KUALA LUMPUR: The Sarawak State Government’s claim that Petronas Carigali Sdn Bhd (PCSB) is operating illegally at the Miri Crude Oil Terminal has been deemed as baseless and contradictory to the legal facts.

In a statement today, Angkatan Bersatu Anak Muda (Armada) clarified that the Petroleum Development Act (PDA) 1974 has expressly granted exclusive rights to Petroliam Nasional Bhd (Petronas) to regulate all petroleum-related activities in Malaysia, including Sarawak.

“Based on this fact, Petronas should not require any licence or permit from the Sarawak State Government to carry out any operations involving petroleum in the state,“ Armada Bersatu said.

Petronas today confirmed to Bernama that its subsidiary, PCSB, received a notice last Wednesday from the Sarawak Ministry of Utilities and Telecommunications regarding gas processing and distribution.

The state-owned oil company told Bernama that PCSB was authorised by law under the PDA 1974 to carry out 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 an obligation to uphold the PDA 1974 and safeguard the interests of the country.

“Petronas will continue to engage constructively and work closely with the Federal government, Sarawak government and Petros in exploring future arrangements to ensure regulatory clarity and continuity of operations for the benefit of the industry, the state and the country as a whole,“ the company said.