By Danial Dzulkifly
KUALA LUMPUR, Feb 17 — Prime Minister Datuk Seri Anwar Ibrahim today quashed tensions between national oil company Petronas and state-owned Petroleum Sarawak (Petros), affirming both firms will work as partners to develop Sarawak’s oil and gas industry.
Speaking in Parliament, Anwar said the partnership would operate under the Distribution of Gas Ordinance 2016 (DGO), ensuring Petros’ expanded role in Sarawak’s energy sector while maintaining Petronas’ existing contractual commitments.
He said the DGO, which takes effect March 1, would be read together with the Petroleum Development Act 1974 (PDA Act 1974), following an agreement between Putrajaya and the Sarawak government.
“Under the DGO, Petros is guaranteed access to natural gas up to 1.2 billion cubic feet per day for Sarawak’s domestic needs, with additional provisions based on future requirements. Petros is also authorised to expand its activities and leverage cooperation with Petronas.
“Petronas and Petros will move forward together as partners to safeguard the interests and welfare of both the country and the state of Sarawak.
“All subsequent detailed negotiations will maintain the shared benefits and interests in accordance with commercial principles and transparency,” he said in parliament today.
The Prime Minister said the close cooperation between Putrajaya and Sarawak over the years has led to mutual benefits, with Petronas investing over RM280 billion in upstream investments and infrastructure in Sarawak since 1976.
In the past decade alone, Sarawak-based vendors secured contracts exceeding RM40 billion, while the state received RM49 billion in cash payments, RM18.66 billion in sales tax, and RM28.6 billion in dividends through its Malaysia LNG Group shareholding.
Petronas has also invested over RM600 million in education and human capital development over the last decade, providing scholarships and training for more than 680,000 individuals and creating jobs for over 4,300 Sarawakians within the company.
Pointing to Sarawak’s crucial role in Malaysia’s economic development, Anwar thanked Petronas, the Cabinet, and the Sarawak state government for their cooperation.
“We are grateful to Allah for this consensus, which not only strengthens our unity but also ensures the prosperity of the nation and Sarawak,” he said.
Anwar’s clarification comes after an ongoing dispute between Petronas and Petros over the control and rights to oil and gas resources in Sarawak.
The crux of the disagreement stems from the interpretation of the PDA of 1974 and whether Sarawak has the authority to manage its oil and gas resources.
Most recently, Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said that Petronas and its subsidiaries were not required to obtain additional licences or comply with extra procedures to operate in Sarawak beyond the Petroleum Development Act 1974 (Act 144).
This was among five points agreed upon during a meeting between Anwar and Sarawak Premier Tan Sri Abang Johari Tun Openg on January 7 regarding Sarawak’s claims over oil and gas resources.
Abang Johari then rebutted, stating that Azalina’s comments were “less than accurate.”
He reiterated the state’s contention that it had regulatory authority over oil and gas activities within its territory.
