Anwar sure that the Petronas-Petros gas problem is fixed

Prime Minister Anwar Ibrahim states he feels problems involving Petronas and Petroleum Sarawak Bhd (Petros), particularly with regard to the right to distribute gas in Sarawak, have been settled.

A Bernama report claims that negotiations and his most recent meeting with Sarawak premier Abang Johari Openg resolved the issues.

Anwar insisted that the Petroleum Development Act 1974 (PDA 1974) is applicable nationwide, a principle that has been acknowledged by both the Sarawak government and Petros. He also stated that there was no ambiguity regarding the foundational policies surrounding the issue.

He informed Malaysian reporters during a press conference at the conclusion of his visit to the UAE, “We acknowledge that Petros was established to facilitate Sarawak’s gas exploration and distribution initiatives within the state.”

Anwar made it clear that the Sarawak Distribution of Gas Ordinance 2016 does not replace the PDA 1974, the Federal Constitution, or any other federal laws, so Petronas’ position has not changed.

On December 10, Abang Johari disclosed that a resolution had been reached in the dispute between Sarawak and Petronas regarding the oil and gas resources in and around the state. However, he declined to disclose the formula.

The matter may now be considered resolved, he stated, pending an official announcement.

Also, Abang Johari stated that the matter was purely legal, with Petronas citing the Petroleum Development Act 1974 and Sarawak citing the Oil and Mining Ordinance 1958.

In the past year, Sarawak had exerted considerable pressure on Petronas to execute a contract that would establish Petros as the exclusive gas aggregator in the state.