Petronas operating in Sarawak ‘on borrowed time', says SUPP rep
Petronas' presence was only allowed with Sarawak's consent because federal laws do not automatically apply to the state unless it was adopted by the state's legislature, according to SUPP's Wilfred Yap. (AFP pic) PETALING JAYA : National oil and gas company Petronas has been operating in Sarawak 'on borrowed time' from a constitutional perspective, according to a Sarawak United People's Party (SUPP) assemblyman.
Kota Sentosa assemblyman Wilfred Yap said Article 95D of the Federal Constitution stipulates that federal laws do not automatically apply to Sarawak unless adopted by the state's legislature, Dayak Daily reported. Wilfred Yap.
Since Sarawak has never adopted the Petroleum Development Act 1974 (PDA74), Petronas' presence in the state, he argued, was only 'allowed with Sarawak's consent'.
'PDA74 is powerful but powerless in Sarawak. Petronas leans heavily on the PDA74, which gives it control over petroleum resources nationwide,' he was quoted as saying during a motion of appreciation on the Yang di-Pertua Negeri's address in the state legislative assembly yesterday.
'But here's the catch: the PDA74 is a federal law, and in Sarawak, federal laws don't walk through the door uninvited.'
Yap, a lawyer by training, pointed out that Sarawak's control over its natural resources is safeguarded by several key instruments, including the Federal Constitution, the Malaysia Agreement 1963 (MA63), the Oil Mining Ordinance 1958, and the Distribution of Gas Ordinance 2016.
He added that MA63 was a foundational treaty meant to guarantee Sarawak's autonomy over its resources, not just a historical footnote.
'These amendments are legally binding. Any claim that Sarawak must simply 'follow federal law' without its consent contradicts this constitutional reality,' Yap said.
He also defended the state-owned oil and gas company, Petros, saying it operates on solid constitutional, legal, and moral grounds.
'Gas distribution within Sarawak falls squarely under the State List, because it involves land, infrastructure, and resources within the state's territory,' he said.
Yap welcomed the recent joint statement between Prime Minister Anwar Ibrahim and Sarawak Premier Abang Johari Openg, but warned that Petronas must not obstruct Sarawak's rights in the process.
'Petronas must align with the federal government's commitment to Sarawak and remove any unnecessary bureaucratic barriers.
'If Petronas continues to create obstacles, both the Sarawak and federal governments must address these challenges firmly to ensure that the agreed-upon collaboration is implemented effectively,' he said.
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