A KEY politician in Sarawak’s ruling coalition has warned that harm will come to Malaysia if Petronas pursues its intention to take Sarawak to court to preserve the company’s monopoly as the sole guardian of the country’s oil and gas resources.
“I have to put up this warning flag because we cannot afford to disrupt the present relations between Sarawak and the Madani government under Anwar Ibrahim,” said Deputy Speaker of the Sarawak legislative assembly Idris Buang when responding to a CNA news report that the national oil corporation was considering filing a court injunction to temporarily halt Sarawak taking control over all oil and gas resources in the state.
The latest takeover by the state is over the supervision of oil and gas trading.
Sarawak has issued an ultimatum to Petronas to finalise an agreement that would give the state-owned oil company Petroleum Sarawak Bhd complete rights over the trading by October 1.
With only days remaining to affect the handover, Sarawak Premier Abang Johari Tun Openg yesterday said talks for the handover are still going on.
Idris, who is also the information chief for Parti Pesaka Bumiputera Bersatu (PBB), the lynchpin of the four-party state ruling coalition, said Sarawak’s relationship with the federal government was considered “the best ever since the formation of Malaysia”.
“We truly appreciate and should safeguard this good relation for as long as we call ourselves Malaysians who want to progress,” he said.
Idris said Anwar has clearly said it was time for implementing what had been agreed in the Malaysia Agreement 1963 (MA63), the basis for Malaysia’s formation.
Expressing fear that “certain irresponsible quarters” would take advantage of the situation to cause unnecessary strain to the federal and state relationship, he said these parties “should just adhere to working seriously” on fulfilling the terms of MA63 and the Federal Constitution.
“It ought to be already very clear by now that Sarawak’s sovereign rights to its oil and gas, land, forest and other natural resources, have been specifically entrenched and safeguarded by MA63.
“Our federal constitution is ruled by the spirit of MA63, without which, Malaysia (would) never be formed. Therefore, for Petronas to debunk all that had been stipulated in MA63 would not be so easy without a full and rigorous defence and counteraction from Sarawak,” he said.
A lawyer by training, Idris added that any court action might escalate to years of legal battles and one that would bring out “many related issues”.
One very strong issue, he pointed out, was the validity of Petronas’s rights and power under the Petroleum Development Act 1974 (PDA74) in Sarawak.
Sarawak has said the PDA74, even though passed by parliament, has no legal standing in the state as it had never received the mandatory ratification by the state assembly. Ratification is required for laws passed by parliament that affect the state’s rights.
“There are strong experts’ opinions asserting that despite the PDA74 (which was passed in parliament), Sarawak’s sovereign rights to its natural resources remain with Sarawak and all the laws relating to them that have been existing since before formation of Malaysia, remained in force,” Idris said.
Another federal passed law that impeded Sarawak rights to its natural resources offshore is the Continental Shelf Act of 1966.
Idris said the Queen in Council Order of 1954, and registered in the United Nations, stipulates the boundaries of the colony shall include the area of the continental shelf, which includes its seabeds and subsoil beneath the high seas contiguous to its territorial waters.
“Sarawak's rights to all its natural resources over land extends to its territorial seas – seabed and subsoil – which the Geneva Convention of 1958 and United Nations Convention on the Law of the Sea, 1982 extends to up to 200 nautical miles offshore.”
He said since Malaysia subscribed to such treaties, the federal government should respect Sarawak’s legal rights.
“When it comes to rights over the natural resources in the continental shelf including its seabeds and subsoils situated within the boundaries of a member state of the federation like Sabah and Sarawak, domestic laws shall prevail,” Idris said.
“Therefore Petronas, being a responsible national corporation, must look holistically and beyond just mere business.”
He said the national oil company must look at the sanctity to help maintain Malaysia’s stability in every aspect including the socio-political dynamics.
Bandar Kuching MP Kelvin Yii said he was confident that “whatever is rightfully ours will withstand any legal challenges”.
The DAP lawmaker said a legal judgement in court was probably what was needed to put to rest all different interpretations and disputes of the matter and thus facilitate the proper return of the state’s rights and resources.
“Sabah and Sarawak have the right to their resources within their territories. It’s an entitlement stated and agreed upon under MA63.
“Such demands are not above and beyond what is rightfully ours and should not be seen as a political matter, but a legal matter concerning the basis and foundation of the formation of Malaysia.”
He added that all Sabah and Sarawak wanted was to have what was rightfully theirs and to ensure they received equitable development. – September 10, 2024.
