SARAWAK Chief Minister Abang Johari Openg today dismissed accusations the state made a u-turn on the highly controversial national monopolistic oil law, the Petroleum Development Act 1974 (PDA74). 

“We didn’t surrender our rights (over Sarawak’s oil and gas resources),” the chief minister told journalists when asked to clarify a statement contained in the May 8 resolution between Sarawak and national oil company Petronas, in the dispute over the 5% sales tax payment on petroleum products.

The settlement statement, jointly signed by Assistant Minister in the Chief Minister’s Department for Law and State-Federal Relations Sharifah Hasidah Sayeed Aman Ghazali Menteri and Petronas chairman Ahmad Nizam Salleh, contained an ambiguous paragraph that drew condemnation, including accusations that the recognition of the PDA74 is tantamount to a sellout.

The paragraph read: “However, all the agreements that have been agreed between the Sarawak state government and Petronas under the Petroleum Development Act 1974 [Act 144] are still valid and in force”.

Critics have interpreted this as Sarawak recognising Petronas having absolute rights over its oil and gas resources.

Speaking to reporters today after handing out Raya-Gawai goodies and cakes to 23 frontline organisations in Kuching, Abang Johari said Sarawak recognised the PDA74 “for the whole nation” but not in Sarawak.

In the state, he added, the law governing ownership and regulating oil and gas resources is still the state’s Oil Mining Ordinance 1958 – a law which Petronas had refused to recognise. 

“We recognise (the) PDA74 (for the rest of the nation) but for Sarawak, it is based on the ordinance,” he said.

Abang Johari said the newly formed committee to iron out the settlement would in fact be thrashing out Petronas’ role in Sarawak’s oil and gas industry.

“There will be a new arrangement. (It’s) being negotiated.”

The chief minister also assured that whatever the committee had agreed on would be brought to the Sarawak assembly’s bi-partisan consultative committee for further deliberation. 

The state government had been accused of not bringing the terms of the resolution to the committee for approval and advice.

The consultative committee, which has two former PKR assemblymen – now independents having been sacked from the party – and three DAP, advises the chief minister on the state’s position in the ongoing negotiations on the Malaysia Agreement 1963, oil and gas rights. 

Abang Johari had in 2018 declared the PDA74 as null and void in Sarawak as it had failed to fulfil the mandatory legal requirement for it to be endorsed by the state legislative assembly after it was passed by Parliament.

The law, passed when the country was in a state of emergency, has often been seen by Sarawak and Sabah as Putrajaya’s instrument to steal the state’s most valuable resources. – May 14, 2020.