Federal Govt welcomes Sarawak's Aspiration To Spur Its oil Industry -- PM Anwar

KUALA LUMPUR, Feb 17 (Bernama) -- The Federal government and the Sarawak state government have accepted Sarawak’s oil industry aspirations as embodied under the Distribution of Gas Ordinance 2016 (Amendment) (DGO), said Prime Minister Datuk Seri Anwar Ibrahim today.

The DGO, which will come into effect on March 1, 2025, should be read with the Petroleum Development Act 1974 (PDA), he said.

“Hence, Petros (Petroleum Sarawak Bhd) acts as an aggregator in Sarawak,” he said at the Prime Minister’s information session at the Dewan Rakyat today. 

Anwar, who is also Finance Minister, said Petronas (Petroliam Nasional Bhd) will maintain all existing domestic and international contractual obligations.

He said the role still confirms the previous approvals granted to Petronas and its subsidiaries.

Anwar said that under the DGO, Petros is guaranteed to obtain up to 1.2 billion cubic feet of natural gas per day for Sarawak's domestic needs with a guarantee of additional supply based on subsequent needs.

The prime minister said Petros also has the authority to expand its activities and leverage its cooperation with Petronas.

“Petronas and Petros will work together as partners to ensure the country’s and Sarawak’s interests and benefits, and all subsequent detailed negotiations will maintain mutual benefits and interests according to transparent commercial principles,” he said.

He said the Federal government and the Sarawak state government also recognised the PDA as a federal act as stated in the legal provisions.

Meanwhile, Anwar said Petronas had fulfilled its task by guaranteeing distribution to all states.

He added that the development of the oil and gas industry in Sarawak had benefited the state, including upstream investments and infrastructure, totalling more than RM280 billion since 1976.

“Of the total upstream investments, it is estimated that more than RM90 billion worth of contracts were spent between 2014 and 2024.

“Registered vendor companies from Sarawak have secured contracts worth over RM40 billion in the same period,” he said.

In terms of financial returns, the prime minister said Sarawak had received cash payments of RM49 billion (until December 2024) for its petroleum resources and sales tax payments of RM18.66 billion until the third quarter of 2024.

Sarawak also earned dividends amounting to RM28.6 billion until December 2024 through the State Financial Secretary of Sarawak’s (SFS) shareholdings in the Malaysia LNG (MLNG) group of companies.

SFS is incorporated under Sarawak’s State Financial Secretary (Incorporation) Ordinance, 1948, said Anwar.

-- BERNAMA