SARAWAK Chief Minister tonight announced the state government has taken over

regulatory control of the state’s onshore oil and gas resources from Petronas.

Abang Johari Openg said the issuance of mining leases to state-owned petroleum company Petros to prospect two petroleum blocks onshore in northern Sarawak exemplified the commitment of the state government to take over the regulation of oil mining in the state.

Abang Johari, alluding to the state’s Oil Mining Ordinance (OMO) having precedence over the federal Petroleum Development Act (PDA) 1974 in the state, said the issuance was a commitment to protect the interests and aspirations of Sarawakians.

“It is also a reaffirmation of the state government’s commitment to fully realize the remaining hydrocarbon potentials in the onshore areas,” the chief minister said at a handing over of the leases to the state-owned company in Kuching.

The blocks border Brunei and stretches from Miri to Limbang.

He said the issuance of the mining leases “signals the beginning of the state government’s efforts to exercise Sarawak’s constitutional rights to regulate oil mining under state laws and to take complete control over the exploration and production of petroleum in onshore areas”.

“Assuming regulatory control of onshore mining, enforcing our constitutional authority over the distribution of gas and increasing Petros’ participation in offshore petroleum production areas, the state government will strengthen the role of Petros in spearheading the state’s enhanced involvement in the oil and gas industry especially in the downstream sectors.”

Abang Johari said the state government, through Petros, will have the control of, and legal title to, all the oil and natural gas produced from the onshore areas, and to select and appoint contractors or enter into ventures with investors to explore and produce the oil and gas from onshore Sarawak in the new regulatory arrangement. – October 30, 2020.