Abang Johari says Sarawak’s gas distribution dispute near resolution, PM Anwar to announce formula

Abang Johari says Sarawak’s gas distribution dispute near resolution, PM Anwar to announce formula



Sarawak Premier Tan Sri Abang Johari Tun Openg said the Petroleum Development Act (PDA) 1974 and Oil Mining Ordinance (OMO) 1958 can co-exist. — Picture by Firdaus Latif

Wednesday, 11 Dec 2024 2:56 PM MYT


KUCHING, Dec 11 — Both the Petroleum Development Act (PDA) 1974 and Oil Mining Ordinance (OMO) 1958 can co-exist, stated Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said as such a formula to resolve gas distribution involving Petroleum Sarawak Berhad (Petros) and Petroliam Nasional Berhad (Petronas) will be announced by Prime Minister Datuk Seri Anwar Ibrahim soon.


The Premier was cited by the Sarawak Public Communications Unit (Ukas) as saying the issue could be considered resolved while awaiting Anwar’s official announcement.

Abang Johari said Petros will continue its collaboration with Petronas in the gas industry within the region, as both companies control a significant portion of the gas reserves sector in Sarawak.


He explained this means the revenue from the exploration of natural resources in Sarawak will be shared and the issues that previously arose only involved legal aspects.


“So, in fact, this matter is not really an issue. It’s only from a legal perspective where Petronas operates under the Petroleum Development Act (PDA) 1974, while we (Sarawak) adhere to the Oil Mining Ordinance (OMO) 1958, and it has been decided that both laws (PDA & OMO) can coexist,” he said during the Post-Sarawak Budget 2025 Special Interview programme on TVS yesterday.

He pointed out that many have tried to turn this into a major issue, with some claiming Petronas will lose RM100 billion in profit.

“Perhaps there might be a slight reduction due to the distribution of gas.

“I believe this matter can be resolved. In fact, a solution is already in sight, but I cannot reveal it just yet. Let the Prime Minister announce the resolution formula. It is already settled,” he added.

Sarawak has maintained that Petros’ appointment as the state’s sole gas aggregator is non-negotiable.

Last month, Minister of Utility and Telecommunication Dato Sri Julaihi Narawi stressed that the Distribution of Gas Ordinance 2016, amended in 2023, is a law that seeks to ensure all parties, including Petronas, comply with the licensing requirements set out. — The Borneo Post