Petroleum Development Act safeguards Petronas's role in Sarawak, says Azalina

Free Malaysia Today

a day ago

Federal minister Azalina Othman Said said 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.
PETALING JAYA : Petronas's rights on oil and gas resources in Sarawak remain protected under the Petroleum Development Act 1974 (PDA), says law and institutional reform minister Azalina Othman Said.
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 said yesterday.
She was responding to Hassan Abdul Karim (PH-Pasir Gudang), who had asked about the extent to which the federal government would defend the PDA as a foundation of the country's economic sovereignty in the oil and gas industry.
This is in light of claims by the Sarawak government and Petroleum Sarawak Bhd (Petros), which he said challenged the position of Petronas under the Act, Bernama reported.
To strengthen cooperation with the Bornean states, Azalina said Petronas had signed two key documents: a commercial collaboration agreement with the Sabah government and a commercial settlement agreement with the Sarawak government.
The agreements outline the framework of commercial cooperation between Petronas and state-owned companies such as SMJ Energy and Sabah Energy Corporation in Sabah, and Petros in Sarawak, she said.
'The landscape of the oil and gas industry, as well as the policies of each state government, have resulted in different cooperation structures in terms of ownership, revenue, and profit distribution,' she said.
She was answering a question from Isnaraissah Munirah Majlis (Warisan-Kota Belud), who had asked about the differences in terms of ownership, revenue, and profit distribution between Petronas, SMJ Energy and Petros respectively, and the agreements between the parties.
She said key factors influencing the differences in cooperation structure included the level of equity participation by SMJ Energy and Petros in upstream and downstream sector projects, as well as the strategic cooperation structures formed with the respective entities.
She said although Petronas's cooperation with Sabah and Sarawak was based on the principles of inclusiveness and shared values, the implementation and outcomes might vary depending on the oil and gas industry landscape.