KUCHING – Sarawak Premier Tan Sri Abang Johari Tun Openg has admitted that the oil and gas dispute between Petroleum Sarawak Berhad (Petros) and Petroliam Nasional Berhad (Petronas) remains unresolved.
While progress has been made, he admitted there were still “grey areas” due to misinformation, Borneo Post reported.
“There is finality only that there are still grey areas, wrong information. Actually, it’s very ‘clear water’ but became ‘grey’ because of wrong information,” he said at a press conference after witnessing the signing of the Sale and Purchase Agreement (SPA) for the Sarawak government’s acquisition of MASwings from Malaysia Aviation Group (MAG).
Transport Minister Anthony Loke Siew Fook, who was also present, said an announcement on the agreement between Petros and Petronas was expected soon.
“I believe that there will be an announcement on the agreement between Petros and Petronas, and I am confident of the wisdom of the Prime Minister (Datuk Seri Anwar Ibrahim) and the Sarawak Premier.
“These two leaders are very wise in handling this issue, and I am confident that when the announcement is made, it will bring results that will benefit all parties,” he said.
Loke added that both the federal and Sarawak governments were committed to resolving outstanding issues, including those concerning oil and gas.
“There is no issue that we cannot settle, including the oil and gas issue. Our Prime Minister has given information and explanations many times in the Cabinet, and there is consensus for us to settle this issue between the federal and Sarawak government.
“No one is losing; no one is giving up anything on their respective rights. It’s a win-win situation,” he said.
On February 5, Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said that Petronas and its subsidiaries were not required to obtain additional licences or comply with extra procedures to operate in Sarawak beyond the Petroleum Development Act 1974 (Act 144).
This was among five points agreed upon during a meeting between Anwar and Abang Johari on January 7 regarding Sarawak’s claims over oil and gas resources.
“The Sarawak government has acknowledged and accepted the Petroleum Development Act 1974 (Act 144) as the federal law governing the management and operation of the petroleum industry in Malaysia.
“Petronas accepts the role of Petroleum Sarawak Berhad (Petros) as the gas aggregator (non-LNG) in Sarawak and is ready to collaborate with Petros in the state,” she said in a written parliamentary reply.
Meanwhile, discussions on the transfer of regulatory control over Bintulu Port to the Sarawak government are ongoing, with evaluation being the final hurdle.
“We are now left with the issue of evaluation, and there will be further discussions so that everything can be settled for the benefit of everyone,” Loke said.
Bintulu Port Sdn Bhd recently extended its operation under an interim agreement with the federal Ministry of Transport and Bintulu Port Authority for another 12 months. The extension, as per its Bursa Malaysia filing, runs from January 1 to December 31, 2025, or until the repeal of the Bintulu Port Authority Act 1981 and the enactment of new legislation.
Despite official assurances of an amicable resolution between Petros and Petronas, legal proceedings suggest underlying tensions. Petros has taken Petronas to court over a RM7.05 million bank guarantee call, which Petros claims is linked to a disputed Sarawak Gas Sales Agreement (SGSA).
Observers question why Petronas moved to enforce the guarantee amid negotiations, raising concerns about whether the court case—scheduled for February 19 before Kuching High Court Judge Leonard David Shim—might be influencing public disclosure of the dispute’s outcome.
In January, Scoop reported that while Prime Minister Anwar and Abang Johari have repeatedly stated that Petros’ takeover as Sarawak’s gas aggregator is proceeding smoothly, legal documents suggest otherwise.
The case involves multiple commercial agreements and federal and state legislations, including the SGSA, Sarawak’s Distribution of Gas Ordinance 2016 (DGO 2016), and the Petroleum Development Act 1974.
Petronas’ insistence on its rights under the PDA, despite official statements supporting Petros’ role, has raised speculation about its motives. Industry analysts note that Petronas stands to lose significant revenue once the new gas distribution formula takes effect in Sarawak, potentially explaining its legal manoeuvres. – January 12, 2025