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Borneo Post
3 days ago
- Business
- Borneo Post
The O&G story: What next after the joint declaration?
Prime Minister Datuk Seri Anwar Ibrahim (left) and Premier of Sarawak uk Patinggi Tan Sri Abang Johari Tun Openg exchanging the documents on the joint declaration, signed in Putrajaya recently. — Photo courtesy of the Office of Premier of Sarawak WILLIAM Shakespeare's famous line, 'All's well that ends well', from the play of the same name, takes on a complex meaning when applied to the oil and gas (O&G) joint declaration. Still, Sarawakians are proud and delighted to commemorate this milestone as a significant turning point in the state's O&G story. While it might appear to acknowledge a satisfactory resolution, the agreement also implicitly acknowledges the disturbing procedures and compromises, leading to this so-called 'positive outcome' or 'happy ending'. And so, what next? The declaration's 'happy ending' might mask a path of questionable decisions and compromises before the two contending parties arrived at the joint declaration. The line, thus, becomes a point of debate and discussion, prompting audiences to consider what truly constitutes a successful resolution and the ethical costs involved in achieving it. Challenging question Imagine being presented with a challenging question on a Cambridge HSC General Paper examination that requires careful consideration of the possible long-term effects of the newly-signed O&G agreement between Sarawak and Kuala Lumpur. The question challenges us to analyse the ramifications of this agreement and to provide an analytical trajectory of the potential paths for the state and the O&G sector. Students in Form 6 and university undergraduates in public policy and government should engage in this exercise to assess their understanding of the subject content, and their ability to critically connect it to the current socio-political context. They should be up for the challenge! This makes us question if we really understand the intricacy of the issue at hand. In retrospect, it compels us to examine if our sentiments and limited viewpoints have impeded our capacity to conduct a fair and impartial analysis of the situation. Setting the context is obviously the right starting point and proceeding from there to view rising expectations and interlocking implications that would follow, is a natural course to expect. Complicated bargains The recently-inked agreement establishing operational jurisdiction for O&G activities between Petroliam Nasional Bhd (Petronas) and Petroleum Sarawak Bhd (Petros) is a start in the right direction, but it is unlikely to entirely fulfil both entities' objectives and expectations. It is anticipated that ongoing negotiations and adjustments will be necessary to reach a truly mutually agreeable operating framework. The agreement demonstrates a willingness to collaborate and share resources, but the complexities surrounding revenue-sharing, operational control, and future exploration rights may still pose challenges. Generally speaking, resource agreements with high political and financial stakes – like the one aimed at resolving the O&G dispute between Sarawak and Kuala Lumpur – are complicated bargains. Even though the signed declaration may include crucial issues like income-sharing, regulatory power, and production-sharing, we need to acknowledge that Petronas and Petros may have inherent differences in priorities. For example, Petros would want a higher proportion of the revenue from O&G for Sarawak's development, while Petronas is devoted to striking a balance between national duty and profitability. The ink is dry on the joint declaration, but expectations are high on how soon the O&G would truly turn a page. The line of enquiry raises the question – what happens next? This pact might be a landmark, but it is also the starting line. Navigating shifting power politics, volatile prices, and the ever-present pressure for decarbonisation means the O&G industry faces a future that is as challenging as ever. How effectively will this signed declaration translate into tangible definers of progress, or will it need to be revisited and reviewed from time to time? These are pertinent questions that challenge us to look beyond today. Only time will tell, but one thing is certain – the next chapter is unwritten, and the stakes may be high. The Prime Minister and Premier of Sarawak with federal and state leaders posing for a photo-call after the historic signing of the joint declaration. — Photo courtesy of the Office of Premier of Sarawak Other considerations There may be other considerations that need to be addressed to allow the agreement to be transacted effectively, and to create a conducive environment for future cooperation to be promoted. Such considerations may involve making joint investments to facilitate technology transfer in the local O&G sector and build local capacity, establishing robust and transparent mechanisms for dispute resolution, to putting in place rigorous environmental protection policies throughout the O&G value chain. Additionally, maintaining social peace and sustainable development will require ensuring that local communities affected by O&G operations are included in the long-term agenda, and that they are to receive equitable benefits. Effective management of these social challenges requires a genuine 'give and take' approach in the allocation of resources and opportunities. Navigating this requires open channels, continuous dialogue from all of us – among the federal government, Sarawak state government, Petronas, Petros, and the local communities. For Sarawak, invalidating the Petroleum Development Act (PDA) 1974 is a complicated legal and political issue. The Sarawak state administration sees it as a possible, but drastic, measure to reclaim more