Thursday, 22 May 2025

Minister urges calm amid PETROS-PETRONAS dispute

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Julaihi (third right) with other guests visit participating booths after the launching of the Bakti MADANI's programme in the Miri Indoor Stadium.

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MIRI: Sarawak’s Utility and Telecommunication Ministera, Datuk Seri Julaihi Narawi, has urged all parties to allow high-level negotiations to take place amid a deepening dispute between federal energy giant, Petroliam Nasional Bhd (PETRONAS), and state-owned Petroleum Sarawak Bhd (PETROS).

Speaking in Miri on Saturday, Julaihi declined to comment in detail on the tensions, which centre on regulatory control and licensing of gas operations in the state.

He insisted that the matter is now in the hands of Malaysia’s Prime Minister (Datuk Sri Anwar Ibrahim) and Sarawak’s Premier (Datuk Patinggi Tan Sri Abang Johari Tun Openg).

“I think at the moment I’ll leave it to the meeting between the Prime Minister and our Premier,” he told reporters, referring to recent talks held between Anwar and Abang Johari.

“The rest is between PETRONAS and PETROS,” he added. “Let the issue be settled at the highest level.”

The comments come after reports emerged last week that Sarawak authorities had issued formal notices to PETRONAS Carigali, a key upstream subsidiary of PETRONAS,  over licensing issues at its Miri Crude Oil Terminal.

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According to local media, the state has given the company 21 days to comply with state legislation or face financial penalties under the Distribution of Gas Ordinance 2016 (DGO 2016).

PETRONAS has yet to publicly disclose the details of the notices but confirmed it had received correspondence from the Sarawak Government.

Asked whether the dispute was affecting PETROS’ role as Sarawak’s sole gas aggregator, Julaihi was unequivocal: “Under DGO 2016, PETROS is already officially appointed as the sole gas aggregator.”

Julaihi, who was representing the Sarawak Premier at the BAKTI MADANI 2025 programme held at Miri City Stadium on Saturday, appeared reluctant to engage further on the subject, repeatedly urging reporters to allow the matter to be addressed behind closed doors.

The long-running friction between PETRONAS and PETROS stems from Sarawak’s assertion of greater autonomy over its natural resources following amendments to federal and state laws in recent years.

The state government has moved to implement its own licensing regime, which it argues is necessary to assert constitutional rights under the Malaysia Agreement 1963.

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