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

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