Petronas, subsidiaries don't need Sarawak operating licences, says Abang Jo
Sarawak premier Abang Johari Openg (centre) with deputy premiers Douglas Uggah Embas (left) and Awang Tengah Ali Hasan during a press conference at the Sarawak state assembly in Kuching today. (Sarawak Public Communications Unit pic)
PETALING JAYA : Petronas and its subsidiaries are not required to obtain operating licences from the Sarawak government to operate in the state, said Sarawak premier Abang Johari Openg.
He said while state-owned Petros has been formally recognised as the sole gas aggregator in Sarawak under a new joint declaration between the federal and state governments, the authority to issue operating licences remains with Sarawak's utility and telecommunication ministry.
'The ministry also holds the power to grant exemptions. Given Petronas's status as a national oil company, the ministry will exempt them accordingly.
'We'll grant them exemptions. However, they must first apply for it,' The Borneo Post quoted him as telling a press conference at the Sarawak state assembly today.
Abang Johari said this was part of the joint declaration signed yesterday, which marks a significant development in federal-state cooperation.
He said the joint declaration reflects the federal government's commitment to honour Sarawak's constitutional rights under the Federal Constitution, the Malaysia Agreement 1963 (MA63) and the Intergovernmental Committee (IGC) Report.
Asked whether the joint declaration would remain valid in the event of a change in federal leadership, Abang Johari noted that commercial agreements made under previous federal administrations, including those under former prime minister Muhyiddin Yassin, remain valid.
He also said the declaration affirms the mutual recognition of both federal and state laws, particularly Sarawak's Distribution of Gas Ordinance 2016, which outlines Petros's role as the sole gas aggregator in the state from March 1.
'This collaborative legal framework provides clarity and certainty to the oil and gas industry in Sarawak, in particular the recognition of the role of Petros as the gas aggregator,' he said.
Elaborating on the responsibilities of Petros, Abang Johari said the company will manage the buying and selling of gas within Sarawak.
However, he noted that the financial impact of this role will vary depending on market prices and business conditions.
Asked whether the joint declaration would resolve the legal tensions between Petronas and Petros, he said the disputes would remain a matter for the courts to resolve.
'There is a legal process, and we will leave it to the respective legal teams to handle,' he said.
Responding to a question on Sarawak's interest in liquefied natural gas projects, Abang Johari said it was crucial that the state has a stake in the oil and gas industry through Petros, and that Putrajaya and Kuching agree to a mutual recognition of both federal and state laws.
'That's all. The rest is business – if business is good, we get more profit,' he said.
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