ABU DHABI: Prime Minister Datuk Seri Anwar Ibrahim said he believed 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, we (the Federal Government) also recognise that Petros was established to enable Sarawak to pursue its own gas exploration and distribution initiatives,” he told Malaysian reporters during a press conference concluding his visit to the United Arab Emirates (UAE) on Tuesday.
Anwar emphasised 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.
He arrived in the UAE on Sunday for a three-day working visit, which included attending the Abu Dhabi Sustainability Week (ADSW) and strengthening bilateral ties across various sectors.
This marks the Prime Minister’s second visit to the UAE since October 2023 and his first overseas trip since Malaysia assumed the ASEAN chairmanship for 2025.
Addressing concerns about the relationship between Petronas and Petros, Anwar said discussions involving the Attorney General, Petros, and Petronas had taken place.
He added that on Jan 1, 2025, he met the Sarawak Premier to resolve issues related to gas distribution in the state.
“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. This exemplifies cooperation between the two entities.
“Premier 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 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 said.
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.
