Sarawak Premier Tan Sri Abang Johari Openg today (July 1) refuted claims that the state government had violated its collaborative agreement with national oil company Petronas concerning oil and gas resources within Sarawak’s territory.
Addressing the allegations, he clarified that the state’s oil company, Petroleum Sarawak Berhad (Petros), was not established to usurp Petronas’ role in the oil and gas sector. Instead, he emphasized Sarawak's intent to be an active participant in the industry alongside Petronas.
“I want to make it clear that Sarawak’s position is to actively engage in our oil and gas sector and to collaborate with Petronas,” he said at an event commemorating Sarawak vendors’ involvement in the oil and gas services and equipment sector.
He explained that Petros was created not to undermine Petronas but to ensure that Sarawak was not merely a bystander in the oil and gas industry. “Our goal is to participate and collaborate with Petronas. That is why Petros was established,” he asserted.
Tan Sri Abang Johari also highlighted that the state government’s actions were in alignment with the Sarawak Land Code, Oil Mining Ordinance 1958, Gas Distribution Ordinance, the Malaysian Constitution, and the Malaysia Agreement 1963. He elaborated that the land code governs all activities on the state's land, including those on the continental shelf.
“Consequently, the storage of carbon falls under our jurisdiction, and Petronas must consult us. We must work together in accordance with this land code,” he directed at Petronas.
He pointed out that the Oil Mining Ordinance, which has never been repealed, should coexist with the Petroleum Development Act 1974. Furthermore, the state has regulatory authority over gas distribution within Sarawak under the Gas Distribution Ordinance.
“Anyone wishing to distribute gas in Sarawak needs to seek our approval,” he added.
The premier firmly stated that Sarawak would not infringe on others' rights, deeming it unethical. He also suggested that those dissatisfied with the state’s stance could pursue their grievances through legal channels.
Tan Sri Abang Johari's statements underscore Sarawak's commitment to a balanced and collaborative approach in managing its natural resources while ensuring compliance with both state and federal laws. This balanced approach aims to foster a cooperative relationship with Petronas, enabling shared growth and mutual benefit in the oil and gas industry. Through Petros, Sarawak seeks to ensure its active involvement and fair share in the management and benefits derived from its oil and gas resources.
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