authority over its O&G resources. The contention is based on the belief that the PDA is intruding into Sarawak's constitutional rights and thus, watering down the state's rightful portion of revenue and ownership of its natural resources within its territory. But such a move would spark an extended legal contest with the federal government and would have devastating impacts on the national O&G industry. As such, before taking this path, Sarawak must explore and have access. The Sarawak administration sees invalidating the PDA 1974 as a possible, but drastic, measure to reclaim more authority over its O&G resources. — Bernama photo Crucial shift point Some critics view the joint agreement as a shift point, which sets the groundwork for a more just and sustainable partnership. Notwithstanding, it remains to be said that the O&G agreement still requires good faith and continued vigilance to ensure its long-term success and mutual advantage. Ultimately, the success of the signed declaration will be gauged by its ability to improve the life of the people of Sarawak, as well as to contribute to the progress and prosperity of the country. The joint declaration on O&G represents a move towards greater cooperation and a more equitable distribution of wealth and opportunities. It does show that the federal government is willing to discuss and give Sarawak more power over its resources and independence. This negotiated arrangement to address Sarawak's concerns about its O&G rights is significant within the broader context of devolution under the Malaysia Agreement 1963 63), and it should not be viewed in isolation of other socio-political dynamics. Beyond the historic joint agreement, it is hoped that the Kuala Lumpur-Kuching cooperation will serve as the basis for future agreements and legal discourse that, rather than being adversarial, uphold the spirit and letter of MA63. However, the true impact of the joint declaration will depend on its implementation and how the modifications to Sarawak's revenue-sharing, regulatory authority, and operational domain are defined. Sarawak in advantageous position A closer examination reveals that Sarawak may have secured a more advantageous position, although both sides are likely touting the agreement as a win-win. Interestingly, a shift in the power dynamic is apparent with Sarawak's increased control over its O&G resources, which may be achieved through greater revenue-sharing, decision-making power in exploration and production, and participation in the value chain. As Sarawakians, we would like to view it as a decisive victory for our state, and we recognise that its long-term economic effects and the details of its implementation must follow suit. Equally gratifying to us is that initial indications suggest the joint agreement is a significant step towards greater autonomy and resource control for Sarawak. Sarawak's greater control over its hydrocarbon resources is the primary factor contributing to its advantage. Sarawak can avoid depending on federal funding by actively participating in the lucrative O&G industry and producing a sizeable amount of revenue for the state through Petros. This increase could improve the standard of living of Sarawakians by funding the development of infrastructure, healthcare, education, and other important areas. Sarawak can avoid depending on federal funding by actively participating in the lucrative O&G industry and producing a sizeable amount of revenue for the state through Petros. Sustainable, equitable collaboration Discerning critics will concur with me that further discussion is necessary in several crucial areas to reinforce the Kuala Lumpur-Sarawak joint declaration on O&G in Sarawak. Clarifying the definition of 'net revenue' and putting in place transparent, mutually agreed-upon accounting practices are crucial to avoid disputes regarding revenue sharing. Sarawak's role in overseeing O&G operations, including enforcing environmental rules, must be strengthened to ensure that resources are used responsibly. Investing in Sarawakian talent development in the O&G sector through focused education and training programmes would give power to the local communities and make the industry more sustainable. Lastly, to avoid problems and keep the collaboration strong and productive, there should be a clear way to resolve disputes that includes specific steps and deadlines. Although we commend Kuala Lumpur and Sarawak for their willingness to collaborate and pool resources, there may still be 'gaps' due to the intricacies of revenue-sharing, operational control, and future exploration rights. Neither side should lose sight of this. Given this, the joint declaration should be regarded as a transitional stage that aims to establish the framework for a more sustainable and equitable collaboration. Amidst the signed declaration, Petronas appears to be devoted to striking a balance between national duty and profitability. — AFP photo Secure Petros' position However, to guarantee its long-term success and mutual gain, both parties must maintain their vigilance and act in good faith. The declaration's actual effectiveness will ultimately be determined by how it affects Sarawakians' quality of and the country's general prosperity. Petros has secured a favourable bargain. This stems from several considerations. First, the power balance shifted from one heavily federally dominated to one of state dominance as a result of the mutual understanding, which gives Sarawak increased authority over the extraction, development, and production of O&G resources inside its borders. This includes greater control over operational choices, profit-sharing, and direct access to its natural resources. Additionally, the deal enables Sarawak to develop its O&G industry knowledge and capabilities, generating jobs and promoting technological development in the state. Sarawak can strengthen its position and ensure future prosperity by ensuring that future development is in line with its nuanced needs and priorities rather than being limited by federal interests. This can be achieved by having a defining say in resource management decisions. * Toman Mamora is 'Tokoh Media Sarawak 2022', recipient of Shell Journalism Gold Award (1996) and AZAM Best Writer Gold Award (1998). He remains true to his decades-long passion for critical writing as he seeks to gain insight into some untold stories of societal value. MA63 oil and gas PDA Petronas Petros sarawak
