KUCHING: The joint declaration between the federal government and Sarawak on gas distribution is already in place, but detailed business negotiations between Petroliam Nasional Bhd (PETRONAS) and Petroleum Sarawak Bhd (PETROS) are still ongoing.
Deputy Prime Minister Datuk Sri Fadillah Yusof said this to reporters after officiating the mySalam 3K Petra Jaya Programme today.
He explained that the declaration, signed on May 21 by Prime Minister Datuk Seri Anwar Ibrahim and Premier of Sarawak Tan Sri Abang Johari Tun Openg, has already established the principle that both federal and state laws governing the gas sector must be upheld together.
“The federation cannot disregard Sarawak’s laws, and Sarawak cannot disregard federal laws. That agreement has been formalised in the declaration,” he said.
Fadillah clarified that what Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said described in Parliament on Friday as “terms not yet finalised” refers specifically to the commercial arrangements under discussion.
“What is still being discussed are the technical and commercial terms, such as implementation mechanisms, business agreements and operational frameworks between PETRONAS and PETROS. These negotiations are ongoing and have yet to be finalised,” he said.
The declaration also outlines the new distribution structure, under which PETROS will act as the aggregator of domestic gas in Sarawak starting March 1, 2025.
PETRONAS, meanwhile, will continue to carry out its statutory responsibilities under the Petroleum Development Act 1974, and oversee the entire LNG chain from upstream activities to exports to international markets.
Fadillah said no time frame has been set so far, but the basic agreement is already in place.
He expressed hope that both parties could resolve matters quickly to facilitate incoming investments and business operations, both offshore and onshore.
“This would help expedite processes and make it easier for the industry to carry out daily activities,” he added.
