KUALA LUMPUR: Petroleum Sarawak Berhad (PETROS), under the Distribution of Gas Ordinance (DGO) 2016, is guaranteed to obtain up to 1.2 billion cubic feet of natural gas per day for Sarawak’s domestic needs, with an assurance of additional supply as needed.
Prime Minister Datuk Seri Anwar Ibrahim said that PETROS also has the authority to expand its activities and leverage collaboration with Petroliam Nasional Berhad (PETRONAS).
“PETRONAS and PETROS will move forward together as partners to ensure national interests, revenue, and the interests of Sarawak.
“All further detailed negotiations will maintain mutual benefits and interests based on transparent commercial principles,” he said.
He said this during the Dewan Rakyat session in Kuala Lumpur today.
He further added that several matters have been acknowledged by the federal government and the Sarawak government based on the Malaysia Agreement 1963 (MA63).
Among them is the recognition of the Petroleum Development Act (PDA) 1974 as a Federal Act, as stipulated in the legal provisions.
“In addition, the aspirations of Sarawak to venture into the oil and gas industry are welcomed, and this aspiration is realized through DGO 2016, which takes effect on March 1.
“DGO, when read together with the PDA 1974, establishes PETROS as the aggregator in Sarawak.
“This role continues to affirm the previous approvals granted to PETRONAS and its subsidiaries. This means that PETRONAS will retain all existing domestic and international contractual obligations,” he added.
Anwar further said that since 1976, the benefits of oil and gas industry development in Sarawak include upstream investments and infrastructure totaling over RM280 billion.
“Registered vendor companies from Sarawak have secured contracts worth more than RM40 billion over the same period.
“In terms of financial returns, Sarawak has received Cash Payments totaling RM49 billion (as of December 2024), Sales Tax payments of RM18.66 billion (as of the third quarter of 2024), and dividends of RM28.6 billion (as of December 2024) through the shareholding of the State Financial Secretary of Sarawak (SFS) in the Malaysia LNG (MLNG) Group of Companies.
“SFS is a company incorporated under the State Financial Secretary (Incorporation) Ordinance, 1948,” he added.
He ssid the substantial wealth generated over the years has enabled PETRONAS to serve as a primary fund for the nation’s early formation, economic growth, and national development.
“All of this is thanks to Sarawak and the close cooperation between the state and federal governments.
“That is why we have chosen to provide some adjustments and recognition to PETROS’s role in continuing to drive Sarawak’s economic growth,” he added.
