KUCHING: The Sarawak and federal governments had agreed that all parties respect the federal and state laws pertaining to petroleum and gas development activities in the state, with Petronas and Petroleum Sarawak Bhd (Petros) working together as partners to advance national and state interests and revenues.
Sarawak Premier Tan Sri Abang Johari Tun Openg said in a statement today that these laws include the Petroleum Development Act (PDA) 1974 and the Sarawak’s Distribution of Gas Ordinance (DGO) 2016.
He said Prime Minister Datuk Seri Anwar Ibrahim and he had also reached the understanding that although Petros takes the role of gas aggregator, existing contracts entered into by Petronas and its subsidiaries are not affected to enable Petronas to fulfil its domestic and international contractual obligations.
“But the performance of such existing contracts must not in any way adversely affect the role of Petros as gas aggregator and be consistent with the provisions of the DGO 2016,” he said.
The statement came in response to a parliamentary statement by Anwar at the Dewan Rakyat yesterday concerning the distribution of gas and the role of Petros as the gas aggregator in Sarawak.
Abang Johari expressed his appreciation to the prime minister for acknowledging Petros as the gas aggregator in Sarawak and the DGO 2016 as a law that enables Sarawak to actively participate in the oil and gas industry in its territory.
He said the Sarawak government is firmly committed to the national interest to ensure that the guaranteed volume of gas, as well as any additional gas produced from its offshore territory and its continental shelf, is used sustainably.
According to him, this commitment supports industries’ growth in the state, as well as to utilise the gas for producing clean energy to meet the demand in Peninsular Malaysia, consistent with the declared intention of the federal government that Sarawak will be the clean energy hub for Malaysia.
To ensure Petronas can deliver the guaranteed access of gas up to 1.2 billion standard feet per day for domestic use in Sarawak, he said the state government would request the federal government for areas offshore western Sarawak and elsewhere in the continental shelf for gas exploration.
“The Sarawak government will have to ensure that the guaranteed volume shall be delivered at a fair price or price that would promote investments and industries in Sarawak,” he said.
He said the Gabungan Parti Sarawak (GPS) government will continue to uphold and safeguard the rights enshrined in the federal and state constitutions and accorded to Sarawak under the Malaysia Agreement 1963.
“While safeguarding the constitutional rights and powers, the Sarawak government recognises Sarawakians’ aspirations for better gas utilisation system and allocation have to be balanced with the need for the stability and growth of the oil and gas industry in Sarawak, especially at this time of global economic challenges and transition toward renewable energy,” he added.
ALSO READ: Sarawak MPs welcome Petronas-Petros deal, seek stronger state role
