KUCHING, Feb 18 — The operations of Petroliam Nasional Berhad (Petronas) and its subsidiaries in Sarawak must not in any way adversely affect the role of Petroleum Sarawak Berhad (Petros) as gas aggregator or be inconsistent with the provisions of the Distribution of Gas Ordinance (DGO) 2016, said the Premier.

Datuk Patinggi Tan Sri Abang Johari Tun Openg said Petronas’ existing contracts will not affected to enable the company to fulfil its domestic and international contractual obligations.

“Petros is the gas aggregator in Sarawak, and that the DGO 2016 is a law that enables Sarawak to actively participate in the oil and gas industry in the state,” he said when responding to Prime Minister Datuk Seri Anwar Ibrahim’s statement in Parliament yesterday.

Abang Johari explained that Petros was appointed as the gas aggregator in Sarawak under Section 7A of the DGO 2016.

He stressed the company will discharge its functions and duties as expressly stipulated in the DGO 2016 and in accordance with directions issued by the Minister of Utility and Telecommunication Sarawak.

“I and the GPS government will continue to uphold the rights and safeguards as enshrined in the Federal and State Constitutions and accorded to Sarawak under the Malaysia Agreement,” Abang Johari stated.

He said the Sarawak government will also ensure that the exercise by the federal government of the legislative powers under item 8(j) of List I (Federal List) in the Ninth Schedule of the Federal Constitution over development of minerals, mining, oil, and oilfields is subject to Item 2© List II (State List), which grants the state powers over prospecting licences, mining leases, and certificates.

It will also ensure that the legislative powers over Electricity and Distribution of Gas vested in the State Legislative Assembly by the Borneo States (Legislative Powers) Orders 1963, made under Article 95(1)(i) of the Federal Constitution, as recommended by the Inter-Governmental Committee (IGC) in 1962, are firmly safeguarded and complied with by the federal government.

He stressed the Sarawak government will also ensure all oil and gas companies operating in Sarawak comply with state laws including, but not limited to the Land Code, especially in regard to the use of land for carbon storage; the State Sales Tax Ordinance, 1998; and the Oil Mining Ordinance, 1958, which currently applies to regulate exploration and mining of petroleum in onshore areas.

“Whilst safeguarding the constitutional rights and powers, the Sarawak government recognises the aspirations of Sarawakians for better system of gas utilisation and allocation to support the Sarawak Gas Roadmap have to be balanced with the need for the stability and growth of the oil and gas industry in Sarawak, especially at this time of global economic challenges and transition toward renewable energy,” he said.

For national interests, Abang Johari said he has reached several understandings with the Prime Minister.

As such, he said all parties need to respect federal and state laws, including Petroleum Development Act 1974 (PDA 1974) and DGO 2016; pointing out that Petronas and Petros will work together as partners to advance national and state interests and revenues and the interests of Sarawak would be prioritised.

To ensure that Petronas can deliver the guaranteed access of gas up to 1.2 billion standard feet per day for domestic use within Sarawak for implementation of the Sarawak Gas Roadmap, the state government will request areas offshore of western Sarawak and elsewhere in the Continental Shelf from the federal government to explore for gas to produce the said guaranteed volume or additional amount to advance the Sarawak Gas Roadmap, Abang Johari said.

He added the Sarawak Government will have to ensure that the guaranteed volume shall be delivered at a fair price or price that would promote investments and industries in Sarawak.

“The Sarawak government, in the national interests, is firmly committed to ensure that the guaranteed volume of gas as well as any additional gas produced from the offshore of western Sarawak and elsewhere in the Continental Shelf, will be used sustainably, in support of the growth of industries in Sarawak, to meet the demand for energy in Peninsular Malaysia and the production of clean energy, consistent with the declared intention of the federal government that Sarawak will be the clean energy hub for Malaysia,” he added.

Yesterday, Anwar told the Dewan Rakyat that Petronas will retain all its existing domestic and international contractual obligations in Sarawak.

He said although Petros will assume control of gas distribution in the state as the aggregator from March 1, there will be no change to Petronas’ contractual obligations.

“This role still confirms the previous approval given to Petronas and its subsidiaries. This means that Petronas will maintain all existing domestic and international contractual obligations,” Anwar said. — The Borneo Post