PETALING JAYA: Sarawak has accepted that the Petroleum Development Act (PDA) 1974 dictates the operation of Malaysia’s petroleum sector, not state ordinances.
Law and institutional reform minister Azalina Othman Said said this was among key matters agreed upon by Prime Minister Anwar Ibrahim and Sarawak premier Abang Johari Openg during a meeting on Jan 7.
AdvertisementAzalina said Sarawak acknowledged and accepted that the PDA 1974, as the federal law, determined the governance, policy and operation of Malaysia’s petroleum sector.
“Petronas and its subsidiaries do not need to be licensed and are not subject to any additional procedures other than those stipulated under the act to carry out petroleum operations in Sarawak.
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The minister also said Petronas has accepted Petros’s role as Sarawak’s sole gas aggregator, excluding liquefied natural gas.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});Azalina added that Putrajaya, Sarawak, Petronas and Petros were in the midst of refining several matters related to the agreement, including its legal implications.
“The spirit of full cooperation between Petronas and Petros will continue in all matters,” she said.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});Last month, Anwar said issues concerning Petronas and Petros over the right to distribute gas in Sarawak, among others, had been resolved following negotiations and a meeting with Abang Johari.
He said the Sarawak Distribution of Gas Ordinance 2016 did not override the PDA 1974, the Federal Constitution, or other federal laws, and as such, Petronas’s position remained unchanged.
Over the past year, Sarawak had pressed for Petronas to ink a deal that would make Petros the sole gas aggregator in the state.