Latest news with #Salam-Patawali
Daily Express
09-05-2025
- Business
- Daily Express
Sarawak's oil and gas demands must go through Parliament: Mahathir
Published on: Friday, May 09, 2025 Published on: Fri, May 09, 2025 By: FMT Reporters Text Size: KUALA LUMPUR: Former prime minister Dr Mahathir Mohamad ( pic ) says Sarawak's quest for greater autonomy and control over oil and gas resources must be brought to Parliament, and not dealt with via backroom negotiations. He said that in a federation, national policies must take precedence over state-specific demands, adding that wealth must be distributed equitably between richer and poorer states. Contrasting the state's current prosperity with its colonial past, Mahathir said Sarawak has gained substantially from being a part of Malaysia. 'When Sarawak was under British rule, did they build the Twin Towers? They were very poor. The British took all their money,' he said, in an exclusive interview with FMT . Mahathir said Sarawak may deserve to earn more from its oil and gas resources, but cautioned that this cannot come at the expense of a weakened Petronas. He said Petronas requires substantial capital to grow and must not be undermined by political pressure. 'The whole world is amazed that Malaysia was able to set up Petronas, because many oil-producing countries don't have a national company involved in every aspect of the oil and gas industry. 'Petronas is one of the best-run companies in Malaysia. That's why it's listed in the Fortune 500. But now, because of politics, it risks being split up. I believe there are other solutions that can also benefit Sarawak,' he said. Negotiations over gas rights between Petronas and Petroleum Sarawak Berhad (Petros) remain contentious. Industry analysts warn that Petros's appointment as Sarawak's gas aggregator will fragment Petronas's monopoly, potentially harming both the national economy and Sarawak's oil and gas industry. The resulting regulatory uncertainty has already contributed to foreign investors pulling out of two major Sarawak-based oil projects—Salam-Patawali and Lang Lebah. Mahathir said possessing oil alone does not guarantee prosperity, saying instead that strong governance, which Petronas has demonstrated over the years, was the recipe to success. Sarawak continues to push for control over its oil and gas reserves despite the Petroleum Development Act 1974 granting exclusive rights to Petronas. Sarawak Premier Abang Johari Openg has maintained that Petros and Petronas should collaborate for mutual benefit, but insists that Sarawak's interests must take precedence. Mahathir acknowledged Sarawak's right to seek better terms but cautioned against leveraging political pressure to gain preferential treatment. '(Sabah and Sarawak) know that the federal government is so dependent upon support from them so they can demand a lot. It is sad that political reasons were used — not national or economic reasons. 'The nation will lose by the arrangements being negotiated between the federal government and the state government,' he said. - FMT * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Star
30-04-2025
- Business
- The Star
ConocoPhillips confirms exit from RM13.7bil Salam-Patawali deepwater project
KUALA LUMPUR: US oil major ConocoPhillips has confirmed it will not proceed with the RM13.7bil Salam-Patawali deepwater oil and gas project, also known as WL4-00, off the coast of Sarawak. 'ConocoPhillips has elected not to progress development of the WL4-00 project based solely on prioritisation within the company's global portfolio,' it said in a brief statement. The deepwater oil and gas field, discovered jointly with Petronas in 2018, was developed under a 50:50 joint venture. According to its website, ConocoPhillips Sarawak Ltd holds a 50% working interest and is the operator of Block WL4-00, which spans 0.3 million net acres, primarily covering the Salam and Benum fields. Earlier, Channel News Asia (CNA) reported that ConocoPhillips had quietly exited the project this month. The withdrawal was first reported by Upstream Online, a leading news platform for the oil and gas industry, on April 15. Industry executives told CNA that ConocoPhillips' move was in part driven by the uncertain regulatory environment arising from the spat between Petronas and the Sarawak state government.
