Sarawak DAP is bandying two “magic” words that it says will ensure that the state fully owns all its oil and gas reserves.

State DAP chairperson Chong Chieng Jen said amending Section 2(1) of the Petroleum Development Act (PDA) 1974 by adding just two words – “excluding Sarawak” – would ensure that newly-formed oil company Petros would have more than regulatory rights to the reserves of the state.

Currently, the PDA states: “The entire ownership in, and the exclusive rights, powers, liberties and privileges of exploring, exploiting, winning and obtaining petroleum whether on-shore or off-shore of Malaysia shall be vested in a Corporation to be incorporated under the Companies Act 1965 or under the law relating to incorporation of companies.”

According to Chong, the amendment that he is proposing may be small, but would have a huge implication for Sarawak, because it would enable the state to reclaim ownership of its petroleum and gas...