Prime Minister and Finance Minister Datuk Seri Anwar said that the federal government and the Sarawak state government recognize Sarawak's vision to advance into the state's oil industry.
He said that this vision has been incorporated into the "2016 Gas Distribution Regulations" (Amendment) (DGO), which will take effect on March 1 this year.
He stated today (17th) at the Prime Minister's briefing session held in the Parliament's Lower House: "The Gas Distribution Regulations (Amendment) is read together with the 1974 Petroleum Development Act (PDA), thus, Sarawak Oil & Gas Company (Petros) acts as an aggregator in Sarawak."
He further pointed out that the above role still confirms previous approvals for Petronas and its subsidiaries.
“This means that Petronas will maintain all existing domestic and international agreements (contractual obligations).”
According to the regulation, Petros guarantees to obtain up to 1.2 billion cubic feet of gas per day to meet Sarawak state needs, and guarantees to provide additional supplies based on subsequent demand.
Anwar said that Petros also has the right to expand new businesses and make good use of the partnership with Petronas to ensure the benefits of the nation and Sarawak, all follow-up negotiations will be maintained based on transparent commercial principles to uphold common interests.
He said that as stated in the legal provisions, the federal government and the Sarawak state government also acknowledge that the "1974 Petroleum Development Act" is a federal act.
The Prime Minister pointed out that Petronas has completed its mission to ensure the distribution of oil to all states.
When mentioning Sarawak, Anwar said that thanks to the development of Sarawak's oil and gas industry, since 1976, the total investment in upstream and infrastructure has exceeded 280 billion ringgit.
“In upstream total investment, it is estimated that the contract value over the past 10 years (2014 to 2024) exceeds 90 billion ringgit.”
“Registered supplier companies from Sarawak have secured contracts worth more than 40 billion ringgit in the same period.”
In terms of financial returns, Anwar said that by December 2024, Sarawak had received 49 billion ringgit in cash payments for oil resource rights, and 18.66 billion ringgit in oil product sales tax by the third quarter of 2024.
By December 2024, Sarawak had also received 28.6 billion ringgit in dividends through the Sarawak Treasury Department's shareholding in Malaysia LNG Private Limited (MLNG).