KUALA LUMPUR: Malaysia’s national oil company Petronas ‘ recognition of Sarawak government-owned Petros as the state’s gas aggregator excludes liquified natural gas ( LNG ), the government disclosed on Tuesday ( Feb 4).
In a parliamentary response, Azalina Othman Said, Minister in the Prime Minister’s Department ( Law and Institutional Reform ), said that this is one of the terms of the agreement between Petronas and Sarawak regarding the east Malaysia state’s efforts to have more control over its oil and gas resources.
She added that the deal was reached at a Jan. 7 conference between Sarawak top Abang Johari Openg and excellent secretary Anwar Ibrahim.
Since July of last year, Petronas and Petros have been in discussions to overcome state disputes involving gas distribution rights.
Under Malaysia’s Petroleum Development Act ( PDA ) 1974, Petronas has exclusive control over exploration and distribution of the country’s oil and gas resources.
But in February 2024, Sarawak appointed Petros, or Petroleum Sarawak Berhad, as the state’s only oil aggregate under its Supply of Gas Ordinance 2016. Under Sarawak’s state laws, a oil aggregate procures natural oil for distribution or offer, and develops and maintains the country’s oil distribution system.
The northeast state accounts for about 90 % of Malaysia’s LNG imports, which has made a number of techniques to position itself as an economic superpower in Malaysia.
Malaysia was the nation’s fifth-largest supplier of LNG in 2023, according to the International Gas Union’s World LNG Report 2024.
Chong Chieng Jen, a member of Parliament who represents the Stampin district in Sarawak, posed a problem to Azalina.
He had inquired about the specifics of the terms of the agreement between Petronas and Sarawak regarding Sarawak’s right to the oil and gas that the condition extracts.
PETRONAS ARE NOT REQUIRED TO Obtain A LICENCE IN SARAWAK
Anwar Ibrahim, the prime minister of Malaysia, last month expressed confidence that the Petronas and Petros troubles had been resolved.