Sarawak wants its hydrocarbon reserves to be regulated under a colonial-era law that stipulates oil and gas resources found within 200 nautical miles of the state’s waters belong to it.
The long-running dispute between Petronas and Petros over gas distribution reached an impasse last year and escalated in late April, with Petronas saying that its Petronas Carigali subsidiary had received notices from the Sarawak state government about its activities there.
The impasse has also raised concerns about the potential impact on Petronas’ revenues, which are a major source of income for the federal government.
Sarawak holds about 60 per cent of Malaysia’s gas reserves and accounts for 90 per cent of Malaysia’s liquified natural gas (LNG) exports.
The rift also appeared to cause investor disquiet following a surprise withdrawal by US oil firm ConocoPhillips from an oil project off the Borneo coast.
In April, ConocoPhillips decided to withdraw from operating the Salam-Patawali deepwater oil and gas field that the company discovered in 2018 with Petronas in a 50-50 joint venture that was expected to cost RM13.7 billion (US$3.13 billion).
Anwar said on Wednesday that the joint declaration aimed to establish clear parameters and to acknowledge the PDA and the Distribution of Gas Ordinance (DGO) 2016.
The DGO provides the legal framework for the Sarawak state government to regulate and manage the distribution of gas within its borders.
“This means that the current situation requires us to acknowledge that Sarawak has grown and now has the capacity, including establishing its own state oil company,” said Anwar as quoted by The Star.
“Our shared aspiration, beyond just strengthening Petronas, is to position Sarawak as a launching hub for ASEAN.
“To me, this is a very realistic approach, and it will lead to national success, meaningful outcomes, and the elevation of Sarawak’s economic standing.”
https://www.channelnewsasia.com/asia/malaysia-sarawak-oil-gas-petronas-petros-declaration-dispute-5144726
