Federal And State O G Laws Must Coexist Says Sarawak Deputy Minister

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Last week, Sarawak premier Abang Johari Openg said a solution had been reached in the dispute with Petronas over the rights to oil and gas resources in and around the state. (AFP pic)
PETALING JAYA: The Petroleum Development Act 1974 (PDA) and Oil Mining Ordinance 1958 (OMO) need to coexist to ensure that the nation’s oil and gas industry can operate smoothly, says a Sarawak deputy minister.

Sharifah Hasidah Sayeed Aman Ghazali said both laws should be implemented concurrently for “optimal governance”, though Sarawak had the right to enforce its own ordinances under the Malaysia Agreement 1963 (MA63).
“What we propose is that the PDA and OMO must coexist. They need to be integrated and implemented together,” the state deputy minister for law, MA63 and state-federal relations said, according to The Borneo Post.
While Sarawak had full rights over its natural resources, she said external entities were welcome to explore and develop them as long as they went through the state for the relevant approvals.
Last week, Sarawak premier Abang Johari Openg said a solution had been reached in the dispute with Petronas over the rights to oil and gas resources in and around the state.
He said Prime Minister Anwar Ibrahim would make an official announcement on the “formula” soon, and that the issue was merely a legal matter with Petronas relying on the PDA and Sarawak on the OMO.
Over the past year, Sarawak has pressed for Petronas to ink a deal that would make Petroleum Sarawak Bhd the sole gas aggregator in the state.
Last month, Abang Johari denied that Sarawak was acting greedily, saying it was merely exercising a “constitutional right” to distribute gas which belongs to the state.
He previously said Sarawak was prepared to battle any party that “disrespects” its “rights” in a court of law. - FMT

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