PETRONAS will continue to carry out its functions, responsibilities and obligations as mandated under the Petroleum Development Act 1974 (PDA 1974), in accordance with federal and state regulations, following the signing of a Joint Declaration between the Federal Government and the Sarawak State Government.
The declaration, signed by Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Tun Openg at Perdana Putra, sets out key principles to guide further negotiations between national oil firm Petronas and Sarawak’s state energy entity, Petroleum Sarawak Bhd (Petros).
According to the Prime Minister’s Office (PMO), the Joint Declaration affirms the coexistence and mutual respect of both federal and Sarawak state laws concerning gas distribution within Sarawak.
“All federal and Sarawak state laws relating to the distribution of gas within the state shall coexist and be respected by all parties operating in Sarawak, including Petronas and Petros,” Bernama cited the PMO saying today.
It further confirmed Sarawak’s appointment of Petros as the sole gas aggregator in the state, effective 1 March 2025. This appointment must be acknowledged by all parties engaged in the marketing, distribution and supply of gas to domestic consumers in Sarawak.
The PMO added that Petronas’ existing agreements and arrangements with third parties, particularly those involving liquefied natural gas (LNG) from upstream activities to international export, would remain unaffected.
“No state law in Sarawak will affect any agreement or arrangement between Petronas and its subsidiaries with third parties, including Petros, relating to their activities in Sarawak,” it stated.
In addition, Petronas and Petros are expected to commence discussions to broaden cooperation to meet Sarawak’s domestic gas needs, including projects to deliver up to 1.2 billion standard cubic feet per day (Bscf/d) in support of the state’s Gas Roadmap.
The declaration also envisions future collaboration in green energy, hydrogen, and electricity generation initiatives in line with Sarawak’s aspirations.
“All future discussions must be based on commercial and technical viability. For future projects in Sarawak involving international partners, Petronas will work together with Petros,” said the PMO.
The PMO concluded that both entities should work transparently within a commercially principled framework to detail future cooperation that serves national interests.
“The significant potential that can be unlocked from this consensus could strengthen investor confidence, particularly among international firms in the petroleum sector, in determining their investment directions in Malaysia,” the statement said. - May 21, 2025
