Latest news with #DGO)2016
The Star
21-05-2025
- Business
- The Star
Petros gains federal nod
PUTRAJAYA: Clear parameters for collaboration between PETRONAS and Sarawak's Petros in the oil and gas sector will be the way forward following the inking of a joint declaration between the Federal Government and Sarawak, says Datuk Seri Anwar Ibrahim. 'Both entities will now work hand in hand to elevate the nation through the oil and gas industry, both upstream and downstream, as well as in various alternative energy initiatives, as outlined in our joint declaration,' Anwar said during a joint press conference with Sarawak Premier Tan Sri Abang Johari Openg following the signing ceremony at the Perdana Putra Complex here yesterday. The Prime Minister stressed that PETRONAS' role remains intact and will continue to fulfil its national role, but at the same time it will recognise Petros' role. 'This understanding we've reached ensures that PETRONAS' operations continue, while also recognising the role of Petros,' Anwar said. The joint declaration outlines the key foundational principles agreed upon to facilitate further negotiations between PETRONAS and Petros. Anwar said that the joint-declaration is mainly about establishing clear boundaries and acknowledging the Petroleum Development Act 1974 and the Distribution of Gas Ordinance (DGO) 2016. 'This means that the current situation requires us to acknowledge that Sarawak has grown and now has the capacity, including establishing its own state oil company. 'Our shared aspiration, beyond just strengthening PETRONAS, is to position Sarawak as a launching hub for Asean. 'To me, this is a very realistic approach, and it will lead to national success, meaningful outcomes and the elevation of Sarawak's economic standing,' Anwar said. In turn, Abang Johari thanked Anwar and the Federal Government for their attention to key roles played by Petros alongside PETRONAS. 'Fortunately, we have managed to resolve all the issues that had risen, and today, we are signing a joint declaration that will establish a shared understanding and joint approach between the Sarawak government, particularly PETRONAS and Petros, to collaboratively develop oil and gas activities for the benefit of the nation,' he said. Abang Johari assured that the joint declaration will be carried out following all the existing provisions under both Sarawak and federal laws. 'We will respect and uphold the legal frameworks under both jurisdictions. 'God willing, PETRONAS and Petros will move forward together in the interest of both the nation and Sarawak,' he said. In a separate statement, the Prime Minister's Office (PMO) noted that the joint declaration outlines various matters, including that all federal and Sarawak state laws related to gas distribution within Sarawak must coexist and be respected by all parties conducting such activities in the state, including by PETRONAS and Petros. 'PETRONAS will continue to carry out its functions, activities, responsibilities and obligations as mandated under the Petroleum Development Act 1974 and its subsidiary regulations. 'The Sarawak state government has appointed Petros as the gas aggregator, effective March 1, 2025. 'This appointment must be respected by all parties engaged in the marketing, distribution and supply of gas to domestic consumers in Sarawak,' it added. Any agreements or arrangements between PETRONAS and/or its subsidiaries with third parties for (liquefied natural gas or LNG) sales, from upstream activities to LNG export to international buyers – will remain unaffected, the PMO said. The joint declaration also agreed that other green energy, hydrogen and electricity generation projects that may be implemented by PETRONAS and Petros must be in line with Sarawak's aspirations. 'All further discussions on cooperation must be subject to commercial and technical viability. 'For future projects in Sarawak involving international partners, PETRONAS will collaborate with Petros,' the statement said. 'Both PETRONAS and Petros shall work to continue detailing the framework of cooperation in a transparent manner and in accordance with commercial principles for the benefit of the nation. 'The significant potential unlocked through this agreement is expected to enhance investor confidence, especially among international petroleum companies, in finalising their investment directions in Malaysia,' it added.
