ABU DHABI: Prime Minister Datuk Seri Anwar Ibrahim believes that the issue of gas distribution rights in Sarawak between Petronas and Petros has been resolved following his meeting with Premier Tan Sri Abang Johari Openg.
He said the Petroleum Development Act 1974 continues to be accepted as the country's overarching framework of oil and gas industry governance.
The Sarawak Distribution of Gas Ordinance 2016, he said, shall not supersede the PDA 1974 and the Federal Constitution as well as other federal laws.
He said the government had organised engagement sessions with Petronas, the Sarawak government and the Attorney-General's Chambers to discuss the issue.
He said the checks showed that it was not a policy issue.
"On January 7, I met with the Sarawak Premier and we have resolved the issue of gas distribution in Sarawak.
"The Petroleum Development Act 1974 continues to be accepted as the overarching framework of oil and gas industry governance in Malaysia.
"The Sarawak Distribution of Gas Ordinance 2016 shall not supersede the PDA 1974 and the Federal Constitution as well other federal laws.
"Thus, Petronas' position remains unaffected. Accordingly, no licences or additional procedures for the implementation of petroleum and gas-related activities shall apply to Petronas and its subsidiaries in Sarawak," he told Malaysian media in Abu Dhabi today.
He said the government accepts that Petros was established for gas exploration and distribution in Sarawak.
Anwar said that over his last two days in Abu Dhabi, he was approached by international investors and those from Abu Dhabi seeking clarification over Petronas' status in light of the establishment of Petros.
"We decided that all agreements in place remain unchanged as it could complicate relations with multinational companies.
"Although we allow Petros to become the aggregator, they have agreed not to disrupt Petronas' existing operations, The same applies to Petronas, which is given authority nationwide but allows Petros to continue its work in Sarawak.
"There shouldn't be any concerns over the decision to allow Sarawak to become the sole aggregator."
Anwar said his discussions with Japan Prime Minister Shigeru Ishiba, as well as with UAE companies such as Mubadala led to the same conclusion.
"We want to make Sarawak a regional gas hub but with federal and Petronas involvement as well as Petros'," he said.
Anwar said all existing agreements and arrangements entered into by Petronas and its subsidiaries with third parties including Petros continue to be valid and enforceable.
"In addition, no laws shall be made by Sarawak that would have an adverse impact on the PDA 1974, Federal Constitution and any federal laws in relation to petroleum and gas activities by Petronas and its subsidiaries in Sarawak," he said.
Anwar said that moving forward, Petronas and Petros may collaborate subject to mutually agreed commercial terms.
"With regard to the margin derived from gas aggregator activity between Petronas and Petros, this must take into account Petronas' upstream investments," he said.