Petros-Petronas: Sarawak Pledges Good Faith Implementation Of Joint Declaration Framework
KUCHING, May 22 (Bernama) -- Sarawak is committed to working closely with the federal government, Petroliam Nasional Bhd (Petronas) and Petroleum Sarawak Bhd (Petros) to implement the joint declaration framework in good faith.
Sarawak Premier Tan Sri Abang Johari Tun Openg said the state reaffirmed its position that both federal and Sarawak laws must coexist in harmony and be respected by all parties.
'And this declaration gives them a guide on how they (Petronas) are doing their business in collaboration with Petros. Petronas still have to apply for the license to tell us.
'Petros is the gas aggregator, but the authority to produce a license lies with the Ministry for Utility and Telecommunication Sarawak (MUT), which has the authority to exempt Petronas, being a national company…we give the exemption to them,' he told reporters at the state assembly building here, today.
Abang Johari said this to explain the joint declaration between the federal and state governments signed yesterday.
The Premier also gave assurance that the declaration will not be abolished even if there is a change of government in the future.
He also reiterated that the declaration is a clear manifestation of mutual respect and recognition of Sarawak's regulatory framework, particularly the State Distribution of Gas Ordinance 2016 (DGO 2016).
Yesterday, the federal and state governments reached an understanding on matters involving Petronas and Petros. The joint declaration framework was signed at Perdana Putra by Prime Minister Datuk Seri Anwar Ibrahim and Abang Johari.
Meanwhile, when asked whether the declaration would impact the ongoing court cases between Petros and Petronas, Abang Johari said the state government will leave the matter to the legal team to decide.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
3 hours ago
- The Star
Ringgit rises amid softer US dollar
At 6pm, the local note appreciated to 4.2040/2085 versus the US dollar. KUALA LUMPUR: The ringgit extended its gains against the US dollar for the third straight day, as the greenback's safe-haven status weakened following lower-than-expected US consumer price index (CPI) data for July, which fuelled expectations of a September interest rate cut. At 6pm, the local note appreciated to 4.2040/2085 versus the US dollar, up 0.57% from Tuesday's close of 4.2290/2320. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the softer-than-expected US inflation rate of 2.7% in July was largely driven by a moderation in the owner's equivalent rent (OER) to 4.1%, after holding at 4.2% for two straight months. OER accounts for about 25% of the CPI weightage, he said. — Bernama
Free Malaysia Today
6 hours ago
- Free Malaysia Today
Petroleum Development Act can't supersede relevant Sarawak laws, says senator
Senator Ahmad Ibrahim disputed law and institutional reform minister Azalina Othman Said's statement that Petronas's rights on O&G resources in Sarawak remain protected under the PDA. (Petronas pic) PETALING JAYA : The Petroleum Development Act (PDA) 1974 cannot supersede the relevant laws in Sarawak, especially the Oil Mining Ordinance (OMO) 1958, a senator said in disputing a statement by a federal minister. Ahmad Ibrahim said Sarawak had been producing oil and gas since the discovery of oil in Miri in 1910, some 53 years before Malaysia was formed, the Sarawak Public Communications Unit reported. Ahmad said Sarawak had developed the industry under the state's own laws way before the PDA was enacted. Apart from the PDA, he said, the other relevant laws were the Distribution of Gas Ordinance (DGO) 2016, the Sarawak Land Code, and the State Sales Tax regime. He said Section 73 of the Malaysia Act 1963 preserved all state laws in force before Malaysia was formed, which included the OMO. Moreover, the ordinance, following its amendment in 2018, granted the state full authority over petroleum licensing onshore and on its continental shelf. 'The PDA (only) applies fully in states that do not have their own petroleum laws like the OMO, and therefore, in those states, Petronas is the sole aggregator of oil and gas,' he was quoted as saying. On Tuesday, law and institutional reform minister Azalina Othman Said said the national oil company's rights on oil and gas resources in Sarawak remained protected under the PDA. In a written parliamentary reply, Azalina said the PDA would remain in force, in accordance with existing legal provisions. 'Petronas is vested with the ownership of petroleum, and the rights, powers, freedoms, and exclusive privileges to explore, exploit, obtain, and acquire petroleum, whether onshore or offshore Malaysia, as provided for under the Act,' she was quoted as saying. Ahmad said that under the DGO, Sarawak has exclusive authority to license and regulate domestic gas distribution, with state-owned Petroleum Sarawak Bhd (Petros) having been formally recognised by the federal government as the sole gas aggregator for Sarawak's domestic market, excluding liquefied natural gas. As for the State Sales Tax, he said, a 2020 High Court ruling upheld Sarawak's right to impose such a tax on petroleum products, noting that Petronas withdrew its appeal and settled the dues. On Feb 5, Azalina said Sarawak had accepted that the PDA, not the state ordinances, dictated the operation of Malaysia's petroleum sector. She said Sarawak's concession was among key matters agreed upon by Prime Minister Anwar Ibrahim and Sarawak premier Abang Johari Openg during a meeting on Jan 7. On Feb 7, Anwar said the federal and Sarawak governments had agreed to Petronas and its subsidiaries retaining all existing contractual obligations, domestic and international. However, to fulfil Sarawak's aspirations in the oil and gas sector, it was agreed that the DGO will come into force on March 1, he said. 'The DGO will be read together with the PDA, and therefore Petros will act as Sarawak's aggregator,' he had said. Anwar said this after Abang Johari reiterated the state's contention that it had regulatory authority over oil and gas activities within its territory.
Barnama
6 hours ago
- Barnama
SST Maintained Due To Broad Industry Understanding
KUALA LUMPUR, Aug 13 (Bernama) -- The government is of the view that revenue collection under consumption tax through the Sales and Service Tax (SST) should be continued and can be further improved, as it is an existing tax that is already understood by the industry, traders, and the public. The Ministry of Finance (MoF) said SST can still be enhanced to generate additional revenue and provide a faster fiscal impact for the government, as it has been in use for over 40 years. 'This is in contrast to reintroducing the Goods and Services Tax (GST), which would require a longer preparation period of up to two years to allow companies time to prepare and update their systems for GST implementation,' it said.
