THE Federal Government of Malaysia and the state of Sarawak have formally signed a joint declaration establishing a mutual understanding concerning the roles of national oil company Petroliam Nasional Bhd (Petronas) and state-owned Petroleum Sarawak Bhd (Petros).
The declaration was signed at Perdana Putra by Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Tun Openg, signalling a new phase of collaboration in the oil and gas sector.
Speaking at a joint press conference following the signing, Anwar, who also serves as Finance Minister, described the agreement as “a step forward in national and state development through cooperation between Petronas and Petros.”
“This understanding, in principle, had been discussed earlier with the Premier, taking into account the parameters that recognise both the Petroleum Development Act (PDA) 1974 and Sarawak’s amended Distribution of Gas Ordinance (DGO) 2016,” he stated.
Anwar highlighted that the agreement reflected Sarawak’s growing capability in managing its natural resources, particularly through the establishment of Petros, a state oil company with “significant potential”.
He emphasised that the new framework would not diminish Petronas’ existing role but would ensure Petros’ formal recognition and operational space within Sarawak.
“Petronas’ role is not diminished. It continues to operate as usual, but now within a framework that also takes into account Sarawak’s enhanced responsibilities and Petros’ role.
“This understanding allows Petronas to continue its operations, while recognising Petros as a key player in Sarawak. Both will work together to elevate Malaysia’s standing in the oil and gas sector,” Bernama cited anwar saying today.
The Prime Minister added that the Federal Government aimed to establish Sarawak as the regional hub for the oil and gas industry in ASEAN.
“I believe this is a realistic and strategic move that will strengthen the nation’s economy and enhance Sarawak’s position,” he said.
Also in attendance at the ceremony were Deputy Prime Minister Datuk Seri Fadillah Yusof; Sarawak’s Utilities and Telecommunications Minister Datuk Seri Julaihi Narawi; Works Minister Datuk Seri Alexander Nanta Linggi; Chief Secretary to the Government Tan Sri Shamsul Azhar Abbas; Attorney-General Datuk Mohd Dusuki Mokhtar; and Sarawak Attorney-General Datuk Saferi Ali.
On 17 February 2025, Anwar had affirmed both the Federal and Sarawak governments’ recognition of Sarawak’s aspiration to independently develop its oil and gas industry. This will be facilitated through the Distribution of Gas Ordinance, which comes into effect on 1 March 2025. - May 21, 2025
