SUBANG JAYA (Dec 21): Prime Minister Datuk Seri Anwar Ibrahim has assured that an amicable solution will be taken to address the ongoing dispute between Petroliam Nasional Bhd (Petronas) and Sarawak's state-owned oil and gas (O&G) company Petroleum Sarawak Bhd (Petros) over the distribution of natural gas in Sarawak.
“My engagement with Abang Jo (Sarawak Premier Tan Sri Abang Johari Tun Openg) has been excellent. We want an amicable solution to this issue. The Petronas Development Act is a national act, and Petronas is a national company. I have to make it very clear that there is no compromise on this, and it does not matter what the demands are,” he told a media briefing here on Saturday.
“Sarawak decided to set up Petros. Some voices say Petros is the sole [gas] aggregator and will decide everything. That’s not the view of the state, neither is it my view.
“It is important for Petronas to be recognised as a national body, and to respect all contractual obligations without compromise. And Petronas [has] to recognise the need to support Petros to allow it (Petros) to emerge as an important player,” he highlighted.
Anwar noted that it is necessary for Petronas to work with Petros for all new O&G activities going forward.
“These are essentially the broad parameters that we believe. They (Sarawak) recognise the national role, while we recognise the state role, and we should work together. Well, there are also extreme voices from both sides, but I think the interest relations will prevail,” he added.
Minister in the Prime Minister's Department Datuk Seri Azalina Othman Said in October said that negotiations between the two parties were still ongoing. This was despite Abang Johari previously stating that the talks were expected to conclude before Oct 1.
Azalina explained that the prolonged talks were due to the complexities surrounding Sarawak's Gas Distribution Amendment (Ordinance) 2023.
Petros had signed gas sale agreements with Sarawak Petchem Sdn Bhd and Sarawak Energy Bhd in July, following earlier announcements in the Sarawak State Assembly that Petros was set to take over from Petronas as the sole gas aggregator in Sarawak.
Currently, the majority of Petronas' liquefied natural gas export cargoes from Malaysia are either sourced from Sarawak or pass through the state's gas infrastructure.