Prime Minister Anwar Ibrahim, who issued a joint statement with Sarawak premier Abang Johari Openg, said Petronas’s and Petros’s continued development is crucial for the progress of both Malaysia and Sarawak.
Anwar said the joint statement recognises Sarawak’s growing capabilities and its rights under the Petroleum Development Act (PDA) and the Distribution of Gas Ordinance (DGO), while preserving Petronas’s strategic role at the national level.
Abang Johari expressed his gratitude to Anwar and the federal government for recognising Sarawak’s role in the oil and gas industry.
“We have resolved the outstanding issues,” he said.
“We will respect the laws of both the state and the country, and work in the interest of Malaysia and Sarawak alike.
“Today’s declaration marks a new approach and shared understanding involving the Sarawak government, Petronas and Petros to jointly manage oil and gas activities for the benefit of the nation.”
The Prime Minister’s Office said the joint statement affirms both federal and state laws, acknowledges existing agreements, and sets the foundation for a collaborative framework between Petronas and Petros.
Among the matters in the joint statement is the understanding that all federal and Sarawak state laws related to the distribution of gas within the state must coexist and be respected by all parties conducting such activities in Sarawak, including Petronas and Petros.
Petronas will continue to perform its functions, activities, responsibilities and obligations as mandated under the Petroleum Development Act and its associated regulations.
Meanwhile, no Sarawak state law shall affect any agreements or arrangements between Petronas and its subsidiaries with third parties, including Petros, in relation to Petronas’s activities in the state.
The statement also noted that Sarawak has officially appointed Petros as the state’s gas aggregator, effective March 1.
“This appointment must be respected by all parties involved in the marketing, distribution and supply of gas to domestic consumers in Sarawak,” said the statement.
Notably, the statement assured that Petronas’s current LNG export arrangements will not be disrupted.
The statement said Petronas and Petros are expected to continue working together to serve the national interest transparently and on sound commercial terms.
Petronas and Petros will hold discussions to expand cooperation in meeting Sarawak’s domestic gas needs, such as joint projects to supply up to 1.2 billion standard cubic feet per day of gas.
They will also look at other green energy projects, including hydrogen and electricity generation, that may be undertaken in line with Sarawak’s aspirations.
The statement said all further discussions on cooperation must be subject to commercial and technical viability. Petronas will also collaborate with Petros for future projects in Sarawak involving international partners.
The statement added that the vast potential that can be fully unlocked through this consensus is expected to strengthen trust and restore investor confidence – especially among international petroleum companies – in finalising their investment direction in Malaysia.