PM Anwar: Petros to be Sarawak’s oil and gas aggregator from March 2025

 

PM Anwar: Petros to be Sarawak’s oil and gas aggregator from March 2025



Prime Minister Datuk Seri Anwar Ibrahim said Petros will be the aggregator for oil and gas in Sarawak beginning March 1, 2025, via the Distribution of Gas Ordinance 2016. — Picture by Firdaus Latif

Monday, 17 Feb 2025 2:24 PM MYT


KUALA LUMPUR, Feb 17 — Sarawak’s state-owned oil company Petroleum Sarawak (Petros) will be the aggregator for oil and gas in Sarawak beginning March 1, 2025, via the Distribution of Gas Ordinance 2016 (DGO), Prime Minister Datuk Seri Anwar Ibrahim announced in Parliament today.

Petroliam Nasional Bhd (Petronas) and Petros will forge ahead as partners to the oil industry and Petronas will continue to uphold all its domestic and international contractual obligations.

“Petros, under the DGO, is guaranteed to obtain up to 1.2 billion cubic feet of natural gas per day for Sarawak’s domestic needs, with additional guarantees based on future needs.

“Petros is also authorised to expand its activities and leverage collaborations with Petronas,” Anwar said.

In addition to the DGO and the Malaysia Agreement 1963, the Sarawak state government recognises the Petroleum Development Act 1974 as the federal law that allows Petros to assume control of gas distribution in Sarawak.

“This role still confirms the previous approval given to Petronas and its subsidiaries.

“All further detailed negotiations will maintain shared benefits and interests, adhering to commercial principles. This is the agreement that has been reached,” Anwar said.

Further, Anwar also commended Petronas for ensuring distribution to all states and for fulfilling its mandate to become a key player in the oil and gas industry.

He added that the oil and gas industry in Sarawak had benefited from upstream investments and infrastructure exceeding RM280 billion since 1976.

Of the total amount of upstream investment, over RM90 billion in contractual value was spent in the past 10 years, while vendors from Sarawak had received contracts worth over RM 40 million in the same period.

Sarawak had received returns of around RM49 billion in cash payments as of December 2024 and RM18.66 billion in sales tax up to the third quarter of 2024.

The State Financial Secretary of Sarawak, through the Malaysia LNG Group, also received dividends amounting to RM28.6 billion as of December last year.

The State Financial Secretary of Sarawak was incorporated through the Financial Secretary (Incorporation) Ordinance, 1948.