Latest news with #PetroliamNasionalBerhad
Borneo Post
26-05-2025
- Business
- Borneo Post
Ex-minister Idris Jala proposes council to give Sarawak, Sabah oil royalties based on agreed threshold
Screenshot shows Idris and Leon discussing a point during the podcast. KUCHING (May 26): A council on oil royalty should be created involving the Prime Minister, Premier of Sarawak, Chief Minister of Sabah, and Petroliam Nasional Berhad (Petronas), said Datuk Seri Idris Jala. The former senator and federal minister explained that such a council, to be chaired by the Prime Minister, would ensure Petronas continues to operate while both Sarawak and Sabah get fairer oil royalties. 'What do they do? Once a year, Petronas should submit their full Opex requirement, that operating expenditure for the year. And they will say, this is what is need to do for capital investment, for CapEx (capital expenditure). And of course, both Sabah and Sarawak will examine the details, whether they have padded it, what is really necessary, and unnecessary. 'So once that is done, then you agree the numbers there, that is then called the Petronas threshold, in my view. That is what needed to be given to Petronas to make sure it has the money enough to operate and money enough to invest for expansion. 'You take that aside and make sure Petronas has got that from the profit it has made. Then the question arises, is there still enough money to give to Sabah and Sarawak to honour the 20 per cent oil royalty? So, at a very high oil price, surely there's enough money to do it. 'At a low oil price, then it (the royalty) is less. It could be they only get 10 per cent at a very low oil price, and a high oil price to get the maximum 20 per cent. It depends,' he proposed. Idris, who is also a former Shell executive and Malaysia LNG Sdn Bhd (MLNG) board member, said this in the latest 'The Game of Impossible' podcast episode titled 'What's the Deal with Petros and Petronas?', which he co-hosts with his son Leon. Idris opined this mechanism will be fair and square for Sarawak and Sabah. 'Nobody in Sabah and Sarawak would want Petronas to die. And I know that for certain, because I've spoken to some of the leaders there in conversation. Of course, everybody in Sabah and Sarawak wants the federation to thrive. 'Nobody in Sabah and Sarawak wants the federation to collapse. We're part of the federation. We all want the federation, the whole of Malaysia to succeed. That is why they are not arguing for 100 percent of the oil revenue belonging to them, because they want to be part of the federation,' he said. He also explained that such a mechanism is not new in Malaysia, as there is already an automatic price mechanism in the downstream oil and gas sector in Malaysia whereby oil companies annually submit the costs required to run downstream operations. Regarding Petroleum Sarawak Berhad (Petros), he said Petros was created not to take over the role of Petronas but instead it is taking its role as the aggregator or internal trader. As such, he said the narrative that the creation of Petros is going to kill the goose that lays the golden egg that is Petronas, is completely fallacious. 'So, which means Petronas will continue its role today in the upstream as the custodian of oil and gas upstream, no change. 'It also continues its role as a regulator for oil and gas upstream, no change. It also is the gifter of production sharing contracts in the upstream, no change. Not only is that, it is also an upstream player, also no change. 'None of that changes. So, the only thing that Petros is doing is take the role of the trader or the aggregator for the optimisation. So, to my mind, there is no way this is going to kill the golden,' he said. Idris also suggested the goods and services tax (GST) be reintroduced to reduce Malaysia's dependence on Petronas for government revenue. Idris Jala lead oil royalty council Petronas Petros
Borneo Post
21-05-2025
- Business
- Borneo Post
S'wak-Putrajaya ink joint declaration for Petros-Petronas collab on gas framework
Anwar (left) and Abang Johari show the signed joint declaration. – Photo from Sarawak Premier's Office KUCHING (May 21): All relevant federal and state laws governing gas distribution in Sarawak will coexist and be upheld by all parties involved in such activities, according to a joint declaration signed today by Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg in Putrajaya today. The declaration stated that the parties include Petroliam Nasional Berhad (Petronas) and Petroleum Sarawak Berhad (Petros). 'Petronas will continue its functions, activities, responsibilities and obligations entrusted to Petronas in Malaysia, under the Petroleum Development Act 1974 (PDA 1974) and its regulations. 'Parties shall endeavour to continue to work together to detail out the framework for the benefit of the nation, taking into consideration the aspirations of Sarawak,' it said. The joint statement also confirmed the appointment of Petros as the gas aggregator for Sarawak. This appointment, effective March 1, 2025, is made under Section 7A of the Distribution of Gas Ordinance (DGO) 2016 and must be respected by all parties engaged in the marketing, distribution, and supply of gas to consumers in the state. 