Anwar and Abang Johari set to sign landmark oil & gas deal in 2 days
KUCHING: Premier Tan Sri Abang Johari Openg says that he and Prime Minister Datuk Seri Anwar Ibrahim are set to sign an agreement in two days to resolve long-standing issues surrounding Sarawak's oil and gas resources.
"Just wait — there will be a formal document between the prime minister and myself concerning the oil and gas agreement," he said after officiating the International Construction Week (ICW) Borneo Region here.
He was responding to questions about his recent meeting with Anwar, which focused on finalising matters related to negotiations between Petronas and Sarawak's state-owned Petroleum Sarawak Berhad (Petros).
Abang Johari hinted that the federal government had agreed to recognise both the Petroleum Development Act 1974 (PDA74) and Sarawak's Oil Mining Ordinance 1958 (OMO) as coexisting legal instruments governing the industry.
He also confirmed that Putrajaya recognised Petros as the sole aggregator of oil and gas resources in Sarawak.
Abang Johari said both governments had reached a consensus on the commercial agreement between Petronas and Petros, including increasing Sarawak's equity in liquefied natural gas (LNG) facilities in Bintulu.
The Prime Minister's Office had earlier issued a statement confirming that both parties had come to an agreement aimed at resolving all prior disputes and facilitating closer collaboration between Petronas and Petros.
The statement said that the move was vital to unlocking the sector's full potential and ensuring its effective implementation, including the expedited commercial supply of energy to Asean nations.
The high-level meeting took place at Perdana Putra in Putrajaya on May 9 and was attended by top executives from both Petronas and Petros.
The announcement comes amid heightened tensions between the Sarawak government and Petronas.
Recently, the Sarawak government issued a legal notice alleging that Petronas Carigali was operating unlawfully in the state, having failed to comply with Section 7(e) of the Sarawak Distribution of Gas Ordinance 2016.
Petronas Carigali was given 21 days to obtain the necessary operating licence, with failure to do so potentially resulting in financial penalties under Section 21A of the same ordinance.
Last week, Petronas failed in its bid to secure a court injunction at the Kuching High Court to halt a suit filed by Petros. The suit challenges Petronas over unpaid gas revenues and seeks to prevent the court from proceeding with the case.
Abang Johari recently commented that he was "playing ball" with Petronas amid the ongoing legal and political negotiations over natural gas rights in Sarawak.
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