KUCHING (May 22): Petroliam Nasional Bhd (Petronas) and its subsidiaries are not required to obtain a licence from the Sarawak government to operate in the state, but exemptions must be applied for, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

“We give them exemption if they apply, but they have to tell us, then we give them the exemption,” he told a press conference at the State Legislative Assembly (DUN) Complex here today.

Abang Johari clarified that while Petroleum Sarawak Berhad (Petros) has been formally recognised as the sole gas aggregator in Sarawak under the new joint declaration between the federal and state governments, the authority to issue operating licences remains with the Ministry of Utility and Telecommunication.

“Licensing goes to the ministry. Petros is the gas aggregator, but the authority to produce licence is the Ministry of Utility and Telecommunication, and the MUT has the authority to exempt. Petronas being a national company, we give exemption to them,” he explained.

He said this was part of a broader joint declaration signed yesterday between the federal and Sarawak governments, which he described as a major milestone in the ongoing partnership between both governments under the spirit of federalism.

“This is a testament of the commitment from the Prime Minister (Datuk Seri Anwar Ibrahim) on behalf of the federal government to honour the aspirations and constitutional rights of Sarawak as enshrined under the Federal Constitution, the Malaysia Agreement 1963 (MA63), and the Intergovernmental Committee Report (IGC),” he stated.

According to him, the joint declaration affirmed the coexistence of and respect for both federal and Sarawak laws, particularly recognising Sarawak’s Distribution of Gas Ordinance 2016 (DGO 2016).

“This collaborative framework will not only provide certainty and clarity to the oil and gas industry in Sarawak, in particular the recognition of the role of Petros as the gas aggregator,” he said.

“The whole distribution of gas will be governed by Sarawak now, effective 1st March, 2025.”

On the implications of Petros being the sole aggregator, he explained that the authority of Petros is to execute the function of gas aggregator, meaning the buying and selling of gas.

When asked about the financial impact of this role, he responded: “Depends on the price of gas. I can’t give you how much because I do not know myself, we have to calculate based on the business.”

Regarding the ongoing court cases involving Petros and Petronas, Abang Johari said legal proceedings would continue.

“No, we leave it to the legal people to look into it. There is process,” he said.

He also confirmed that Sarawak now has greater control over domestic gas supply, stating: “Under the declaration, we have quoted 1.2 billion standard cubic feet per day (Bscf/d).

“If there is a need for an increase, we increase it. And at the same time, we must remember, we may have surplus gas, new gas supply,” he said, adding that any such adjustments would fall under commercial agreements between Petros and Petronas.

Addressing concerns about the durability of the agreement in the event of a change in federal leadership, Abang Johari said the joint declaration is a formal, written understanding.

“This is the basic understanding between the Prime Minister, federal government, and our side. It is written. And then you must remember, you have to look at all the specific areas that we have signed,” he said.

He dismissed concerns that the agreement could be undone by future governments, noting that past commercial agreements made under previous federal administrations, including those under former prime minister Tan Sri Muhyiddin Yassin, remain valid.

Asked about Sarawak’s aspirations regarding its stake in LNG projects, the Premier said: “What is important is Sarawak has a stake in the oil and gas development through Petros.

“This is important. Number two, the recognition of our law as much as we recognise their law. That’s all. The rest is business — if business is good, we profit more.”

Among those present at the press conference were Deputy Premiers Datuk Amar Douglas Uggah Embas and Datuk Amar Awang Tengah Ali Hasan.