'For agreements and arrangements pertaining to the supply and sale of natural gas to consumers in the State of Sarawak, the role of Petros is in alignment with this declaration. 'Any agreements and arrangements between Petronas and/or its subsidiaries with third parties for the purpose of LNG (liquefied natural gas) sales from upstream operations through to LNG exports to foreign parties shall remain unaffected,' it said. Both leaders also announced that Petronas and Petros will enter into discussions to broaden business cooperation in support of Sarawak's domestic gas requirements. These discussions will include joint initiatives to implement projects delivering up to 1.2 billion standard cubic feet per day (Bscf/d) of gas, in line with the Sarawak Gas Roadmap. Additionally, both entities will explore joint ventures in green energy, hydrogen, and power generation projects, in line with Sarawak's broader ambition to establish itself as an energy hub in the Asean region. Meanwhile at a press conference, Anwar, who is also Finance Minister, said the agreement represented a step forward in national and state development through cooperation between Petronas and Petros. 'This understanding, in principle, had been discussed earlier with the Premier, taking into account the parameters that recognise both the Petroleum Development Act (PDA) 1974 and Sarawak's amended Distribution of Gas Ordinance (DGO) 2016,' he said in a Bernama report. Anwar said the agreement reflected Sarawak's growing maturity and capability, including the establishment of a state oil company with significant potential. He added that the understanding ensured Petronas' role would remain intact, while Petros' position in Sarawak would be formally recognised. 'Petronas' role is not diminished. It continues to operate as usual, but now within a framework that also takes into account Sarawak's enhanced responsibilities and Petros' role. 'This understanding allows Petronas to continue its operations, while recognising Petros as a key player in Sarawak. Both will work together to elevate Malaysia's standing in the oil and gas sector,' he said. Anwar also said the government aimed to position Sarawak as the regional hub for the oil and gas industry in Asean. 'I believe this is a realistic and strategic move that will strengthen the nation's economy and enhance Sarawak's position,' he said. Also present were Deputy Prime Minister, Datuk Seri Fadillah Yusof; Sarawak Utilities and Telecommunications Minister, Datuk Seri Julaihi Narawi; and Works Minister, Datuk Seri Alexander Nanta Linggi. Chief Secretary to the Government, Tan Sri Shamsul Azhar Abbas; Attorney-General, Datuk Mohd Dusuki Mokhtar; and Sarawak Attorney-General, Datuk Saferi Ali, were also present. abang johari anwar ibrahim joint declaration oil and gas Petronas Petros
New Straits Times
17-05-2025
- Politics
- New Straits Times
Abang Jo: Push for oil and gas rights will not harm Petronas
Slug: izclaims HL: Abang Jo: Push for oil and gas rights will not harm Petronas By Mohd Roji Kawi KUCHING: Sarawak Premier Tan Sri Abang Johari Abang Openg has dismissed claims that the state's efforts to assert its rights over oil and gas management would "kill" Petroliam Nasional Berhad (Petronas). He said the state government is committed to establishing strong cooperation with Petronas, emphasising that collaboration between the national oil company and Petroleum Sarawak Berhad (Petros) would benefit both Sarawak and Malaysia as a whole. "I thank the Prime Minister, Datuk Seri Anwar Ibrahim, for his understanding. That is why he approved Petros as the gas aggregator for Sarawak. "He understands Sarawak's struggle to reclaim its rights as stipulated in the Malaysia Agreement 1963 (MA63). "I extend my gratitude to him, and we will continue to manage our resources fairly. This is not about 'killing' Petronas," he said during the launch of the Pasi Road to Sibu-Tanjung Manis and the Batang Rajang Bridge in Sarikei today. Also present were Deputy Premier Datuk Douglas Uggah Embas, Utilities and Telecommunications Minister Datuk Seri Julaihi Narawi, and Urban Planning, Land Administration, and Environment Deputy Minister Datuk Len Talif Salleh. The 1.44km bridge, valued at RM321 million, is a key component in the state government's efforts to enhance connectivity in central Sarawak. It also reduces the distance between Sarikei and Tanjung Manis from 122km to just 53km, cutting travel time from two hours and 30 minutes to 45 minutes. Abang Johari further stated that Sarawak's efforts to assert its rights are firmly grounded in the Federal Constitution and MA63. "The Federal Constitution takes precedence over the Petroleum Development Act (PDA) 1974. Therefore, those who criticise Sarawak's struggle clearly do not understand the Federal Constitution and MA63. "As long as our struggle is based on the law, the Sarawak Government will continue to defend its rights," he added.
