Sarawak Petronas Oil Dispute Resolved Says Abang Johari

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Sarawak premier Abang Johari Openg said the partnership between Petros and Petronas was necessary as collectively, they dominate a significant portion of the state’s gas reserves.PETALING JAYA: Sarawak premier Abang Johari Openg has revealed that a solution has been reached over the dispute between Sarawak and Petronas over the rights to oil and gas (O&G) resources in and around the state, with Prime Minister Anwar Ibrahim set to announce it soon

Abang Johari said the matter could now be considered resolved, pending the official announcement.
“In fact, the solution is already in sight. I cannot disclose it at this moment, but the prime minister will share the formula with us. It is settled,” he said during an interview on TVSarawak.
He said the issue was merely a legal matter, with Petronas relying on the Petroleum Development Act 1974 (PDA) and Sarawak on the Oil and Mining Ordinance 1958 (OMO).

“It has been decided (that the rights of both parties) under the PDA and OMO can coexist,” he added.
Over the past year, Sarawak has pressed hard for Petronas to ink a deal that would make Petroleum Sarawak Bhd (Petros) the sole gas aggregator in the state.
Last month, Abang Johari refuted suggestions that his state was acting greedily, saying it was merely exercising a “constitutional right” to distribute gas which belongs to the state.
He had previously said Sarawak was prepared to battle any party that “disrespects” its “rights” in a court of law.

Abang Johari said today some had exaggerated claims suggesting Petronas could lose up to RM100 billion with Petros entering the fray for rights to the O&G resources in and around the state.
“Yes, there may be a slight reduction (to Petronas’s profits) due to the gas distribution arrangement, but I believe this can be resolved,” he said.
He also stated that Petros would continue collaborating with Petronas in the gas industry within the region.
He explained that the partnership between Petros and Petronas was necessary as collectively, they dominate a significant portion of Sarawak’s gas reserves. - FMT

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