Petros-Petronas: Sarawak Pledges Good Faith Implementation Of Joint Declaration Framework

KUCHING, May 22 (Bernama) -- Sarawak is committed to working closely with the federal government, Petroliam Nasional Bhd (Petronas) and Petroleum Sarawak Bhd (Petros) to implement the joint declaration framework in good faith.

Sarawak Premier Tan Sri Abang Johari Tun Openg said the state reaffirmed its position that both federal and Sarawak laws must coexist in harmony and be respected by all parties.

“And this declaration gives them a guide on how they (Petronas) are doing their business in collaboration with Petros. Petronas still have to apply for the license to tell us. 

“Petros is the gas aggregator, but the authority to produce a license lies with the Ministry for Utility and Telecommunication Sarawak (MUT), which has the authority to exempt Petronas, being a national company…we give the exemption to them,” he told reporters at the state assembly building here, today.

Abang Johari said this to explain the joint declaration between the federal and state governments signed yesterday.

The Premier also gave assurance that the declaration will not be abolished even if there is a change of government in the future. 

He also reiterated that the declaration is a clear manifestation of mutual respect and recognition of Sarawak’s regulatory framework, particularly the State Distribution of Gas Ordinance 2016 (DGO 2016). 

Yesterday, the federal and state governments reached an understanding on matters involving Petronas and Petros. The joint declaration framework was signed at Perdana Putra by Prime Minister Datuk Seri Anwar Ibrahim and Abang Johari.

Meanwhile, when asked whether the declaration would impact the ongoing court cases between Petros and Petronas, Abang Johari said the state government will leave the matter to the legal team to decide. 

"Assuming we want to suspend, maybe there is a suspension and later on withdrawal... that one, I leave it to the legal people (because) there is a process,” he said.

The Petros-Petronas court case revolves around a jurisdictional dispute over the control of oil and gas resources in Sarawak.

According to the joint declaration, Petronas will continue its functions, activities, responsibilities and obligations entrusted to the company in Malaysia, under the Petroleum Development Act 1974 (PDA 1974) and its regulations.

Any agreements and arrangements between Petronas and its subsidiaries with third parties for the purpose of liquefied natural gas (LNG) sales from upstream operations through to LNG exports to foreign parties remain unaffected.

A media statement by the Prime Minister's Office following the joint declaration said all relevant federal and state laws relating to gas distribution in Sarawak are to co-exist and be respected by all parties.

These laws, it stressed, will not affect Petronas, its subsidiaries, or its agreements and arrangements with third parties, including Petros.

-- BERNAMA