KUALA LUMPUR — Petroliam Nasional Bhd (Petronas) will continue to carry out its functions, activities, responsibilities and obligations as mandated under the Petroleum Development Act 1974 (PDA 1974) and related regulations.
This was one of the core principles of a joint declaration signed by Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Tun Openg at Perdana Putra today.
According to a statement from the Prime Minister’s Office (PMO), the joint declaration reflects a consensus between the Federal Government and the Sarawak State Government following a meeting chaired by the Prime Minister with the Sarawak Premier and the top leadership of Petronas and Petroleum Sarawak Bhd (Petros) on May 9.
The declaration outlines foundational principles to facilitate further negotiations between Petronas and Petros, and affirms mutual respect for both Federal and State laws, the status of existing agreements, and the establishment of a cooperative framework between the two companies.
“All Federal and Sarawak State laws related to gas distribution in Sarawak must coexist and be respected by all parties conducting such activities in the state, including Petronas and Petros,” the PMO said.
As part of the agreement, the Sarawak Government has appointed Petros as the gas aggregator, effective March 1.
The statement noted that this appointment, made pursuant to the State’s executive authority, must be respected by all parties engaged in the marketing, distribution and supply of gas to domestic consumers in Sarawak.
At the same time, the declaration provides assurance that any existing agreements and arrangements between Petronas and/or its subsidiaries with third parties for the purpose of liquefied natural gas (LNG) sales from upstream operations through to export activities will remain unaffected.
To advance Sarawak’s domestic gas needs, Petronas and Petros are also expected to begin discussions on expanding their cooperation in several areas. These include:
- Collaborative development of gas supply pipeline projects of up to 1.2 billion standard cubic feet per day (Bscf/d) to support the Sarawak Gas Roadmap;
- Joint implementation of green energy, hydrogen and power generation projects in line with the state’s aspirations to become an energy hub in the Asean region.
The PMO stressed that all further discussions on potential collaboration must be subject to commercial and technical viability, and that Petronas will work with Petros on future projects in Sarawak involving international partners.
Both entities are also expected to further develop the cooperative framework in accordance with the national interest, guided by transparent and commercially-sound principles.
“The substantial potential that can be fully realised through this agreement could strengthen trust and restore investor confidence, particularly among international petroleum companies, in finalising their investment direction in Malaysia,” the PMO said. — May 21, 2025