PETROS, PETRONAS Can Operate Co-Existently Within Their Respective Legal and Commercial Frameworks
KUCHING: The role of Petroleum Sarawak Berhad (PETROS) as Sarawak's gas aggregator does not signify that Petroliam Nasional Berhad (PETRONAS) must be excluded; rather, both entities can continue operating within their respective legal and commercial frameworks.
Member of the Senate, Senator Dato’ Ahmad Ibrahim, stated that PETRONAS continues to perform its functions and responsibilities under the Petroleum Development Act 1974 (PDA 1974), while PETROS is recognised as Sarawak's gas aggregator effective 1 March 2025, with PETRONAS' existing liquefied natural gas (LNG) export arrangements remaining unaffected.
According to him, this factors in the Joint Declaration signed by Prime Minister Dato Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang Openg on 21 May 2025, which recognised that Federal and Sarawak laws relating to gas distribution in Sarawak co-exist and are to be respected.
“The legitimate role of PETROS within Sarawak does not imply that PETRONAS must cease being Malaysia's national petroleum company.
“Both can operate within their respective legal and commercial frameworks.
“In fact, that is precisely what was envisioned and pursued through the Joint Declaration,” he said in a statement issued on Sunday regarding issues surrounding PETRONAS, PETROS, and Sarawak's standing in the oil and gas sector.
Dato’ Ahmad added that discussions concerning the positions of PETRONAS and PETROS must also take into account Sarawak's history and legal framework that existed prior to the formation of Malaysia, including the Oil Mining Ordinance 1958 (OMO 1958).
According to him, questions regarding legislative jurisdiction and regulatory authority over oil and gas between Sarawak and the Federal Government are matters to be determined based on the Federal Constitution, the Malaysia Act 1963, relevant legislation, and judicial interpretation.
He further emphasised that this matter should not be viewed as a contest of PETRONAS versus PETROS, let alone Malaysia versus Sarawak.
“PETRONAS has played a vital role for Malaysia and should rightly continue to fulfill that role.
“Meanwhile, PETROS carries a legitimate responsibility to expand Sarawak's participation and advance Sarawak's interests in its own oil and gas industry in accordance with the law.
“The existence and role of one party does not necessitate the destruction of the other,” he added. — UKASnews
