KUCHING: The Gabungan Parti Sarawak (GPS) Backbenchers Club (BBC GPS) stressed that the ongoing court case involving PETRONAS and PETROS is not a political battle, but a matter of implementing existing laws and constitutional rights.
Responding to remarks by Pasir Gudang Member of Parliament, Hassan Abdul Karim, on the issue, BBC GPS emphasised that the dispute before the Kuching High Court should not be framed as a “sibling quarrel” between two entities but understood within the legal framework that governs the oil and gas industry in Sarawak.
“This is not about hostility between PETRONAS and PETROS.
“PETRONAS operates under the Petroleum Development Act 1974 (PDA), while PETROS was established under the Distribution of Gas Ordinance (DGO) 2016 passed by the Sarawak State Legislative Assembly under its constitutional powers,” the group said in a recent statement
They reiterated that Sarawak has no intention to undermine PETRONAS but seeks a respectful and strategic partnership to develop the industry for mutual benefit.
“Sarawak’s goal is to work with PETRONAS to develop the oil and gas sector in a way that benefits both Sarawak and Malaysia as a whole,” the statement said.
BBC GPS clarified that Sarawak’s involvement concerns downstream activities, particularly gas distribution, which falls under the DGO 2016.
The law, passed by the State Legislative Assembly, is valid under the Federal Constitution and supported by the Borneo States (Legislative Powers) Order 1963 and the Inter-Governmental Committee (IGC) Report 1962.
In 2021, a Federal Exemption Notification was gazetted to exclude Sarawak from certain sections of the PDA, making DGO 2016 the sole governing legislation for gas distribution in the state.
The bloc also reminded that the Federal Constitution must be read holistically and not selectively.
Item 8(j) (Federal List) and Item 2(c) (State List) of the Ninth Schedule are complementary, balancing federal control over resources with state authority over permits and licences.
“Our constitution are not a buffet menu where we can pick and choose which one benefits us and which one is not,” the statement said, stressing that lawmakers must uphold their oath to defend the entire Constitution, not just parts that suit their political narratives.
BBC GPS highlighted that some operators were still not adhering to Sarawak’s licensing requirements, emphasising that all industry players, including national companies, must comply with state laws.
“Sarawak enforces its laws with full respect for the federal structure. If international and local companies can comply, national entities must do the same,” it added.
The bloc reaffirmed that Sarawak continues to contribute to Malaysia’s petroleum and economic development but will also firmly uphold its constitutional rights, including those guaranteed under the Malaysia Agreement 1963 (MA63).
They urged for the issue to be seen not as a confrontation, but as a chance to strengthen strategic collaboration between PETRONAS and PETROS, positioning Malaysia as a stable and competitive energy producer.
