KUCHING, 15 May 2025 – The representative of N13 Batu Kitang, YB Dato Ir Lo Khere Chiang, has shown his full support behind Premier Abang Johari’s stance that Sarawak must now take the lead in managing its own oil and gas resources, especially through its state-owned company PETROS.
In a recent statement, Lo dismissed concerns over ConocoPhillips’ decision to pull out from the Salam-Patawali deepwater exploration project, calling it “a golden opportunity” for Sarawak to redefine its terms of engagement with international oil and gas investors.
“The project was still in its feasibility stage. There’s nothing to panic about. This is just business as usual in the energy sector,” said Lo, emphasizing that the door remains open for future collaborations — this time under terms that benefit Sarawak more directly.
Lo pointed out that PETROS, backed by a stronger regulatory and legal foundation, is now well-placed to negotiate with global players. Drawing parallels with Guyana’s 50:50 joint venture model with ExxonMobil, Lo argued that Sarawak deserves nothing less. “Guyana didn’t invest a cent upfront, yet they enjoy growing revenue from royalties and profit oil. Sarawak should expect the same level of fairness.”
The Batu Kitang representative also highlighted the legal imbalance that has long plagued Sarawak’s involvement in the oil and gas industry. Under the Petroleum Development Act 1974 (PDA74), Sarawak has received only 5% in oil royalties for over five decades — a figure that many in the state now view as unjust.
Lo stressed that the PDA74 was passed during the Emergency period and never debated or approved by Sarawak’s own State Legislative Assembly. Instead, he reaffirmed the legal authority of Sarawak’s own Oil Mining Ordinance 1958 (OMO), which predates PDA74 and remains the cornerstone of Sarawak’s claim over its resources.
While legal challenges to the validity of PDA74 are ongoing, Lo said Sarawakians must not wait for court decisions to assert their rights. “We have every moral, legal, and historical right to control our own resources,” he stated.
The GPS-led state government under Premier Abang Johari has been consistently pushing for greater autonomy under the Malaysia Agreement 1963 (MA63), and Lo echoed these sentiments, stressing that Sarawak’s push is not about conflict but transformation.
“This is about reclaiming what rightfully belongs to Sarawak. For too long we’ve contributed billions to the federal coffers but received crumbs in return,” Lo said, citing poor infrastructure, insufficient healthcare services, and underdevelopment in rural areas.
He also took issue with the notion that PETRONAS should continue to negotiate on behalf of Sarawak when international oil companies are doing most of the technical work. “If Shell or ConocoPhillips are handling operations, PETROS can speak directly to them. There’s no need for middlemen if we have the capacity to manage our own deals,” Lo added.
Lo further stated that the state government’s approach is forward-looking and grounded in constitutional legitimacy and economic fairness. “Premier Abang Johari is taking the right steps. Under his leadership, Sarawak is moving forward confidently. We must remain united and focused on long-term strategies.”
Lo concluded by urging Sarawakians to ignore outside criticism and support efforts to build a more self-reliant state economy. “Let the cynics talk. Sarawak is standing up. Our resources, our future — we will decide.”
As PETROS continues to expand its capacity, Lo affirmed that the state remains open to international investment, provided the terms are equitable. He also reassured his constituents in Batu Kitang that he would continue advocating for policies that ensure Sarawak’s wealth benefits its people directly.
