(Kuching, 22nd) Dato Sri Sharifah Hasidah stated that the 1974 Petroleum Development Act is not absolute and is still subject to the Federal Constitution.
In response to recent remarks by DAP's Padungan assemblywoman Yong Siew Wei, Hasidah, who is the Deputy Minister in the Sarawak Premier's Department (Law, MA63, and State-Federal Relations), emphasized that the Sarawak government consistently holds that both federal and state laws must be respected and must coexist.
"The 1974 Petroleum Development Act and the 2016 Sarawak Gas Distribution Ordinance (DGO 2016) are both in force, but this does not mean, nor have we ever said, that the 1974 Petroleum Development Act is absolute. Like any other law, it remains subject to the Federal Constitution."
She said that according to the Federal Constitution's Federal List Item 8(j), the federal government's control over petroleum is still subject to the State List Item 2(c), which grants Sarawak the power over land and its natural resources, through exploration licenses, mining leases, and certificates.
"This basic constitutional structure remains unchanged, and the Sarawak government has never said that the 1974 Petroleum Development Act cancels or overrides the rights given by Sarawak's laws or the Malaysia Agreement 1963 (MA63)."
She further noted that significant progress has been made over the past decade in reclaiming Sarawak's rights over its petroleum resources.
Notably, since 2020, Sarawak has completely controlled onshore mining.
Under the Sarawak Oil Mining Ordinance, mining leases have been granted to Petroleum Sarawak Berhad (Petros), allowing it to explore and produce oil in the Adong Kechik West area in Miri.
Oil production in this area is expected to commence in a few months, marking the first onshore oil production in Sarawak in over 50 years.
She also emphasized that before the establishment of Petros, Sarawak had no rights or equity in offshore oil and gas fields.
Now, Petros holds equity in five production blocks on the continental shelf, making it the third-largest oil and gas company in Malaysia, with annual revenues of RM4 billion.
Meanwhile, Petros is also exploring five offshore blocks and preparing to develop gas reserves in western Sarawak.
In downstream activities, Sarawak will control the distribution of natural gas in the state through the 2016 Gas Distribution Ordinance.
"The Sarawak government will ensure our gas resources are used sustainably, as the current trend of exporting 94% of the state's produced gas is not a sustainable use of our depleting resources."
Hasidah pointed out that Sarawak has secured a guaranteed supply of at least 120 million cubic feet of gas per day to support the Sarawak Gas Roadmap, which will enable Sarawak to attract more foreign investment, support more power generation, and propel Sarawak into becoming the ASEAN Centre of Clean Energy as announced by the Prime Minister.