Malaysia

PM urges Sarawak to seek harmonious solution to oil and gas dispute with Petronas – Premier (UPDATED)

Petronas Carigali has been given 21 days to obtain the necessary licence, failure of which could result in financial penalties under Section 21A of the ordinance.

Updated 1 year ago · Published on 04 May 2025 9:49AM

PM urges Sarawak to seek harmonious solution to oil and gas dispute with Petronas – Premier (UPDATED)
The solution will be based on sincerity and the principle that national oil and gas revenues should be shared fairly - May 4, 2025

SARAWAK Premier Tan Sri Abang Johari Openg, currently in London, disclosed that he received a phone call from Prime Minister Datuk Seri Anwar Ibrahim on Saturday in relation to the oil and gas dispute Petroliam Nasional Bhd (Petronas) and Petroleum Sarawak Bhd (Petros).

Speaking during a Townhall session at the Lan Berambeh Anak Sarawak 2025 UK Edition programme, Abang Johari shared that both parties are committed to resolving the issue.

"In the issue of oil and gas, we have been playing a bit of ‘football’ with Petronas, and I am sure you have been following the latest developments.

"However, we are going to resolve this. In fact, the Prime Minister contacted me this morning (Saturday, London time), and we have reached a mutual commitment to settle it," he said, as reported by the Sarawak Public Communications Unit (UKAS) yesterday.

Abang Johari stated that the solution will be based on sincerity and the principle that national oil and gas revenues should be shared fairly.

In a Facebook post today, Anwar said: “I had the opportunity to speak with the Premier of Sarawak, Abang Johari Openg, yesterday regarding the Petronas-Petros arrangements based on principles previously agreed upon.”

“Upon the Premier’s return from his official visit to London, United Kingdom, we will immediately hold further discussions to finalise the matter.”

In the meantime, Anwar urged all parties to refrain from making statements or taking any action that could jeopardise the ongoing efforts.

“In the interest of all involved, every party should postpone any action or refrain from issuing statements,” he said.

The Prime Minister expressed confidence that the matter could be resolved with diplomacy and mutual respect.

“I have strong confidence that this issue can be resolved prudently by remaining firmly within the framework of healthy and meaningful discourse, God willing.”

The dispute has intensified following Petronas's confirmation that it received a legal notice from the Sarawak government. The notice alleges that its subsidiary, Petronas Carigali, has been operating illegally in Sarawak, in violation of Section 7(e) of the Sarawak Distribution of Gas Ordinance 2016.

Petronas Carigali has been given 21 days to obtain the necessary licence, failure of which could result in financial penalties under Section 21A of the ordinance.

Last Monday, Petronas failed to secure an injunction from the Kuching High Court to halt a lawsuit filed by Sarawak's state-owned petroleum company, Petros, which aims to prevent the court from hearing the gas payment dispute case.

In a separate development, Abang Johari emphasised that Sarawak’s current priority is to strengthen its economic foundation, notably through the establishment of the Sarawak Sovereign Wealth Future Fund with an initial reserve of RM8 billion.

"When our economy reaches a strong level of stability, the returns from that growth can be channelled back to the people through a comprehensive and structured economic development approach across all sectors.

"What we are working on now is to solidify the state’s economic base, and once it becomes truly robust, the benefits will be returned to the people through a well-structured economic strategy across all areas," he said.

The event, held in London, was attended by approximately 230 students from the United Kingdom, Germany and France, along with senior Sarawak government leaders including Deputy Premiers Datuk Amar Awang Tengah Ali Hasan and Datuk Amar Dr Sim Kui Hian. - May 4, 2025

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