Sarawak DAP chief
queries state ‘surrender’
over oil and gas rights
Chong Chieng Jen says the state oil company Petros did not have control over liquefied natural gas, Sarawak’s most significant revenue-generating product.
He said a minister’s statement in Parliament last week appeared to imply that “it would be the second time that the Sarawak government has compromised and given up its oil and gas rights to the federal government”.
Law and institutional reform minister Azalina Othman Said said in a parliamentary reply that an agreement had been reached between Petronas and Petroleum Sarawak Bhd (Petros), the state’s sole gas aggregator in a dispute over the state’s rights to distribute oil and gas, and levy a state sales tax on Petronas.
“Is the answer given by Azalina in Parliament a true and fair representation of the agreement between the prime minister and the premier? If it were not true, what actually transpired and was agreed in the meeting?,” Chong said in a statement today.
“If it were true, why did the premier agree to such terms that totally undermine Sarawak’s claim for its rights over oil and gas extracted from the state?”
Azalina said Sarawak acknowledged and accepted the Petroleum Development Act 1974 as the governing legislation for Malaysia’s petroleum industry – which Chong contended was Sarawak’s first defeat over oil and gas rights.
On Jan 7, Prime Minister Anwar Ibrahim and Sarawak premier Abang Johari Openg announced an agreement that the Sarawak government would not enforce or apply state laws to all Petronas’ operations in Sarawak, “past, present and future”.
The agreement brought an end to a dispute between the federal and state governments over Sarawak’s claim over oil and gas resources and the right to impose a state sales tax on Petronas.
Chong said two key provisions of the agreement were most detrimental to Sarawak’s interests.
He said Petros, while recognised as Sarawak’s gas aggregator, is without control over liquefied natural gas, the state’s most significant revenue-generating product.
“Take LNG out of the control of the gas aggregator, the role of the gas aggregator is as good as not having one,” he said. “The only gas product left under Petros’ control would be liquefied petroleum gas (LPG), which is primarily used for household cooking and is currently subsidised by the federal government.”
In response to Chong’s criticism, Abang Johari’s chief political secretary Fazzrudin Abdul Rahman questioned why Chong did not seek any clarification from Azalina in Parliament and instead chose “to train his guns on the Sarawak government”.
“Why did he remain silent in Parliament and only raise the issue upon returning to Kuching? Is it because he did not want to fight for Sarawak’s rights?” he was quoted as saying.
Chong said he would raise the matter in Parliament next week.
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