Latest news with #jointdeclaration
Malay Mail
28-05-2025
- Business
- Malay Mail
Sarawak exempted from key PDA provisions under joint declaration, says Abang Jo
KUCHING, May 28 — Sarawak is exempted from certain provisions under the Petroleum Development Act 1974 (PDA 1974) following the signing of the joint declaration between the federal and Sarawak governments on May 21, 2025, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg. In his winding-up speech at the Sarawak Legislative Assembly sitting here today, Abang Johari said the joint declaration affirms the recognition of Sarawak's executive authority over the distribution of gas within its territory and removes any perceived regulatory uncertainty. 'This joint declaration reaffirms that Federal and State laws on distribution of gas shall be respected by all persons undertaking the distribution and supply of gas in Sarawak,' he said. Abang Johari also pointed out that Sarawak is not subject to certain requirements under the PDA 1974. 'Federal laws like the Gas Supply Act 1993 do not apply to Sarawak and Sarawak is exempted from the requirements imposed by Section 6(1) and (3) of the Petroleum Development Act 1974 to obtain the permission of the Prime Minister to undertake distribution of gas business in Sarawak,' he said. The Premier extended his appreciation to Prime Minister Dato' Seri Anwar Ibrahim for his leadership and commitment in resolving issues between Petros and Petronas, saying the joint declaration reflected the federal government's recognition of Sarawak's aspirations. 'For the record in this august House, I wish to quote the joint declaration,' said Abang Johari, before reading the full text, which among others confirms the appointment of Petros as the gas aggregator in Sarawak effective March 1, 2025. Under the declaration, Petros' appointment under Section 7A of the Distribution of Gas Ordinance (DGO) 2016 is to be respected by all parties undertaking the business of gas marketing, distribution, and supply in the state. The document also states that Petros and Petronas will cooperate on projects to meet Sarawak's domestic gas needs, including implementing the 1.2 billion standard cubic feet per day (Bscf/d) plan under the Sarawak Gas Roadmap and exploring green energy, hydrogen, and power generation initiatives. 'All discussions on collaborations must be subject to technical and commercial viability. For the purpose of future projects in the State of Sarawak involving international partners, Petronas shall cooperate with Petros,' the declaration read. Abang Johari said with Sarawak's legislative and executive authority over gas distribution confirmed, the state government will ensure regulatory clarity and stability to support industry growth. 'Sarawak will implement plans to increase gas production within its territory, sustainable utilisation of gas by industries, and for the production of clean energy,' he said, adding that this would provide investment opportunities in upstream, midstream and downstream activities. He said these initiatives include the development of carbon capture and storage (CCS) sites to tap into Sarawak's potential gas reserves off its western coast and to support the planned Kuching Low Carbon Gas Hub. 'All these projects will increase the GDP for Sarawak by RM120 billion and create 185,000 high-income jobs,' he said. He also reiterated that Petros, as the state's gas aggregator and resource manager, will play a central role in expanding gas infrastructure, ensuring adequate supply for industrial and domestic use, and developing CCS sites aligned with the state's energy agenda. — The Borneo Post
Free Malaysia Today
22-05-2025
- Business
- Free Malaysia Today
Petronas, subsidiaries don't need Sarawak operating licences, says Abang Jo
Sarawak premier Abang Johari Openg (centre) with deputy premiers Douglas Uggah Embas (left) and Awang Tengah Ali Hasan during a press conference at the Sarawak state assembly in Kuching today. (Sarawak Public Communications Unit pic) PETALING JAYA : Petronas and its subsidiaries are not required to obtain operating licences from the Sarawak government to operate in the state, said Sarawak premier Abang Johari Openg. He said while state-owned Petros has been formally recognised as the sole gas aggregator in Sarawak under a new joint declaration between the federal and state governments, the authority to issue operating licences remains with Sarawak's utility and telecommunication ministry. 'The ministry also holds the power to grant exemptions. Given Petronas's status as a national oil company, the ministry will exempt them accordingly. 'We'll grant them exemptions. However, they must first apply for it,' The Borneo Post quoted him as telling a press conference at the Sarawak state assembly today. Abang Johari said this was part of the joint declaration signed yesterday, which marks a significant development in federal-state cooperation. He said the joint declaration reflects the federal government's commitment to honour Sarawak's constitutional rights under the Federal Constitution, the Malaysia Agreement 1963 (MA63) and the Intergovernmental Committee (IGC) Report. Asked whether the joint declaration would remain valid in the event of a change in federal leadership, Abang Johari noted that commercial agreements made under previous federal administrations, including those under former prime minister Muhyiddin Yassin, remain valid. He also said the declaration affirms the mutual recognition of both federal and state laws, particularly Sarawak's Distribution of Gas Ordinance 2016, which outlines Petros's role as the sole gas aggregator in the state from March 1. 'This collaborative legal framework provides clarity and certainty to the oil and gas industry in Sarawak, in particular the recognition of the role of Petros as the gas aggregator,' he said. Elaborating on the responsibilities of Petros, Abang Johari said the company will manage the buying and selling of gas within Sarawak. However, he noted that the financial impact of this role will vary depending on market prices and business conditions. Asked whether the joint declaration would resolve the legal tensions between Petronas and Petros, he said the disputes would remain a matter for the courts to resolve. 'There is a legal process, and we will leave it to the respective legal teams to handle,' he said. Responding to a question on Sarawak's interest in liquefied natural gas projects, Abang Johari said it was crucial that the state has a stake in the oil and gas industry through Petros, and that Putrajaya and Kuching agree to a mutual recognition of both federal and state laws. 'That's all. The rest is business – if business is good, we get more profit,' he said.
