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DAP MP: S’wak O&G regulatory authority nothing new
Published:  Mar 7, 2018 4:48 PM
Updated: 8:55 AM

The announcement by Sarawak Chief Minister Abang Johari Openg yesterday that Prime Minister Najib Abdul Razak is to allow the state to have full regulatory authority over its oil and gas industry is nothing more than a “recycled announcement”

DAP MP for Bandar Kuching and state DAP chief, Chong Chien Jen (above) who said this, added: “I believe Abang Johari has jumped the gun over a vague and somewhat ambiguous announcement as last year itself the chief minister had already announced that the state will assert its regulatory or mining rights.”

In a text message to Malaysiakini, Chong said: “In view of the Petroleum Development Act (PDA) 1974 and also the Territorial Sea Act 2012, such an announcement by the chief minister seems to be purposefully orchestrated to mislead the public with regards to the control of our oil and gas resources.”

He pointed out that unless there is a repeal or amendment of the PDA, the state's oil output still belonged to the federal government through Petronas.

“And all we are merely entitled to are is the meagre five percent oil royalty,’ he reminded.

Chong explained that while Petroleum Sarawak Bhd (Petros) would be given a platform to give their inputs, the main “deciding authority” was still Petronas.

“Petros will also likely get certain contracts from Petronas and while it may be profitable to the state, it does not cover the glaring fact that we do not have full control of our own resources,” he said.

Gala launch

Yesterday, when asked by Malaysiakini on the five percent oil royalty, Abang Johari (below) said: “The five percent is a different issue. We now have full rights.”

He added that Petros was set to assume full regulatory authority over upstream and downstream aspects of the oil and gas industry in Sarawak from July.

He said this at the gala launch of Sarawak’s own homegrown oil company yesterday attended by the industry's top players.

"Tonight, I would like to announce to Sarawakians what I promised in Sibu recently.

“Prime Minister Najib Abdul Razak has agreed to return to the state power that has been inadvertently eroded over the years.

"Therefore, the state shall exploit our oil and gas natural resources, which is constitutionally under the state list, as per the Ninth Schedule of the Federal Constitution," he announced.

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