KUCHING: Sarawak United Peoples’ Party (SUPP) refuted claims that the state’s ongoing dispute with PETRONAS concerns oil royalties.
Its Secretary-General, Datuk Sebastian Ting Chiew Yew, said the disagreement stems from PETRONAS’ refusal to recognise Sarawak’s Distribution of Gas Ordinance (DGO) 2016.
He was responding to recent remarks by Machang Member of Parliament (MP), Wan Ahmad Fayhsal, suggesting a “win-win” solution must not weaken PETRONAS’ national role.
Ting said the MP’s “warning” was unnecessary, describing it as confrontational and dismissive of Sarawak’s constitutional rights under the Malaysia Agreement 1963 (MA63).
“The current dispute is not about oil royalties.
“This dispute arose because PETRONAS refused to recognise the DGO 2016 as the law that regulates the distribution of gas in Sarawak,” said Ting in a press statement.
He explained that the DGO 2016 was passed based on powers granted under the Borneo States (Legislative Powers) Order 1963.
“This was recommended by the Inter-Governmental Committee in 1963, with participation from the then Malayan government representatives,” he added.
Ting stressed that Sarawak has both legislative and executive powers over gas distribution, and cannot compromise on its guaranteed rights.
Sarawak, he said, has no intention of undermining PETRONAS, as the company’s strength depends on its own leadership.
“Whether PETRONAS remains strong or not depends on PETRONAS and its management, not on Sarawak exercising its legislative and executive powers over gas distribution,” he asserted.
Ting explained that 94 per cent of Sarawak’s gas is currently exported as liquefied natural gas (LNG) to Japan and Korea, limiting local economic growth.
As such, he said the State’s appointment of PETROS as gas aggregator is to ensure fair, affordable allocation of gas for domestic industries.
“Exporting so much gas overseas is not a sustainable way of using our valuable resources.
“The appointment of PETROS as gas aggregator also supports the Prime Minister’s vision of Sarawak becoming ASEAN’s regional energy hub,” he added.
He further noted that Sarawak remains open to collaboration, including on carbon capture and stranded gas field development in offshore Sarawak.
“PETRONAS may have to lose its downstream business of gas distribution in Sarawak, but PETRONAS will have more to gain through collaboration with PETROS and the Sarawak government in the various clean energy and power generation projects in Sarawak, including generation of electricity for transmission over to Peninsular Malaysia,” he elaborated.
He warned that PETRONAS’ continued disregard for Sarawak’s laws could harm not only its business, but the national economy overall.
Ting then urged all parties to honour both federal and state laws as a foundation for resolving the ongoing impasse.
