Sarawak defending rights, not weakening Petronas, SUPP sec-gen tells Machang MP
Ting says the issue at hand is not about oil royalties, but about Sarawak's constitutional rights under the MA63. – Photo by Chimon Upon
MIRI (May 2): Sarawak United People's Party (SUPP) Secretary-General Datuk Sebastian Ting has rebuked Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal for suggesting that Sarawak is weakening the national oil company Petronas.
He said the issue at hand is not about oil royalties, but about Sarawak's constitutional rights under the Malaysia Agreement 1963 (MA63).
'We strongly resent his so-called warning against any move to weaken Petronas.That was unnecessary from the Machang MP and it sounded unfriendly and confrontational,' he said in a statement today.
Ting was responding to a report yesterday in which Wan Ahmad Fayhsal warned against any effort that could undermine Petronas, citing its critical role in Malaysia's economic development.
Wan Ahmad Fayhsal had also called for a win-win approach to oil-related disputes and proposed strengthening the Petroleum Development Act 1974 (PDA) to preserve Petronas' position as a key national asset.
'Whatever the issues may be, they must be discussed at the negotiating table. The solution must be a win-win proposal and must not weaken Petronas at any cost.
'If the issue concerns royalties, then we need to find ways for Petronas to increase its revenue and profits so that it can contribute more to states like Sarawak, Sabah, Terengganu and Kelantan,' he said, according to Free Malaysia Today yesterday .
However, Ting stressed that the core issue is not royalties, but Petronas' refusal to recognise Sarawak's Distribution of Gas Ordinance 2016 — a law rooted in the Inter-Governmental Committee (IGC) Report 1963, which recommended extending the state's legislative power to cover electricity and gas distribution.
'Sarawak has executive powers over Gas Distribution in Sarawak under this recommendation of the IGC, where the Malayan Government's representatives were included, was implemented by the Borneo States (Legislative Powers) Ordinance, 1963 made the Yang Di-pertuan Agong pursuant to Article 95C of the Federal Constitution.
'The basis for any resolution is for Petronas and the federal government to honour a fundamental agreement for Sarawak forming the federation, that is, the legislative and executive powers over gas distribution in Sarawak belong to the Sarawak.
'There is no dispute over oil royalties but the misunderstanding arises from Petronas refusal to respect a law that Sarawak was authorised to pass under the Borneo States (Legislative Powers) Order, 1963.
'Sarawak cannot and must not compromise on rights which were accorded to Sarawak at the formation of Malaysia,' he said.
He further clarified that Sarawak has no intention of weakening Petronas, noting that the company's strength lies in its management, not in denying Sarawak its rightful powers.
Ting also criticised Petronas for continuing to export liquefied natural gas (LNG) — 94 per cent of which is produced in Sarawak — to countries like Japan and Korea, leaving limited resources for local industrial development and electricity generation.
He said the appointment of Sarawak-owned Petroleum Sarawak Berhad (Petros) as the state's gas aggregator was aimed at ensuring fair and affordable domestic gas allocation, attracting investors, and realising Prime Minister Datuk Seri Anwar Ibrahim's vision of Sarawak as a regional energy hub for Asean.
To strengthen its financial and commercial position, Petronas should support and participate in the Sarawak Gas Roadmap, which was presented to the Prime Minister on April 19, 2025, Ting suggested.
'The Sarawak government is willing to collaborate with Petronas in the implementation of the Gas Roadmap, development of stranded gas fields with high CO2 with carbon capture and storage projects offshore Sarawak.
'While Petronas may have to lose its downstream business of gas distribution in Sarawak, it has more to gain through collaboration with Petros and Sarawak Government in the various clean energy and power generation projects in Sarawak, including generation of electricity for transmission over to Peninsular Malaysia,' he said.
Ting warned that continued disregard for Sarawak's laws and obstruction of its development efforts would not strengthen the national economy nor advance Malaysia's clean energy ambitions, but instead harm Petronas' own interests.
'The Premier of Sarawak (Datuk Patinggi Tan Sri Abang Johari Tun Openg) has called for respect for both federal and state laws and for both laws to co-exist.
'That must be the platform for an amicable resolution of the present dispute caused by Petronas' refusal to abide by State laws,' Ting said. lead MA63 Petronas Petros Sebastian Ting
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