Malaysia

Petronas may be exempted from licensing in Sarawak under new federal-state declaration

Petronas could be granted an operations licence exemption in Sarawak following a landmark joint declaration signed between the Federal Government and the Sarawak State Government

Updated 1 year ago · Published on 22 May 2025 6:52PM

Petronas may be exempted from licensing in Sarawak under new federal-state declaration
Exemption can be provided as all licence holders must go to the Ministry of Utility and Telecommunication (MUT) before commencing operations, Abang Johari says - May 22, 2025

PETROLIAM Nasional Berhad (Petronas) may operate in Sarawak without a licence under a new arrangement outlined in the Joint Putrajaya-Sarawak Declaration, provided the national oil and gas corporation applies for an exemption, according to Premier of Sarawak, Datuk Patinggi Tan Sri Abang Johari Tun Openg.

"We will give them (Petronas) an exemption if they apply, but they must notify us first, and then we will issue the exemption," he said.

"We can provide an exemption (for the operations licence) because under this agreement, all licence holders must go to the Ministry of Utility and Telecommunication (MUT) before commencing operations," Abang Johari explained during a press conference held at the Sarawak State Legislative Assembly on Thursday.

The comments follow the signing of a joint declaration between Sarawak and the Federal Government in Putrajaya on Wednesday, co-signed by Abang Johari and Prime Minister Datuk Seri Anwar Ibrahim. The agreement aims to resolve longstanding issues related to Petronas and Petroleum Sarawak Berhad (Petros).

Abang Johari described the declaration as a clear demonstration of the Prime Minister’s commitment, on behalf of the Federal Government, to uphold the aspirations and constitutional rights of Sarawak as enshrined in the Federal Constitution, the Malaysia Agreement 1963 (MA63), and the Inter-Governmental Committee (IGC) Report.

He further emphasised that the declaration underscores Sarawak’s stance that federal and state laws must coexist harmoniously and be respected by all parties.

"The Sarawak Government welcomes this joint declaration as a clear symbol of recognition and mutual respect for the state’s regulatory framework, particularly the Distribution of Gas Ordinance, 2016 (DGO 2016).

"This framework not only provides clarity and certainty to the oil and gas industry in Sarawak but also affirms PETROS’ role as the sole gas aggregator," he said.

He stressed that all parties involved in the marketing, distribution, and supply of gas to consumers in Sarawak must adhere to the DGO 2016.

Accordingly, Petronas is expected to collaborate with PETROS on future projects in Sarawak, especially those involving international partners.

"This joint declaration shows that Sarawak’s rights are being respected and that genuine progress can only be achieved through sincere cooperation and mutual trust," he added. - May 22, 2025

Spotlight

Malaysia

Tuanku Muhriz to focus on state affairs; Will not attend Conference of Rulers meeting

Malaysia

Sarawak projects record RM15.09b revenue, budgets RM10.1b for development in 2027

Malaysia

Sultan Nazrin: Delay in environmental action places future generations at risk

Malaysia

Woman allegedly raped at KL shopping centre after being threatened with intimate video

Malaysia

Jordan’s King confers highest civilian honour on Sultan Ibrahim

Malaysia

Driver monitoring aims to stop commercial vehicle crashes before they happen

Malaysia

KTMB heritage sites set for tourism makeover, says Loke

Malaysia

Zara Qairina’s mother: No doctors recorded injuries consistent with being beaten

You may be interested

Malaysia

PKR leader challenges BN to state position on Eric See-To controversy

By Alfian Z.M. Tahir

Malaysia

19-year-old charged with murdering student in Kuantan

Malaysia

Ex-school principal sells land, takes loans before losing RM1.1m in investment scam

Malaysia

PM to announce latest on proposed Health Services Commission, says Dr Dzulkefly

Malaysia

Driver monitoring aims to stop commercial vehicle crashes before they happen

Malaysia

Fadillah urges young leaders to turn success into opportunities for others

Malaysia

Teacher to be charged over fatal crash that killed Form One student

Malaysia

Selangor records moderate air quality, Johor extends school closures as haze persists