Sarawak Premier Reveals Solution to Dispute with Petronas Over Oil and Gas Resources
Breaking News
Sarawak Premier Abang Johari Openg has revealed that a solution has been reached over the dispute between Sarawak and Petronas over the rights to oil and gas (O&G) resources in and around the state, with Prime Minister Anwar Ibrahim set to announce it soon.
The Solution is in Sight
According to Abang Johari, the solution is already in sight, and the prime minister will share the formula with them soon. He emphasized that the issue was merely a legal matter, with Petronas relying on the Petroleum Development Act 1974 (PDA) and Sarawak on the Oil and Mining Ordinance 1958 (OMO). "It has been decided (that the rights of both parties) under the PDA and OMO can coexist," he added.
Collaboration between Petros and Petronas
The partnership between Petros and Petronas is necessary as collectively, they dominate a significant portion of Sarawak’s gas reserves. Abang Johari explained that the two entities would continue to collaborate in the gas industry within the region. This collaboration would help to resolve any potential issues that may arise due to the gas distribution arrangement.
Addressing the Dispute
The dispute between Sarawak and Petronas has been ongoing for a year, with Sarawak pressing for Petronas to ink a deal that would make Petroleum Sarawak Bhd (Petros) the sole gas aggregator in the state. Abang Johari refuted suggestions that his state was acting greedily, saying it was merely exercising a "constitutional right" to distribute gas which belongs to the state.
Settling the Matter
Abang Johari emphasized that the matter could now be considered resolved, pending the official announcement. He also stated that some had exaggerated claims suggesting Petronas could lose up to RM100 billion with Petros entering the fray for rights to the O&G resources in and around the state. "Yes, there may be a slight reduction (to Petronas’s profits) due to the gas distribution arrangement, but I believe this can be resolved," he said.
Frequently Asked Questions
- What is the solution to the dispute between Sarawak and Petronas?
The solution is already in sight, and the prime minister will share the formula with them soon. - What is the nature of the dispute between Sarawak and Petronas?
The dispute is a legal matter, with Petronas relying on the Petroleum Development Act 1974 (PDA) and Sarawak on the Oil and Mining Ordinance 1958 (OMO). - What is the partnership between Petros and Petronas?
The partnership is necessary as collectively, they dominate a significant portion of Sarawak’s gas reserves, and they will continue to collaborate in the gas industry within the region.