CAN THE DIFFERENT LAWS CO-EXIST?
Sarawak, which has longer pushed for greater control over its oil resources, has been the subject of decades of flimsy conversations with Petronas and the Malaysian authorities over Petronas ‘ dominance over the nation’s oil and gas reserves, as mandated by the PDA.
Sarawak, which insists that the PDA does not use to it, has passed laws governing its oil and gas industry and appointed Petros as its single gas aggregate in February last year, a step that instantly challenged Petronas ‘ long-held power.
The eastern position holds about 60 per cent of Malaysia’s oil resources and helps about 90 per cent of Malaysia’s LNG imports.
Both events have tried to reach a deal in discussions that started in April of last year, but they have broken down double, with Petronas suspending all discussions in December, according to professionals from the federal oil company.
Under the condition of anonymity, top Indonesian government leaders who spoke to CNA claimed that Petronas and the Sarawak government’s latest confusion is the result of efforts by the Anwar leadership to negotiate a deal.
One senior government official who was close to the circumstance said,” The true issue here is that discussions have broken down between the events and that is why Petronas and Sarawak doesn’t make any statements.”
Representatives from Petronas, who also spoke unnamed, claimed that the state had become unworkable in recent months as the condition began enforcing registration requirements for personal oil and gas companies operating in the position.
” The enactments of laws by the state ( Sarawak ) government have complicated the situation”, said the government official, adding that it has” caused a lot of uncertainty among international investors”.
” What used to go through Petronas in the state ( under the PDA ) before must now go through Petros, and that is putting pressure on both the foreign independent contractors and ourselves,”
Any group engaging in petrol distribution activities in Sarawak is required to apply for a license under the state’s distribution of gas ordinance, which states.
However, Azalina claimed in her published political response that Petronas and its affiliates are not required to obtain a license or follow any other requirements in Sarawak besides what is set forth in Act 144, which is the PDA 1974, based on the arrangement between Anwar and Abang Johari.
Some even have reservations about the compatibility of the various pieces of regulations governing Petronas and Petros.
Zaid Ibrahim, a notable Malaysia lawyer and a previous secretary overseeing legal matters, told CNA that Anwar’s notes in mid-January over a settlement reached are misplaced.
” There didn’t get two sets of rules, such as the PDA and the Sarawak Distribution of Gas Ordinance, because it will only result to more fight, and international investors want certainty”, he said.
Zaid thinks a fresh strategy is required.
The best outcome would be to have Petronas continue as it did before and both parties take to the authorities to resolve the dispute, he said.