Sarawak's oil and gas demands must go through Parliament: Mahathir

Daily Express

09-05-2025

Published on: Friday, May 09, 2025
Published on: Fri, May 09, 2025
By: FMT Reporters Text Size: KUALA LUMPUR: Former prime minister Dr Mahathir Mohamad ( pic ) says Sarawak's quest for greater autonomy and control over oil and gas resources must be brought to Parliament, and not dealt with via backroom negotiations. He said that in a federation, national policies must take precedence over state-specific demands, adding that wealth must be distributed equitably between richer and poorer states. Contrasting the state's current prosperity with its colonial past, Mahathir said Sarawak has gained substantially from being a part of Malaysia. 'When Sarawak was under British rule, did they build the Twin Towers? They were very poor. The British took all their money,' he said, in an exclusive interview with FMT . Mahathir said Sarawak may deserve to earn more from its oil and gas resources, but cautioned that this cannot come at the expense of a weakened Petronas. He said Petronas requires substantial capital to grow and must not be undermined by political pressure. 'The whole world is amazed that Malaysia was able to set up Petronas, because many oil-producing countries don't have a national company involved in every aspect of the oil and gas industry. 'Petronas is one of the best-run companies in Malaysia. That's why it's listed in the Fortune 500. But now, because of politics, it risks being split up. I believe there are other solutions that can also benefit Sarawak,' he said. Negotiations over gas rights between Petronas and Petroleum Sarawak Berhad (Petros) remain contentious. Industry analysts warn that Petros's appointment as Sarawak's gas aggregator will fragment Petronas's monopoly, potentially harming both the national economy and Sarawak's oil and gas industry. The resulting regulatory uncertainty has already contributed to foreign investors pulling out of two major Sarawak-based oil projects—Salam-Patawali and Lang Lebah. Mahathir said possessing oil alone does not guarantee prosperity, saying instead that strong governance, which Petronas has demonstrated over the years, was the recipe to success. Sarawak continues to push for control over its oil and gas reserves despite the Petroleum Development Act 1974 granting exclusive rights to Petronas. Sarawak Premier Abang Johari Openg has maintained that Petros and Petronas should collaborate for mutual benefit, but insists that Sarawak's interests must take precedence. Mahathir acknowledged Sarawak's right to seek better terms but cautioned against leveraging political pressure to gain preferential treatment. '(Sabah and Sarawak) know that the federal government is so dependent upon support from them so they can demand a lot. It is sad that political reasons were used — not national or economic reasons. 'The nation will lose by the arrangements being negotiated between the federal government and the state government,' he said. - FMT * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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