KUALA LUMPUR (Nov 15): International law does not apply to Sarawak’s claims over its oil and gas (O&G) resources, according to Gabungan Parti Sarawak (GPS) deputy secretary-general Datuk Ibrahim Baki.

Ibrahim Baki, who served as a legal officer of Petroliam Nasional Bhd (Petronas), and a former non-independent non-executive director of the national oil and gas firm, said this during Sarawak’s Supply Bill 2025 debate in the state legislative assembly.

The Satok assemblyman said this in rebuttal to former law minister Datuk Zaid Ibrahim’s claims that Sarawak had ceded sovereignty over its continental shelf since it had allegedly relinquished ownership and control of O&G resources to Petronas.

Elaborating, Ibrahim Baki said Sarawak established its rights over the continental shelf through the Oil Mining Ordinance 1958, which coupled with the Federal Constitution, grants it authority to regulate petroleum mining within the area. 

He cited Zaid's claim that an international ruling on Malaysia’s bid for Pulau Batu Puteh — whereby the international court ruled the island to have been acquiesced to Singapore due to the island republic’s decades of activity on the island — would serve as a determining factor to the state's O&G claims.

This principle of international law referred to as "effectivités" — exercise in authority, typically in the form of administration or control over a territory — is inapplicable to Sarawak’s claims, according to Ibrahim Baki, as Sarawak is not a sovereign state and international law does not apply to the dispute.

“While he is entitled to his opinion, our [Sarawak’s] position is very clear. That is Sarawak’s rights over the continental shelf is not a dispute between two sovereign states and therefore, the principles of international law cannot apply,” Ibrahim Baki said.

Ibrahim Baki reiterated that Sarawak has never relinquished its rights over its continental shelf, which it considers state land and has even declared a marine park over some portions. 

He continued that the Petroleum Development Act 1974 — which vests Petronas as custodian of the nation’s petroleum resources — does not supersede the above ordinance, allowing Sarawak to maintain its regulatory control over its O&G resources.

Bolstered by the Sarawak Land Code, Oil Mining Ordinance 1958 (OMO), Gas Distribution Ordinance (GDO), the Malaysian Constitution and Malaysia Agreement 1963 (MA63), the state has pushed for control over its O&G resources in the state.

In its most recent claim for more control, state-controlled Petroleum Sarawak Bhd (Petros) has been designated as the sole gas aggregator by the state government under the DGO, effective February.

This role allows Petros to procure and distribute gas to industries in accordance with state law.

Despite talks of disagreements between Petros and Petronas over the matter, the Sarawak government remains firm in its legal rights over gas distribution and expects the national O&G firm to comply with the ordinance and acknowledge Petros’ role.

Meanwhile, speaking on the state's proposed budget, Ibrahim Baki said discordant voices “mosquito-ing” around Sarawak’s development plans are merely jealous of the state’s prosperous trajectory.   

“When we are prosperous like we are now, they want to create problems. But no problem, we take it as a ‘happy problem’,” Ibrahim Baki said.

“There are a lot of red eyes... not from Sarawakians but outside our territory,” he quipped. 

The expansionary budget, which proposes an ordinary expenditure of RM13.7 billion on revenue of RM14.2 billion — surplus of RM486 million, is a testament to the state government’s commitment to development as well as practicing prudent and disciplined fiscal management, according to Ibrahim. 

“We no longer have to wait for ‘KL’ and for the powers that be to decide on the level of development we are entitled to. 

“The allocation by the federal government is a pittance compared to what is needed to develop our state so there is sufficient basic infrastructure,” he added, referring to the RM5.9 billion earmarked to the state under Putrajaya’s federal budget. 

He labelled the words of those — particularly singling out Padungan state assemblyman and Sarawak DAP chairman Chong Chieng Jen — saying the state government’s budget being akin to putting its financial resources at risk as “fearmongering, creating unnecessary panic and irresponsible”. 

“Is the Honourable for Padungan thinking that we should defer all these projects for the betterment of our people?

“Leveraging on future income to initiate projects that will benefit the people for years to come is an accepted norm including in the private sector where companies build buildings and buy equipment today, as they can foresee a stream of future income that can pay for such as outlay,” he continued.