Formal agreement on the cards

KUCHING: Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg hinted that a formal agreement with the federal government on oil and gas matters is forthcoming.

He said the document, expected within the next two days, will reflect the outcome of a recent meeting with Prime Minister Datuk Seri Anwar Ibrahim in Putrajaya.

“You just have to wait, within these two days. There will be a document on the agreement between us and the Prime Minister,” he said.

He told reporters this after officiating the International Construction Week (ICW) Borneo 2025 at the Borneo Convention Centre Kuching (BCCK) today (May 13).

While withholding full details, Abang Johari offered a few “hints” on what the upcoming agreement will likely cover moving forward.

“First, they recognise both federal and state laws. Second, PETROS is the sole aggregator. Third, we will increase our stake in LNG,” he added.

His remarks followed a high-level meeting with Prime Minister Datuk Seri Anwar Ibrahim on May 9 at Perdana Putra, attended by top executives from PETRONAS and PETROS.

According to the Prime Minister’s Office (PMO), both leaders agreed to settle all outstanding issues between PETROS and PETRONAS through dialogue and mutual understanding.

It added that the resolution of core principles would pave the way for structured discussions between the two oil companies in the near future.

The discussion was described as cordial and grounded in unity, with a shared goal to fully realise the potential of joint energy development.

The PMO also stated that this collaboration includes expediting the commercial supply of energy to ASEAN member states through enhanced state–federal cooperation.

The Sarawak government has long maintained that its oil and gas rights are protected under the Oil Mining Ordinance 1958 (OMO58) and Malaysia Agreement 1963 (MA63).

It also views the Petroleum Development Act 1974 (PDA74) as flawed, claiming it was never endorsed by the state’s legislative assembly nor is it applicable in Sarawak.

Through PETROS, the state has asserted control over upstream and downstream activities, while seeking greater commercial equity in projects like LNG exports.

The upcoming agreement is expected to reinforce these positions while formalising a clearer commercial framework between PETROS and national oil company PETRONAS.