The Sun
11-05-2025
- Business
- The Sun
Petronas-Petros issues to be ironed out
PETALING JAYA: The federal government and the Sarawak administration have agreed to iron out all lingering issues between national oil giant Petronas and Sarawak's state-owned energy company Petroleum Sarawak Bhd (Petros) through direct negotiations. The breakthrough came during a high-level meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim on Thursday at Perdana Putra, during which he met Sarawak Premier Tan Sri Abang Johari Abang Openg. Senior representatives from both Petronas and Petros were also present. In a statement, the Prime Minister's Office said both parties agreed to swiftly finalise a set of guiding principles aimed at fostering clearer coordination and paving the way for more effective collaboration between the two energy firms. The move is expected to unlock untapped potential in Malaysia's energy sector, particularly in bolstering the country's capacity to supply commercial energy to Asean markets. This aligns with both Putrajaya's and Sarawak's broader goals to position Malaysia as a key regional energy hub. The meeting was described as 'cordial and harmonious', with discussions rooted firmly in the spirit of federalism and mutual respect. Both Anwar and Abang Johari reaffirmed their shared commitment to resolving outstanding issues through dialogue. On April 30, Petronas confirmed that its subsidiary, Petronas Carigali Sdn Bhd (PCSB), received a notice from the Sarawak Utility and Telecommunication Ministry on gas processing and distribution activities. The notice pertained specifically to operations at the Miri Crude Oil Terminal, which the state alleges are being conducted without the requisite licence under the Distribution of Gas Ordinance (DGO) 2016. The notice stipulates that PCSB had 21 days from the date of issuance to obtain the necessary licence, and failure to comply could result in financial penalties under Section 21A of DGO 2016. Additionally, PCSB is accused of violating Section 7(e) of DGO 2016, which mandates that any entity constructing, managing or maintaining gas pipelines and related infrastructure must secure a licence. DGO 2016, with effect from July 1, 2018, has designated Petros as the state's sole gas aggregator. The role entails the procurement, distribution and maintenance of the gas supply network in Sarawak. The appointment of Petros as the sole aggregator is part of Sarawak's broader initiative to assert greater control over its natural resources. In response to the notice, Petronas has stated that its subsidiary operates under federal law and complies with all applicable regulations. The company has expressed its commitment to constructive engagement with both federal and state governments to ensure regulatory clarity and operational continuity. Petros was established on Aug 7, 2017 as a wholly state-owned oil and gas company. The initiative formed part of Sarawak's strategy to enhance control of its resources, drawing upon its constitutional rights under the State List of the Ninth Schedule of the Federal Constitution. Sarawak's stance is also shaped by the Malaysia Agreement 1963 (MA63). The state government contends that certain rights enshrined in MA63, particularly those relating to natural resource management, have been eroded over time and is seeking their restoration. Should the negotiations prove successful, the Petronas–Petros collaboration could become a pivotal force in unlocking Sarawak's energy potential, while also strengthening federal-state cooperation.
Borneo Post
10-05-2025
- Politics
- Borneo Post
PM, Premier to announce decision on Petros-Petronas issue ‘when the time is right', says Julaihi
Julaihi (third left) receives a souvenir from the Miri Land and Survey Department while (from left) State Transport Minister Dato Sri Lee Kim Shin and Regional Corridor Development Authority (Recoda) CEO Datuk Ismawi Ismunie look on. MIRI (May 10): An official statement on the outcome of the Petros-Petronas discussions will be issued by both Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg when the time is right, said Dato Sri Julaihi Narawi. The State Utility and Telecommunications Minister expressed confidence that the two leaders will reach a mutual agreement on the matter, including issues related to the Distribution of Gas Ordinance (DGO) 2016. 'They will come to an agreement and resolve issues concerning Petros and Petronas. 'Let the Prime Minister and Premier decide — they have already met. I believe they will issue a joint statement. I believe that. 'I have no further comment until the time comes (for them to make the announcement),' he told reporters here today after representing the Premier at the 2025 Miri Madani Service Programme at the Miri Indoor Stadium today. When asked about a leaked letter from his ministry regarding the DGO 2016 that has gone viral, Julaihi declined to comment directly. However, he reaffirmed that under the DGO 2016, Petroleum Sarawak Berhad (Petros) is the officially appointed sole gas aggregator in Sarawak. 'As for the rest, I do not wish to comment further. Let this issue be resolved by the Prime Minister and the Premier,' he said. Earlier during the event, Julaihi clarified that the DGO 2016 pertains strictly to gas distribution and not oil. 'We are aware that the letter in question, which was circulated by the media, has turned this into a heated national issue. 'In truth, I cannot say much. The letter was issued by the Ministry (of Utility and Telecommunications) and used polite language and there was no intention of using harsh words,' he said. Julaihi reiterated that both the Prime Minister and Premier had already met to seek a consensus on the Petros-Petronas issue, which he believes includes the matter of gas distribution. Media reports have claimed that the Sarawak government issued a letter of demand to Petronas Carigali Sdn Bhd (PCSB) over alleged non-compliance with Section 7(e) of the DGO 2016, specifically concerning the operation of a PCSB-owned facility at the Miri Crude Oil Terminal (MCOT). abang johari anwar ibrahim julaihi narawi lead Petronas Petros