Channel Post MEA
27-05-2025
- Business
- Channel Post MEA
AVEVA Innovate Qatar To Be Held On 3rd June
AVEVA has announced AVEVA Innovate Qatar on 3rd June at the Marriott Marquis City Center, Doha. The event will focus on how Artificial Intelligence (AI) and digital technologies are transforming industries through smarter, connected operations while accelerating the shift towards a sustainable digital economy. AVEVA will highlight how its solutions support customers to enhance performance and drive sustainability across the asset lifecycle. As part of Qatar National Vision 2030, and to support Qatar's goals for technological advancement, sustainability, and economic diversification, the country is accelerating its journey towards a digitally empowered economy that focuses on six key pillars: hyper-connectivity, hyper-computing, hyper-automation, digital innovation, digital economy, and digital infrastructure. . 'We support Qatar's Vision 2030 by empowering companies mainly from sectors such as O&G, Power, Chemicals, EPC, CPG & Infrastructure, to become more sustainable, efficient, and digitally connected. Our advanced technologies such as AI, cloud, and digital twin, accelerate their journey towards smarter and more connected operations, laying the foundation for a resilient digital economy. At AVEVA Innovate Qatar we will demonstrate how our technology enables partners and customers to achieve real, measurable progress across the industry to align with the nation's long-term goals for economic diversification and sustainability,' said Nayef Bou Chaaya, AVEVA Vice President, Middle East, Africa and Turkey. AVEVA experts will lead sessions on various topics including new ways to deliver capital projects, the different steps in the journey towards autonomous operations such as hybrid platforms with predictive analytics, IT-OT data convergence for AI and machine learning, carbon chain optimization, collaboration, and net-zero strategies. From optimizing Capital Expenditures (CAPEX) and improving asset reliability to reducing emissions, AVEVA's solutions deliver measurable results. With CONNECT, AVEVA's intelligent industrial platform, organizations can securely collaborate and share data with colleagues, partners, and original equipment manufacturers within a cloud-secured environment. AVEVA is driving digital transformation by working closely with its customers Qatar Foundation and Qatar Power. These collaborations align with Qatar's Digital Agenda, which enables a more connected nation through advanced technologies and sustainable innovation. 0 0
Al Bawaba
27-05-2025
- Business
- Al Bawaba
AVEVA Innovate Qatar to Focus on how AI and Digital Technologies Drive Innovation and Sustainability Across Industries
AVEVA, a global leader in industrial software, driving digital transformation and sustainability has announced AVEVA Innovate Qatar on 3rd June at the Marriott Marquis City Center, event will focus on how Artificial Intelligence (AI) and digital technologies are transforming industries through smarter, connected operations while accelerating the shift towards a sustainable digital economy. AVEVA will highlight how its solutions support customers to enhance performance and drive sustainability across the asset part of Qatar National Vision 2030, and to support Qatar's goals for technological advancement, sustainability, and economic diversification, the country is accelerating its journey towards a digitally empowered economy that focuses on six key pillars: hyper-connectivity, hyper-computing, hyper-automation, digital innovation, digital economy, and digital infrastructure.'We support Qatar's Vision 2030 by empowering companies mainly from sectors such as O&G, Power, Chemicals, EPC, CPG & Infrastructure, to become more sustainable, efficient, and digitally connected. Our advanced technologies such as AI, cloud, and digital twin, accelerate their journey towards smarter and more connected operations, laying the foundation for a resilient digital economy. At AVEVA Innovate Qatar we will demonstrate how our technology enables partners and customers to achieve real, measurable progress across the industry to align with the nation's long-term goals for economic diversification and sustainability,' said Nayef Bou Chaaya, AVEVA Vice President, Middle East, Africa and experts will lead sessions on various topics including new ways to deliver capital projects, the different steps in the journey towards autonomous operations such as hybrid platforms with predictive analytics, IT-OT data convergence for AI and machine learning, carbon chain optimization, collaboration, and net-zero strategies. From optimizing Capital Expenditures (CAPEX) and improving asset reliability to reducing emissions, AVEVA's solutions deliver measurable results. With CONNECT, AVEVA's intelligent industrial platform, organizations can securely collaborate and share data with colleagues, partners, and original equipment manufacturers within a cloud-secured environment. AVEVA is driving digital transformation by working closely with its customers Qatar Foundation and Qatar Power. These collaborations align with Qatar's Digital Agenda, which enables a more connected nation through advanced technologies and sustainable innovation.
