PUTRAJAYA, 21 May – A major breakthrough was reached today as Prime Minister Dato’ Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri Abang Haji Johari Tun Openg signed a Joint Declaration to resolve the long-standing issues between Petronas and Petros, marking a significant shift in Malaysia’s oil and gas landscape.
The declaration was formalised during a private four-eye meeting between the two leaders at the Prime Minister’s Office in Putrajaya. It affirms a commitment to cooperation between the federal and state governments in the oil and gas sector, particularly in Sarawak.
The declaration clearly states that all relevant federal and Sarawak state laws concerning the distribution of gas within Sarawak will coexist and must be respected. Petronas will continue to operate under the Petroleum Development Act 1974, fulfilling its responsibilities at the national level. At the same time, the Sarawak Government’s authority over gas distribution within its state is officially acknowledged.
Effective 1 March 2025, the Sarawak Government has appointed Petros as the official gas aggregator under Section 7A of the Distribution of Gas Ordinance 2016. This means Petros will take charge of the marketing, distribution, and supply of natural gas to consumers in Sarawak. All parties involved in gas-related activities within the state must respect this role. However, Petronas will retain control over upstream operations and international LNG exports.
Both parties also agreed to explore further cooperation, particularly in areas that align with Sarawak’s ambition to become an energy hub in the ASEAN region. Discussions will include the development of projects supporting the Sarawak Gas Roadmap with a target of 1.2 billion standard cubic feet per day, as well as green energy, hydrogen, and power generation initiatives. These collaborations will be subject to technical and commercial feasibility.
This joint declaration is seen as a bold and strategic move that strengthens national unity, respects Sarawak’s rights, and fosters a cooperative framework that benefits the entire country. It symbolises a new era in federal-state relations within Malaysia’s energy sector. – Sarawakku
