KUCHING: The Sarawak government plans to seek permission from the Federal government to examine offshore areas in western Sarawak and other regions of the Continental Shelf for gas exploration in alignment with the Sarawak Gas Roadmap.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg stated that this measure is essential to ensure the state has sufficient supply of gas for its domestic use.
He stated that the Sarawak government is committed to ensuring that PETRONAS can deliver the guaranteed volume of 1.2 billion standard cubic feet per day of gas at a fair price to foster investment and industrial growth in the state.
Yesterday, Abang Johari said, in the national interest, he had reached the following understandings with Prime Minister Datuk Seri Anwar Ibrahim:
- That all parties respect Federal and State laws, including the Petroleum Development Act 1974 (PDA 1974) and Distribution of Gas Ordinance 2016 (DGO 2016);
- Petroliam Nasional Berhad (PETRONAS) and Petroleum Sarawak Berhad (PETROS) will work together as partners to advance national and state interests and revenues, and the interests of Sarawak would have to be prioritized;
- Even though PETROS takes the role of gas aggregator, existing contracts entered into by PETRONAS and its subsidiaries are not affected to enable PETRONAS to fulfil its domestic and international contractual obligations. However, the performance of such existing contracts must not adversely affect the role of PETROS as a gas aggregator and must not be inconsistent with the provisions of the DGO 2016.
Abang Johari expressed his appreciation to Anwar for his statement in Parliament on Monday (Feb 17) acknowledging that PETROS is the sole gas aggregator in Sarawak.
Anwar also said that the DGO 2016 enables Sarawak to participate in the oil and gas industry in Sarawak actively.
The Premier said the Sarawak government would continue to uphold the rights and safeguards enshrined in the Federal and State Constitutions and accorded to Sarawak under the Malaysia Agreement.
In particular, he said the Sarawak government would 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 the development of minerals, mining, oil, and oilfields is subject to item 2(2) List II (State List) which grants the state powers over prospecting licenses, mining leases, and certificates.
The state government would also ensure the legislative powers over Electricity and Distribution of Gas vested in the Dewan Undangan Negeri by Borneo States (Legislative Powers) Order 1963, made under Article 95 (1) (a) in 1962 are firmly safeguarded and complied with by the Federal government.
In addition, he said all oil and gas companies operating in Sarawak comply with state laws, including but not limited to the Land Code, especially regarding the use of land for carbon storage: the State Sales Tax Ordinance, 1998; and the Oil Mining Ordinance, 1958, which currently applies to regulate the exploration and mining of petroleum in onshore areas.
