KUCHING: What is rightfully Sarawak’s should be protected according to the laws and regulations which have been established.
In relation to this, Law, State-Federal Relations and Project Monitoring Assistant Minister Sharifah Hasidah Sayeed Aman Ghazali discussed the current situation between the Oil Mining Ordinance (OMO) 1958 and Petroleum Development Act (PDA) 1974 during a public dialogue organised by the Women Wing of Gabungan Parti Sarawak (Wanita GPS).
The session was held at Kuching South City Council (MBKS) yesterday.
The other two invited speakers for the public dialogue were Santubong MP Datuk Seri Wan Junaidi Tuanku Jaafar and Sibu Rural District Council (SRDC) deputy chairman Robert Lau Hui Yew.
Also present in the audience during the public dialogue session were Welfare, Community Wellbeing, Women, Family and Childhood Development Minister Datuk Seri Fatimah Abdullah and PRS Women chief Datuk Seri Doris Brodie.
According to Sharifah Hasidah, OMO was passed in 1958 by the state of Sarawak in response to the booming oil and gas industry.
“OMO 1958 was formulated to regulate the oil and gas upstream mining operations in Sarawak. This law, which is still valid, states that anyone who wants to mine oil within the land and boundaries of our state must first obtain a mining license from Sarawak,” she explained during her speech.
In addition to this, OMO 1958 also declares that these parties are obligated to pay a yearly rent, royalties, license fees, as well as complying to any conditions imposed by the state government.
“While OMO 1958 was legislated prior to the formation of Malaysia, it along with any other Sarawak laws are still valid and are made laws of Malaysia by virtue of Section 73 of the Malaysia Act 1963 and the federal constitution,” said Sharifah Hasidah.
After a state of emergency was declared by the Yang di-Pertuan Agong in 1969, all laws were suspended, including OMO 1958. However, it was never nullified.
Five years after the declaration of state of emergency, PDA 1974 was passed as an Act of parliament, giving full exclusive rights to Petronas to explore, mine and benefit from oil and gas activities in Malaysia, including Sarawak.
In 2011, then prime minister Datuk Seri Najib Tun Razak ended the state of emergency, meaning that OMO 1958 was fully enforceable from that point onwards.
“PDA 1974 does not overrule OMO 1958 — Petronas is not excluded from OMO 1958. The company must comply with the laws and regulations of wherever they operate. This is our right!” stressed Sharifah Hasidah.
Thus, in April last year, the Sarawak government gave notice to Petronas to demand compliance with OMO 1958 in efforts of gaining back the state’s rights.
According to the assistant minister, Petronas refused to comply with their request and the matter was brought to federal court last year but the suit was rejected in favour of the state of Sarawak. The court reinforced that PDA 1974 does not repeal OMO 1958.
Moving forward, OMO 1958 was amended in order to improve the law while streamlining it in accordance with modern day oil and gas practices and standards.
Another notice to Petronas has also been given, allowing them a grace period until the end of this year to comply with OMO 1958.
“Now, we are in negotiations with Petronas on all the details such as fees and royalties. It is going in a positive direction,” Sharifah Hasidah told the audience.
With the rightful implementation of OMO 1958, Sarawak can expect to receive revenues in the billions.
“These funds can be used to further develop our state, particularly the rural areas which are still lacking in infrastructure,” she said.
As a side note, Sharifah Hasidah also shared that Sarawak contributes largely to the growth of Petronas and the country as a whole, citing data to support her statement.
According to the Department of Statistics Malaysia, the volume of LNG exported by Sarawak in 2017 was 27 million metric tonnes and the gross amount was RM41.1 billion, while the overall volume of crude petroleum exported from Sarawak in the same year was 3.353 million metric tonnes or a total monetary worth of RM9.4 billion.
Sharifah Hasidah concluded by emphasising that OMO 1958 and PDA 1974 are not in conflict, and can instead be reconciled.
