The president of Sabah opposition party, Star, said in a statement today that he agreed with Sarawak Chief Minister Abang Johari Openg on the constitutional right of the Borneo states over its natural resources, including oil and gas, as per the State List in the 9th Schedule of the federal constitution.
“Land is clearly a state matter and the development of these resources by the federation under item 8(j) of the Federal List is subject to Item 2(c) of the State List.
“Under Section 24 of the Sabah Land Ordinance (Cap. 68), all minerals, precious stones and mineral oils which includes petroleum and gas belongs to the Sabah government,” the Bingkor assemblyman said.
Jeffrey added that Article 1(3) of the Federal Constitution provides that the boundaries of the state shall be the territories existing immediately preceding Malaysia Day in 1963.
Based on the extension of the boundary of North Borneo by the Queen’s Order in Council in 1954, the boundary of North Borneo was up to the continental shelf including the seabed and its subsoil which lies beneath the high seas.
Jeffrey stated that there has been no revision of the boundaries of Sabah and Sarawak other than the controversial cession of Labuan to be made a Federal Territory in 1984.
“Even the ‘handover’ of Blocks L and M which were under Sabah to Brunei in 2009 is unconstitutional.
“There is no doubt that the oil and gas resources that are pumped out every day by Petronas from Sabah and Sarawak belongs to Sabah and Sarawak, respectively and its peoples.
“To rub salt into the wound, these oil and gas revenues are misappropriated by Petronas and the federal government to develop Malaya,” he said referring to Peninsular Malaysia.
“What’s worse is that this has left Sabah and Sarawak languishing as the poorest states despite being the third and fifth biggest contributors to the economy and federal coffers.”
Jeffrey said many Sabahans and Sarawakians lack even the most basic of amenities, including clean treated water, electricity supply, and better roads and highways, all of which he said, are common throughout the peninsula.
“To top it all, the federal government has spent more than RM100 billion on the mass rapid transit (MRT) system in Kuala Lumpur and the Greater Klang Valley.”
‘Petronas not lawful owner of O&G resources’
He also claimed Petronas was unlawfully and unconstitutionally vested with the oil and gas resources by the Vesting Order signed by then prime minister, the late Abdul Razak Hussein on March 26, 1975.
As Petronas is not the lawful owner of Sabah and Sarawak’s oil and gas resources, he said it should only be at most, a main contractor and not the owner of Sabah and Sarawak’s oil and gas resources.
“Unfortunately, although Sarawak has now asserted its authority over regulatory control of its oil and gas resources, it did not address the issue of their ownership which is still unlawfully retained by Petronas.
“Without invalidating the Petroleum Development Act 1974 or declaring it unconstitutional, Sarawak cannot hope to restore its oil and gas ownership. What does that imply on the Sarawak government?” he asked.
The regulatory powers, he said were never taken by the federal government and was always there in the Sarawak laws except that they were never exercised.
By exercising its regulatory control, Jeffrey said the Sarawak government can deny Petronas the right to exploit its oil and gas resources by refusing them the exploration licences and mining leases.
“But the big question is if the Sarawak government will do so to protect their oil and gas resources for the benefit of future Sarawakians?
“Given that the general election (GE14) is around the corner, the announcement by the Sarawak government sounds more like political rhetoric to hoodwink Sarawakian voters.”
Bringing the matter closer to home in Sabah, Jeffrey said given the Sabah BN government’s past record of subservience to their Umno and Malayan political leaders, nothing much can be expected although Section 24(3) of the Sabah Land Ordinance gives the Sabah government full and unfettered powers to regulate oil and gas exploration and exploitation in Sabah.
“Come GE14, Sabahans and Sarawakians need to assert that the time has come for them to decide their own fate and future and not be dependent on others to decide for them.
“They should vote and elect lawmakers who want to restore their oil and gas resources instead of the BN state governments who are happy just to receive 5% cash payment and give away the other 95%.”
CM: Sarawak to assume full authority over oil and gas by July