30 pct PETRONAS stake call makes little sense, ignores ownership issue

Wilfred Yap

By DayakDaily Team

KUCHING, Jan 29: A proposal for the Sarawak government to take a 30 per cent equity stake in Petroliam Nasional Berhad (PETRONAS) makes little sense and risks distracting from Sarawak’s fundamental fight over oil and gas ownership, says Kota Sentosa assemblyman Wilfred Yap.

Responding to Stampin MP Chong Chieng Jen, Yap said such proposals cannot come at the expense of sound policy, factual accuracy, and responsible governance.

“This proposal, regrettably, makes little sense, much like Chong’s earlier statements in the Sarawak Legislative Assembly made in 2017 claiming that Sarawak would receive 50 per cent of all taxes collected and 20 per cent royalty of oil revenue if Pakatan Harapan were to come to power.

“Those claims were never supported by law, policy framework, or constitutional reality, and to this day remain unfulfilled and unexplained,” he said in a statement today.

Yap further said PETRONAS is a national oil corporation wholly owned by the federal government under the Petroleum Development Act (PDA) 1974, and that transferring 30 per cent equity is not a simple administrative move.

“Any suggestion to transfer 30 per cent equity is not a simple administrative decision but would require major legislative and structural changes, with far-reaching constitutional, fiscal and corporate implications,” he added.

Yap stressed that the more fundamental issue for Sarawak is not symbolic equity in PETRONAS, but securing clear and unequivocal acknowledgement that oil and gas resources found in Sarawak belong to Sarawak.

“That principle goes to the heart of Sarawak’s rights within the federation and must be addressed honestly, not distracted by impractical proposals,” he pointed out.

Yap also said the idea that a 30 per cent shareholding automatically guarantees stable revenue or meaningful control is misleading.

“Dividends are not fixed entitlements; they fluctuate based on global energy markets and corporate strategy.

“Minority equity does not confer control over PETRONAS’ operations or policy direction,” he explained.

He also stressed that Sarawak instead needs serious solutions grounded in law, facts and realism, and called for pragmatic cooperation between PETRONAS and Petroleum Sarawak Berhad (PETROS) once ownership is properly recognised.

At the same time, Yap urged Chong to revisit the legal and constitutional framework governing PETRONAS and Sarawak’s resource rights and to put forward proposals that can withstand scrutiny.

Yesterday (Jan 29), Stampin MP Chong Chieng Jen called for a fairer arrangement for Sarawak in its ongoing dispute with PETRONAS, proposing that the State be granted 30 per cent equity and board representation to ensure shared benefits from the nation’s oil and gas resources.

Under this model, he said Sarawak would receive 30 per cent of all future dividends while PETRONAS retains its role as the country’s main regulator. — DayakDaily