Abang Jo denies Sarawak trying to squeeze out Petronas

Malay Mail

KUCHING, July 1 — Sarawak Premier Tan Sri Abang Johari Openg today denied the state government had breached the spirit of collaboration with national oil firm Petronas over oil and gas resources found within the state’s territory.

He said he must make the clarification as there were claims that the state government, through its oil company Petroleum Sarawak Berhad (Petros), is taking over Petronas’ role in the oil and gas industry.

“I want to tell you that Sarawak’s position is clear that we want to participate actively in our oil and gas and to partner Petronas,” he said at the commemoration of Sarawak vendors’s participation in the oil and gas services and equipment sector.

He said that Petros was not made to deprive Petronas, but Sarawak did not “want to be bystanders in the oil and gas industry.”

“What we want to do is to participate and work together with Petronas. That is why we established Petros,” he said.

He also insisted the state government’s actions were consistent with the Sarawak Land Code, Oil Mining Ordinance 1958, Gas Distribution Ordinance, Malaysian Constitution, and Malaysia Agreement 1963.

He added the land code is used to manage anything on the state's land, including the continental shelf.

“Therefore, the storage of carbon is ours and you have to consult us. We have to work together based on this land code,” he said to Petronas.

He said the Oil Mining Ordinance, which has never been repealed, has to co-exist with the Petroleum Development Act 1974.

He added under the Gas Distribution Ordinance, the state has the authority over the distribution of gas in the state.

“Anybody who wants to distribute gas in Sarawak has to knock on our door,” he added.

The premier stressed that Sarawak would not take the rights others as it was wrong to do so.

He then said those unhappy with the situation could take their grievances to court.