Putrajaya, Sarawak sign declaration to end Petronas-Petros dispute

by HIDAYATH HISHAM

THE Federal and Sarawak governments have signed a joint declaration aimed at resolving the prolonged dispute between Petroliam Nasional Bhd (Petronas) and the state-owned Petroleum Sarawak Bhd (Petros).

Prime Minister (PM) Datuk Seri Anwar Ibrahim said the agreement marked a step forward in securing the long-term future of Malaysia’s oil and gas (O&G) industry.

“We have reached a clear parameter regarding the Petroleum Development Act 1974 (PDA 1974) and the Distribution of Gas Ordinance (DGO),” he said at a joint press conference on May 21.

Anwar added that both sides had agreed on the understanding following discussions with Sarawak Premier Tan Sri Abang Johari Openg.

Also present at the briefing were Deputy Prime Minister Datuk Seri Fadillah Yusof, Works Minister Datuk Seri Alexander Nanta Linggi, Chief Secretary to the government Tan Sri Shamsul Azri Abu Bakar, Sarawak Minister for Utility and Telecommunications Datuk Seri Julaihi Narawi and Deputy Minister of Utility (Sarawak Energy Bhd and Petros) Datuk Ibrahim Baki.

Anwar said the declaration does not alter Petronas’ responsibilities but acknowledges that its role will evolve alongside the powers granted to Sarawak’s and Petros’ growing presence.

“This understanding is important to ensure that Petronas’ role continues and that Petros’ role in Sarawak is recognised.

“Both entities will work hand in hand to elevate the country’s stature in the O&G industry and downstream, and several national sector activities,” he added.

He expressed hope that Sarawak could emerge as a launchpad for ASEAN’s O&G industry through this strengthened partnership.

Abang Johari, in response, thanked the PM for recognising Sarawak’s growing O&G sector and the respective roles played by Petronas and Petros.

“Alhamdulilah (praise be to God), we have resolved the issues that arose and today there is recognition which will be carried forward in undertaking O&G activities for the benefit of the nation, and in accordance with the laws of Sarawak and the Federation.

“We will respect the legal schedules of the state and Malaysia, and will continue to enhance cooperation for the benefit of the country and Sarawak,” he said.

Previously, it was reported that the Sarawak government had issued a legal demand to Petronas Carigali Sdn Bhd (PCSB) over alleged non-compliance with Section 7(e) of DGO 2016.

Petronas responded that it retains statutory rights under PDA 1974, which authorises PCSB to regulate petroleum-related operations throughout Malaysia, including in Sarawak.