KUCHING — Sarawak has affirmed the understanding with Putrajaya that although Petroleum Sarawak Bhd (Petros) is the state’s gas aggregator, existing contracts held by Petronas and its subsidiaries will not be affected.
Sarawak Premier Tan Sri Abang Johari Tun Openg said in a statement today that he and Prime Minister Datuk Seri Anwar Ibrahim agreed to respect
federal and state laws on petroleum and gas development activities in the state, and that Petronas and Petros would work together as partners to advance national and state interests and revenue.
Abang Johari added that while Petronas and its subsidiaries will continue to fulfil their domestic and international contractual obligations under existing contracts, Petros’ role of gas aggregator in the state must not be affected.
“But the performance of such existing contracts must not in any way adversely affect the role of Petros as gas aggregator and be consistent with the provisions of the Distribution of Gas Ordinance (DGO) 2016,” his statement read, reported by Bernama.
The federal law on petroleum and gas activities, meanwhile, is the Petroleum Development Act 1974.
His statement is in response to a parliamentary statement by Anwar at the Dewan Rakyat yesterday concerning the distribution of gas and the role of Petros as the gas aggregator in Sarawak.
Abang Johari expressed his appreciation to the prime minister for acknowledging Petros as the gas aggregator in Sarawak and the DGO 2016 as a law that enables Sarawak to actively participate in the oil and gas industry in its territory.
The Sarawak government is firmly committed to the national interest to ensure that the guaranteed volume of gas, as well as any additional gas produced from its offshore territory and its continental shelf, is used sustainably, he added.
Sarawak’s commitment to national interest includes using its gas resources for energy demand in Peninsular Malaysia, consistent with the declared intention of the federal government that Sarawak will be the clean energy hub for Malaysia, Abang Johari said.
To ensure Petronas can deliver the guaranteed access of gas up to 1.2 billion standard feet per day for domestic use in Sarawak, he said the state government would request the federal government for areas offshore western Sarawak and elsewhere in the continental shelf for gas exploration.
“The Sarawak government will have to ensure that the guaranteed volume shall be delivered at a fair price or price that would promote investments and industries in Sarawak,” he said.
He said the Gabungan Parti Sarawak (GPS) government will continue to uphold and safeguard the rights enshrined in the federal and state constitutions and accorded to Sarawak under the Malaysia Agreement 1963.
“While safeguarding the constitutional rights and powers, the Sarawak government recognises Sarawakians’ aspirations for better gas utilisation system and allocation have to be balanced with the need for the stability and growth of the oil and gas industry in Sarawak, especially at this time of global economic challenges and transition toward renewable energy,” he added. – February 18, 2025