Petronas said Carigali is statutorily authorised under the Petroleum Development Act (PDA) 1974 to undertake the company’s activities and comply with all applicable laws in doing so.

“While we respect the aspirations of the state of Sarawak, Petronas also has a duty to uphold the PDA 1974 and safeguard national interests.

“Petronas will continue to engage constructively and work closely with the federal government, the Sarawak government and Petros in exploring future arrangements to ensure regulatory clarity and operational continuity for the benefit of the industry, state and nation as a whole,” Bernama quoted it as saying.

Petronas said it is committed to ensuring the rights and interests of all parties, including end-consumers and investors, are addressed accordingly.

Earlier today, Utusan Malaysia reported that Sarawak’s utility and telecommunications ministry had accused the Petronas subsidiary of violating Section 7(e) of the state’s Distribution of Gas Ordinance (DGO) 2016.

In the letter, Carigali was accused of operating its Miri Crude Oil Terminal without a state licence and was given 21 days to rectify the matter, failing which it would face financial penalties under Section 21A.

Section 7 of the DGO 2016 spells out the licensing of activities related to the distribution of gas, while subsection (e) covers the activities of building, managing or maintaining a gas pipeline or other apparatus, equipment or mechanisms for the distribution of gas.