Abang Johari asserts Sarawak owns carbon capture, utilisation and storage rights

Composite photo showing the Sarawak DUN Complex and Petronas logo

By Lian Cheng

KUCHING, Nov 29: Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has given assurance that there is no issue over Carbon Capture, Utilisation and Storage (CCUS) rights following the amendment of the Sarawak Land Code (Carbon Storage) Rules 2022.

Referring to the Sarawak Land Code, he also stressed that Sarawak owns the rights to CCUS and its continental shelf.

“Of late, there has been concern on CCUS rights. I would like to emphasise in this august House that our CCUS activities is enshrined with the amendment of the Sarawak Land Code (Carbon Storage) Rules, 2022.

“Therefore, rest assured that CCUS activity in Sarawak and its continental shelf is governed by our law,” said Abang Johari when delivering his ministerial winding-up speech at the Sarawak Legislative Assembly (DUN) sitting here today.

Abang Johari’s statement echoses the recent statement by Sarawak Legal Counsel Dato Sri JC Fong who said that Petroleum Development Act 1974 (PDA74) does not vest land ownership with Petroliam Nasional Berhad (PETRONAS) over the areas it operates or used to operate in.

Fong explained that PDA74 only grants PETRONAS the rights to explore, exploit, and own petroleum, without vesting the ownership over the land itself in the company.

In the event of oil and gas depletion, the obligation arises to return the land to Sarawak, providing an opportunity for the State to determine its future use, he said, where Sarawak can decide what to do with the land including developing the sites for carbon storage, by using the abandoned or depleted oil wells or oil fields.

Meanwhile, Abang Johari said Sarawak has made significant progress on the Commercial Settlement Agreement (CSA) with PETRONAS signed 3 years ago.

Currently, as much as 91 per cent or 4,200 PETRONAS employees in Sarawak are locals, exceeding the targeted 85 per cent target set by the Sarawak government.

Apart from the high employment rate of locals by PETRONAS in Sarawak, the construction of MRSM Bintulu which is funded by PETRONAS has been completed. The school which specialises in Science, Technology, Engineering and Mathematics (STEM) learning will be taking in its first batch of students when the inaugural semester commences in March next year.

Abang Johari also pointed out that more than 65,000 Sarawakians have benefitted from the programmes organised under the CSA. These programmes involve primary and secondary education, sponsorship, tertiary education and professional learning as well as upskilling and pre-employment of Sarawakians.

Under the CSA, there is also the realisation of the first CCUS project in Sarawak—the Kasawari (M1) CCS Project—which is a collaboration between PETRONAS and Petroleum Sarawak Berhad (Petros).

Meanwhile, under the CSA, PETROSNiaga Sdn Bhd will be the sole distributor for Liquefied Petroleum Gas (LPG) in Sarawak, a move that will be realised by December this year. — DayakDaily