FEDERAL minister Datuk Armizan Mohd Ali has pushed back against former prime minister Tan Sri Muhyiddin Yassin’s warning that Sabah and Sarawak’s oil and gas demands could weaken Petronas.
Muhyiddin, in remarks earlier threw caution to negotiations with the national oil company, describing it as the “goose that lays the golden egg” and warning that excessive state claims could endanger federal coffers.
Armizan, who is the Domestic Trade and Cost of Living Minister, rejected that view.
“We have no desire to kill Petronas.
After more than 50 years, it is time Petronas helps Sabah create its own golden goose through SMJ Energy Sdn Bhd,” he said in a statement in Kota Kinabalu.
He noted that Sabah’s current participation in the industry was built on the Commercial Collaboration Agreement (CCA) signed between the state government and Petronas in December 2021.
The deal was preceded by an August 2021 meeting led by Chief Minister Datuk Seri Hajiji Noor, with Finance Minister Datuk Seri Masidi Manjun and Armizan among the delegation.
During the meeting, Sabah handed Petronas a comprehensive written framework of the state’s aspirations and demands – the first of its kind, according to Armizan.
“Petronas welcomed it, because it was the first time they received a holistic set of recommendations rather than verbal statements made on various platforms,” he said.
The CCA established standing committees that continue to meet regularly, with the chief minister sitting at the highest level.
Since then, Sabah’s involvement has widened beyond royalties and state sales tax, Armizan added.
Local companies have seen increased participation in supply contracts, with over 1,000 Sabah-based contractors now active in the oil and gas sector.
SMJ Energy, a state-owned company, has been tasked with coordinating Sabah’s interests across the upstream, midstream and downstream chain.
“Through the CCA, Sabah now enjoys greater say, greater participation and greater revenue sharing,” Armizan said.
He stressed that the state’s pursuit of a larger role in oil and gas should not be seen as undermining Petronas, but as part of a long overdue process of strengthening Sabah’s stake in its own resources. - September 13, 2025
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