04-05-2025
Respect Sarawak's laws on oil and gas, PBB Youth urges Armada
A view of the DUN Sarawak Complex. — Photo by Roystein Emmor
KUCHING (May 4): Parti Pesaka Bumiputera Bersatu (PBB) Youth wing has expressed disappointment with Parti Pribumi Bersatu Malaysia (Bersatu)'s Youth wing (Armada) over its series of statements, which appear to undermine Sarawak's rights, ownership and claims over the state's oil and gas resources.
In a statement, PBB Youth said Armada was incorrect in citing the Petroleum Development Act (PDA) 1974 as the sole major law granting Petronas absolute authority over the management and distribution of oil and gas in Sarawak.
PBB Youth explained that Sarawak has never repealed the Oil Mining Ordinance (OMO) 1958, a state law that remains in force to this day to regulate the oil and gas sector.
'We urge all parties, including Armada to be more sensitive and refer to the Sarawak's state laws before making any statements regarding oil and gas and the Sarawak government's claims.
'Do not assume that Sarawak state laws do not exist, as this makes it seem as though our state laws are being trampled on.
'We also urge that Sarawak state laws be respect by all parties, just as some have called for Sarawak to respect federal laws,' said PBB Youth.
PBB Youth reiterated that any party wishing to operate in Sarawak must comply with state laws, including the OMO and the Distribution of Gas Ordinance (DGO) 2016.
It further explained that, under the Ninth Schedule of the Federal Constitution, the power to issue mining licences and certificates falls under the jurisdiction of the state government through Article 2(c) in the State List (List II).
'In other words, any mining activity must obtain approval from the Sarawak government,' it added.
PBB Youth also expressed hope that both Petroleum Sarawak Berhad (Petros) and Petroliam Nasional Berhad (Petronas) will continue to cooperate based on the existing federal and state regulations and laws for the development of the oil and gas sector in Sarawak.
It was reported on May 2 that Sarawak has issued a legal notice to Petronas Carigali Sdn Bhd, as the company is allegedly operating without a permit at its Miri Crude Oil Terminal (MCOT).
In response, Armada released a statement on May 3 dismissing the Sarawak government's claim that Petronas Carigali is operating illegally at MCOT, calling the accusation as baseless and inconsistent with existing laws.
Armada argued that the PDA 1974 clearly grants Petronas exclusive rights to regulate all petroleum-related activities across Malaysia and that Petronas does not require a licence or permit from the Sarawak government to conduct its petroleum operations in the state. Armada lead oil and gas PBB Youth rights
