Petronas

KUALA LUMPUR — Petroliam Nasional Bhd (Petronas) today confirmed that its subsidiary, PETRONAS Carigali Sdn Bhd (PCSB), received notices on April 30, 2025, from the Sarawak Ministry of Utility and Telecommunication concerning gas processing and distribution.

The national oil firm told Bernama that PCSB is statutorily authorised under the Petroleum Development Act (PDA) 1974 to undertake the company’s activities and comply with all applicable laws in doing so.

“While we respect the aspirations of the state of Sarawak, Petronas also has a duty to uphold this PDA 1974 and safeguard national interests.

“Petronas will continue to engage constructively and work closely with the federal government, Sarawak state government, and Petros in exploring future arrangements to ensure regulatory clarity and operational continuity for the benefit of the industry, state, and nation as a whole,” it said.

Petronas emphasised that it is committed to ensuring that the rights and interests of all parties, including end-consumers and investors, are addressed accordingly. — BERNAMA

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The post Petronas acknowledges Sarawak’s April 30 notices on gas activities appeared first on The Malaysian Reserve.

THE Sarawak state government has sent a letter of demand to Petronas subsidiary Petronas Carigali Sdn. Bhd. (PCSB) for alleged violation or non-compliance with Section 7(e) of the Gas Distribution Ordinance (DGO) 2016.

Utusan Malaysia reported that the violation involved the operation of a plant owned by PCSB at the Miri Crude Oil Terminal (MCOT) at Lot 915-916, Lorong 1A-1A, Desa Senadin, 98100 Miri, Sarawak.

The state government, through the Sarawak Ministry of Utilities and Telecommunications, claimed that the plant was operating illegally or without a permit under Section 7(e) of the DGO 2016.

According to a letter from the ministry seen by the Malay daily, Section 7(e) refers to the activity of constructing, managing or maintaining gas pipelines or other equipment, fittings or mechanisms for the purpose of gas distribution.

In this case, the gas referred to is natural gas (NG).

“In relation to the above, your company has thus breached Section 7(e) of the Ordinance,” the letter said.

The development further adds to the ‘tangle’ between Sarawak and Petronas after the state government has increasingly aggressively moved to become the sole gas aggregator in the state.

The state government has also given Petronas Carigali 21 days from the date of the letter, dated April 30, 2025, to obtain a licence or face financial penalties.

“Please note that if you continue with the activities stated above at the plant without obtaining the required licence under Section 7(e) within 21 days from the date of this letter, a financial penalty will be imposed on you under Section 21A of the Gas Distribution Ordinance 2016,” the letter said.

According to the letter, Petronas Carigali can contact the specified officer if there are any queries regarding the matter.

In line with the desire to strengthen control over its resources, Sarawak established its oil company, Petros, in 2017.

Petronas was established by the Federal Government under the Petroleum Development Act (PDA) as part of Malaysia’s efforts to strengthen control over the country’s oil and gas resources.

However, over the past year, Sarawak has been pushing for Petronas to sign an agreement that will make Petros the sole gas aggregator in the state.

The dispute dragged on when Petros filed a lawsuit regarding the demand for payment for natural gas supply and Petronas failed in its attempt to stop the trial of the lawsuit.

However, both parties continued to work towards an understanding but to date there has been no positive development.

On April 18, a former Petronas manager was charged at the Kuala Lumpur Sessions Court on charges of attempting to disclose confidential documents relating to Petronas’ operations and finances to Petros in June last year.

Petronas yet to comment on the matter. — TMR