(Kuching, 10th) Members of the Gabungan Parti Sarawak (GPS) Parliamentary Backbenchers Club (BBC GPS) emphasize that the Federal Constitution cannot be treated as a 'buffet menu' where provisions are conveniently picked for political interest, but must be read and adhered to as a whole. Their stance is to defend Sarawak's legal rights in the distribution of natural gas and the role of the state-owned company—Petroleum Sarawak Berhad (PETROS).
In a statement, the Sarawakian MPs pointed out that the dispute between PETRONAS (the national oil company) and PETROS should not be viewed as a 'family dispute', but as an issue involving legal and constitutional jurisdiction, with its roots clearly established in the Distribution of Gas Ordinance 2016 (DGO 2016) and the Borneo States Legislative Powers Order 1963, which vested Sarawak with such powers.
They reminded all MPs that they pledged, upon taking office, to 'preserve, protect and defend the integrity of the Constitution', which includes the constitutional rights vested in the states.
The statement read: “We cannot selectively cite Item 8(j) of the Federal List to justify federal control over petroleum and natural gas, while disregarding the licensing and permit authority given to state governments under Item 2(c) of the State List. These two are interrelated, which is the spirit of federalism established since 1963.”
This statement was released today following a press conference at Parliament by Sri Aman MP Dato Sri Doris Sophie Brodie.
Earlier, Hassan Karim, the Pakatan Harapan MP for Pasir Gudang, warned in Parliament that if the related dispute continues, it could weaken PETRONAS’s role as the national oil company.
The BBC GPS MPs explained that Sarawak’s jurisdiction over this issue is limited to downstream activities, especially the distribution of natural gas, a power lawfully established under the Sarawak Legislative Assembly’s Distribution of Gas Ordinance 2016 (DGO 2016) and not in violation of the Federal Constitution.
They pointed out that through the Exemption (Amendment) Notification 2021, sales and distribution activities related to natural gas and liquefied petroleum gas (LPG) within Sarawak have been exempted from the scope of the Petroleum Development Act 1974 (PDA), making the DGO 2016 the sole legislation applicable to natural gas distribution in Sarawak.
The statement emphasized: “The DGO and the appointment of PETROS as sole natural gas aggregator do not violate the PDA 1974, as Sarawak has been exempted from those provisions. The ordinance is a legitimate law, has never been invalidated by any Malaysian court, and enjoys a ‘presumption of constitutionality’.”
The MPs also expressed concern that there are still entities operating in Sarawak’s oil and gas sector that have not complied with the state government’s licensing requirements, stressing that “compliance with law is not a selective obligation”—all enterprises, including national companies, must comply.
They said: “Since other local and international companies can comply with Sarawak laws, national companies should set an example.”
The MPs further clarified that Sarawak does not intend to undermine or harm PETRONAS but hopes for mutually respectful cooperation to drive the development of the oil and gas industry for the benefit of Sarawak and Malaysia as a whole.
They stated: “PETROS is not a competitor to PETRONAS, but a strategic partner. It ensures that operations within Sarawak are conducted sustainably, transparently, and for the people’s benefit, without compromising national interests.”
The MPs added that Sarawak continues to contribute to the country through oil revenue, energy, and economic development, but remains firmly committed to self-management of state resources as guaranteed by the Federal Constitution and the Malaysia Agreement 1963 (MA63).
The statement concluded: “Let us not selectively interpret the Constitution, but uphold its spirit with sincerity, understanding, and respect. Sarawak asks only for its rightful entitlements and will not accept anything less than originally promised.”
In a statement, the Sarawakian MPs pointed out that the dispute between PETRONAS (the national oil company) and PETROS should not be viewed as a 'family dispute', but as an issue involving legal and constitutional jurisdiction, with its roots clearly established in the Distribution of Gas Ordinance 2016 (DGO 2016) and the Borneo States Legislative Powers Order 1963, which vested Sarawak with such powers.
They reminded all MPs that they pledged, upon taking office, to 'preserve, protect and defend the integrity of the Constitution', which includes the constitutional rights vested in the states.
The statement read: “We cannot selectively cite Item 8(j) of the Federal List to justify federal control over petroleum and natural gas, while disregarding the licensing and permit authority given to state governments under Item 2(c) of the State List. These two are interrelated, which is the spirit of federalism established since 1963.”
This statement was released today following a press conference at Parliament by Sri Aman MP Dato Sri Doris Sophie Brodie.
Earlier, Hassan Karim, the Pakatan Harapan MP for Pasir Gudang, warned in Parliament that if the related dispute continues, it could weaken PETRONAS’s role as the national oil company.
The BBC GPS MPs explained that Sarawak’s jurisdiction over this issue is limited to downstream activities, especially the distribution of natural gas, a power lawfully established under the Sarawak Legislative Assembly’s Distribution of Gas Ordinance 2016 (DGO 2016) and not in violation of the Federal Constitution.
They pointed out that through the Exemption (Amendment) Notification 2021, sales and distribution activities related to natural gas and liquefied petroleum gas (LPG) within Sarawak have been exempted from the scope of the Petroleum Development Act 1974 (PDA), making the DGO 2016 the sole legislation applicable to natural gas distribution in Sarawak.
The statement emphasized: “The DGO and the appointment of PETROS as sole natural gas aggregator do not violate the PDA 1974, as Sarawak has been exempted from those provisions. The ordinance is a legitimate law, has never been invalidated by any Malaysian court, and enjoys a ‘presumption of constitutionality’.”
The MPs also expressed concern that there are still entities operating in Sarawak’s oil and gas sector that have not complied with the state government’s licensing requirements, stressing that “compliance with law is not a selective obligation”—all enterprises, including national companies, must comply.
They said: “Since other local and international companies can comply with Sarawak laws, national companies should set an example.”
The MPs further clarified that Sarawak does not intend to undermine or harm PETRONAS but hopes for mutually respectful cooperation to drive the development of the oil and gas industry for the benefit of Sarawak and Malaysia as a whole.
They stated: “PETROS is not a competitor to PETRONAS, but a strategic partner. It ensures that operations within Sarawak are conducted sustainably, transparently, and for the people’s benefit, without compromising national interests.”
The MPs added that Sarawak continues to contribute to the country through oil revenue, energy, and economic development, but remains firmly committed to self-management of state resources as guaranteed by the Federal Constitution and the Malaysia Agreement 1963 (MA63).
The statement concluded: “Let us not selectively interpret the Constitution, but uphold its spirit with sincerity, understanding, and respect. Sarawak asks only for its rightful entitlements and will not accept anything less than originally promised.”