Borneo Post
15-05-2025
- Business
- Borneo Post
Premier: Petronas-Petros dispute stems from jealousy over Sarawak's success
Abang Johari speaks at the event. – Photo by Mohd Faisal Ahmad BAU (May 15): The dispute involving national oil company Petroliam Nasional Berhad (Petronas) and state-owned Petroleum Sarawak Berhad (Petros) is partly due to envy over Sarawak's growing economic strength, said Datuk Patinggi Tan Sri Abang Johari Tun Openg. According to the Premier, Sarawak's increased revenue and economic progress have drawn negative attention and jealousy from certain quarters. 'Don't be jealous. That's human nature, when someone succeeds, others start to get jealous. I'm genuinely concerned because Sarawak's revenue has risen significantly. And with that, people who have nothing better to do start pushing narratives like 'Sarawak for Sarawak' to those who are jealous. 'That's why I've had to deal with the issues involving Petronas and Petros,' he said in his keynote address during the 205th Bau District Anniversary, Pesta Tasik Biru 2025, and Tasik Biru Resort City here today. Abang Johari stressed that as Premier, he is committed to defending Sarawak's rights and interests. 'As your leader, I will continue to safeguard what rightfully belongs to Sarawak,' he said. He noted that Sarawak's economy has flourished, with annual revenue now exceeding RM15 billion. 'We are united, we work hard, and our politics are stable. Unlike in Peninsular Malaysia, where the political situation can be quite chaotic — that's their own issue, not ours,' he said. He stressed Sarawak's progress should be seen as beneficial for the whole country. 'If Sarawak prospers, Malaysia prospers. That is why it is crucial that Sarawak's economy continues to be managed wisely and with unity among our people. That is our unique strength,' he added. 205th Bau District Anniversary abang johari lead Petronas Petros
Borneo Post
10-05-2025
- Politics
- Borneo Post
PBK to hold ‘People's Parliament' assembly on May 17 to address oil rights, MA63
Voon Lee Shan KUCHING (May 10): Parti Bumi Kenyalang (PBK) intends to hold a peaceful assembly called the People's Parliament on May 17 between 3.30pm and 6pm at the vicinity of the Old Kuching Court House and Kuching Waterfront here. According to PBK president Voon Lee Shan, the event aims to explain the party's position and strategies on protecting Sarawak's oil and gas resources, which are currently under the control of Petroliam Nasional Berhad (Petronas) through the Petroleum Development Act 1974. He added that the assembly will also seek to address details surrounding the Malaysia Agreement 1963 (MA63), as well as raise concerns regarding Sarawak's oil rights. 'Sarawak will never have a fair deal in the share of the oil and gas resources, and PBK will explain the reasons why to the public during the assembly,' he claimed. PBK will also raise issues about the current political situations affecting Sarawak. Voon assured the public that PBK's peaceful assembly is not illegal. 'Police had been informed by PBK of this People's Parliament and members of public are invited to come. Under the Peaceful Assembly Act 2012 police are to provide public security and are not to harass any persons attending the assembly,' he explained. 'The right to hold peaceful public assembly is protected by law and the constitution,' he added. assembly Parti Bumi Kenyalang Petroleum Development Act 1974 Voon Lee Shan
