SARAWAK Chief Minister Abang Johari Openg said he does not believe the Pakatan Harapan federal government will derail the state’s efforts to demand an increase in oil and gas royalty, and the return of lost rights.

“I am not concerned. Why should I be?” he told reporters after reiterating the state’s position on the oil and gas industry in his engagement with oil and gas companies operating in the state, in Kuching today.

He said he held “conversations with them” on the oil royalty issue.

“Yes, it’s true that I called Daim,” he said, referring to former finance minister Daim Zainuddin, who heads the Team of Eminent Persons, tasked with advising the government on economic and financial reforms.

However, he declined to give details.

“Be fair to them (PH). Let them settle down first.”

In his address to oil and gas company representatives and industry players, Abang Johari said he is taking complete control over the granting of prospecting, exploration and mining rights in Sarawak, “as enshrined in Article 1(3) of the federal constitution”, because it is key to to both state and national interests.

“With this approach – based on our constitutional rights to the exploration, prospecting and mining of petroleum resources both onshore and offshore on the continental shelf – I have to ensure that the state derives optimal benefits from these resources, and Sarawakians can look to the future secure in the knowledge that the state is putting in place the right fundamentals for a stable, progressive and prosperous Sarawak.”

All companies involved in the exploration, prospecting and mining of petroleum, and the distribution of gas in Sarawak are required, beginning July 1, to have licences, permits, leases and approvals under either the Oil Mining Ordinance 1958, Gas Distribution Ordinance 2016 or Sarawak Land Code.

“They must comply with all state laws governing them,” said Abang Johari.

He told oil and gas industry executives that he formed the state-owned Petroleum Sarawak Bhd (Petros) “to safeguard our invaluable oil and gas resources, and to develop an industry utilising these resources in a more inclusive, equitable and sustainable manner”.

He said it is also to open up opportunities for state corporations and Sarawakians to participate meaningfully in the industry.

He said Petros “is expected” to work alongside Petronas as a co-regulator of oil and gas assets “on Sarawak shores, as well as on its continental shelf, thus, including the Exclusive Economic Zone”.

However, he said, Petros, which was formed on August 8 last year, will not undertake exploration activities. – May 16, 2018.