CNA
21-05-2025
- Business
- CNA
Petronas, Petros to jointly develop Malaysia's oil and gas sectors as federal, Sarawak governments resolve dispute
KUALA LUMPUR: Malaysia's federal government and the Sarawak state government have inked a joint declaration, seemingly putting to bed a protracted dispute over the governance of oil and gas distribution within Sarawak. Signed by Prime Minister Anwar Ibrahim and Sarawak Premier Abang Johari Openg on Wednesday (May 21), the declaration will see Malaysia's national oil corporation Petronas and Sarawak's state-owned oil and gas company Petros jointly developing the country's oil and gas sectors. It also sets out the parameters and collaborative framework for the two firms, which have been at odds with one another. Sarawak has been challenging the decades-old monopoly Petronas holds over Malaysia's oil and gas reserves as enshrined under a parliamentary statute in 1974. Known as the Petroleum Development Act or PDA, the legislation decrees, among other things, that Petronas is the sole guardian of Malaysia's hydrocarbon reserves. Anwar said that while the role of Petronas remained intact and it would continue to fulfil its national role, Petros' role would be recognised at the same time. "So, this understanding we've reached ensures that Petronas' operations continue, while also recognising the role of Petros,' he was quoted as saying by The Star during a joint press conference with Abang Johari on Wednesday. "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.' Sarawak wants its hydrocarbon reserves to be regulated under a colonial-era law that stipulates oil and gas resources found within 200 nautical miles of the state's waters belong to it. The long-running dispute between Petronas and Petros over gas distribution reached an impasse last year and escalated in late April, with Petronas saying that its Petronas Carigali subsidiary had received notices from the Sarawak state government about its activities there. The impasse has also raised concerns about the potential impact on Petronas' revenues, which are a major source of income for the federal government. Sarawak holds about 60 per cent of Malaysia's gas reserves and accounts for 90 per cent of Malaysia's liquified natural gas (LNG) exports. The rift also appeared to cause investor disquiet following a surprise withdrawal by US oil firm ConocoPhillips from an oil project off the Borneo coast. In April, ConocoPhillips decided to withdraw from operating the Salam-Patawali deepwater oil and gas field that the company discovered in 2018 with Petronas in a 50-50 joint venture that was expected to cost RM13.7 billion (US$3.13 billion). Anwar said on Wednesday that the joint declaration aimed to establish clear parameters and to acknowledge the PDA and the Distribution of Gas Ordinance (DGO) 2016. The DGO provides the legal framework for the Sarawak state government to regulate and manage the distribution of gas within its borders. '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,' said Anwar as quoted by The Star. "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.' DECLARATION DETAILS A statement issued by Malaysia's Prime Minister's Office later on Wednesday provided specifics of the joint declaration. The declaration acknowledged federal and state laws, the status of existing agreements, and the formation of a framework for cooperation between Petronas and Petros, according to the statement. Additionally, all federal and Sarawak laws related to the distribution of gas within Sarawak would co-exist and be respected by all parties carrying out such activities in the state, including Petronas and Petros. According to the statement, the declaration noted that Petronas would maintain its functions, activities, responsibilities, and obligations as outlined in the PDA and its regulations, while the Sarawak government had appointed Petros as the gas aggregator from March. Existing LNG export agreements by Petronas would remain unchanged. The statement also said that Petronas and Petros would hold discussions for the purpose of expanding cooperation for the domestic gas needs of Sarawak in the areas of gas supply pipeline projects, as well as other green energy, hydrogen, and electricity generation projects. 'Both Petronas and Petros shall endeavour to continue working together to detail the framework for the benefit of the nation in accordance with transparent commercial principles,' said the statement. 'The significant potential that can be fully explored from this agreement is capable of strengthening trust and restoring the confidence of investors, especially international companies in the petroleum sector, to finalise their respective investment directions in Malaysia.'
