Federal and Sarawak govts to discuss licensing issue once Premier Abang Johari returns from official London visit, says PM

PETALING JAYA: Prime Minister Datuk Seri Anwar Ibrahim has called on all parties to refrain from taking any action or making statements until further discussions are held with the Sarawak government regarding the ongoing licensing dispute between Petronas and Petroleum Sarawak Bhd (Petros).

He said the federal government and the Sarawak government would engage in further discussions to finalise the Petronas-Petros arrangement once Sarawak Premier Tan Sri Abang Johari Abang Openg returns from his official visit to London.

“I had the opportunity to speak with Premier Tan Sri Abang Johari yesterday regarding Petronas-Petros arrangements based on the principles previously agreed upon,” Anwar said in a post on his Facebook page yesterday.

“I’m highly confident that the issue can be resolved with wisdom and by staying firmly within the bounds of healthy and meaningful discourse, Insya-Allah.”

Anwar’s comments came after Petronas confirmed that its subsidiary, Petronas Carigali Sdn Bhd (PCSB), received a notice on April 30 from the Sarawak Utility and Telecommunications Ministry concerning gas processing and distribution.

It was reported on May 2 that Sarawak had issued a legal notice to PCSB for allegedly operating without a permit at its Miri Crude Oil Terminal.

PCSB was given 21 days in the notice dated April 30 to obtain the necessary licence, failing which it could face financial penalties under Section 21A of the Distribution of Gas Ordinance (DGO) 2016.

It was also reported that PCSB, which functions as the upstream subsidiary of Petronas, is accused of violating Section 7(e) of the DGO 2016.

This provision mandates that a licence be obtained for constructing, managing or maintaining gas pipelines and related infrastructure.

The DGO, which took effect on July 1, 2018, designated Petros as the state’s regulator and sole gas aggregator. This was part of Sarawak’s broader initiative to assert greater control over its natural resources.

Petronas failed to obtain an injunction in a Kuching High Court to halt the suit filed by state-owned Petros to stop the court from hearing the suit on gas payments.

The national oil firm told Bernama that Petronas Carigali is statutorily authorised under the Petroleum Development Act 1974 to undertake the company’s activities and comply with all applicable laws in doing so.

Abang Johari was quoted by the Sarawak Public Communications Unit as saying that discussions are moving forward based on a win-win approach for both Sarawak and Petronas.

“In this oil and gas matter, we’ve been tactfully ‘playing ball’ with Petronas for a while now.”

He said Anwar had contacted him and both of them agreed to move forward with a fair and sincere approach.

He added that Sarawak had fulfilled its responsibilities despite not receiving additional revenue.

“This solution will be based on mutual goodwill and the belief that the nation’s oil and gas wealth should be shared fairly.”