Prime Minister Datuk Seri Anwar Ibrahim said that he believed the issues related to Petroliam Nasional Bhd (Petronas) and Petroleum Sarawak Bhd (Petros) regarding gas distribution rights in Sarawak had been resolved through a series of negotiations, including his meeting with Sarawak Premier Tan Sri Abang Johari Tun Openg.
He said that there was no ambiguity in policy matters, noting that the Petroleum Development Act 1974 (PDA 1974) applies nationwide and is accepted by both the Sarawak state government and Petros.
“However, (the federal government) also recognise that Petros was established to enable Sarawak to pursue its own gas exploration and distribution initiatives,” he said, emphasising that the Sarawak Gas Distribution Ordinance 2016 does not supersede the PDA 1974, the Federal Constitution or other federal laws and that Petronas’ position remains unaffected.
In addressing concerns about the relationship between Petronas and Petros, Anwar said discussions involving the Attorney General, Petros and Petronas had taken place.
“The PDA 1974 remains the overarching framework for governance in Malaysia’s oil and gas industry. All existing agreements are intact, as disturbing them would complicate relationships with major international companies. This has been mutually accepted,” he said.
Anwar explained that while Petros has been granted authority as a gas aggregator, it will not interfere with Petronas’ existing operations.
“Petronas retains its authority nationwide but allows Sarawak control over gas distribution for domestic purposes, exemplifying cooperation between the two entities.
“Abang Johari has introduced new initiatives, similar to Petronas’ inclusive approach. For projects in Sarawak, Petronas involves Petros, while Petros includes Petronas in exploration, hydrogen ventures and other efforts within Malaysia,” he said.
Anwar also expressed confidence that no further issues would arise as negotiations for other projects remain commercial in nature.
“Our policy is to respect the rights of Petronas and Petros in their respective domains,” he added.
The prime minister assured that granting Petros sole authority as a gas aggregator in Sarawak should not raise concerns, as any related projects – particularly those requiring substantial financing – will inevitably involve Petronas.
Petros commits to collaborate with federal govt, Petronas as sole gas aggregator
Due to this, Sarawak Premier Tan Sri Abang Johari Tun Openg expressed his appreciation to Prime Minister Datuk Seri Anwar Ibrahim for recognising Petroleum Sarawak Bhd (Petros) as the sole gas aggregator in Sarawak.
In a statement, Abang Johari said that the Sarawak government and Petros are committed to working closely with the federal government and Petronas to ensure the smooth execution of Petros’ role.
“I wish to express my deepest appreciation to the prime minister for the statement he made regarding the Petronas-Petros issue, which – among others – clearly recognises and acknowledges Petros as the sole gas aggregator in Sarawak,” he said, adding that the collaboration would ensure uninterrupted gas supply for consumers, including investors, which is vital for the state’s economic progress.
“The Sarawak government also appreciates the roles of the federal government and Petronas in resolving this issue . This would enhance collaboration between the federal and Sarawak government, Petronas and Petros,” he continued, saying that such strategic collaborations would drive Malaysia and Sarawak towards becoming an energy hub.
He also highlighted that the cooperation will enhance Malaysia’s global competitiveness in attracting investments, technological research and new industries, particularly petrochemical derivatives and thus, aligned towards the creation of high-paying jobs and the economic growth of the nation,” he added.
The post Sarawak Premier Appreciative of Anwar’s Confidence in Petronas-Petros Gas Issue Resolution first appeared on Energy Asia.