroleum Sarawak Bhd (Petros) would work together as partners to advance national and state interests and revenue, with Sarawak's interests to be prioritised.
While PETRONAS' existing contracts will not be affected by Petros' gas aggregator role in Sarawak, the performance of the contracts must not adversely affect Petros' role or be inconsistent with the provisions of the DGO.
Abang Johari's statement comes after Anwar told Parliament on Monday (Feb 17) that Petros was the gas aggregator in Sarawak and that the DGO enabled Sarawak to participate in the oil and gas industry in the state.
Anwar also said Sarawak would be entitled to up to 1.2 billion cubic feet of natural gas daily for the state's use beginning March 1.
Expressing his appreciation to Anwar, Abang Johari also said the state government would continue to uphold the rights and safeguards enshrined in the Federal and state constitutions and the Malaysia Agreement 1963.
In particular, he said the state government would ensure that the Federal Government's exercise of legislative powers over the development of minerals, mining, oil and oil fields under the Federal list of the Federal Constitution is subject to the state list provision granting the state powers over prospecting licences, mining leases and certificates.
He also said all oil and gas companies operating in Sarawak must comply with state laws, including the Land Code, State Sales Tax Ordinance and the Oil Mining Ordinance, which currently applies to regulate exploration and mining of petroleum in onshore areas.
