KUCHING: The Youth Wing of Parti Pesaka Bumiputera Bersatu (PBB) has expressed disappointment over recent remarks made by Armada Bersatu Malaysia (ARMADA) concerning the Sarawak government’s notice to PETRONAS regarding the operation of the Miri Crude Oil Terminal (MCOT).
PBB Youth, in a statement today (May 4), criticised ARMADA for what it described as an attempt to belittle the state’s rightful ownership and claims over its oil and gas resources.
“ARMADA’s reliance on the Petroleum Development Act (PDA) 1974 as the sole legal authority granting PETRONAS absolute power over the oil and gas industry in Sarawak is inaccurate,” it said.
It emphasised that Sarawak has never repealed its own Oil Mining Ordinance (OMO) 1958, a state law which remains in force and continues to regulate the sector adding that any entity wishing to operate in the state must comply with state laws, including the OMO and the Distribution of Gas Ordinance (DGO) 2016.
Referring to the Federal Constitution, it highlighted that under the Ninth Schedule, the authority to issue mining licences and certificates falls under the jurisdiction of the Sarawak government, as provided in Item 2(c) of the State List.
“In simple terms, any oil and gas exploration activity must receive approval from the Sarawak Government,” it added.
Calling for better understanding and respect, PBB Youth urged ARMADA and other stakeholders to consult and consider Sarawak’s legal framework before making public statements on oil and gas matters.
“Do not act as if Sarawak’s state laws are non-existent or irrelevant,” it said.
The Youth wing also reminded all parties to uphold the principle of mutual respect, just as Sarawak is often called to honour federal laws, federal actors too must honour state laws.
“We hope both PETROS and PETRONAS will continue to collaborate within the legal frameworks of both the state and federal governments for the advancement of Sarawak’s oil and gas sector.”