KUCHING, May 22 – In a landmark announcement signalling a new chapter in federal-state energy cooperation, Sarawak Premier Tan Sri Abang Johari Tun Openg confirmed today that Petronas and its subsidiaries will not be required to obtain operating licences from the Sarawak government to conduct operations in the state.
However, he clarified that the national oil company must first apply for formal exemptions from the state’s Ministry of Utility and Telecommunication, which retains the authority to grant or deny such exemptions.
“We’ll grant them exemptions. However, they must first apply for it,” Abang Johari said during a press conference at the Sarawak state assembly, as quoted by The Borneo Post.
The announcement follows the signing of a new joint declaration between the federal and Sarawak governments, which formally recognises state-owned Petroleum Sarawak Bhd (Petros) as the sole gas aggregator in Sarawak, effective from March 1 under the Distribution of Gas Ordinance 2016.
The Premier hailed the declaration as a milestone in reinforcing Sarawak’s constitutional rights under the Federal Constitution, the Malaysia Agreement 1963 (MA63), and the Intergovernmental Committee (IGC) Report.
“This collaborative legal framework provides clarity and certainty to the oil and gas industry in Sarawak, in particular the recognition of the role of Petros as the gas aggregator,” he added.
When asked whether the joint declaration would survive changes in federal leadership, Abang Johari pointed out that similar agreements inked under former prime ministers, including Tan Sri Muhyiddin Yassin, remained valid.
On the ongoing legal disputes between Petronas and Petros, he said such matters will continue to be handled by legal teams through the courts, indicating the declaration does not supersede existing litigation.
Addressing Sarawak’s interests in the liquefied natural gas (LNG) sector, Abang Johari reiterated that the state must have equity and involvement through Petros.
“That’s all. The rest is business – if business is good, we get more profit,” he said.
The new framework underscores a mutual recognition of both federal and Sarawak laws, offering the oil and gas industry a clearer and more structured regulatory landscape, while strengthening Sarawak’s autonomy over its resources.
