KUCHING, 18 February – Sarawak Premier YAB Datuk Patinggi Tan Sri Abang Johari Tun Openg has reaffirmed the state’s rights over its oil and gas industry following a statement made by Prime Minister YAB Datuk Seri Anwar Ibrahim in Parliament on 17 February 2025.
In response, the Premier expressed appreciation for the Prime Minister’s acknowledgment that Petroleum Sarawak Berhad (PETROS) is the official gas aggregator in Sarawak and that the Distribution of Gas Ordinance 2016 (DGO 2016) remains a key legal framework empowering Sarawak in the sector.
Under Section 7A of the DGO 2016, PETROS has been formally designated as Sarawak’s gas aggregator. It will oversee gas distribution in the state, following directives from the Minister of Utilities and Telecommunications Sarawak. The Sarawak Government aims to ensure that the state’s legal rights and autonomy under the Federal and State Constitutions, as well as the Malaysia Agreement 1963, remain protected.
The Sarawak Premier emphasized that while the Federal Government holds legislative powers over mineral development and mining, Sarawak retains authority over:
✅ Prospecting licenses, mining leases, and certificates.
✅ Legislative powers on Electricity and Gas Distribution under the Borneo States (Legislative Powers) Order 1963.
✅ Compliance of oil and gas companies with Sarawak’s Land Code, State Sales Tax Ordinance 1998, and Oil Mining Ordinance 1958.
In a move to balance Sarawak’s aspirations for gas resource management and national economic stability, the Sarawak Government has reached key agreements with the Federal Government:
- PETRONAS and PETROS will work as partners to boost both national and state revenues.
- Existing PETRONAS contracts remain valid, but their implementation must not undermine PETROS’ role.
- Gas supply security is prioritized, ensuring 1.2 billion standard cubic feet per day for Sarawak’s domestic use to support the Sarawak Gas Roadmap.
- The Federal Government will explore additional offshore gas reserves to meet supply commitments at fair pricing to attract investments.
Sarawak remains committed to using its gas resources sustainably to develop industries, support energy needs in Peninsular Malaysia, and promote clean energy initiatives. This aligns with the Federal Government’s vision for Sarawak as Malaysia’s Clean Energy Hub.
With these agreements in place, Sarawak continues to strengthen its autonomy in the oil and gas industry while collaborating with the Federal Government for mutual economic growth.
